by Christian Wade
Connecticut’s natural gas customers have been “overcharged” more than $8 million, according to Attorney General William Tong, who calls on utility regulators to order consumer rebates.
Tong said a review of the most recent earnings report by Connecticut Natural Gas, which serves about 184,000 customers, shows the company has been earning 177 basis points above its authorized return on equity of 9.3%. He said that based on the report, the company’s rates “appear well beyond what is necessary to cover their expenses.”
To correct the overpayments, Tong (pictured above) is asking the state Public Utilities Regulatory Commission to convene hearings on the company’s natural gas rates and issue refunds to customers.
He accused the company of “profiting off the backs of Connecticut families and businesses” and called on regulators to hold immediate hearings on the company’s rates.
“We pay far too much for our utilities as it is, we should not be charged a penny more than needed,” Tong said in a statement. “CNG needs to come before PURA right away for a full rate hearing so we can scrutinize their books and get these inflated costs under control. Connecticut ratepayers should not be subsidizing CNG shareholders.”
Tong also pointed out that rate hearings are required to be held every four years, but said state regulators have yet to conduct a review of CNG’s rate in at least five years.
The petition to regulators was also signed by the state’s Consumer Counsel, Claire Coleman, who says the company needs to go before regulators for a “line-by-line accounting of their earnings.”
“When rates fall out of sync with a utility’s actual cost needs, the pocketbooks and quality of life of Connecticut residents can suffer,” she said. “Given our current economic situation, families, nonprofits and businesses across the state have had to make tough decisions to ensure they live within their means.”
To be sure, state regulators had previously approved the company’s current natural gas rates. Regulators have also approved the company’s plan to return more than $4 million to customers this fall under an “earnings sharing mechanism” that requires 50% of a utility’s “over-earnings” to be refunded to customers.
Craig Gilvard, a spokesman for Connecticut Natural Gas’ parent company Avangrid, said the utility is “pleased to be able to return money to ratepayers this year.”
“While CNG is reviewing the motion filed by the Attorney General’s Office this morning, PURA has already approved CNG’s proposal to return over $4 million to its ratepayers this upcoming heating season,” he said in a statement.
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Christian Wade is a contributor to The Center Square.
Photo “William Tong” by William Tong.
