NEW BRITAIN, CT – Today, Consumer Counsel Claire Coleman commends the Final Decision issued by the Public Utilities Regulatory Authority (“PURA”) in Docket No. 23-08-32: Application of Connecticut Natural Gas Corporation and The Southern Connecticut Gas Company to Amend Their Rate Schedule, in which PURA ordered a decrease in revenues of $24.6 million and $10.72 million for CNG and SCG, respectively. The decision will result in an approximate eight dollar decrease for CNG residential heating customers and an approximate three and a half dollar decrease for SCG residential heating customers per month.
“While my team and I are still reviewing the lengthy decision issued today by PURA, the ruling appears to protect customers from excessive rates while approving the necessary resources for CNG and SCG to continue to deliver safe, reliable and quality gas service. After a year-long proceeding, and adjustments made to address feedback on the draft decision, this comprehensive ruling includes revenue to support critical expenditures for cybersecurity measures and service line replacement, while returning money owed to customers from tax credits and expired programs. Though PURA’s decision does not implement all the reductions my team proposed, it certainly reflects a healthy and transparent regulatory process here in Connecticut,” said Consumer Counsel Coleman.
Though the decision issues rate decreases for both companies, both CNG and SCG will continue to receive funding to provide safe and reliable gas service through a main and service line replacement program, known as Distribution Integrity Management Program (DIMP). PURA’s decision does not fully disallow the company-proposed budgets for these measures, rather PURA ordered that costs associated with critical safety and reliability measures be tracked through an accounting mechanism rather than in base distribution rates. Through this tracker, the decision allows CNG to recover up to $26 million and SCG to recover up to $57.73 million annually for the purpose of replacing leak prone pipes and aging gas infrastructure.
SCG proposed a $43 million increase which would have resulted in an approximate increase of $13.20 for the average residential heating customer per month. PURA’s final decision issued a decrease of $10.7 million, which will result in a decrease of roughly $3.25 per month on the average residential heating customer’s bill. SCG’s rate reduction is a result of cuts to the corporate tax rate under the Trump administration accumulating since 2018, and other costs, that are owed to customers. Without the return of these funds, the decision would have resulted in an approximate rate increase of $21.8 million.
CNG’s original application proposed a $19.8 million rate increase, which would have resulted in an approximate increase of $6.60 for the average residential heating customer per month. PURA’s final decision issued a decrease of $24.6 million, which will result in a decrease of roughly $8.18 per month on the average residential heating customer’s bill. CNG’s well documented and continued overearnings, to the tune of $9 million collected from ratepayers across the state, prompted Consumer Counsel Coleman, Attorney General Tong, PURA’s Office of Education, Outreach and Enforcement and the Connecticut Industrial Energy Consumers to file a joint petition calling for PURA to conduct a full rate review in April of 2023.
For more information, see PURA's decision CNG and SCG and OCC's brief and exceptions here and here.
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CONTACT:
Brooke Parker
Communications & Legislative Program Manager
brooke.parker@ct.gov
About the Office: The Office of Consumer Counsel (OCC) is an independent state agency that represents the interests of consumers of Connecticut’s electric, natural gas, telecommunications, and private water companies before PURA, federal regulatory agencies, the legislature and courts. OCC’s team of attorneys, accountants, financial and policy analysts appear before PURA to argue for the most reasonable rates while expecting the best utility service possible for all customers.