🔒Consumer counsel to hire consultants for Eversource rate case, expects to exceed state cap

The state Office of Consumer Counsel plans to hire outside experts to review Eversource Energy’s pending electric distribution rate case, indicating the cost is likely to exceed a state-imposed limit on consulting fees. In a May 21 letter filed with the Public Utilities Regulatory Authority, OCC said the services of one or more consultants are “necessary and desirable” to supplement its in-house staff as it prepares to scrutinize what is likely to be one of Connecticut’s most consequential utility cases in years. Richard Sobolewski, OCC’s supervisor of technical analysis, wrote that the office “cannot anticipate the total cost for its consultants” at this stage, but expects spending may run past the statutory limit of $200,000 per agency, per proceeding in utility cases. OCC would need PURA’s approval to spend more than the $200,000 cap. Under the state statute, consulting costs are billed directly to the utility under review, which typically includes them in costs it eventually seeks to recover through rates. Eversource filed a letter of intent with PURA on May 20 to seek roughly $503 million in additional annual revenue — its first such request in nearly a decade. The company estimates the proposal would raise the typical residential customer’s monthly electric bill by about 11%. Eversource said it will file a full application in mid-July, with a final PURA decision expected in 2027. Consumer Counsel Claire Coleman, whose office represents ratepayer interests in utility proceedings, said retaining outside experts is routine in major rate cases and is expressly authorized by state law. The consultants typically examine utility accounting and economics issues such as return on equity, capital spending, depreciation and rate design, areas central to determining the size of any approved increase. Eversource, she said, will deploy its own consultants, economists, engineers and outside legal firms in support of the request, which would lift the company's authorized annual revenue from about $4.5 billion today to roughly $5 billion. "Retaining national experts to counter Eversource's testimony is a critical component to our effective regulatory oversight and consumer advocacy," Coleman said. OCC's broader workload makes outside help essential, she added. When Eversource files its full application, the office will be simultaneously engaged in four other rate cases, along with numerous PURA dockets and state and federal litigation. Eversource’s letter of intent has drawn sharp criticism from legislators and Gov. Ned Lamont, who pointed to the company’s $1.69 billion profit last year and CEO Joe Nolan’s $13.5 million salary in questioning the need for the increase. Eversource dismissed the criticism as “political gamesmanship,” saying inflation in materials such as wire, cable and transformers has outpaced what current rates can support. On Tuesday, state Reps. Chris Poulos of Southington and Ron Napoli Jr. of Waterbury wrote a letter to PURA, calling the planned rate hike “unacceptable,” citing shareholder returns as a reason the company should not raise rates. “Connecticut families should not shoulder all the risk while shareholders continue to benefit from rising profits and executive compensation,” the legislators wrote. Consultant spending by state agencies has been closely scrutinized in recent years. The state’s Office of Health Strategy, a separate agency tasked with monitoring healthcare costs, spent more than $11.5 million on outside consultants in fiscal year 2025, according to an Inside Investigator review of agency contracts.