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Tis the Season To Give Back
UI agrees to $7 million rate reduction for ‘99
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Business New Haven
12/14/1998
By: BNH
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A settlement has been reached between the United Illuminating Co., the state's Office of Consumer Counsel and the state Attorney General's office that will lead to a rate reduction of $7 million for the utility's customer's in 1999.
The settlement was effected after Attorney General Richard Blumenthal objected to the New Haven utility company's efforts to recover millions of dollars in past expenses from its customers with the approval of the state's Department of Public Utility Control (DPUC). Blumenthal had argued to regulators that such accounting mechanisms were improper as the state moves toward deregulation of the electric industry.
With this latest $7 million rate reduction, or one percent on an annualized basis, UI's rates will have declined nearly 5.5 percent since December 1996. The reduction will arrive in the form of a credit that will begin appearing on customer bills as early as January 1.
“This rate cut puts UI's customers a step closer to the rate reductions of at least ten percent that the legislature sought when it enacted electric deregulation in this past session,” said Blumenthal.
In addition, customers may receive further reductions if UI earns more than its permitted return on equity because the company has agreed to share half of those earnings with consumers. UI serves about 312,000 commercial and residential consumers throughout south-central Connecticut.
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