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Tong urges regulators to reject $25 million Connecticut Water rate hike

The attorney general's office says the increase would cost the average customer about $156 more a year and identifies $19 million in cuts it wants regulators to make.

HARTFORD, Conn. — Connecticut Attorney General William Tong on Thursday urged state utility regulators to reject a $25 million rate increase sought by the Connecticut Water Company, calling the request unjustified and unaffordable.

In a brief filed with the Public Utilities Regulatory Authority, Tong's office said the increase would raise rates by more than 18%, or about $156 a year for the average customer.

The company serves 108,000 water customers in 60 Connecticut communities, plus 3,000 wastewater customers in Southbury, according to the attorney general's office.

The brief lays out $19 million in specific cuts, the office said, citing what it described as excessive profit demands, uneconomical capital structures and several costs it said the company is improperly shifting from shareholders to ratepayers.

According to the attorney general's office, Connecticut Water is seeking a 10% return on equity, which the office said is the highest profit margin of any of the state's principal regulated utilities. The office said the company also wants customers to pay for board of directors fees, liability insurance and lobbying costs, which it argued should be paid principally by shareholders.

"Connecticut families pay far too much for their utilities as it is, and we cannot afford unjustified double-digit increases," Tong said, adding that his office "combed through every page" of the company's application.

This brief was drafted by AI from a public agency or political press release and published by The New England Signal. Why we use AI for stories like this one.

Connecticut