Eversource seeks first CT rate increase in a decade

Eversource is seeking an up to 18% rate increase from Connecticut ratepayers.

Kate McAuliffe, senior Connecticut policy advocate for the Acadia Center, a clean energy advocacy group acting as an intervenor in the case, said the center is focusing on issues like Eversource’s return on equity.

“What Eversource is requesting is a 10.25% return on equity. Right now the national average is hovering around 9.7%. This is higher than what we’re seeing in terms of national averages in a state where electric rates are already very high,” McAuliffe explained.

Return on equity is the rate of profit regulators like the Public Utility Regulatory Authority permit utilities to earn on capital investments. McAuliffe added it can be a major cost driver for ratepayers and a profit source for utilities. Eversource said the rate increase is due to inflation and higher maintenance costs. Other priorities the center plans to focus on include utility performance incentives, grid modernization and rate design reform.

The Acadia Center was an intervenor in Eversource’s rate case a decade ago but McAuliffe noted some differences between then and now. Beyond changes in market conditions, McAuliffe acknowledged there is increasing pressure from inflation and global energy markets. She described the center’s ultimate goal for the rate case.

“What we’re looking for is a final decision that applies the appropriate level of scrutiny to Eversource’s proposed investments, decisions that enable some of the more innovative operational and technological strategies that will make the grid more efficient,” McAuliffe outlined. McAuliffe added the authority’s decision must also create a framework for utility accountability and performance.

To read the full article from Public News Service, click here.