Press Releases
06/23/2021
Attorney General Tong Statement on PURA Decision to Accept Amended Settlement Agreement with UI
(Hartford, CT) — Attorney General William Tong released the following statement regarding a decision today by the Public Utilities Regulatory Authority to accept an amended settlement agreement with United Illuminating and state entities to provide millions of dollars in immediate savings and long-term stability for UI customers. In conjunction with a planned start of lower summer standard service rates, UI customers would see a 5.2 percent total bill decrease starting on July 1.
“This is a big win for Connecticut families,” Attorney General Tong said. “This amended settlement, with the planned start of lower summer standard service rates, will save UI customers 5.2 percent on their bills starting next week. I commend PURA for approving this amended settlement and working with us to bring rate relief and stability to UI customers. Energy costs far too much in our state and this agreement brings a much-needed break to families who need it.”
See here for a prior video explainer from Attorney General Tong on fluctuations between summer and winter electricity rates.
In March, Attorney General Tong and Governor Lamont brokered an agreement with UI, the Department of Energy and Environmental Protection, the Office of Consumer Counsel and PURA’s Office of Education, Outreach and Enforcement to decrease and stabilize electric rates into 2023. The agreement fully offsets what would have been a five to eight percent increase in bills on May 1 due to federally-mandated transmission charges and the costs of the Millstone power purchase agreement. The settlement includes a $5 million voluntary contribution from UI’s own coffers, and also accelerates the return of $41.55 million of accumulated savings from federal tax cuts ahead of what would have otherwise been required. In addition, UI agreed to not change base distribution rates until at least May 2023—an agreement that will save ratepayers a projected $20 million in addition to the $46.5 million relief from the accumulated tax savings and UI’s voluntary contribution.
PURA initially rejected the settlement, and instead proposed an alternative plan to amortize the accumulated charges over a 68-month period. At the urging of Attorney General Tong and other settling parties, PURA reconsidered its draft decision, agreeing to revisit the merits of the settlement and allowing settling parties to continue to negotiate.
Attorney General Tong, UI and the settling parties agreed to an amended settlement that will immediately decrease base distribution rates an additional 0.2 percent effective July 1 to reflect reductions in the federal corporate tax rate, a key priority for PURA in its draft decision.
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Media Contact:
Elizabeth Benton
elizabeth.benton@ct.gov
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