Eversource proposes an 11% rate increase for Connecticut customers
For the first time in almost a decade, Eversource is seeking an electric rate increase, the utility said on Wednesday.
The proposal could raise electric rates by an average of 11% across all customer classes and approximately 13% for residential customers beginning July 1, 2027, according to the company.
“Today we submitted a letter of intent (LOI) to file a distribution rate review for our electric operations – the first in nearly a decade,” Eversource said in a statement. “Over the last 10 years, customers have experienced increased reliability as a direct result of our strategic investments in the electric system, and increased investment is needed to maintain the level of affordable reliability and resiliency that customers have come to expect.”
Eversource said the LOI showed an operating revenue deficiency of approximately $503 million annually, excluding storm costs from 2018 to 2023, which the company says PURA is evaluating in a separate docket.
Eversource said it hopes regulators will authorize “securitization” for storm-related costs, a “specialized financing method that will allow those costs to be recovered over a much longer timeframe of 20 years and at a lower interest rate compared to the traditional six year recovery.”
“If securitization is approved, this will substantially lower bill impacts for customers and allow us to keep the full amount of storm costs from our rate review application,” the company said.
The filing marks Eversource’s first electric distribution rate review in Connecticut since 2017, and it has prompted criticism from state officials.
Attorney General William Tong issued the following statement after the news came out:
“Connecticut families are getting crushed by unaffordable energy costs while Eversource executives crow to Wall Street over surging profits and rake in multimillion dollar bonuses. But they choose now to demand hundreds of millions of dollars more. Why? Because after years of litigation and lobbying, they finally ran their chief regulator out of town. They want a rate hike now not because they need one, but because they think they can get away with it. We’re going to scrutinize every profit, every bonus, every perk and every padded expense in their application and we’re going to be fighting for Connecticut families and small businesses at every step of this process.”
Eversource pushed back on Tong’s statement, saying that company leadership salaries and variable pay are not included in the proposed rate request.
The company said the requested increase reflects inflation, supply chain challenges, and other factors that have increased equipment and material costs in the utility industry.
“Prices have grown well beyond the pace of inflation,” the company said. “Across the utility industry, since 2004, wire and cable costs have increased by 411%, transformers have increased by 265%, and utility poles have increased 123%, according to a May 2026 Lawrence Berkely National Lab report on electric utility distribution costs.”
Consumer Counsel Claire Coleman, whose office advocates for utility ratepayers, said the filing would trigger one of the state’s most significant utility reviews in years. She issued the following statement:
“A letter of intent is the first step in the rate case process, where a company notifies regulators that it intends to seek a rate increase. Eversource will now have up to 60 days to file a full application, formally triggering what is expected to be one of the most consequential utility review proceedings in years. Once filed, OCC will aggressively scrutinize the company’s request, conduct discovery, cross examine Eversource witnesses, and present recommendations to PURA to ensure customers are not asked to pay for anything beyond the most necessary and cost-effective investments. My office will prioritize keeping costs as low as possible for consumers already struggling with affordability challenges, while promoting critical infrastructure, cybersecurity, consumer protections, and overall system reliability. Because Eversource has not undergone a rate review since 2018, this case will provide the first real opportunity in years to thoroughly examine the company’s operations, spending decisions, and priorities under a microscope. This process will also provide multiple opportunities for members of the public, community organizations, and elected officials to participate through public hearings and written comments submitted into the record. OCC strongly encourages consumers to stay engaged throughout the proceeding and to visit our website or contact our office directly for information on how to participate.”
Senate Minority Leader Sen. Stephen Harding (R-Brookfield) and Sen. Ryan Fazio (R-Greenwich) issued the following joint statement regarding the news:
“As overburdened Connecticut families and businesses brace themselves for potential double-digit hikes next year, they should remember this:
Two weeks ago, every State Senate Democrat lawmaker voted ‘no’ on legislation that would have reduced ratepayers’ electricity bills by hundreds of dollars per year.
This legislation, offered by Senate Republicans, would have moved the hidden ‘public benefits’ tax from electric bills.
Republicans will continue to make the case for getting those charges off your bills, and we will keep supporting affordability measures, but we need more Republicans at the State Capitol if we ever hope to see relief.”
Sen. President Pro Tempore Martin Looney (D-New Haven), Sen. Majority Leader Bob Duff (D-Norwalk), and Sen. Norm Needleman (D-Essex) issued the following joint statement after Eversource’s announcement.
“Eversource profits are soaring. Eversource executives are getting huge bumps in pay. And they’re asking Connecticut ratepayers to foot the bill. At a time when the Trump administration’s tariffs, oil price hikes and push for AI and data centers are putting more pressure on our grid and spurring national rate shocks, at a time when we finally see the start of progress in pulling Connecticut electric rates back down, Eversource is asking for more.
Why wouldn’t they? When do they not?
It’s not lost on us that the company’s own statement seems to dangle the state approving its storm securitization funds, which would increase consumer costs, in reducing its proposal – another attempt to threaten the state so the company gets what it wants, and a no-win situation for Connecticut households struggling to make ends meet. Yet again, it’s Wall Street vs. Main Street, and Eversource again hopes to elevate shareholders over ratepayers. Connecticut ratepayers can’t afford this. We encourage PURA to be diligent and skeptical in examining every aspect of this request.”
The proposed rate increase still needs to be approved.
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