CONNECTICUT — Attorney General William Tong Thursday filed a brief with the Public Utilities Regulatory Authority that urges the rejection of a $25 million rate hike request from the Connecticut Water Company.
If approved, Tong said, the request would raise rates by more than 18 percent, or approximately $156 per year, for the average customers.
Connecticut Water serves 108,000 water customers in 60 communities across Connecticut, plus 3,000 wastewater customers in Southbury.
Said Tong, "Connecticut families pay far too much for their utilities as it is, and we cannot afford unjustified double-digit increases. We combed through every page of CT Water's application, and we found $19 million in bloated profits, uneconomical capital structures, and multiple instances where the company was inappropriately seeking to offload shareholder costs onto ratepayers. I urge PURA to reject this unsupported demand."
Tong's brief outlines multiple areas where the company has "failed to justify its demands," and outlines $19 million in specific cuts "to reduce the burden on Connecticut families, including excessive profit demands, uneconomical capital structures, and several areas where shareholder costs are inappropriately charged to ratepayers."
Tong said Connecticut Water is seeking a 10 percent return on equity, the "highest profit margin of any of the principal regulated utilities in Connecticut."
"The company is also seeking ratepayer funding of Board of Director fees, liability insurance, and lobbying costs which should be principally funded by shareholders," Tong said.
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