Could your electric bill be going up yet again? That’s what some of the state’s utility companies are saying after their credit ratings were downgraded.
There’s frustration for many when it comes to electricity bills. After a summer of sky-high prices, some customers are trying to figure out how they would even pay more.
“It’s just going to make matters worse for everyone. There’s already inflation everywhere, so it’s just going to be bad,” Niaya David, of New Britain, said.
“Being a student, not making that much money so if the energy bills go up, it wouldn’t be too great for me,” Jake Lustig, of West Hartford, said.
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Eversource said bills could go up and the negative impact could be long-lasting after S&P Global downgraded its credit rating, along with some natural gas companies.
University of New Haven finance lecturer David Sacco said to look at it like you would with your personal credit score. When companies borrow money for things like large projects with a lower credit rating, it’ll cost them more.
“So the lower the credit rating, the higher the interest cost it is for them to borrow money,” Sacco said.
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He said that higher borrowing costs could be passed down to the customers. Eversource and other natural gas companies blame the “unstable regulatory environment of Connecticut” for the credit change.
Sacco said while it’s a reasonable argument, the companies are providing a needed utility that’s publicly regulated so customers aren’t overcharged. However, he said it can create inefficiencies.
“If the business doesn't function economically, right, then they'll, they'll stop doing it,” he said.
Republican House Leader Rep. Vincent Candelora said the regulatory environment needs reform and is worried companies like Eversource will do fewer projects due to the increased borrowing costs.
“When the utility companies spend money, they're not being allowed to recover that money. So, they don't even know what they're going to be reimbursed for,” Candelora said.
However, Democratic State Senator Norm Needleman said he’s frustrated at the finger-pointing from companies like Eversource. He said the regulatory agencies are doing a good job protecting ratepayers from being overcharged and that Eversource is already getting record profits from underlying businesses.
“They want to retain their profits. They want to retain their big bonuses and all their corporate perks,” Needleman said.
Right now, it’s not clear how much a customer’s bill could go up, or if it even will go up. Any potential rate increase would have to be approved by state regulators.
