2016 Press Release
December 14, 2016
PURA Issues Final Decision on UI Rate Request
Proposed Increase Reduced by $39M
The Public Utilities Regulatory Authority today approved a final decision that reduces by approximately $39M a $98M revenue increase request filed by the United Illuminating Company in July of 2016.
PURA's ruling will allow a revenue increase of approximately $43M in 2017, and increases of roughly $11.5M in 2018 and $2.9M in 2019. The ruling also reduces the Company's ROE to 9.10% from 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 monthly rate impact on an average residential customer will be approximately 3.25% beginning in 2017. Under UI's original proposal, residential customer rates were estimated to increase by roughly 5% in each of three years, starting January 1, 2017.
UI also proposed maintaining its monthly service charge - the base amount that most residential customers pay for access to and maintenance of the electric grid - at the current $17.25 rate. The PURA decision - which follows ten days of evidentiary hearings and two public comment sessions - authorizes a maximum monthly service charge of $9.64 for most residential customers.
Today's ruling affirms most of the preliminary findings PURA released in November. Major changes to revenue increases sought by UI include reductions in certain depreciation and amortization expenses, estimated federal taxes, and certain operation and maintenance expenses, along with a reduction in proposed tree trimming program expenses.
PURA Vice Chairman John W. Betkoski, III, the lead commissioner in the UI proceeding, stated that "PURA's ruling strikes an appropriate balance between UI's need for revenue to maintain a reliable, safe system with customer expectations for fair and reasonable rates."
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.