Approved Order by Connecticut’s PURA will Raise Utility Bills Across the State
On Tuesday, October 28th, Connecticut’s Public Utilities Regulatory Authority (PURA) approved a massive rate increase that marks one of the most dramatic regulatory reversals in recent memory. The final order, issued with only two commissioners following Chair Marissa Gillett’s resignation, granted United Illuminating (UI) $450.8 million in revenue, a staggering $37.3 million increase from the $413.5 million recommended in the Proposed Final Decision just weeks earlier. This will result in a roughly $10-$13 monthly bill increase for all customers.
The reversal came after UI filed an eleventh-hour “Alternative Resolution Position” on October 17th, essentially dictating the terms to the Commission while threatening immediate Superior Court appeal. The final order adopted UI’s demand almost verbatim, matching their requested $448.6 million within 0.5%.
Most troubling, PURA slashed performance penalties for environmental violations and poor customer service from 50 to 20 basis points, effectively rewarding UI with an additional $4 million annually despite ongoing failures at English Station remediation and customer service deficiencies. The utility’s effective return on equity jumped from the recommended 8.75% to 9.25%, each basis point worth approximately $1.35 million in annual revenue extracted from Connecticut families.
Vote Solar’s Northeast Regulatory Director, Lindsay Griffin, issued the following statement:
“This decision represents regulatory capture at its worst, and this rate hike represents a fundamental shift away from affordability and accountability. When UI threatened an immediate Superior Court appeal just 11 days before the statutory deadline, PURA abandoned $37 million in consumer protections carefully crafted in the Proposed Final Decision. This $37 million burden on Connecticut families and businesses set a dangerous precedent: utilities can overturn reasoned regulatory decisions simply by threatening costly legal battles. PURA had a choice: stand with Connecticut ratepayers or bend to utility demands, and unfortunately, they chose wrong.
“Connecticut families deserved a Commission with the backbone to defend the original decision’s consumer protections, not one that hands over $37 million in response to legal intimidation. This failure of regulatory courage will cost every household and business in UI’s service territory for years to come. Only by swiftly implementing a Performance-Based Ratemaking framework can PURA’s new Commission restore faith that Connecticut’s regulatory system serves families and businesses, not utility shareholders wielding litigation threats.”