Utility wants to raise $232M in rate hike
Tue August 26, 2014
Lawmakers oppose CL&P rate hike
Consumer advocates and Connecticut officials are lining up against a request by the state’s largest utility to raise $232 million from a rate increase.
Customers of Connecticut Light and Power would pay an average $150 more a year, up about 6 percent, if the Public Utilities Regulatory Authority sides with the utility. The bulk of the increase would be higher monthly charges totaling $114 a year regardless of how much electricity is used. U.S. Senator Richard Blumenthal of Connecticut says the increase discourages energy efficiency and would be felt by seniors and low-income customers.
“People who use the least electricity and who can least afford this rate increase will be hit the hardest," Blumenthal said. "So it is contrary to our economic interests, our environment, our sense of fairness and equity.”
CL&P says most of the money from the rate increase would pay for infrastructure improvements, following damaging storms. Mitch Gross is a spokesman for CL&P.
“Now last year, reliability was better than it’s been in over a decade due to the targeted system improvements and replacements we’ve made in our system,” said Gross.
Connecticut Governor Dannel Malloy sent regulators a letter on Tuesday asking them to reject the request. He said CL&P is seeking to increase its rate of return 9.4 to 10.2 percent.
"In the current economic environment, we do not need to further burden rate payers by increasing CL&P’s rate of return beyond what residents can expect in their own investments," Malloy said in his letter.
The first of three public hearings on the rate request is set for today in New Britain. A draft decision by the state is expected Dec. 1.