Connecticut Attorney General's Office
Press Release
Attorney General To Fight CL&P Request That Will Erase Expected 5 Percent Rate Decrease
December 9, 2009
CL&P is asking the Department of Public Utility Control (DPUC) to approve a $210 million rate hike, but defer collection until 2011 when customer charges fall significantly because bonds tied to deregulation will be largely paid off. CL&P's proposed rate increase would soak up that decrease with new charges for distribution improvements, meaning rates will stay unchanged instead of decreasing.
Without CL&P's proposed rate increase, the average customer's charges will drop about 5 percent in 2011.
"Just when recession-racked consumers and businesses see a glimmer of light, CL&P wants to lengthen the tunnel," Blumenthal said. "CL&P is seeking to rip the rug from under consumers at the instant they shed the crushing burden of these bonds. CL&P's proposal stomps out hopes for lower rates, hurting Connecticut's competiveness and clobbering consumers yet again.
"Memo to CL&P: the recession is far from over. The company must continue tightening its belt as its customers tighten theirs. The DPUC has properly rejected requests to increase rates during the recession, and I urge it continuing doing so. I will fight to preserve this much needed and long overdue rate decrease."
As part of deregulation, Connecticut required CL&P and United Illuminating to sell their power plants and become transmission and distribution companies. Connecticut issued bonds to cover the ratepayers' unpaid share of the cost of plants that CL&P and UI sold.
The bonds will be largely paid off as of 2011, leading to an approximately 5 percent decrease in electricity rates.