Connecticut Natural Gas Corp. (CNG), an Avangrid (NYSE:AGR) company, has over-collected $8 million from households and businesses, resulting in an effort to seek a hearing by the Public Utilities Regulatory Authority (PURA) for a new rate that would lower consumers costs.
According to a statement issued by the office of Attorney General William Tong, CNG”™s most recent earnings report showed the company earning 177 basis points above its authorized return on equity of 9.3%. While Tong”™s office noted “CNG was accurately collecting previously approved rates,” it also claimed that “those rates appear well beyond what is necessary to cover their expenses” ”“ specifically, more than $8 million in excess payments.
Of that $8 million, Tong”™s office said “approximately $4 million will be returned to ratepayers to offset bills during the highest use winter months” while the remaining funds were being distributed to shareholders.
“CNG is profiting off the backs of Connecticut families and businesses,” said Tong. “We pay far too much for our utilities as it is, we should not be charged a penny more than needed. CNG needs to come before PURA right away for a full rate hearing so we can scrutinize their books and get these inflated costs under control. Connecticut ratepayers should not be subsidizing CNG shareholders.”
Tong is being joined in his effort for a PURA rate hearing by Consumer Counsel Claire E. Coleman, the nonprofit Connecticut Industrial Energy Consumers and PURA”™s Office of Education, Outreach, and Enforcement. CNG”™s last rate case before PURA was five years ago, and Tong noted that state statute requires rate review hearings at least every four years.
