The recent request for Connecticut Light & Power (Eversource Energy) to increase distribution rates by at least $25 per month for customers starting in July 2027 has caused a political fight between Gov. Ned Lamont, a Democrat, and Sen. Ryan Fazio, a Republican who is running for governor.
The power company sent a letter to the Public Utilities Regulatory Authority (PURA) on May 20 that states it “intends to file an application to amend its existing distribution rates on or about July 14, 2026, in order to address an existing operating revenue deficiency of approximately $503 million.” According to the letter, the rates would take effect July 1, 2027 following PURA’s 350-day statutory investigation.
According to CL&P’s letter, the increase in distribution rates would be 13% for the typical customer using 700kWh per month on average, or at least $25. That would be if PURA approved the rates the utility is requesting.
In the letter, CL&P notes “it has become clear that the path forward for electric customers requires a creative, holistic, in-depth approach to achieve an outcome capable of powering Connecticut’s future at a cost that customers can manage and afford.”
Apparently, the governor doesn’t buy that rationale as he stated in a May 21 statement to Connecticut families.
“Somewhere in Connecticut, a family is sitting at a kitchen table trying to figure out how to pay their electric bill,” he said. “Maybe they didn’t turn the AC on despite this week’s high temperatures. They’re struggling, because Connecticut families pay some of the highest electricity bills in the entire country.”
He goes on to make his case for having PURA deny Eversource the rate hike.
“The company asking you to pay more just posted $1.69 billion in profit last year,” he said. “Its shareholders saw a 23% increase in their returns from the prior year. It ranks among the top electric utilities in the nation… not for customer satisfaction, not for affordability, but for shareholder returns. And after all of that, they came back and asked you for more.”
He added that while Eversource seems to be claiming they’re losing money on Connecticut, but when they simultaneously post $1.69 billion in profit and pay their CEO $13.5 million last year, it makes you wonder if they’re relying on a convenient, creative form of math.”
State Republicans took the opportunity to attack Lamont for the possibility of higher electric rates under Eversource’s expected rate filing modification.
“Regarding unaffordable electricity costs, Gov. Lamont actually just said, ‘What I can do, I am doing,’” state Sens. Stephen Harding and Fazio said. That’s false. Gov. Lamont, just like the state Senate Democrats, opposes removing the hidden ‘public benefits’ tax from electric bills. He therefore opposes lowering ratepayers’ electricity bills by hundreds of dollars per year.”
They went on to ask Lamont what happened to the $400 “energy rebates” for Connecticut families that the governor proposed in February?
In his statement, Lamont addressed his promise to give ratepayers some relief. “The bet Connecticut made on nuclear energy years ago, even when it looked like the wrong call compared to natural gas, is paying off,” he said. “Right now, instead of a public benefits surcharge on your bill, you’re seeing a credit. It’s not everything. But it’s real money back in your pocket, and our long-term perspective and careful hedging is paying off for you.”
