Connecticut Attorney General George Jepsen on Tuesday asked regulators to reject New Haven electric utility United Illuminating’s request for a two-year, $95 million rate increase.
UI’s request calls for a $69 million increase the first year and a $26 million increase the second year, increasing customer rates 11.7 percent. The Orange utility also is asking for $345 million in infrastructure projects and $52 million in storm recovery costs since 2008.
Jepsen argues UI already has the highest electricity rates in the state, and the utility has not demonstrated the need for the large increase.
Jepsen said the rates for the first year should be $11.5 million instead of $69 million to more accurately represent the costs incurred by the utility. Rather than increasing rates, Jepsen recommended regulators apply $14.4 million in UI overearnings from 2010 and 2012 to the utility’s request and give customers a rate reduction of $2.9 million for the first year.
UI have not had a chance to look over Jepsen’s filing yet, said UI spokesman Michael West.
“We will respond accordingly,” West said.
The Public Utilities Regulatory Authority is expected to rule on UI’s rate request in August.
