State utility regulators have issued a preliminary decision rejecting a proposed $20 million rate hike put forward by the Connecticut Water Co. late last year.
In a draft decision released last week, the Public Utilities Regulatory Authority (PURA) said it would allow the Clinton-based water supplier to increase revenues by 0.74%, a dramatic cut from the almost 20% Connecticut Water had asked for. The approved figure translates to about $762,000 in new revenue, according to PURA.Â
Connecticut Water — which was acquired by California-based SJW Group in 2019 — serves about 106,000 customers, or 360,000 people, across 60 communities in the state.
In arriving at its decision, PURA said it weighed testimony from the Office of Consumer Counsel, which argued that the company’s proposed return on equity was excessive, and comments from customers, municipalities and fire departments, which largely opposed the increase on the grounds that it would exacerbate financial hardships stemming from the COVID-19 pandemic, especially for residents on fixed incomes.
Regulators cut or reduced a number of areas in the company’s plan for the upcoming rate year, including expenses associated with unfilled positions.
In its initial request, Connecticut Water had argued that the 20% increase was necessary to support infrastructure investments.
PURA is expected to issue its final ruling on the rate adjustment on July 28.
