The Public Utilities Regulatory Authority has provisionally approved $120.99 million in revenue for Connecticut Water Co., which is approximately $19 million less than the utility’s requested rate for the next rate year, which runs from July 1, 2024 to July 30. June 2025.
Connecticut Water, which supplies water to more than 107,000 customers in 60 Connecticut municipalities, requested total revenues of $140 million, marking an 18.4% increase from its current revenue level.
PURA’s proposed decision, dated May 29, provides approximately 14% less revenue than Connecticut Water requested.
Additionally, PURA’s proposed decision gives Connecticut Water a return on equity of 9.2%, slightly higher than the currently allowed return on equity of 9%. The company requested a return on equity of 10.5%.
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 goals are met.
Connecticut Water may 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 attorney Claire Coleman applauded PURA’s proposed decision, saying it “will help preserve water affordability for Connecticut Water Co. customers while ensuring the company can continue to provide safe drinking water.”
While the decision allows for a rate increase, “it is a much more reasonable outcome than the company’s request,” he added.
Coleman said his team proposed a smaller increase, but that PURA’s proposed decision “appears to be a balanced outcome 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 considers customers, utilities, and the public to make informed decisions in the best interest of all parties. The Connecticut Water team will closely examine the proposed decision of the Public Services 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 and PURA and all parties involved in the process: ensuring that current and future generations receive reliable, high-quality water service. The rate case process allows all parties to work together constructively to discuss how to best achieve that goal in a transparent and public manner.
Connecticut Water is proud to have proposed an expansion of its first-of-its-kind 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 that are not currently recovered in customer rates. .
“The draft decision includes areas where we believe a final decision should be modified, and we look forward to presenting our case as prescribed in the rate case process before the final decision in June.”
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