PURA changes electric rate adjustment process

Connecticut”™s Public Utilities Regulatory Authority (PURA) has made changes to the process involving rate hikes for the state”™s utilities, Eversource and United Illuminating.

In a press statement, PURA acknowledged “the current approach to administrative rate adjustments is not in the public interest, is inconsistent with the intent of the authorizing statutes and renders PURA”™s role in the review and approval process objectively inconsequential.” Rate adjustments occur twice a year, on Jan. 1 and July 1.

However, the agency stated its longstanding policy of relying on forecasts failed during the Covid-19 pandemic, when higher-than-anticipated energy consumption by remote workers and residents following lockdown edicts resulted in unexpectedly high utility bills during July and August.

Based on public outcry over the summertime utility bill spikes, PURA has changed the rate adjustment dates to May 1 and Sept. 1 and announced it will now rely on actual revenues and approved expenses from the previous calendar year in determining new rates.

PURA has also directed its Office of Education, Outreach & Education to redesign customers”™ electric bills and to expand information resources regarding utility bills, programs and practices.

“In this decision, PURA has begun demystifying and unwinding decades of ratemaking policies that have evolved into a less customer-friendly, less transparent framework,”  PURA Chairman Marissa P. Gillett said.

“Moving forward, we are focused on making sure the risk borne almost exclusively right now by our ratepayers is shifted and shared equitably with utilities and their shareholders. PURA looks forward to working with stakeholders and our colleagues in the General Assembly on appropriately realigning risks across the regulated utility landscape.”