NEW BRITAIN - Customers for Connecticut Light and Power will see a fixed fee rate increase that's significantly less that what the power company had proposed after the Public Utilities Regulatory Authority issued it's final ruling Wednesday.
PURA said an average residential customer who uses 700 kWh of electricity would see an increase of approximately $7.12 per month; a 5.5 percent increase. If CL&P's requested rate hike had been approved the average customer's bill would have increased by $12.48 or 9.66 percent.
PURA's final ruling reduces by approximately $101.9 million a $231.6 million revenue increase request by CL&P in June 2014.
The PURA decision also imposes a one-year penalty for CL&P's performance for problems in restoring service from Tropical Storm Irene and a snow storm in later in 2011.
The monthly service charge is what residential customers pay for access to and maintenance of the electric grid. PURA approved an increase tomonthly charge to $19.25.It's separate from the charge for the amount of power consumed. Currently the rate is $16 per month. CL&P wanted to raise the rate to $25.50 per month.
U.S. Senator Richard Blumenthal denounced the decision in a statement, "After sustained public outcry, PURA’s decision today to grant Connecticut Light and Power a more than 20 percent increase in its fixed rate charge is disappointing and unconscionable. CL&P’s fixed charge for residential users will now be the highest in New England, an unacceptable distinction with serious consequences for Connecticut ratepayers—most notably low-income and elderly users."
The ruling authorizes a $257 million capital spending budget. CL&P has about 1.2 million customers in 149 towns and cities in the state.
In November, the Public Utilities Control Authority approved a generation rate increase of around three and five cents per kilowatt hour for Connecticut Light and Power and United Illuminating.
The rate increase is for those customers who purchase power directly from CL&P and UI. According to PURA, as of Jan. 1, 2015, CL&P’s residential generation rate will increase from 9.990 cents per kWh to 12.629 cents/kWh. UI’s residential generation rate will increase from 8.6657 cents/kWh to 13.3108 cents/kWh.
CL&P's spokesperson, Mitch Gross, released a statement from the company on the decision:
While we are still reviewing the final decision on our rate filing, it's important to note there are significant expenses associated with running a large and complex electric system and it is crucial that rates recover these costs so that we can continue making targeted investments in Connecticut's electric infrastructure. We are committed to making our system more reliable and efficient for our customers, as demonstrated by the fact that 2013 was our best reliability year in over a decade, with fewer and shorter power interruptions. We are also proud of the savings our merger provided and will continue to manage costs to benefit our customers.
The generation rate recovers the cost to generate power, and is about 50 percent of the monthly electric bill for most residential users.
Around 40 percent of state residents take the standard service generation from CL&P and UI. Others have chosen electricity provided by other approved suppliers.
