HARTFORD, Conn. — Eversource submitted a rate increase proposal, and it may cost customers nearly $40 more on their monthly bill this spring.
The electric company filed its rate increase request on Thursday with the Public Utilities Regulatory Authority (PURA). The increase would take place on May 1 if accepted.
In a statement regarding the increase, Eversource complains that due to state policies and PURA, customers will face a "rate shock" rather than rate stability over time.
Eversource said that over the last several years, state regulators have changed how electric distribution companies charge for the supply and other costs covered by the electric companies for their customers.
According to Eversource, the supply charges and other annual costs are passed through "reconciling rates" outside the base rates due to these changes. Most of the increased costs can be seen in the Public Benefits portion of customers' electric bills.
Eversource states that the new method, which changed how costs are calculated, has led to a "significant delay" in collected reconciled costs and the possibility of a $38 per month increase beginning in May.
Eversource also stated that the rate increase is due to the "high number of unpaid customer balances" for "multiple years" during the COVID-19 pandemic. They said that all customers pay for overdue customer balances.
In the company's fourth-quarter earnings report published Monday, they reported a loss of $442 million for all of 2023. According to The Hartford Courant, the company wants to raise cash by selling Aquarion Water to offset a "one-time $1.9 billion loss" on offshore wind investments.
Eversource said they are trying to work with multiple state agencies and policymakers to "collaborate on a thoughtful solution for customers" regarding the possible rate hike.
Any collaborative proposal for rate stabilization would be subject to review and approval by PURA.
As it filed its proposal on Thursday, it called on Gov. Ned Lamont, Attorney General William Tong, the Department of Energy and Environmental Protection, and the Office of Consumer Counsel to help customers.
In a statement, Eversource President of Electric Operations in Connecticut, Steve Sullivan, said the company had advocated for various changes to provide rate stability for its customers over the last two years.
“Our customers want predictability and not a constantly and significantly changing electric bill each year," said Sullivan. "We’re coming forward with a menu of solutions to achieve the goals of providing our customers with stability for several years, modifying policies to help prevent this kind of rate shock from happening in the future, and ensuring we have the resources needed to manage the electrical system and provide high-quality customer service.”
“Connecticut families pay far too much for basic utilities, and this latest increase is unaffordable and unsustainable. I support PURA in scrutinizing every line of this filing to ensure ratepayers do not pay a cent more than necessary. The utilities need to stop deflecting blame and focus on what they can do to mitigate the harm to ratepayers." said Attorney General William Tong.
Lawmakers are also weighing in on the proposed rate hike.
House Republican Leader Vincent Candelora said the rate increase should be a "wake-up call" for Lamont, PURA Chairman Marissa Gillet, and Democratic lawmakers who seem to "revel in passing mandates and taking populist potshots at utilities."
"What you're doing isn't working, and in fact, it's making life more stressful for ratepayers," said Candelora. "Preventing utilities from forecasting expenditures and recovering costs associated with providing services and system upgrades sounds great in a constituent mailer or newspaper article, but it doesn't make those costs go away—it only defers them. "
Candelora went on to say: "Somebody must cover the $160 million price tag from customers who said they couldn't pay, and now that bill is due. Regulators and Energy Committee Democrats are playing a dangerous game that lacks a clear strategy, leaving ratepayers in the crosshairs while degrading utilities' relationship with investors who provide the capital for the services and grid upgrades the legislature and regulators require. At some point, the governor has to get more aggressive in wrangling utility companies and his regulators to chart a path forward that will produce a better outcome for the citizens of this state."
However, some lawmakers are seeing Eversource's messaging around this new filing as part of a broader campaign against Gillett.
Gillett was behind the change in how the rate adjustment process goes. In December 2020, after investigating Eversource's high electric bills that summer, state regulators said they found that the economic impacts of COVID-19 exposed deficiencies in the existing framework at the time.
Gillett was also at the helm when PURA found that both Eversource and United Illuminating responded abysmally to Tropical Storm Isaias in 2020, creating a "significant risk to public safety."
"It's pretty clear that the utilities are not a great fan of Marissa Gillett," said Sen. Ryan Fazio (R-Greenwich) to The Hartford Courant. "I think she has the interest of consumers at heart, and whether every decision she and the other commissioners make is right or wrong is a complicated question. Each of those decisions should be examined and judged on their Merits.
According to The Hartford Courant, Fazio called the campaign against Gillet "untoward."
Both Fazio and Sen. Norm Needleman (D-Essex) serve on the Energy and Technology Committee.
"In my opinion, they are just trying to get her fired. And that's as simple as it is," said Needleman to The Hartford Courant.
In Eversource's filing, they proposed phasing in any potential rate increase later in the year where customers could see the benefit of lower supply costs. They also suggested changing the rate-making methodology to allow for the forecasting of costs and factoring them into rates to avoid issues in the future.
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Jennifer Glatz is a digital content producer at FOX61 News. She can be reached at jglatz@fox61.com.
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