CL&P Requests Rate Hike
Connecticut Light & Power is requesting an increase of nearly 60 percent in the fixed monthly service fee on monthly electric bills.
In a letter to the Commissioners of the state`s Public Utilities Regulatory Authority (PURA), Governor Malloy said the request is at odds with Connecticut`s strategy of encouraging energy efficiency and the use of renewable energy sources and unfairly penalizes those who use the least energy, small businesses and people on fixed incomes.
As part of its request, CL&P has proposed increasing the fixed monthly service fee charged to all residential customers by nearly 60 percent – taking it from $16 to $25.50 per month. This would increase the fixed portion of the monthly bill for the average residential customer from 12 to 20 percent. A similar increase on small business customers would increase the fixed monthly charge by 45 percent.
In discussing his letter to PURA, Governor Malloy said, “If granted, the proposed increase cuts to the heart of our State`s nationally recognized Comprehensive Energy Strategy (CES) by limiting the ability of residents and businesses across our state to reduce their electric bill through energy efficiency or the use of solar, fuel cells and other renewable energy sources. Such a step is completely contrary to Connecticut`s energy policy, unfairly penalizes those who use the least electricity, and unduly burdens small businesses and people on low or fixed incomes.”
Another request from CL&P would grant it permission to increase its rate of return on investments in the electric distribution system. The current authorized rate of return on investments by CL&P is 9.4 cents per dollar – and it is seeking to increase that to 10.2 cents per dollar.
PURA opens public hearings Wednesday, Aug. 27 on a request by CL&P to increase rates for the distribution of electricity in its service area by $117 million. CL&P is also seeking to finalize cost recovery for $90 million spent to repair damage caused by a series of major storms, and $25 million it plans to spend to improve the resiliency of the electric grid by putting wires underground in critical areas, enhanced tree trimming, and the installation of newer and stronger wires.