Hearings for Berlin electric utility Connecticut Light & Power’s proposed $117 million rate increase begin on Wednesday.
CL&P is asking for a 5.9 percent increase in its delivery rates to cover an operating deficit, a 60 percent increase in the fixed monthly service fee, and an increase in its return on investment from its distribution infrastructure from 9.4 percent to 10.2 percent.
The Public Utilities Regulatory Authority will hold the first public hearing on the case Wednesday at its office in New Britain. Subsequent hearings are scheduled for Thursday in Stamford and Sept. 3 in New London.
The increase has drawn the ire of a range of groups, including the retailer Wal-Mart and the Connecticut chapter of the AARP. On Tuesday, Gov. Dannel P. Malloy said the 60 percent increase in the fixed monthly service fee flew in contrast to efforts to increase energy efficiency and renewable energy use in Connecticut, as ratepayers would have to pay the fixed fee regardless of how much energy they saved.
CL&P President Bill Herdegen said the rate increase comes after the utility invested much in its system to improve safety and reliability, particularly after the 2011 storms. He said CL&P is not asking for an increase on its operational costs, but instead wants to cover up a deficit.
“It is about providing the best service to the customer for what they are paying,” Herdegen said.
