CT Stops Eversource Bill Increase After Public Outcry

CONNECTICUT — The state's Public Utilities Regulatory Authority has told Eversource Energy to suspend higher "delivery" charges that have caused some monthly bills to increase by more than $100.

In essence, PURA has ordered all Eversource charges back to the June 30 numbers while "every component" of customers' electric bills is examined.

The new charges went into effect July 1, which included an approved 4 percent rate increase, and for the past couple of weeks customers have been complaining about the increase in their utility bills. Eversource quickly pinpointed the delivery charge as the culprit.

State officials including Gov. Ned Lamont said that besides the 4 percent rate hike, bills increased significantly because more people are home during the pandemic and it has been a very hot summer so far.

"Today’s decision by PURA is good news for ratepayers across our state," Lamont said. "PURA’s pause today on delivery rate hikes reassures our residents that the reconsideration of requests by utilities can happen, and – most importantly of all – that customers won’t be overpaying in the meantime. At the same time, we have reinvigorated our pressure on the federal government to address long-standing frustrations with federally-mandated delivery charges.”

PURA sent a letter on Friday to Joaquina Borges King, the senior counsel for Eversource, which said that the approved rate hike along with "the COVID-19 crisis and its corresponding effect on customer energy usage, as well as the higher than normal temperatures this month, Eversource customers recently received higher than anticipated electric bills."

In the letter PURA notes that "Connecticut’s legislative leaders recently expressed concern that changes to energy usage by customers may result in over-recovery by utilities during a period when ratepayers may be economically vulnerable."

Lawmakers urged PURA to "conduct a thorough review of Eversource's proposed changes and explore alternative cost recovery options, if appropriate." PURA officials agreed to a "temporary suspension" of the new charges that took effect on July 1 while it conducts a review.

"The intent of this re-examination is to ensure that Eversource is not over-collecting revenues in the short term at the expense of ratepayers during this period of financial hardship," according to PURA's statement. (See the full docket on the charge increases here.)

PURA said it would continue to accept public comments on the delivery charges and intends to schedule a public hearing in August.

Attorney General William Tong said he is demanding "answers" from Eversource regarding the "delivery charge hike that has contributed in part to major increases in consumer bills."

Tong said he wants Eversource to explain how it calculates delivery charges and why the delivery charges are higher.

"We've received complaints from well over 100 consumers regarding unaffordable increases in their energy bills," Tong said. "Consumers have a right to be angry. We pay far too much for our energy as it is here in Connecticut. I thank PURA for reconsidering and scrutinizing these increases, and for considering all possible avenues to assist consumers."

Tong requested from Eversource more information about the Millstone Nuclear Power Station agreement and its impact on customers both now and in the future, and what factors led to the rate increase as of July 1.

Meanwhile, Eversource Energy officials said the utility is extending "financial assistance" and will be "working one-on-one" with customers to "manage and reduce their future bills."

Officials said the energy company fielded thousands of individual calls from customers this week and said it "continues working to connect customers with energy efficiency and payment support solutions, including a no-fee, no-interest COVID-19 payment plan."

Eversource Senior Vice President and Chief Customer Officer Penni Conner said, "We share the concerns of our customers and know that this is an unexpected cause of distress during an already challenging time. We're committed to working one-on-one with customers to help reduce their energy bills and to provide flexible payment solutions."

Eversource is referring residents to its customer care number (800-286-2000) and its website.

"We're here to help any customer who calls," Conner said.

Eversource officials said, in order to support customers facing financial hardship and other challenges due to the coronavirus pandemic, the utility worked with the Connecticut Public Utilities Regulatory Authority to create a no-fee, no-interest COVID-19 Payment Program that is "available to all customers who need it."

Eversource is expanding eligibility for qualifying customers to its New Start program, which forgives overdue balances as customers make current payments to their bill.

According to Eversource officials, the higher-than-normal bills customers received this month were driven primarily by a "significant increase in summer energy use" and two recent fee increases added to the delivery component of the bill.

"Energy bills often increase in the summer months, and this June was 13 degrees hotter than June 2019," according to a statement released by Eversource Friday. "Combined with the fact that many customers are staying home due to the pandemic and using air conditioners, fans and other appliances to stay cool, average residential energy use increased 26 percent over June of last year."

In addition, a state-mandated energy subsidy went into effect in July to support the Millstone Nuclear Power Plant’s continued operation. Also, another fee increased to support grid reliability and the safe operation of Eversource’s high-voltage transmission system, according to Eversource officials.

Eversource released an additional statement Friday:

"We understand and share concerns that customers are expressing regarding recent higher-than-normal bills. We will work quickly to enact PURA's temporary suspension of the rate adjustment and look forward to participating in the process to ensure transparency for customers and policy makers.

"We also continue to work with customers one-on-one through our payment assistance and energy efficiency programs to help them lower their energy use and reduce their bills, recognizing that the weather continues to be warmer than normal and people are still adjusting their lives around COVID."