(New Britain, CT – June 28, 2024) – The Connecticut Public Utilities Regulatory Authority (PURA or the Authority) today approved a Final Decision that authorizes an increased annual revenue requirement of $124,700,031 for the Connecticut Water Company (CWC or Company).

The Company had proposed an 18.4% increase, or $21,755,828, to its currently authorized revenues of $118,245,047 for a total revenue of $140,000,875. The Company’s proposal included a 10.50% return on equity (ROE), which is a 17% increase from the currently allowed 9.00% ROE.

Instead, under the Decision, the Authority approves an annual revenue requirement of $124,700,031 for the rate year starting on July 1, 2024. This represents an increase of approximately $6.5 million from CWC’s currently approved base distribution revenue requirement of $118,245,047. PURA also specified in its Decision an allowed ROE of 9.30% as well as an authorization for the Company to recover an additional $1,115,803 in executive compensation provided the Company achieves certain performance targets.

Today’s ruling in Docket No. 23-08-32 also determines a myriad of issues pertaining to cost allocation, rate design, revenue adjustment mechanisms and customer service. The PURA commissioners unanimously approved the decision at today’s Regular Meeting. PURA also approved the expansion of the Company’s Water Rate Assistance Program (WRAP) from a flat 15% discount on eligible low-income customers’ water bills to a three-tiered program to ensure customers pay no more than 2% of their annual income on water bills.

The Authority conducted an extensive investigatory process over its 270-day review of the Company’s application, involving three public comment hearings, several days of audits and inspections, pre-filed testimony, seven days of in-person evidentiary hearings and late-filed exhibit hearings, legal briefings and reply briefs, a draft decision, exceptions to the draft decisions and oral argument.

During the public comment period, PURA heard from elected officials, organizations and individual customers alike. Most of the oral and written comments in the case were in opposition to the Company’s application, siting reasons related to the Company’s request being higher than the inflation rate, as well as potential impacts on fixed income and low-and middle-income households. The Authority also received comments that praised CWC employees’ responsiveness to municipalities and individuals as well as its efforts around environmental and conservation efforts.

PURA thanks the parties in this case, including the Office of Consumer Counsel, the Office of the Attorney General, the Office of Education, Outreach and Enforcement, the Department of Energy and Environmental Protection and the Heritage Village Master Association, Inc., and separately recognizes the Company for the attentive and productive manner in which its team engaged in the proceeding.

 

 

 

 

 

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