The state Public Utilities Regulatory Authority said it has met Aquarion Water Co. in the middle, trimming nearly $13 million from its $26.9 million requested increase.
The decision amounts to an 8.6 percent rate increase. Aquarion’s request represented a 17 percent increase.
PURA said its ruling scales back proposed inflation-related expenses Aquarion used as one of its justifications for its request, assumes an increased sales forecast and cuts requested acquisition and pension costs.
The ruling also disallows ratepayer recovery of charitable contributions Aquarion has made, cuts proposed liability insurance costs and halves a proposed employee bonus program.
Aquarion, which services 47 Connecticut communities and last year had nearly $157 million in revenue, said in its filing that it faces declining water consumption and cost increases outside its control.
Regulators also ruled that a 2 percent infrastructure surcharge previously tacked on to customer bills would be included in the overall approved increase.
