Yankee Gas, a subsidiary of Eversource, has proposed a significant rate increase that could raise home heating costs for residential customers by up to 43%, or more than $46 per month.
The utility has requested an additional $209 million in revenue, citing a 29% shortfall due to distribution costs, and the rate hike would apply from November 1, 2025, to October 31, 2029. Commercial and industrial customers could see increases ranging from 14% to 42%. This request follows a six-year gap since its last rate hike.
State Attorney General William Tong strongly opposed the proposal, accusing Eversource of being disconnected from the financial struggles of Connecticut families facing high energy costs. The filing has raised concerns due to growing tensions between utilities and regulators in the state.
Recently, regulators have rejected rate increases and even reduced rates, with claims from gas companies like Southern Connecticut Gas and Connecticut Natural accusing the Public Utility Regulatory Authority PURA of bias for draft decisions aimed at cutting their rates by approximately $75 million.
Utilities, however, argue that the inability to raise rates could compromise service reliability and result in financial difficulties, including credit downgrades that make borrowing more expensive.
Yankee Gas also included a Regulatory Risk Premium in its request, highlighting the regulatory environment in Connecticut, which it claims justifies higher rates.
This additional charge has been criticized by Attorney General Tong as unreasonable and disconnected from other public utilities.
If the rate increase were to be approved, customers might see a reduction of up to 5% in their monthly costs through certain credits. However, this outcome seems unlikely, given the current regulatory landscape and scrutiny from state officials.