Reliable electricity is at risk in Connecticut

[rangerrebew]

Reliable electricity is at risk in Connecticut
By
Ron Brisé
|
February 2nd, 2025
 
As a former utility regulator, I understand the desire by public officials to do everything they can to keep water, gas and electric bills as low as possible. All Americans know that the cost of living in this country is going up too fast, putting many families under severe economic strain.

But Connecticut’s utilities are in the news lately. At the end of 2024, credit rating agencies downgraded several utilities that serve Connecticut. For example, S&P Global reduced Eversource’s credit rating from A- to BBB+. Four other utilities in the state, including water and natural gas companies, were also downgraded by S&P. Following suit, another credit rating agency, Moody’s, also downgrading utilities in Connecticut.

Credit downgrades are typically in response to poor performance or bad business decisions made by corporate leadership. But in this case, things are a little different. Here is a quote from an analyst at Moody’s about the downgraded utilities. “The rate outcome is evidence of a challenged regulatory environment, where the disparity between filed rate requests and ultimate rate orders has become considerable. Absent a return to more constructive political and regulatory decisions, both utilities could see further credit deterioration over the next two years.”

https://www.cfact.org/2025/02/02/reliable-electricity-is-at-risk-in-connecticut/?utm_source=rss&utm_medium=rss&utm_campaign=reliable-electricity-is-at-risk-in-connecticut&utm_source=rss&utm_medium=rss&utm_campaign=reliable-electricity-is-at-risk-in-connecticut

[Fishrrman]

I may see my first $500 [monthly] gas bill this year.
And my house is small (1450sq.ft.), but old and drafty in places.

Got this in the email a couple of weeks ago:
=================================
Dear Valued Customer,
 
On November 12, 2024, in response to a requirement from the Connecticut Public Utilities Regulatory Authority (PURA), we submitted a request to adjust natural gas delivery rates. This is also known as a rate review, which is a required, independent examination by PURA of a utility’s proposal to adjust delivery rates. Rate reviews provide the opportunity for us to demonstrate how we are managing costs to continue to deliver safe, reliable natural gas service to all customers. The rate review process takes about one year and includes several steps, including the opportunity for public comment.
 
Why is Eversource requesting an increase in gas delivery rates?
We last filed for a rate review in June 2018, and our regulators are requiring a review of current rates. This request to increase delivery rates ensures that rates reflect current costs to serve you. Stable, predictable and steady investments in the natural gas system are necessary to ensure all customers have safe and reliable service. This adjustment will enable us to recover costs of past investments and continue making future investments to meet increased state and federal safety requirements, make the gas system more resilient to extreme weather events, and comply with regulations to reduce greenhouse gas emissions.
 
How will this proposed adjustment affect you?
Eversource is requesting a rate increase of $209 million. On November 1, 2025, if approved as proposed, customers across rate categories will see an increase of approximately 49 percent within the delivery portion of their gas bill, or 24 percent on the total bill. The proposal will result in an increase to an average monthly residential heating customer bill of $41.63 with credits proposed by the company. The increase to commercial and industrial sales customer bills would depend on their respective rate class. These bill impacts are averaged across 12 months and will vary based on your usage and rate category. Residential and commercial natural gas rates and proposed increases are included at the link at the bottom of this notice. You can find your rate category in the delivery charge section on page two of your bill.
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[bigheadfred]

I may see my first $500 [monthly] gas bill this year.
And my house is small (1450sq.ft.), but old and drafty in places.

Got this in the email a couple of weeks ago:
=================================
Dear Valued Customer,
 
On November 12, 2024, in response to a requirement from the Connecticut Public Utilities Regulatory Authority (PURA), we submitted a request to adjust natural gas delivery rates. This is also known as a rate review, which is a required, independent examination by PURA of a utility’s proposal to adjust delivery rates. Rate reviews provide the opportunity for us to demonstrate how we are managing costs to continue to deliver safe, reliable natural gas service to all customers. The rate review process takes about one year and includes several steps, including the opportunity for public comment.
 
Why is Eversource requesting an increase in gas delivery rates?
We last filed for a rate review in June 2018, and our regulators are requiring a review of current rates. This request to increase delivery rates ensures that rates reflect current costs to serve you. Stable, predictable and steady investments in the natural gas system are necessary to ensure all customers have safe and reliable service. This adjustment will enable us to recover costs of past investments and continue making future investments to meet increased state and federal safety requirements, make the gas system more resilient to extreme weather events, and comply with regulations to reduce greenhouse gas emissions.
 
How will this proposed adjustment affect you?
Eversource is requesting a rate increase of $209 million. On November 1, 2025, if approved as proposed, customers across rate categories will see an increase of approximately 49 percent within the delivery portion of their gas bill, or 24 percent on the total bill. The proposal will result in an increase to an average monthly residential heating customer bill of $41.63 with credits proposed by the company. The increase to commercial and industrial sales customer bills would depend on their respective rate class. These bill impacts are averaged across 12 months and will vary based on your usage and rate category. Residential and commercial natural gas rates and proposed increases are included at the link at the bottom of this notice. You can find your rate category in the delivery charge section on page two of your bill.
=================================

$500 is a lot of money. We paid $65  for gas last month. Hot water and heat.  $77 for electricity.