Connecticut Regulators Approve Electricity Rate Increase For UI Customers

The Connecticut Public Utilities Regulatory Authority Tuesday issued a final decision that approves an annual revenue requirement for the United Illuminating Company for the rate year Nov. 1, 2025, through October 31, 2026.

UI officials declined comment, but said the average residential customer using 750 kilowatt hours of electricity each month will pay an additional $9.99 for the month.

So how did it come about?

Tuesday’s ruling approves a $450,789,348 revenue requirement for the rate year, which is 8 percent less than UI's proposal. The approved revenue requirement includes an allowed return on equity of 9.45 percent, but PURA reduced the allowed return on equity by an aggregate 20 basis point reduction (to 9.25 percent) to address "certain performance and management issues."

In its application, UI proposed a 27.4 percent, or $105,418,797 increase over currently authorized revenues of $384,865,000, for a total revenue requirement of $490,283,797. The company sought approval of a 10.5 percent ROE, which would amount to a 140 basis point increase from the currently allowed 9.10 percent ROE.

According to PURA, the final decision in the proceeding (Docket No. 24-10-04) also determines a "myriad of issues," including cost allocation and customer service.

PURA commissioners approved the decision at today’s regular meeting in New Britain, with the authority’s new Interim Chairman Tom Wiehl recusing himself from the decision due to his recent involvement in the case while in his former role as Legal and Regulatory Director at the CT Office of Consumer Counsel.

On Sept. 19, PURA Chairwoman Marissa Gillett resigned after six years in office. On Oct. 20, Gov. Ned Lamont announced that he was nominating four to serve as commissioners, including Janice Beecher of New Britain, Holly Cheeseman of Niantic, Everett Smith of Greenwich, and Thomas Wiehl of Madison. The governor announced that he was selecting Wiehl to serve as the authority’s chairperson.

Each of the nominees will initially begin serving in these roles in an interim capacity, and then their nominations will be forwarded to the Connecticut General Assembly for its consideration upon the start of the 2026 regular legislative session in February. Connecticut state law permits a maximum of five commissioners to serve on PURA. Each commissioner serves a four-year term, and the governor is required to select one of them to serve as chairperson.

There were two active PURA commissioners, including David Arconti, Jr., who is in the first year of his first term and who also serves as the authority’s vice chairperson, and Michael Caron, whose term has expired and who has chosen to retire later this year. Caron has been a commissioner since 2012.

According to Tuesday's decision, PURA conducted an extensive investigatory process over the past 350 days, which entailed three public comment hearings, multiple rounds of pre-filed testimony from parties, several days of field audits and inspections, more than 2,000 interrogatories issued amongst all parties and intervenors, seven days of in-person hearings, submission of 92 late filed exhibits, a late filed exhibit hearing, and briefs and reply briefs.

UI’s last rate case was completed in 2023. UI provides electric service to over 347,000 residential, commercial, and industrial customers in 17 towns and cities in the southwestern part of Connecticut.

New Haven County

• Ansonia
• Derby
• East Haven
• Hamden
• Milford
• New Haven
• North Branford
• North Haven
• Orange
• West Haven
• Woodbridge

Fairfield County

• Bridgeport
• Easton
• Fairfield
• Trumbull
• Shelton
• Stratford

Connecticut Attorney General William Tong Tuesday issued the following statement:

"United Illuminating had sought a $105 million rate hike. A draft decision issued by PURA in September preliminarily authorized an increase of approximately $29 million. Among the changes made by PURA in the final decision issued today was to cut by half a reduction to United Illuminating’s return on equity due to the company's repeated failures to remediate contamination at the defunct English Station power plant in New Haven.

"This is disappointing news for Connecticut families. After months of relentless legal attacks, United Illuminating succeeded in running off its chief regulator. For those who spent these last months fixated on personalities and politics, this decision is a stark reminder of what this fight was always about. It was about millions upon millions of dollars that Connecticut families will now pay to increase United Illuminating’s bottom line. We cannot lose sight of that, and we must redouble our efforts to address the crisis of affordability in our state."