October 20, 2014
PURA Claim Nets $30M Refund for Connecticut Ratepayers
The Federal Energy Regulatory Commission has ruled that Connecticut electric ratepayers are due an estimated $30M refund as a result of legal claims pressed by the Connecticut Public Utilities Regulatory along with other New England participants. The refund will flow to Connecticut ratepayers as part of an approximately $70M overall refund to New England states.
In June 2014, the FERC agreed with the legal position taken by PURA that the existing base return on equity payable to owners of certain facilities that transmit electricity was unreasonable. FERC ruled that a lower base ROE was appropriate, but stayed the ruling pending further review of one aspect of the new ROE methodology. FERC's decision now completes that review, essentially lifting the stay and ordering refunds consistent with the reduced base ROE. PURA, along with the Massachusetts Attorney General, has been a prime sponsor of the legal claim regarding transmission ROEs. PURA continues to press its claim to lower the base ROE further than FERC's recent ruling, and has requested a rehearing of FERC's decision. That request is currently pending before FERC.
Public Utilities Regulatory Authority Chairman Arthur H. House stated that "Notwithstanding our ongoing claims regarding FERC ROE methodology flaws, this FERC ruling is a victory for Connecticut electric ratepayers."
The FERC ruling specified a 30-day deadline for the refund to be issued to the participating states.