The Public Utilities Regulatory Authority on Thursday will lower Connecticut Natural Gas’ proposed $20 million rate increase to $6.5 million, according to a release from the agency.
CNG, which provides natural gas to 165,000 customers in Greater Hartford, had asked for the $20 million ensure its financial strength and add critical infrastructure to meet Gov. Dannel P. Malloy’s goal of adding 280,000 customers to the home heating distribution system in the state over the next 10 years.
PURA had approved other funding mechanisms to pay for the natural gas expansion, which includes CNG, Yankee Gas, and Southern Connecticut Gas. Because of those measures – which include charges new customers more on their distribution fees – PURA said CNG didn’t need the whole $20 million.
PURA also approved a return on equity for the utility of 9.18 percent, when CNG had requested 10.25 percent. PURA will issue the final decision publicly on Thursday after undergoing final technical revisions and edits.
CNG is the subsidiary of New Haven utility parent UIL Holdings, which also owns Orange electric utility United Illuminating. UIL and PURA fought back and forth last year when regulators initially approved a $37 million rate increase when the utility had asked for $91 million. After two appeals, PURA eventually set the rate increase at $55.3 million.
UIL officials were not immediately available Wednesday afternoon to respond to PURA’s decision on CNG.
