PURA: PURA Issues Preliminary Ruling on UI Rate Request

2016 Press Release
 
November 23, 2016
 
PURA Issues Preliminary Ruling on UI Rate Request
Proposed Increase Reduced by $40M
 
The Public Utilities Regulatory Authority today released a proposed final decision trimming approximately $40M from the amount that The United Illuminating Company sought to increase electric distribution rates to all classes of customers.
 
By application dated July 1, 2016, UI requested a rate increase to address reported operating deficiencies of approximately $66M in 2017, an additional $20M in 2018 and $12M in 2019. The Company proposed to recover those increased revenues over a three-year rate phase-in, during which residential customer rates were estimated to increase by roughly 5% in each of the three years, starting January 1, 2017.
 
UI also requested an increase in its return on equity from 9.15% to 9.92%, and proposed a new rate design that includes an earnings sharing mechanism and continuation of a revenue decoupling mechanism. UI last filed a rate request in February 2013 and is still operating under that rate plan.
 
PURA's proposed final decision released this afternoon would allow a revenue increase of approximately $41M in 2017, and increases of roughly $14.4M in 2018 and $3.4M in 2019. The proposed final ruling would also hold the Company's ROE at the present rate of 9.15%, finding it to be fair and reasonable, and sufficient for UI to fund capital improvements to upgrade its distribution system and continue to modernize its systems, processes and workforce. PURA estimates the overall rate impact of on a customer using 500kWh of electricity would be between 2.1 and 2.7% beginning in January.
 
Parties to the proceeding PURA Docket No. 16-06-04, Application of the United Illuminating Company to Increase its Rates and Charges have until December 2, 2016, to submit written exceptions on PURA's proposed final decision. Oral arguments are scheduled for December 8, 2016, with a final decision scheduled to be rendered by PURA's commissioners on December 14, 2016.
 
UI is a subsidiary of Avangrid, Inc., and serves approximately 330,000 residential, commercial and industrial customers in 17 municipalities in the greater New Haven and Bridgeport areas.