UI proposes energy rate increase
The United Illuminating Company (UI) filed a request Jan. 11 to raise its energy distribution rates, beginning January 2014.
UI, headquartered in New Haven, serves roughly 700,000 electric and natural gas customers across Connecticut and western Massachusetts.
The rate increase would provide $67 million in additional revenue the first year in effect and $28 million the following year, according to UI.
The increased funds would go toward replacing and hardening the state’s infrastructure to protect against extreme weather and further recovery efforts from Tropical Storm Irene, the 2011 Nor’easter and Hurricane Sandy.
Though Connecticut ranks among the most expensive states for energy costs, UI CEO James Torgerson said in a press release that the company’s operations have maintained costs at 2010 levels through increased efficiencies and managing costs. Company officials believe the increase rate may be achieved without increasing customer bills due to the expiration of a Competitive Transition Assessment charge.
Following UI’s formal application to increase rates, the Connecticut Public Utilities Regulatory Authority (PURA) will conduct a full review, which will include formal proceedings and public hearings.
In response to the request, Attorney General George Jepsen said the proposal would be carefully reviewed and evaluated.