NEW BRITAIN, Conn. — Utility regulators have approved another increase in fees for Connecticut’s utility companies to gain back expenses lost in the state’s Electric Vehicle Program.
The utility companies annually request the rate adjustments, which are approved in May by the Public Utilities Regulatory Authority (PURA) and go into effect in July. Utility companies can also ask for adjustments that will go into effect later in the year if approved.
The initial rate changes request was made to “account for 2023 actual revenues and expenses and resulting over or under collections” and to balance out any known expenses for the rest of 2024, according to PURA.
This new request, made on June 24 by both Eversource and United Illuminating, asked PURA to establish a rate for “known and measurable” expenses from the EV Program.
Eversource seeks to recover funds spent since the program’s start in 2021 through the end of this year and recover those expenses from Sept. 2024 through April 30, 2026.
PURA approved a total rate adjustment of about $80 million.
Regulators approved Eversource’s rate for RAM Component – the group of mandated benefits and service fees - to go up from 10.75 cents per kilowatt hour to 11.135 KwH, a 0.3845 increase. For the average consumer (using around 700KwH per month) that comes out to $2.46 of additional charges. That amount is subject to change based on how much energy you consume.
UI’s rate was approved to increase by 0.4592 cents per KwH.
"We appreciate PURA’s decision on this important matter," said an Eversource spokesperson in a statement. "Helping get more electric vehicles on the road is good for air quality and helping the state fight climate change, which we support. We will continue to advocate for regulatory policies which provide for stable and predictable rates for customers while also supporting Connecticut’s public policy goals."
UI said in a statement, "We are pleased with the outcome of today’s Revenue Adjustment Mechanism (RAM) decision, which acknowledges that Connecticut cannot continue delaying the funding of legislatively mandated public benefits programs collected on customers’ electric bills instead of the State’s General Fund. In this decision, PURA has clarified the standards of recovery for Connecticut EV incentive programs. This decision provides us with stable and predictable cost recovery mechanisms for these crucial programs, created by state policymakers to help meet Connecticut’s clean energy goals."
UI continued, "The public benefits costs associated with administering these programs are passed directly to consumers with no markup by the company. These incremental amounts approved by PURA in their decision support these programs and will be reflected in customer bills beginning next month and will go directly towards administering this essential program, supporting Connecticut’s clean energy transition policy."
Now, state Republicans are condemning the decision and continue the call for a special session to establish “rate stability” to “help Connecticut families and job creators who desperately need relief.”
“These rate adjustments for Eversource and United Illuminating of an additional $80 million starting in September to enhance the EV charging grid will further burden ratepayers already struggling to pay their monthly electric bills,” said House Republican Leader Vincent J. Candelora and Senate Republican Leader Steven Harding in a joint statement.
PURA acknowledged that it received over 130 letters from the public opposing the initial rate increase that took effect July 1, as well as opposition from AARP Connecticut and the towns of Southington and Vernon.
The approved adjusted rates go into effect Sept. 1.
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