Major Electric Bill Surge Hits Connecticut
Major Electric Bill Surge Hits Connecticut Amid Eversource’s Financial Turmoil
Connecticut is bracing for a significant uptick in electricity costs as Eversource, the state’s largest utility provider, announces plans for a staggering $784 million rate adjustment. This move, set to commence on May 1, threatens to escalate Connecticut Light & Power electric rates by nearly 19%, translating to an average increase of $38 a month for residential customers. The United Illuminating Company, a subsidiary of Avangrid and the state’s smaller regulated electric monopoly, is also preparing to file for a rate adjustment, expected to be less severe but nonetheless impactful.
This rate adjustment request emerges against a backdrop of financial strain, as Eversource seeks to recover costs associated with public policy directives, including a mandate to purchase electricity from Millstone, Connecticut’s sole nuclear plant and a crucial source of carbon-free power. A substantial portion of the requested rate increase is attributed to the $605 million in unrecovered costs from the Millstone credit, authorized by the General Assembly in 2017, with an additional $160 million due to mandated benefits for the impoverished and medical hardship cases.
The timing is particularly troubling for Eversource, which is simultaneously looking to liquidate Aquarion Water in an effort to mitigate a $1.9 billion loss from offshore wind investments. This financial turbulence is compounded by perceived regulatory constraints, as the Public Utilities Regulatory Authority (PURA)’s revised methodology for biannual rate adjustments, adopted in December 2020, has ostensibly hindered the utility’s cost recovery efforts.
Eversource’s public critique of PURA’s methodology reflects a broader narrative of discontent, particularly with the potential non-reappointment of Marissa P. Gillett, PURA’s chair. This discontent has sparked a contentious debate among lawmakers and industry stakeholders, with some perceiving the utility’s criticisms as part of a larger campaign to influence regulatory oversight.
The proposed rate increase has elicited a mixed response from political figures and consumer advocates, with some pointing to the essential nature of the costs in question and others critiquing the timing and magnitude of the adjustment. The debate underscores the complex interplay between public policy decisions, regulatory frameworks, and the financial realities facing utility providers and consumers alike.
As Connecticut residents face the prospect of rising electricity costs, the dialogue between Eversource, regulatory authorities, and government officials continues to evolve. The outcome of this rate adjustment request holds significant implications for the state’s energy landscape, consumer affordability, and the ongoing transition towards sustainable power sources.