The chief executive of Connecticut Natural Gas and Southern Connecticut Gas rejects the rate cuts of 9% and 8%, respectively, for CNG and SCG in the decision issued by the state utility regulator on Oct. 4.
“While we continue to assess the extensive draft decisions and their far-reaching impacts, we reject the unprecedented $75 million revenue cuts across CNG and SCG,” said Frank Reynolds, president and CEO of Connecticut Natural Gas (CNG) and Southern Connecticut Gas (SCG), subsidiaries of Avangrid, Inc.
Further, he attacked the Public Utilities Regulatory Authority’s decision to make the cuts after doing so last year.
“These exorbitant decreases, which exceed the net income the companies earned last year, will almost certainly lead to immediate credit rating downgrades, even by more than one rating,” Reynolds continued.
He cites that credit rating agencies are already evaluating these draft decisions as “worse than expected,” “punitive,” and demonstrative of “a challenging regulatory environment in Connecticut.” He believes that will lead to a downgrade, which could make any financing more difficult for the utilities.
Meanwhile, state Attorney General William Tong and key state legislative leaders applauded the move by PURA.
“CNG over-collected millions of dollars from Connecticut families, then had the gall to ask for millions more,” Tong said in a statement. “This was a non-starter. We combed through every cent of CNG and SCG’s applications. Both were riddled with unjustified profits and unnecessary expenses.
“PURA was absolutely right to impose these significant rate decreases for CNG and SCG. Connecticut families are getting slammed by skyrocketing utility bills right now, and we’re going to keep fighting at every step of these proceedings.”
Democratic leaders who lead and sit on the Senate and House Energy and Technology Committee were glad to see some relief for ratepayers with this decision.
State Sen. Norm Needleman and Doug McCrory and State Reps Jonathan Steinberg and Jaime Foster released the following joint statement:
“While this decision is not final, we believe that any help for ratepayers of gas and electric companies as a result of rate cases justifies our legislative decisions to require those rate cases more frequently than they were held in the past. This decision, if it stands, will save consumers money.”
According to Tong, the draft decision would decrease revenue by $38,758,691, or approximately 8.8 percent for CNG, lowering bills by approximately $12-13 per month. The draft decision would decrease revenue by $36,617,527, or approximately 8.4 percent for SCG, lowering bills by approximately $12-13 as well. CNG had sought a $19.7 million increase. SCG had sought a $43 million increase.
The new rates would kick in for the Nov. 1, 2024-Oct. 31, 2025 period.
