United Illuminating

United Illuminating customers could see another rate increase. Here's why.

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Electricity bills could be going up again if United Illuminating gets its way.

The utility company is looking for another $105 million from state regulators, which would be raised through your electric rates. This comes after a summer of frustration from customers already paying more.

If approved, customers could see a 9 to 10 percent increase. For example, if your bill was $150 before, it would increase about $15.

United Illuminating submitted its notice of intent to file its Reliability Investment Plan with Public Utilities Regulatory Authority (PURA) on Monday.

They are requesting $105 million to support more than 200 infrastructure projects including rebuilding the Old Town Substation in Bridgeport to provide safe and reliable power to thousands of customers and replacing centuries-old equipment.

The company says the formal request will come in the next 30 to 60 days. That notice came three months after a July 1 increase to cover increases in the public benefits portion of electricity bills.

People have been frustrated with higher bills after regulators approved increases in the public benefits portion of the bills for Eversource and United Illuminating.

“Too much bad, because there’s so much we’ve got to pay for bills anyway,” Charles Jefferson of North Haven said.  

UI says the increase is necessary, though. It’s seeking $105 million to pay for 350 projects to its system, which services roughly 345,000 customers across 17 towns.  

“This case is really about the wires, the poles, distribution substations,” UI Vice President of Regulatory Affairs Dan Canavan said.  

UI will need to make the case to PURA that it needs the rate increase to pay for the upgrades.  

“You have to look at all the expenses, make sure those expenses are justified before you give a green light,” Gov. Ned Lamont, (D - Connecticut), said.  

The public benefits charge pays for a range of programs including clean energy initiatives.

The increase is tied to a power plant deal and recovering costs for not shutting off people's power during the pandemic, plus other factors like hot weather. The combination of the July 1 rate hike and record heat in July left many customers with sticker shock.  

“Well, 400 dollars a month is way, way too much,” Ariel Tamor, of Hamden said. 

Attorney General William Tong is now voicing concerns about UI's proposal saying he's going to "scrutinize every penny of this pending application." He went on to say that he finds this to be an "insult to Connecticut families who are struggling to keep their lights on."

Rep. Jonathan Steinberg, (D - Westport), said the legislature changed the process in recent years to give PURA more authority to reject requests.  

Steinberg, who co-chairs the legislature’s Energy and Technology Committee, agreed that the burden of proof is on UI. He also shared customers’ frustration over the timing.  

“Certainly, the announcement right now while people are suffering from this current problem indicates they really don’t seem to get it,” Steinberg said. “There seems to be a general lack of compassion for what ratepayers are going through.”  

The rate increase that took effect July 1 only lasts for 10 months, meaning it will come off customers’ bills in the spring.  

When asked if UI considered waiting, Canavan said there is no good time for UI to seek a rate increase.  

He noted the subsidy deal to support Millstone lasts another five years, meaning customers could have to absorb another hit again during that time.  

Canavan also warned that UI would likely have to scale back its system maintenance if its rate request is delayed or rejected.  

Electricity bills could be going up again if United Illuminating gets its way.
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