Connecticut Attorney General's Office
Press Release
Attorney General Will Fight CNG'S 4.4-Percent Rate Hike Request
January 19, 2009
CNG has filed an application with the Department of Public Utility Control (DPUC) seeking a $16.4 million rate increase, or 4.4 percent over existing rates. If approved, CNG residential heating customers will pay an average of more than $5 more per month, in some cases much more.
This rate request comes only months after the DPUC ordered CNG to reduce rates after it collected $15.5 million in overearnings over six months in violation of state regulations.
"I will fight to ensure that consumers never pay a single cent of this appalling proposed increase," Blumenthal said. "The utility should tighten its belt -- and do more with less -- just like the rest of us.
"CNG should be ready for a firestorm of resistance and resentment from this outrageous rate request. CNG's timing could not be worse -- in the midst of a national economic meltdown and mere months after being ordered to return millions of dollars in unauthorized overearnings to overburdened consumers.
"CNG arrogantly acknowledges that this rate request is intended to improve their return on equity -- profit levels -- but at grave consumer cost. It's time for CNG, and all utility companies, to recognize economic reality -- that consumers are losing homes and jobs, and cannot afford unnecessary rate increases."
CNG's parent company, Energy East, was recently acquired by Iberdrola, SA, the Spanish utility.
"Customers deserve to see rate reductions from this merger -- rather than be forced to fund shareholder acquisition premiums," Blumenthal said.