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Attorney General Tong Issues Statement On Draft Decision Reducing United Illuminating’s $105 Million Rate Hike
From Press Release:
[ *** ] Attorney General William Tong released the following statement regarding the draft decision today by the Public Utilities Regulatory Authority reducing a $105 million rate hike demand from United Illuminating. The company filed for the rate hike last fall, a mere year after receiving a prior revenue increase. PURA preliminarily authorized an increase of approximately $29 million.
“United Illuminating does not need more money. It’s Connecticut families who need a break from these relentless revenue grabs and unaffordable energy bills. When utilities come before PURA for a rate hike, it’s their job to prove their case. And they need to do so with real evidence and hard numbers, not PR campaigns and lobbyists. We combed through every page and penny of their application, and it was padded with unsupported expenses and unjustified corporate profits. PURA was right to cut this demand,” said Attorney General Tong.
United Illuminating announced last September its intentions to seek $105 million in new revenues. If approved, such an increase would have increased bills by an average of 9.3 percent. The distribution rate would have risen by 34 percent. The rate hike application closely followed a $23 million rate increase granted by PURA. The company had sought $130.7 million.
Press Release (09/10/2025)
From Draft Decision:
[ *** ] SUMMARY
The Public Utilities Regulatory Authority (Authority or PURA) approves an annual revenue requirement for The United Illuminating Company (UI or Company) in the amount of $413,533,924 for the rate year November 1, 2025, through October 31, 2026. The Company may recover an additional $413,541 in executive compensation, provided the Company achieves certain performance targets. The revenue requirement includes an allowed return on equity of 9.25%; however, the Authority reduces the allowed ROE by an aggregate 50 basis point reduction (i.e., to 8.75%) to address certain performance and management issues.
The Company proposed a 27.4% increase, or $105,418,797, over currently authorized revenues of $384,865,000, for a total revenue requirement of $490,283,797. The Company’s proposal includes a 10.5% return on equity, which is a 140 basis point increase from the currently allowed 9.10% return on equity, which was reduced by 47 basis points, subject to certain conditions and timelines, to address performance and management issues identified during the previous rate proceeding. See Decision, Docket No. 22-08-08, Aug. 25, 2023, Application of The United Illuminating Company to Amend its Rate Schedules (22-08-08 Decision), pp. 91-102.
In addition to determining the revenue requirement, the Authority makes findings on a myriad of issues, including cost allocation and customer service. [ *** ]
Draft Decision (09/10/2025)
(Application Of The United Illuminating Company To Amend Its Rate Schedule)
