The Connecticut Public Utilities Regulatory Authority (PURA) rejected a request from Bridgeport-based Aquarion Water Co. for a multi-year distribution rate increase and instead ordered the reduction of customer rates, effective immediately.
The PURA commissioners at Wednesday”™s Regular Meeting voted 2-1 to approve the decision, which the agency said will decrease the average residential customer”™s total bill by approximately $67 per year. Under the decision, the PURA approved an annual revenue requirement for Aquarion in the amount of $195.5 million in base rates for the rate year commencing on March 15 and a return on equity (ROE) of 8.70%. This authorized annual revenue requirement represented a decrease of almost $2 million, or 1%, compared to current levels.
PURA also required that Aquarion create a three-tier pricing structure for residential single-family customers that will encourage conservation via pricing signals to higher-volume users. The agency also reduced Aquarion”™s requested revenue requirement by over $10.7 million, rejecting the company”™s attempts to have ratepayers cover unrelated costs including corporate charitable donations and entertainment expenses.
Aquarion did not issue a public statement on PURA”™s decision.
