United Illuminating gets smaller rate increase than requested

A win for Connecticut consumers as state regulators deny power company United Illuminating a significant rate increase.

The lengthy, hotly-contested case wrapped up after roughly a year.

Regulators did make concessions to the Connecticut utility in its final decision. It serves 17 towns and cities in southwestern Connecticut, one of the state’s most densely populated areas.

United Illuminating, or UI, requested an annual average residential bill increase of 8% starting Sept. 1.

The Public Utilities Regulatory Authority, also known as PURA, ruled a 2% hike was more appropriate, but will allow UI to potentially recover up to a half-billion dollars in system improvements.

PURA said UI’s original request, had it been approved, would have represented an average residential bill increase of $200 in the first year of a three-year rate schedule.

The regulatory authority explained it is obligated to deny any part of a company’s request not proven to be just and reasonable, saying in an FAQ that “…UI had not met this burden with respect to certain aspects of its requested operating and capital costs, despite having extensive opportunities over the last year to do so.”

Two weeks ago UI released a detailed statement that laid out the company’s opposition to PURA’s draft decision on the rate case. You can view that here.

Before the vote on the plan, Commissioner Michael Caron said, “Our legislature has taken a more active interest in the regulatory world, they have made clear they expect more scrutiny and precision from us all and that is our obligation to fulfill.”

Earlier this month before a hearing, UI employees rallied outside PURA offices in New Britain - the company criticizing PURA’s draft decision, saying customers could see lower-quality power and UI would struggle to maintain its financial integrity.

PURA commissioners said they made adjustments to their decision after UI made valid points and corrections that should enable UI to earn more revenue.

UI spokesperson Sarah Wall said in a statement, “We are evaluating PURA’s decision.”

PURA has also woven incentives into its decision to encourage UI to improve its customer service and complete a longstanding environmental remediation project.

The regulatory agency said this rate case investigation lasted 350 days, with four public hearings, days of field audits and inspections, plus hundreds of file exhibits and discovery requests.

PURA said UI’s last rate case was completed in 2016. Reaction to the final decision was swift.

The CT Office of Consumer Counsel said in part, “PURA’s final decision appears to be a fair result that supports operational needs while protecting customers from unnecessary and unjustified costs.”

Bridgeport Mayor Joseph Ganim also weighed in.

He released a statement that said in part, “Ratepayers in Bridgeport have had to manage the financial strain of paying a substantial amount for electricity rates that are excessive for the average household in our City. I am thankful that this will leave our residents with a peace of mind, knowing that rates will not remain at a dramatic increase and will no longer act as a large burden within Bridgeport.”