Blumenthal Urges PURA to Freeze Eversource Rates

[HARTFORD, CT] – U.S. Senator Richard Blumenthal (D-CT) urged the Connecticut Public Utilities Regulatory Authority (PURA) to reject the three rate hike proposals made by Eversource, and instead impose a fourth option upon the utility – no increase in utility rates for Connecticut’s electricity customers.

Eversource has unconscionably presented PURA with three rate hike options, claiming they under-recovered almost $20 million during 2020, while making over $1.2 billion profits – an increase of 34% over 2019. All three options would result in a 12% increase for Connecticut rate payers.

In a letter to regulators, Blumenthal said, “Eversource is claiming under-recovery in 2020 of their costs from ratepayers, the company announced $1.2 billion in profits for 2020! Of that $1.2 billion, $457.9 million in profit came from Eversource’s Connecticut Light and Power division. The head of Eversource received more than $14 million in compensation.”

Following Tropical Storm Isaias, Blumenthal spoke with customers and local elected leaders across the state regarding Eversource’s response to the storm. Noting to regulators that “PURA should also consider that Eversource set new lows in its egregious performance in preparing Tropical Storm Isaias and then its delayed response.  Such flagrantly failed service should not be rewarded by forcing ratepayers to pay more money to a company already reaping substantial profits and highly compensating its executives. For consumers who have suffered deeply from Eversource’s utility malpractice, raising rates piles on insult and injury.”

A copy of the letter is included below:

Jeffrey R. Gaudiosi, Executive Secretary

Public Utilities Regulatory Authority

10 Franklin Square

New Britain, Connecticut   06051

Docket No.   21-01-03

Dear Mr. Gaudiosi:

I commend PURA for its approach to this rate adjustment proceeding, forcing utilities like Eversource to justify their rate adjustments based on actual revenues and expenses rather than opportunistic, self-serving projections.   The result of such a fair, fact-based approach should be to resoundly reject Eversource’s request for any rate increase as unjust and ujustifiable.

Eversource has offered three options, all of which increase rates:  a one time 12% increase; a two step increase over a period of months that would still result in at least a 12% increase or securitizing these stated costs over an extended period of time.  The latter two options merely spread the same painful rate increase over time.  

I strongly urge PURA to impose a fourth option - no increase in rates for over-burdened ratepayers.

In Eversource’s January 15, 2021 filing, the company claims that they ‘under-recovered’ almost $20 million during 2020 and now they want Connecticut ratepayers – already paying the highest electricity rates in the nation – to pay $12/month more! 

At the same time that Eversource is claiming under-recovery in 2020 of their costs from ratepayers, the company announced $1.2 billion in profits for 2020!   Of that $1.2 billion, $457.9 million in profit came from Eversource’s Connecticut Light and Power division.  The head of Eversource received more than $14 million in compensation.

As part of its examination, PURA will necessarily look back on actual Eversource revenues and expenses.  In conducting its review, PURA should take into consideration that Connecticut ratepayers have continually paid among the highest electricity rates in the nation -- a burden disproportionately borne by low to middle income families.   PURA needs to reconcile how the utility can supposedly under collect from ratepayers yet produce enormous profits for the same period of time.

PURA should also consider that Eversource set new lows in its egregious performance in preparing Tropical Storm Isaias and then its delayed response.  Such flagrantly failed service should not be rewarded by forcing ratepayers to pay more money to a company already reaping substantial profits and highly compensating its executives.   For consumers who have suffered deeply from Eversource’s utility malpractice, raising rates piles on insult and injury.

In sum, the fourth option - no increase - is the only option that is fair to Connecticut electricity customers. 

Sincerely,

-30-