CT Attorney General To Regulators: Reject Yankee Gas Rate Hike

CONNECTICUT — Connecticut Attorney General William Tong this week asked the Public Utilities Regulatory Authority to reject a rate proposal by Yankee Gas that would add $43 to the average monthly bill in the state.

Yankee Gas in November requested the rate hike. The justifications included several needs like maintenance costs, gas infrastructure improvements, an increase in "depreciation rates" and recouping uncollectible expenses because of hardship cases.

The ratye hike request of the the period from Nov. 1, 2025, through Oct. 31, 2026.

A performance-based regulatory plan for a Nov. 1, 2025, through Oct. 31, 2029 period is also in the mix.

The Yankee Gas application can be viewed here.

Tong this week filed a brief urging PURA to reject the $193 million total rate hike sought by Yankee Gas.

"The rates proposed by Yankee exceed levels that could be considered just and reasonable," Tong wrote in the brief. "Many of Connecticut’s residents continue to face difficult economic circumstances. Many consumers—especially those on fixed or limited incomes—are simply unable to absorb any further increases in their cost of living. These customers are entitled to expect that the Authority and all the participants in this proceeding will work to ensure that the gas distribution rates approved will be no higher than necessary."

Tong also wants PURA to reject a "regulatory risk" premium proposed by Yankee Gas that would add $9.31 million in what he called "unnecessary charges" to customers.

“The Authority should reject the Company’s unreasonable and unjustified 50-basis-point regulatory risk premium. This risk premium is speculative at best, though the Attorney General sees it at its worst: a money-grab from Connecticut ratepayers who are doing their best to pay already-expensive utility bills,” Tong wrote.

Yankee Gas has 222,800 residential customers, 28,000 commercial customers, and 1,500 industrial customers in 85 Connecticut municipalities.

The brief filed by Tong can be read here.

Yankee Gas and Eversource reacted to Tong's comments.

"The rate adjustment we’ve requested with PURA is driven by the substantial investments we've made – and must continue to make – in the natural gas distribution system to ensure that our customers have safe, reliable service," utility spokeswoman Jamie Ratliff said. "Stable, predictable and steady investments like these are critically needed to replace aging components of the natural gas system, maintain public safety, and improve reliability year-round – especially during the winter months when our customers rely on natural gas for heating. While we work diligently to limit costs through careful control of our operating budgets and rigorous cost management, we are not immune to increases caused by inflation and other factors. This review is an essential step to ensure that rates accurately reflect the costs associated with these upgrades, which are necessary to provide the level of natural gas service that our customers expect and deserve."