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Regulatory authority rejects United Illuminating's proposed rate increase

The ruling also determined a number of issues regarding cost allocation, rates, revenue adjustments, and customer service.

NEW BRITAIN, Conn. — United Illuminating's rate increase was rejected by regulatory authorities Friday. 

The Connecticut Public Utilities Regulatory Authority (PURA) made the final decision to reject the UI proposed distribution rate increase of $131 million over three years. 

Instead, PURA authorized an increase of nearly $23 million, which will see an average increase in customer bills of about 2% compared to current levels.

The ruling also determined a number of issues regarding cost allocation, rates, revenue adjustments, and customer service. 

PURA also approved an annual revenue requirement for UI of just nearly $385 million, beginning Sept. 1. 

“Rate cases are a vital tool for regulators to assess company performance and to ensure that ratepayers are receiving commensurate value for investments made on their behalf,” said PURA Chairman Marissa P. Gillett. “This decision recognizes areas in which the company has made progress since its last rate case, as well as areas in which PURA expects UI’s management to enhance its efforts moving forward.” 

PURA said it reviewed hundreds of interrogatories, listened to hours of testimony, and also took part in direct costs examination of UI officials before making their decision. 

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“Our goal as regulators is to ensure that utilities provide safe, reliable, and affordable power to all ratepayers. UI is no exception. I would like to thank all the participants for their contribution to this decision. Many thanks also go to our dedicated PURA staff," said PURA Vice Chairman John W. Betkoski III. 

During the public comment period, PURA said it received overwhelming opposition to UI’s request for a distribution rate increase. The most common theme of those objecting to the request was that UI’s proposed increase was excessive and/or unjustified. In addition, several people expressed specific interest in a proposed performance-based ratemaking model and support for renewable energy incentives. 

“Today’s decision represents a road map by which we can all reach a place where UI and its investors are justly compensated for investments and efforts,” said PURA Commissioner Michael Caron. “Ratepayers, legislators, other parties to the proceedings, and PURA must be satisfied that customers are receiving verified value for their money.” 

PURA said it had conducted an extensive investigatory process over the course of 350 days involving public comment hearings, days of field audits and inspections, rounds of pre-filed testimony, days of in-person evidentiary hearings and late-filed exhibit hearings, legal briefings and reply briefs, a draft decision, exceptions to the draft decisions and oral arguments, and the issuance of hundreds of requests for further information. 

UI’s last rate case was completed in 2016. UI provides electric service to over 341,000 residential, commercial, and industrial customers in 17 towns and cities in southwestern Connecticut. 

Jennifer Glatz is a digital content producer at FOX61 News. She can be reached at jglatz@fox61.com.

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