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PURA Files Final Decision In Application Of Yankee Gas To Amend Its Rate Schedules
From Final Order:
[ *** ] The Public Utilities Regulatory Authority (Authority or PURA) approves an annual revenue requirement for Yankee Gas Services Company d/b/a Eversource Energy (Yankee or Company) in the amount of $802,243,646 for the rate year, November 1, 2025 – October 31, 2026 (Rate Year). Notably, reflected in this amount is the Company’s refund of a total of $40,218,430 in ratepayer money over the next three years. The revenue requirement includes an allowed return on equity (ROE) of 9.48%; however, the Authority reduces the allowed ROE by an aggregate 16 basis points, i.e., to 9.32%, to address certain management and compliance issues.
The Authority declines to approve a multi-year, “performance-based” rate plan (MYPB rate plan) that would increase rates each year over a four-year period. The Company proposed a 26.80%, or $192,955,454 increase, over currently authorized revenues of $719,998,000—the largest requested rate increase by a Connecticut gas company in the last 20 years—for a total revenue requirement of $912,953,454.1
The Company also proposed a 10.30% ROE—a 100 basis point increase from the currently allowed ROE of 9.30%—plus a 50 basis point regulatory risk premium.
Importantly, the Company has not had a fully adjudicated rate case since 2011. Its 2017 rate amendment application was resolved through a settlement agreement (18-05- 10 Agreement). Under the terms of the 18-05-10 Agreement, the Company continued to earn healthy returns. In 2024, the Authority notified the Company that it would be subject to a financial audit unless it filed a rate amendment application. This application followed. [ *** ]
Final Decision (11/05/2025)
24-12-01 (07/18/2024)
(Application of Yankee Gas Services Company d/b/a Eversource Energy to Amend Its Rate Schedules)
