2014 Press Release
December 17. 2014
PURA Issues Final Decision on CL&P Rate Request
Ruling Trims $101.9M Off Requested Increase
Connecticut's Public Utilities Regulatory Authority (PURA) today issued a final ruling
that reduces by approximately $101.9 million a $231.6 million revenue increase request filed by CL&P in June 2014.
The PURA decision also reduces to 9.17% CL&P's requested 10.2% return on equity, and imposes a 15 basis point one-year penalty for CL&P's performance in preparing for and restoring service from Tropical Storm Irene in 2011 and the major snowstorm that occurred in October 2011.
CL&P proposed increasing its monthly service charge - the base amount that most residential customers pay for access to and maintenance of the electric grid - from the current $16 to $25.50 to bring the rate closer to its cost. Today's PURA decision affirms almost all of the preliminary findings it released earlier this month, including authorization of an increase in the fixed residential monthly charge to $19.25.
Today's ruling - which follows 13 evidentiary hearings and three public comment sessions - authorizes a $257 million capital spending budget, finding that this level of spending is necessary for safety, reliability and maintenance of the franchise. The ruling includes past system resiliency spending in rates, which is expected to reduce the severity and frequency of outages to customers in future weather-related events. It also approves initiation of new resiliency programs, subject to PURA review of spending levels in a future proceeding.
Other major changes to revenue increases CL&P sought include reductions in cash working capital, depreciation expenses, and operations and maintenance expenses.
Overall, an average residential customer using 700 kWh of electricity would see an increase of approximately $7.12 per month; approximately 5.5%. The average bill would have increased $12.48 or 9.66% under CL&Ps proposal.
CL&P provides service to approximately 1.2 million customers in 149 towns and cities in Connecticut.