PURA Orders Rate Decrease For Aquarion Customers, Including Granbys

GRANBY-EAST GRANBY, CT — The Connecticut Public Utilities Regulatory Authority (PURA or the Authority) Wednesday approved a Final Decision that rejects Aquarion Water Company's proposed multi-year distribution rate increase and instead reduces current customer rates effective immediately.

The PURA commissioners at Wednesday's regular meeting voted 2-1 to approve the decision in Docket No. 22-07-01. Chairman Marissa P. Gillett and Commissioner Michael A. Caron voted to approve the decision, and Vice Chairman John "Jack" Betkoski III dissented.

PURA officials said the action will decrease the average residential customer's bill by approximately $67 per year.

Aquarion oversees water systems in 59 Connecticut towns, including Granby and East Granby.

Under the decision, the Authority approves an annual revenue requirement for Aquarion in the amount of $195,561,690 in base rates for the rate year commencing on March 15, and a return on equity of 8.70 percent. The authorized annual revenue requirement represents a decrease of nearly $2 million, or 1 percent, compared to current levels, and, paired with the Water Infrastructure Conservation Adjustment surcharge being reset to zero, results in an 11 percent decrease in Aquarion customer rates.

Aquarion requested an approximate $37 million increase in distribution revenues and a 10.35 return on equity, according to PURA.

The PURA decision also authorizes a new three-tier pricing structure for Aquarion residential single-family customers designed to "encourage conservation by sending appropriate pricing signals to higher-volume users." The initial consumption rate tier, which applies to the first 900 cubic feet of usage per month, will capture 76 percent of customer bills based on an historic usage analysis, according to PURA.

PURA also approved a "rate design" that includes a Low-Income Rate Assistance Program that will provide a 15 percent credit to qualifying residential customers on their total monthly bill.

A spokesperson for Aquarion said in a written statement, "Aquarion is disappointed by the Connecticut Public Utilities Regulatory Authority’s (PURA) final rate application decision. We will evaluate the decision over the coming days and determine our next steps. From aging infrastructure and lead service lines, to per- and polyfluoroalkyl substances (PFAS) in water threatening human health, the water industry faces serious challenges that can only be met through prudent, sustained investment in our state’s water infrastructure. Regrettably, PURA’s decision is silent on how to address these challenges with reduced resources. Aquarion is committed to our mission of providing safe, high-quality water to our customers at affordable rates. We are equally committed to delivering the modern water infrastructure essential to fulfilling that mission."