As Consumers Receive Staggering Electricity Bills, Blumenthal & Tong Urge Federal Energy Regulatory Commission to Rescind Transmission Rate Hike

(HARTFORD, CT) – U.S. Senators Richard Blumenthal (D-Conn.) and Connecticut Attorney General William Tong, following complaints from consumers regarding a dramatic increase in their electric bills, sent a joint letter to Neil Chatterjee, Chairman of the Federal Energy Regulatory Commission (FERC) into urge the agency to rescind the Transmission Access Charge (TAC)—and to rebate consumers for the increase paid to date—for a minimum of one year.

“For years, Connecticut has been plagued with some of the highest energy costs in the nation, prohibiting local families and businesses from sustaining their energy contracts. While we recognize that TACs are derived from a previously-approved FERC tariff formula, we also recognize that the existing high energy costs and the escalating coronavirus crisis have resulted in an acutely unusual circumstance in which the status quo is simply no longer applicable, nor acceptable,” wrote Blumenthal and Tong.

A copy of the letter is below:

Dear Chairman Chatterjee:

We urge the Federal Energy Regulatory Commission (FERC) to swiftly delay any increase in the Transmission Access Charge (TAC)—and to rebate consumers for the increase paid to date—for a minimum of one year.

The pandemic has thrown hundreds of thousands of Connecticut residents out of work. Businesses have closed, some permanently. With many people out of work, keeping their children home from summer camps and others working from home, electricity usage has spiked during one of the hottest July’s on record.

Now is not the time for ratepayers to incur significantly higher electricity costs because, in part, transmission companies may recover a guaranteed 12% rate of return.

The decision to increase energy delivery fees, at a time when our country is hurting due to the coronavirus (COVID-19) pandemic, is an abuse of power that fails to put families first and must be rescinded.

While part of this increase is attributable to the higher usage that comes with extreme summer temperatures, FERC also elected to proceed with multiple administrative adjustments on July 1, 2020, resulting in increased consumer expenses. Assuming no increase in usage, one of these changes (i.e., the transmission rate change), would have caused a customer’s monthly bill to increase by more than $9.00 compared to the transmission line charge in effect during June.

Such increases would be destructive under normal circumstances, however, the magnitude of this increase is backbreaking for consumers struggling in this economy. Americans are fighting to address multiple, compounding crises. Stimulus programs meant to sustain individuals and the economy are running out. Unemployment rates are increasing. Temporary layoffs and furloughs are persisting and transitioning to permanent. New cases of COVID-19 are surging in parts of the country and families are struggling to pay their bills and keep food on the table.

For years, Connecticut has been plagued with some of the highest energy costs in the nation, prohibiting local families and businesses from sustaining their energy contracts. While we recognize that TACs are derived from a previously-approved FERC tariff formula, we also recognize that the existing high energy costs and the escalating coronavirus crisis have resulted in an acutely unusual circumstance in which the status quo is simply no longer applicable, nor acceptable.

FERC must immediately revisit and revise the way in which it approaches TACs, to stop the exploitation of Connecticut ratepayers —deplorable under any circumstance, but particularly heinous during times of crisis.

Sincerely,

Richard Blumenthal William Tong

U.S. Senator Attorney General

State of Connecticut State of Connecticut

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