State Regulators Add $4 Million To Yankee Gas Rate Increase

CONNECTICUT, CT — The Connecticut Public Utilities Regulatory Authority Wednesday issued an adjusted final decision in the Yankee Gas Services Company rate case.

Yankee Gas is an Eversource subsidiary.

The utility originally sought approval of an approximate $209 million increase in November 2024, which was later amended to approximately $193 million, to which PURA issued a Final Decision the following November allowing for an increase of approximately $83 million.

Wednesday's decision modifies that amount to approximately $87 million, authorizing approximately 45 percent of the company's request.

Said PURA in the decision:

"Following careful reconsideration of the record, consistent with the law, today’s order revises the allowed revenue requirement for Yankee, which was determined in November 2025, from $802.24 to $806.66 million, an increase of 0.551 percent.

"This amount reflects a refund to ratepayers of $40.22 million over the next three years. The company initially requested a revenue requirement of $912.95 million. The approved rate base was adjusted from $2,309 million to $2,310 million, an increase of .002 percent.

"The base authorized rate of return on equity was maintained at 9.48 percent from the October order. In reconsidering the November 2025 decision, the Authority maintained cost disallowances related to incentive compensation and inspection fees and maintained a cap on cost recovery for distribution integrity management. The Authority also adjusted the gross earnings tax calculation and maintained the previously allowed expense for environmental remediation, while permitting a capped amount of deferred expense, grounded in advocacy from DEEP.

"Based on the record in this case and prevailing policy, the Authority removed return penalties related to record management, procurement, accounting, and documentation practices, but will continue to closely monitor the company's performance in these areas. "

The customer impact is about $15 a month more.

Moments after PURA made its announcement, Connecticut Attorney General William Tong released the following statement regarding the decision to further increase Yankee Gas rates by another $4 million:

"In November, PURA approved a final decision increasing Yankee Gas rates by $82 million, or about $15 per month for the average residential customer. The company had sought a $193 million rate hike. Eversource was not satisfied and sought reconsideration before PURA. Today, PURA caved to Eversource’s demand and gave Yankee Gas another $4 million, eliminating penalties on the company’s return on equity that had been imposed for management and compliance issues.

"Today’s disappointing decision follows a string of bad news for Connecticut ratepayers this month. On March 3, reconsidering a prior decision, PURA increased profits for United Illuminating by $2 million and fully erased the penalty for the company’s repeated failures to remediate contamination at English Station in New Haven. Then, on March 6, PURA issued a draft decision reversing itself and preliminarily approving the sale of Aquarion Company to a new nonprofit that is projected to double household bills and will gut public oversight of water utility rates and consumer protections.

"It's Christmas for utility executives in Connecticut. This is now the third consecutive decision this month alone where PURA has inexplicably reversed itself and caved to utility demands. First, they gave United Illuminating an extra $2 million and eliminated the penalty for the company’s failures at English Station. Next, they flip-flopped on Aquarion and gave draft approval to a terrible deal that will double water rates. Now, they’re giving Eversource-owned Yankee Gas another $4 million. Connecticut families cannot afford another multi-million-dollar utility rate hike. I’m going to keep fighting at every single step of these proceedings because someone has to stand up for Connecticut families and say no to these runaway costs."

Yankee Gas provides natural gas service to 81 towns located across Connecticut. This extensive service area covers communities in various parts of the state.

Among the towns receiving service from Yankee Gas are Ansonia, Barkhamsted, Beacon Falls, Berlin, Bethel, Bozrah, Bristol, Brookfield, Brooklyn, and Burlington. Other towns include Cheshire, Colchester, Cromwell, Danbury, Darien, Derby, Durham, East Granby, and East Lyme.

Further communities in the service network include East Windsor, Ellington, Enfield, Farmington, Franklin, Greenwich, Griswold, Groton, Harwinton, and Killingly. Ledyard, Lisbon, Litchfield, Mansfield, Meriden, Middlebury, Middlefield, Middletown, and Monroe also receive Yankee Gas service.

Montville, Naugatuck, New Canaan, New Hartford, New London, New Milford, Newtown, Norfolk, North Stonington, and Norwalk are also part of the service area. Orange, Oxford, Plainfield, Plainville, Plymouth, Pomfret, Preston, Prospect, and Putnam are included.

Additionally, Redding, Ridgefield, Seymour, Shelton, Somers, South Windsor, Southbury, Southington, Sprague, Stamford, and Stonington are served. Suffield, Thomaston, Tolland, Torrington, Vernon, Wallingford, Waterbury, Waterford, Watertown, Westport, Wilton, Winchester, Windham, Windsor, Windsor Locks, Wolcott, and Woodbury complete the list of towns receiving natural gas from Yankee Gas.