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PURA denies Connecticut gas rate hike proposals

PURA's final decision requires CT Natural Gas and Southern CT Gas to collectively return $120 million to their customers.

CONNECTICUT, USA — Connecticut's Public Utilities Regulatory Authority, or PURA, has denied proposed gas rate hikes for Connecticut Natural Gas, or CNG, and Southern Connecticut Gas, or SCG, according to the Conservation Law Foundation, or CLF, Monday.

PURA voted 2-1 in a special meeting Monday to reject a rate increase for CNS and SCG.

The final decision requires both Avangrid-owned companies to collectively return $120 million to their customers, CLF said. 

While CNG sought a $19.7 million increase, Attorney General William Tong noted that the decision would decrease CNG's revenue by 5.4% to $24 million, lowering bills by about $7-8 per month.

SCG, which sought a $43 million increase, would instead have a decrease in revenue by $11 million or 2.5%, lowering bills by $3.50-4.00 per month, Tong said.

Tong said in a statement, “This is finally a bit of good news for Connecticut families desperately in need of relief from unaffordable energy costs. Let’s remember how we got here—CNG over-collected millions of dollars from ratepayers. Then they turned around and asked for millions more. Their rate demands were packed with inflated profits and unnecessary expenses. PURA was absolutely right to slash their revenue. We’re going to keep combing through every single one of these rate cases in search of every last padded penny, and we’re going to keep fighting tooth and nail for Connecticut families at every single step of these proceedings."

According to Shannon Laun, vice president of CLF Connecticut, the decision includes that "the companies must report their emissions and explain how they are reducing carbon pollution in line with state climate law. As a next step, PURA should follow other states that are developing frameworks to end people’s reliance on polluting gas and transition to clean heating.”

CLF said that many residents and businesses in the state are dependent on gas heating, despite it being a source of climate pollution. According to CLF, the state's climate law requires a decrease in carbon pollution by at least 45% by 2030 and at least 80% by 2050, despite the companies' continuing to invest in new gas pipelines.

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According to Tong, an earnings report in 2023 showed that CNG "over-collected $8 million" from Connecticut residents and businesses. Although half of the over-earning was "returned to ratepayers to offset winter heating bills," $4 million was distributed to shareholders. 

Despite the overearning report, Tong said that both of the Avangrid-owned companies submitted applications for rate increases.

CNG and SCG did not immediately respond to a request for comment on PURA's final decision.

Senate GOP leaders Sen. Ryan Fazio, Sen. Tony Hwang and Sen. Minority Leader Stephen Harding said in a statement, “We appreciate and thank PURA for doing its due diligence in assessing what costs are - and aren’t - recoverable by utilities. Every dollar saved helps. Working and middle class families are barely scraping by in Connecticut. Utility costs in Connecticut are too damn high. Republicans have offered ideas to provide relief. We - and 68,000 state residents - signed a petition for the Democrat-dominated legislature to do something. Yet, they have done nothing.”

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