United Illuminating Co. has filed a response in opposition to a proposed rate cut by the Public Utilities Regulatory Authority, calling the regulatory environment in Connecticut “one of the worst in the U.S.”
In July, PURA released a draft decision cutting about 99% of UI’s proposed three-year rate increase of $130.7 million.
PURA reduced UI’s increase to just $2 million.
According to UI’s response filed Monday morning, the decision would harm the company and require an immediate write-off of $37.3 million in regulatory assets. UI is asking PURA to “moderate” its decision.
The draft decision is “designed with the singular objective of distressing the company because it is a public utility company,” the filing states.
UI, which provides electricity to 341,000 customers in 17 towns, is a subsidiary of Orange-based Avangrid.
UI says the revenue approved in PURA’s draft decision is “utterly insufficient” to cover operating costs, including staffing levels and capital costs, to attract needed capital to maintain its financial integrity.
The filing goes on to say that the cost of electricity “far exceeds” what customers pay in rates in a single year, and the business requires debt and equity to sustain itself.
UI has not had a rate increase in five years. If approved, the decision would reduce UI’s net income more than 40% in 2023 and 2024, the filing says. The company says it has invested more than $800 million in capital expenditures since 2016.
PURA said it will render a final decision by Aug. 25.
Other entitles and people who have issued different perspectives in the proceeding include AARP, Yale, state representatives and the attorney general.
