Conn. gubernatorial candidates react to Eversource's double-digit rate request
Eversource’s request for a 11% hike in electricity rates likely solidifies energy prices as a key issue in the race for governor.
Gov. Ned Lamont (D-Connecticut) and challengers from both parties said they would hold Eversource accountable and stand up for ratepayers.
Eversource filed a letter of intent on Wednesday, indicating the utility will formally file and open a rate review case, likely in mid-July.
At that time, the company said it was seeking an 11% increase in its delivery charge to cover operating expenses.
Eversource said in its letter that it incurred a $503 million operating deficit. If approved, the rate increase would take effect in 2027.
Lamont responded with a “message to Connecticut families” questioning the need for the increase.
He noted that the company made a $1.69 billion profit last year, while CEO Joseph Nolan received $13.5 million in total compensation.
Lamont vowed in the letter that the Public Utilities Regulatory Authority (PURA) will review the increase thoroughly to ensure customers don’t pay more than necessary.
Lamont, who appoints all five members of PURA, also told reporters that recent changes allow PURA to prevent increases for things that don’t directly benefit ratepayers.
“You know we had to change the rules a few years ago,” he said. “They had charitable donations, they put in the rate base, lobbying, and advertising fees. We’re trying to make sure our ratepayers only pay for electricity.”
Rep. Josh Elliott (D-Hamden), who is challenging Lamont for the primary, said the state should help municipalities purchase and deliver their own electricity. A handful of cities and towns already do this.
Elliott said this likely includes using eminent domain so cities and towns can utilize existing infrastructure and state aid to help municipalities start up local utilities.
“You allow people who live in the municipalities to decide for themselves whether or not they want their energy to be delivered publicly or privately,” he said.
Sen. Ryan Fazio (R-Greenwich), the Republican nominee, said Lamont hasn’t been tough enough on utilities.
Eversource’s last rate review case was settled in 2018. Fazio thinks the state should require utilities to conduct formal rate reviews more frequently to bolster transparency and reduce the need for such large requests.
“Unfortunately, when the governor has had leverage over the electric utilities, including with the sale of Aquarion, in the previous settlement that should have been a rate case, he hasn’t applied it,” Fazio said.
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