by Christian Wade
Connecticut utility regulators have rejected a proposed rate increase by one of the state’s largest utilities, which was seeking another $130 million from energy consumers.
The state Public Utilities Regulatory Authority turned down a request from United Illuminating to increase electric rates by nearly $131 million over the next three years. Instead, the agency approved a rate increase of just over $2 million for next year, which is still subject to final approval by the PURA board.
The company, which serves about 335,000 customers in the state, argued that it hadn’t increased rates since 2016 and needed the money to upgrade its electrical distribution system.
But regulators criticized the company for its “failure” to clean up its former English Station site properly and imposed a $2 million annual penalty on the utility for not completing an environmental remediation on the property.
“It has taken a lackadaisical approach to ensuring site security as shown by its failure to act to prevent (or to timely address) vandalism around the remediation site,” the agency wrote. “The result is an apparent lack of ownership or accountability.”
Connecticut has some of the highest energy costs in the nation, and regulators are pushing utilities to reduce charges for gas, electricity and water.
Connecticut Consumer Advocate Claire Coleman said her office is still reviewing the PURA decision but praised it as a “victory” for ratepayers that “will shield United Illuminating customers from paying tens of millions of dollars in unjust and unreasonable increased rates.”
“Reducing UI’s profits decreases the rates customers pay for electric service,” she said in a statement. “These profits have historically been inflated across the utility sector, so this appropriate reduction is an important victory for UI customers.”
Connecticut Attorney General William Tong, who recommended that PURA reject the request, also praised the move by regulators to turn down the company’s “bloated and unsupported” rate increase.
“This strong decision sends a clear message to Connecticut’s regulated utilities — failure to meet basic obligations to ratepayers will not be rewarded,” he said in a statement.
Tong said the company has “utterly refused” to clean up English Station, which remains a contaminated blight on the residents of New Haven who were promised better.
“This failure will now come at a significant cost to United Illuminating’s shareholders,” he said. “Perhaps now United Illuminating will finally get serious about meeting their clear obligations under the law.”
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Christian Wade is a contributor to The Center Square.Â
