Connecticut”™s Public Utilities Regulatory Authority (PURA) has pushed back at a request by Aquarion, the public water supply subsidiary of Eversource (NYSE:ES), for a 20% rate increase, instead issuing a draft decision that would result in a rate cut.
Aquarion argued that it needed a 20% rate increase for this year and a 30% hike over the next three years; its last rate increase was in 2013. However, PURA proposed reducing the company”™s allowed revenue requirement by about 0.192%. As a result, Aquarion”™s envisioned $50 million revenue increase over the next three years would become a $379,365 revenue decline.
PURA also rejected Aquarion”™s proposal to charge its charge customers $300,000 for its trade association dues, $81,491 for “charitable donations” to nonprofits including Connecticut”™s Beardsley Zoo, and $37,812 for “entertainment expenses” including a Webster Bank Arena suite. PURA”™s draft decision also demanded that the company meet specific “affordability” metrics if it expected customers to cover a $410,676 a “management fee” to fund compensation for Eversource executives.
The draft decision still needs to be approved by PURA”™s three-member in a March 15 meeting.
Aquarion issued a statement that claimed while it understood “the drive to affordability, it cannot come at the cost of lost investment that will ultimately harm customer interests. We will engage with PURA in the coming weeks as we look to find the right balance of affordability and access to clean, reliable water supply across Connecticut.”
Connecticut Attorney General William Tong praised PURA”™s action, stating that “consumers have borne the burden of relentless rate increases for years.”
“This, finally, is a massive victory for Connecticut ratepayers,” Tong said. “When Aquarion first issued its plan, I knew Connecticut consumers ”“ especially those on fixed or limited incomes ”“ simply couldn”™t be asked to shoulder yet another costly hit to their finances, which is why I fought this proposal from the start. I thank PURA for rejecting Aquarion”™s proposed hike and for protecting Connecticut families and consumers from having to pay for an excessive and unwarranted hike. I strongly urge PURA to hold firm in its conclusion as it works toward issuing a final decision on this matter in mid-March.”
