While Everource and United Illuminating (UI) have both filed for rate increases with the Public Utilities Regulatory Authority, state officials are stressing that the filings are just the first step in a rigorous process where each request will be thoroughly scrutinized.
Both requests would take effect May 1, 2024. Eversource’s request would mean a $38 increase, or 19%, for its residential customers. For United Illuminating, residential customers will see an increase of around 12.3% or $30.
The companies filed these requests due to a 2020 overhaul to the rate adjustment process. Electric distribution companies are required to notify PURA by Feb. 15 of any rate adjustments.
Taren O’Connor, a spokeswoman with PURA, said the process is like an audit, adding that the proposed rates will be carefully reviewed.
“These filings and anticipated rate impacts represent the requests of each electric utility, but importantly signify just the first step in a rigorous public process during which PURA and its stakeholders will thoroughly vet the requests, including through the issuance of discovery questions and evidentiary hearings,” O’Connor said.
O’Connor said the public is encouraged to provide feedback by submitting their comments to PURA by email to PURA.ExecutiveSecretary@ct.gov and referencing the corresponding docket number.
UI’s request is a result of pass-through costs driven by public policy decisions, that company’s representatives said.
“The primary drivers of the increase are the contracts for the Millstone and Seabrook nuclear power plants, which were anomalously low in 2023 due to global energy market conditions, and the increase in costs for low-income assistance programs,” said Sarah Wall Fliotsos, UI spokesperson. Fliotsos said these costs make up 87% of the increase.
Fliotsos said UI is aware of the impact to customers, who can enroll in bill management programs by bringing their energy bills, income and benefits information to the North Haven Memorial Library on Thursday, Feb. 29 between 3 p.m. and 6 p.m. Customers can also look up energy efficiency programs at www.EnergizeCT.com.
Eversource representatives said a factor to their proposed increase is the number of unpaid customer balances going back years during the COVID pandemic.
“Overdue customer balances are paid for by all customers,” Eversource said in a statement.
Electric distribution companies used to be able to factor in the forecasts of future costs as part of the annual rate adjustment, but now have to use previous year’s actual costs and revenues.
“Without aligning current costs to collection from customers, rates for customers will consistently tend to be higher and more volatile for customers than market trends,” Eversource statement reads. “Collaboration is needed to revisit policies that layer past and future costs to avoid constant rate shock now and in the future.”
Eversource, for example, is suggesting phasing in any potential rate increase over a period of time later this year and bringing back forecasting future costs and factoring them into the rates.
Meanwhile, state legislators are not happy with the proposed increases.
State Sen. Norm Needleman, an Essex Democrat who co-chairs the Energy and Technology Committee, said both Eversource and UI are resisting being held accountable after years of a weak regulatory climate.
“According to earnings reports issued just days ago, Eversource saw a 6% increase in earnings per share from 2022 to 2023, while announcing a nearly $2 billion loss on their wind energy gamble,” Needleman said in a statement. “They’re doing fine – at the very least, much better than many Connecticut households. And yet they claim they’re broke and those households need to pick up the slack. Connecticut deserves better.”
State Sen. Ryan Fazio, a Greenwich Republican who is a ranking senator on the Energy and Technology Committee, echoed Needleman’s sentiments, adding that Connecticut families are paying too much already for their utility bills.
“It also underscores the vital need for strong oversight from PURA to protect the interests of Connecticut residents in dealings with a regulated monopoly like Eversource,” Fazio said.
