Connecticut Attorney General's Office

Press Release

Attorney General Praises DPUC For Draft Decision Granting His Request To Slash Southern CT Gas Rates

July 10, 2009

Attorney General Richard Blumenthal today praised the Department of Public Utility Control (DPUC) for granting his request to slash Southern Connecticut Gas Company's (SCG) rates by nearly $14 million, and rejecting the company's request for a rate increase.

The DPUC issued a draft decision that, once final, will decrease SCG's rates by $13.9 million or 3.59 percent.

SCG sought a rate increase of $34.2 million, or 9.2 percent, but Blumenthal fought to instead slash the company's rates after SCG's own petition proved that its gas costs have plummeted, and the company overstated costs for salaries, payroll and retirement.

Last October, at Blumenthal's urging, the DPUC ordered a temporary interim rate decrease of $15 million for SCG. Blumenthal fought in this proceeding to make that rate decrease permanent, and the DPUC's decision here does just that, providing much needed rate relief for consumers.

The DPUC similarly rejected a Connecticut Natural Gas (CNG) rate increase and instead slashed rates 4.2 percent last month.

"These rate reductions are richly deserved -- and should be reality checks for public utilities that unnecessary rate hikes are intolerable in brutal economic times," Blumenthal said. "These public utility companies are the last to realize that these are times of restraint, not reckless spending.

"Consumers are losing jobs and homes, and should not be forced to fund profit growth at the worst possible economic time. This draft decision is a huge consumer victory that deserves immediate approval. It delivers relief to consumers and a sound message to other companies. When ratepayers are being forced to tighten belts across the board, so must public utilities."