The Public Utilities Regulatory Authority has tentatively approved $120.99 million in revenue for Connecticut Water Co., which is about $19 million less than the utility requested for the upcoming rate year, which runs from July 1, 2024 to June 30, 2025.
Connecticut Water, which provides water to more than 107,000 customers in 60 Connecticut municipalities, requested total revenue of $140 million, which marked an 18.4% increase from its current revenue level.
PURA’s proposed decision, dated May 29, provides about 14% less revenue than Connecticut Water requested.
Also, PURA’s proposed decision grants Connecticut Water a 9.2% return on equity, slightly higher than its currently allowed 9% return on equity. The company requested a 10.5% return on equity.
In addition to the $120.99 million, the proposed decision allows Connecticut Water to recover an additional $1.12 million in executive compensation if certain performance targets are met.
Connecticut Water can provide comments on the proposed decision before PURA votes on a final decision on June 28.
PURA’s tentative decision is consistent with other recent decisions by the regulator, including the rejection of rate increases proposed by Aquarion and United Illuminating.
Consumer Counsel Claire Coleman applauded PURA’s proposed decision, saying it will “help preserve water affordability for Connecticut Water Co. customers while ensuring the company is able to continue providing safe drinking water.”
While the decision allows for an increase in rates, “it’s a far more reasonable result than the company’s request,” she added.
Coleman said her team proposed a lower increase, but that PURA’s proposed decision “appears to be a balanced result that reflects feedback from all stakeholders who participated in the process.”
Connecticut Water President Craig Patla issued the following statement:
“Connecticut Water respects and appreciates Connecticut’s regulatory process, which takes into account customers, utilities and the public to make informed decisions in the best interest of all parties. The Connecticut Water team will closely examine the draft decision from the Public Utilities Regulatory Authority in the coming weeks.
We remain committed to being good partners in the PURA rate case process. The same goal drives both Connecticut Water, PURA and all parties involved in the process – to ensure current and future generations receive high-quality, reliable water service. The rate case process allows all parties to work constructively together to debate how to best achieve that goal in a transparent and public manner.
Connecticut Water is proud to have proposed an expansion of its first-in-class Water Rate Assistance Program. As proposed, and approved in the draft decision, the assistance program will provide greater discounts on water bills for those customers who need it most.
Our proposal seeks an 18.1% increase in annual revenue, driven largely by our continued commitment to maintaining critical infrastructure including recovering $135 million in infrastructure investments not currently recovered in customers rates.
The draft decision includes areas where we think a final decision should be amended, and we look forward to making our case as prescribed in the rate case process before the final decision in June.”
