The Public Utilities Regulatory Authority on Wednesday approved a United Illuminating rate increase that will total $57.4 million over the next three years.
The final decision reflects a lower overall increase than the $58.8 million that was approved in PURA’s Nov. 23 draft decision. UI, a subsidiary of Avangrid, had asked for $98 million.
The new rates that take effect in January are expected to increase the average monthly residential bill by about 3.3 percent.
In its final decision, PURA also reduced UI’s maximum monthly residential service charge, known as the MRCC, from $17.25 to $9.64.
That drew praise from consumer and environmental groups, including AARP and the Acadia Center, who argue that the fixed charge disproportionately impacts low-income households and disincentivizes conservation.
“Consumers everywhere prefer choice and control, and this lower monthly fixed charge will give customers substantially more control over their electric bills,” Bill Dornbos, an attorney and director of Acadia’s Connecticut office, said in a statement. “The new rate design will also help promote energy efficiency and renewable energy, more closely aligning the state’s electric rate structure with its energy policy.”
The PURA decision also lowered UI’s return on equity slightly, to 9.1 percent.
UI has approximately 330,000 customers in the greater New Haven and Bridgeport areas.
