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    Friday, May 17, 2024

    Norwich utilities commission hears public outrage over Kentucky Derby trips

    Norwich — Several public speakers railed against the Board of Public Utilities Commissioners on Tuesday, calling the four years of so-called “strategic retreats” to the Kentucky Derby unethical and even criminal, vowing to press for more information and demanding the commission issue a public apology and vote to end any such trips in the future.

    The Connecticut Municipal Electric Energy Cooperative — a wholesale energy cooperative owned by six municipal utilities in the state, including Norwich Public Utilities, Groton Utilities and Jewett City Public Utilities — has hosted trips to the Kentucky Derby in each of the past four years.

    Dozens of CMEEC board members, municipal utility commissioners, city officials, business representatives and numerous guests with no direct affiliation to CMEEC or member utilities have attended the trips.

    According to an invitee list obtained from CMEEC, Norwich utilities commission Chairwoman Dee Boisclair and commission Vice Chairman Robert Groner, along with NPU General Manager John Bilda, NPU Division Manager Steve Sinko and Norwich Mayor Deberey Hinchey attended the 2016 Kentucky Derby weekend.

    “This is not an ethical problem,” Douglas Schwartz of Groton said to the Norwich commission. “It's a criminal problem.”

    Schwartz, a Groton Utilities ratepayer, complained the CMEEC has no board meetings and agendas posted on its website, calling that “an obstruction of justice.” He said if representatives from business suppliers to CMEEC or the municipal utilities attended the trips, that could be considered kickbacks.

    Groton Utilities Director Ron Gaudet, Groton Utilities commission member Ed DeMuzzio and Groton Utilities finance General Manager David Collard and former Groton City Mayor Dennis Popp also attended the trip this year.

    Norwich Alderwoman Joanne Philbrick, who said she was speaking as a resident and ratepayer Tuesday — she said she will speak as a City Council member at a future meeting — called the trips an insult to residents and ratepayers. Philbrick said she has long been a strong supporter of NPU but said the city-owned utility now has violated her trust and won't get it back easily.

    “There are people in this room struggling to pay their property taxes,” Philbrick said. “There are people in this room struggling to pay their utility bills, which keep going up and up. This is unethical. It very well may be illegal. People will not let this go.”

    Philbrick also questioned whether those who went on the trip should have to declare the monetary amount on their federal income taxes, since the per-person cost for the 2016 trip would have been $7,770.

    “That's between a quarter and a half a million dollars,” Philbrick said of the $342,300 total this year. “Do you understand how much money that is?”

    About 25 people attended the utilities board meeting Tuesday, including five aldermen and Mayor Hinchey, who attends regularly and gives a report of her recent activities.

    Alderman Peter Nystrom, council president pro tempore, said the utilities commission should vote immediately to end the practice and cancel any future trips. He said the trips also were an insult to NPU employees — several of whom were honored at the start of Tuesday's commission meeting for taking top place in a regional electric skills competition.

    Nystrom said it's erroneous to say that no ratepayer money went into funding the trip, since CMEEC Executive Director Drew Rankin said the funds came from an account in which all the remaining funds are turned over to member utilities to help reduce rates.

    Commission members later did not directly address the Kentucky Derby controversy or the public complaints aired Tuesday. But at Bilda's request, attorney Paul McCary of the Hartford firm Murtha-Cullina gave his opinions of the allegations of ethics violations.

    McCary flatly dismissed any claim that there were violations of either the utility's or the city's ethics codes. He said the trip did not constitute a “gift” to attendees, because CMEEC actually is owned by the member utilities. He said if CMEEC were a vendor of the city-owned utility, that would constitute a gift and ethics question.

    McCary compared the four-day derby trips — which featured no business conferences, presentations or workshops — to a company Christmas party. He said the party could become more and more lavish, from cider and doughnuts to fancy dinners or outings.

    “As it gets more lavish, you may question the business decision, but it's not a gift,” McCary said.

    c.bessette@theday.com

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