CT Regulators Release Final Decision On New Yankee Gas Rates — How Much Are Bills Going Up?

The Connecticut Public Utilities Regulatory Authority Wednesday issued a final decision that approves an annual revenue requirement for The Yankee Gas Services Company, an Eversource Energy affiliate, for the rate year Nov. 1, 2025, through Oct. 31, 2026.

The ruling approves a $802,243,643 revenue requirement for the company, approximately 12 percent less than the company’s proposal. Reflected in the revenue requirement is the utility refunding to its customers of approximately $40 million of ratepayer money over the next three years, PURA said.

The approved revenue requirement also includes an allowed return on equity of 9.48 percent.

PURA reduced the allowed ROE by an aggregate 16 basis points (i.e., to 9.32 percent) to address certain performance and management issues.

The final decision results in an estimated monthly bill impact of approximately $15 for the distribution of natural gas to the average residential heating customer using 54 ccf (cubic feet).

Individual customer bill impacts will vary by customer rate class and usage, PURA said. .

In its application, Yankee proposed an increase of $192,955,454, or 27 percent, for a total revenue requirement of $912,953,454. The company also proposed an ROE of 10.3 percent, plus a 50 basis point regulatory risk premium, for a total 150 basis point increase from the currently allowed ROE of 9.3 percent.

The final decision in the proceeding also determines other issues, including rate design and customer service. The PURA commissioners approved the decision at Wednesday's regular meeting in New Britain, with the authority’s new Interim Chairman Tom Wiehl recused 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.

Commissioners Janice Beecher and Holly Cheeseman also recused themselves from the decision, given their respective start dates at PURA were just days prior to the issuance of the decision.

The Authority conducted an extensive investigatory process which entailed more than 1,300 interrogatories submitted by PURA and participants, two in-person and one virtual public comment hearings, six days of audits, eight days of in-person evidentiary hearings, two late-filed exhibit hearings, 134 late-filed exhibits, briefs and reply briefs.

The company has not had a fully adjudicated rate case since 2011. Yankee’s 2017 rate amendment application was resolved through a settlement agreement, issued in 2018. Yankee provides gas service to over 252,000 residential, commercial, and industrial customers in 85 towns and cities in Connecticut.

Connecticut Attorney General William Tong released the following statement regarding the final decision issued Wednesday.

"Yankee Gas had sought a $193 million rate hike. If approved in full, the request would have forced the average customer to approximately pay an additional $43 per month on their gas bills. Today’s final decision increases rates by approximately 11.4 percent, or about $15 per month for the average residential customer. A prior draft decision would have authorized a $56 million increase, or about $9 more per month for the average residential customer.

"This is more disappointing news for Connecticut families heading into an already expensive winter heating season. Once again, the utilities are being rewarded with a multi-million dollar rate hike after running their chief regulator out of town through relentless litigation and personal attacks. These costs are unsustainable and I’m going to keep pushing back in every single one of these rate cases to make sure Connecticut families aren’t paying a penny more than absolutely necessary."

An Eversource spokeswoman said the utility is "reviewing the decision."