The Public Utilities Regulatory Authority (PURA) recently issued its draft decision on Connecticut Light and Power’s (CL&P) proposed rate increase. While CL&P had requested a rate increase to raise $231.6 million in additional revenue and a 10.2% return on equity (ROE), the draft decision decreases the additional revenue to $134.6 million and the return on equity to 9.17%. The ROE gets further reduced to 9.02% for one year as a penalty for CL&P’s performance during the 2011 storms and power outages.
CL&P had also requested an increase in its flat monthly service charge from $16 to $25.50. The draft decision instead allows the charge to increase to $19.50. Overall, PURA estimates that the decision will lead to a $7.12 monthly increase for an average residential customer using 700 kWh of electricity per month.
Participants in the rate case can file written exceptions to the draft decision by December 8th. Oral arguments will be held December 12th, and a final decision will be issued on December 17th.
