Eversource, a major utility provider, has announced its intention to request a significant rate increase from its electric customers in Connecticut. The proposed hike, amounting to $503 million, would result in an average bill increase of about 11% across all customer classes. This move is aimed at addressing inflationary pressures and the need for ongoing maintenance of the electrical grid.
Regulatory Review Process
The rate increase proposal requires approval from the Public Utilities Regulatory Authority (PURA), which will conduct a thorough review of Eversource’s finances and spending. The goal is to determine whether the requested rates are justified and in the public interest. If approved, the new rates would take effect in July 2027.
Steve Sullivan, President of Connecticut Electrical Operations for Eversource, emphasized the necessity of the rate increase, citing the company’s investments and future needs. “We’ve been doing everything we can to hold the line, but with the level of investments made, we just won’t be able to do that anymore,” Sullivan stated.
Consumer Advocacy and Response
Claire Coleman, head of the state’s Office of Consumer Counsel, has vowed to rigorously examine Eversource’s application. Her office aims to keep costs low for consumers while ensuring infrastructure reliability. Attorney General William Tong has also expressed skepticism, suggesting that Eversource’s timing is strategic following the resignation of former PURA chair Marissa Gillett.
Eversource’s last rate case was settled in 2018, and since then, the company has invested over $3.3 billion in Connecticut. The proposed rate increase seeks to recover costs from these investments, as well as address rising operational expenses, including storm response and tree clearing efforts.
Future Implications
In addition to the rate case, Eversource is pursuing approval to recover over $1 billion in storm-related costs through securitization, a process that allows borrowing at reduced interest rates. This approach aims to minimize the impact on customer bills.
The outcome of this rate case will have significant implications for Connecticut families and businesses, as it will determine the financial landscape for utility costs in the coming years. The new PURA commissioners, appointed by Governor Ned Lamont, are expected to play a crucial role in the decision-making process.
Original reporting: The Connecticut Mirror — read the source article.
