In the weeks following one rate increase for Connecticut Light & Power customers, state regulators approved another hike the utility company has proposed, but not as much as CL&P was looking for.
On Wednesday, the Public Utilities Regulatory Authority voted to allows CL&P to increase flat fees on the homeowner’s average monthly bill from $16 to $19.25.
Overall, the increase is expected to add $7.12 per month to a CL&P customer's bill. The utility company pushed to raise the rate to $25.50, which would have represented a $12.48 increase.
CL&P said the increase was necessary to improve the system, including poles and the wires that bring power to homes and businesses, so they can be more prepared to respond to outages and storms.
"Today's ruling... authorizes a $257 million capital spending budget, finding that this level of spending is necessary for safety, reliability and maintenance of the franchise," PURA said in a statement. "The ruling includes past system resiliency spending in rates, which is expected to reduce the severity and frequency of outages to customers in future weather-related events. It also approves inflation of new resiliency programs, subject to PURA review of spending levels in a future proceeding."
A spokesperson for PURA previously said the decision would also help recover some previously approved cost increases associated with major storms in 2011 and 2012, including Hurricane Irene and the snowstorm of October 2011.
Consumer Counsel Elin Swanson Katz released a statement Wednesday afternoon condemning the rate hike.
"I do not believe that CL&P proved that they needed such a large increase in rates, and I am troubled that they have been allowed to increase their monthly customer service charge by over $3 each month," Katz said.
"While we are still reviewing the final decision on our rate filing, it's important to note there are significant expenses associated with running a large and complex electric system and it is crucial that rates recover these costs so that we can continue making targeted investments in Connecticut's electric infrastructure," CL&P spokesman Mitch Gross said in a statement Wednesday.
"We are committed to making our system more reliable and efficient for our customers, as demonstrated by the fact that 2013 was our best reliability year in over a decade, with fewer and shorter power interruptions. We are also proud of the savings our merger provided and will continue to manage costs to benefit our customers," Gross added.
