The Connecticut Water Co., which has been under California-based ownership since last year, said it intends to ask regulators here to approve an approximately $20 million rate increase for its base of 106,000 Connecticut customers.
The company, acquired by San Jose-based SJW Group for $1.1 billion last October, wrote to Gov. Ned Lamont last week, notifying him that the rate case filing would come to the Public Utilities Regulatory Authority within the next 60 days.
In the Dec. 3 letter, Connecticut Water President Maureen P. Westbrook wrote that the need for the approximately 20% rate hike is largely driven by $255 million worth of infrastructure investments the company has made but not yet included in customer rates since its last full rate case a decade ago.
The proposed increase would add $10.50 to the typical customer’s monthly water bill, which includes 3,780 gallons.
“We understand that a rate increase is never welcomed,” Westbrook wrote. “However, we believe the value of safe reliable water service we provide is well worth the final cost of a little more than a penny per gallon.”
She noted that under the terms of SJW’s acquisition agreement with state regulators, Connecticut Water could have filed its rate application earlier, with new base rates in effect as early as January 2021, but opted to wait because of the COVID-19 pandemic.
“In view of the pressures on our customers from the pandemic, the filing was further delayed so that new base rates will not take effect before July 2021,” her letter said. “We recognize that the pandemic has created ongoing financial hardships.”
PURA declined to comment Monday on the pending matter.