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Blumenthal and legal experts agree that any po- “How the consumers would benefit is, while there
tential dismantling would have to start with the is no competition, there would be more responsive
state Legislature, a process Blumenthal said “could localized operating companies,” said Jacobson, a
be done fairly quickly.” partner with Wilson Sonsini Goodrich & Rosati in
“I think there needs to be fundamental restruc- New York City. “They’d have smaller territories to
turing of the utility industry in deal with and they could cover
Connecticut,” said Blumenthal, those territories more effectively
who noted he personally asked than a sprawling enterprise. Ever-
the company’s president and chief source was quite unresponsive to
executive officer, James Judge, to the last storm.”
resign. Judge declined to do. “I’ve Eversource, Jacobson said,
called for the consideration of “could be broken up into several
breaking up Eversource because parts. It conceivably could look
we need to think big about be- like one company running, for
coming smaller and smarter and Blumenthal and legal example, Groton and points in

more responsive.” experts agree that any the east and another in Stamford
Blumenthal, a former state at- potential dismantling would and another in New Haven. It
torney general, said a breakup could look like that.”
would “have the potential for have to start with the Corporate breakups, Jacob-
being more responsive to local state Legislature, a process
needs.” Blumenthal said “could be son said, “are usually better for
consumers. The three major di-
Blumenthal said a decision on done fairly quickly.” vestitures that people think about

how many companies a broken were all monumentally successful
Eversource would have “is a topic for consumers. Those were the
to be decided by the Legislature breakups in 1911 of both Stan-
and the public utility.” The sena- dard Oil and American Tobacco
tor, though, pointed to Norwich and the 1980s breakup of AT&T.”
and Wallingford, Connecticut With regard to Eversource, Ja-
communities that have munici- cobson said, “I have no reason to
pal-owned utility companies. believe it can’t be done. You do,
“Norwich’s rates are 20% lower,” Blumenthal said. though, need to have people who are competent to
“And power was installed after the storm more run it.”
quickly in two days, not eight days.” In response to the Blumenthal proposal, Ever-
Blumenthal, who has also called for refunds and source issued a statement, reading, in part: “There
rebates for consumers, said “there has to be perfor- have been a number of proposals brought up by
mance-based profits and a breakup.” political leaders that ranged from well-informed to
Blumenthal noted this week the utility “an- some that showed a misunderstanding of the facts.
nounced its profits were $124 million more than it … We do support creating a transparent, perfor-
had projected for the year. They are also proposing mance-based environment, that’s grounded in facts,
raising rates and want to charge consumers more. defined metrics, and builds a better overall system
That, as a snapshot, tells you why this system is for our consumers.”
broke.” ¦

Jonathan Jacobson, the former chairperson of the Robert Storace covers legal trends, lawsuits and
antitrust section of the American Bar Association, analysis for the Connecticut Law Tribune. Follow
disagrees with Hoffman’s assessment and thinks a him on Twitter @RobertSCTLaw or reach him at
breakup could be a positive. 203-437-5950.

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