Connecticut regulators has issued a final decision in United Illuminating’s rate case, reducing UI’s proposed $98 million revenue increase by $39 million, while lowering UI’s ROE from 9.15% to 9.10%. Significantly, the Public Utilities Regulatory Authority *lowered* UI’s monthly service charge for residential customers from $17.25 to a maximum monthly service charge of $9.64. UI had proposed maintaining its $17.25 monthly charge.
PURA noted in its decision that state law now requires it to establish a maximum residential customer charge for standard residential service in each utility’s next rate-increase application (following the enactment of the new law). PURA is required adjust the residential customer charge “to recover only the fixed costs and operation and maintenance expenses directly related to metering, billing, service connections and the provision of customer service.”
The 2015 law was prompted by fierce public and political backlash against a 2014 PURA decision to allow Eversource (née CL&P) to raise its monthly residential customer charge to $19.25.