Yankee Gas, a subsidiary of Eversource, is asking for a rate hike that would raise bills by 43% for thousands of customers if approved.
The company filed an application with the Public Utilities Regulatory Authority on Tuesday, asking for a $209 million rate hike.
If approved, more than 200,000 customers in Connecticut who use Yankee Gas to heat their homes could see their bills increase by around $46 per month.
“We need PURA to do everything it can to investigate and probe this request, but we also need state policymakers going forward to pave the way for better policies that lower utility bills for every Connecticut resident going forward,” Sen. Ryan Fazio (R-Greenwich) said.
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Attorney General William Tong said the rate hike would raise revenue for the company by 29%.
“Read the room, Eversource. Connecticut families are fed up with sky high energy costs and can’t afford this massive increase. This is yet another tone-deaf slap in the face from our out-of-touch public utilities,” Tong said in a statement.
Eversource responded with its own statement.
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“Regulators are requiring a rate review of our natural gas operations, which is why we filed a distribution rate change application today – our first in six years. The increase is driven by the substantial investments we’ve made - and must continue to make - in the natural gas distribution system to ensure customers have safe, reliable service year-round, and especially during the winter heating months. These vital investments are part of the service customers pay for through rates and are critical to safety and reliability," Eversource said.
"Recent PURA precedent has led to regulatory outcomes that result in higher costs for customers over shorter periods of time. To avoid that, we’re presenting a proactive approach that directly addresses the costs needed to ensure the safety and reliability of the natural gas system while proposing a new performance based regulatory (PBR) plan that sets rates over multiple years. The PBR plan is designed to transparently measure performance, promote long-term cost control, create bill stability, and prevent continued rate shock for customers by establishing metrics to promote safety and reliability, customer satisfaction and engagement, and reduce emissions,” the Eversource statement went on to say.
The proposal for a rate hike is not sitting well with customers.
“I think their priorities are not always where they should be – taking care of their customers,” Nelson Bondhus, of Farmington, said.
“In this type of situation, people are suffering, there’s got to be compromise between the two sides,” he added.
“We’re fortunate because both my wife and I work, but I know people don’t have that same ability to do that and I think they’re the ones being hurt by this especially,” Dave Chamberlain, of Farmington, said.
The review process will be long and will include public hearings.
If approved, the rate hike would go into effect in November 2025.
