Two subsidiaries whacked with record penalties for regulatory, environmental violations

Paul Frisman

Two subsidiaries of Northeast Utilities last week set records they would just as soon have avoided--the largest financial penalty levied in the history of the nation's 
nuclear power industry, and the largest criminal penalty ever paid in a Connecticut environmental case.

One subsidiary, the Northeast Nuclear Energy Co., was fined $5 million for 19 violations of the Atomic Energy Act in connection with false statements made to nuclear regulators.  The other subsidiary, the Northeast Utilities Service Co., paid
$5 million for six violations of the federal Clean Water Act.  "These groundbreaking penalties reflect the seriousness of the crimes," U.S. Attorney Stephen C. Robinson
said in a prepared statement. "This historic plea and sentencing proves that if you
violate the law, if you lie to regulators and choose profits over the public, you will be prosecuted."

The violations occurred between 1992 and 1996 at the Millstone nuclear power plants in Waterford and the Devon generating station in Milford.

For the full story, follow this link:
Law News Network -- Northeast Utilities Pays Heavy Price for Cutting Corners