Connecticut regulators finalize rate cuts for two Avangrid gas utilities
Attorney General William Tong said the Public Utilities Regulatory Authority's final decisions lock in reduced revenue for Connecticut Natural Gas and Southern Connecticut Gas, which had sought more than $60 million in increases in 2023.
State utility regulators have issued final decisions cutting rates for Connecticut Natural Gas and Southern Connecticut Gas, Attorney General William Tong said Wednesday.
The two companies, owned by Avangrid, together sought more than $60 million in rate increases in 2023, according to Tong's office. Connecticut Natural Gas asked for a $19.7 million increase and Southern Connecticut Gas asked for $43 million.
Instead, the Public Utilities Regulatory Authority in 2024 ordered decreases, cutting Connecticut Natural Gas revenue by $24 million, or about 5.4 percent, which the attorney general's office said lowered bills by roughly $7 to $8 a month. Southern Connecticut Gas revenue was cut by $11 million, or about 2.5 percent, lowering bills by about $3.50 to $4 a month, the office said.
Both companies pressed for higher rates and returned to the authority on remand. In a draft decision in July, regulators cut rates further — by an additional $1.8 million for Connecticut Natural Gas and $595,000 for Southern Connecticut Gas. The final decision keeps the additional cut for Connecticut Natural Gas and raises Southern Connecticut Gas revenue by $400,000, still well below what the company sought, according to the attorney general's office.
Tong said in a statement that "Connecticut families cannot afford to bankroll padded profits and unsupported and unnecessary expenses."
The attorney general's office said the Connecticut Natural Gas case followed a 2023 earnings report showing the company had over-collected $8 million from customers. Half was returned to ratepayers to offset winter heating bills and about $4 million went to shareholders, the office said. Tong, Consumer Counsel Claire E. Coleman, Connecticut Industrial Energy Consumers and the regulator's own enforcement office then jointly petitioned for a new rate hearing.
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