February 28, 2007 |
2007-R-0218 | |
RECENT UTILITY RATE INCREASES | ||
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By: Kevin E. McCarthy, Principal Analyst | ||
You asked for a comparison of rate increases sought by utilities in recent years to the amount that the Department of Public Utility Control (DPUC) approved.
Table 1 presents this information for the past years for electric, gas, and water companies. While DPUC also regulates telecommunications companies, they are generally not subject to traditional rate regulation. Companies that provide telecommunications services that are subject to competition, as most are, file their tariffs with DPUC, which can modify them.
In most cases, the table shows the overall amount of revenue increases sought by the companies and approved by DPUC. As the table notes, in two cases, the company sought an increase, but DPUC instead reduced the company's rates. In the case of the most recent electric company rate cases, the table provides information on rates for standard service, which is provided to small and medium size customers who do not choose a competitive supplier.
Table 1: Rate Increase Proposals and DPUC Approvals
Utility |
Date |
Increase Sought (%) |
Increase Approved (%) |
Connecticut Light & Power (standard service customers) |
12/06 |
8. 9 |
7. 7 |
Connecticut Light & Power |
12/05 |
21. 5 |
17. 5 (effective 1/06) 4. 9 (effective 4/06) |
Connecticut Light & Power |
12/04 |
16. 7 |
10. 3 |
United Illuminating (residential standard service customers) |
12/06 |
44. 7 |
24. 7 (effective 1/07), 20 (effective 4/07), 5. 3 (effective 7/07) |
United Illuminating |
1/06 |
9 over four years |
4. 9 over four years |
Southern CT Gas |
12/05 |
11 |
8. 4 |
CT Natural Gas |
5/00 |
5. 8 |
-. 04 |
Yankee Gas |
12/04 |
7. 2 |
4. 1 |
Birmingham Water |
11/06 |
24. 8 |
16. 2 |
Birmingham Water |
8/03 |
34. 6 |
27. 7 |
Connecticut Water |
1/07 |
30. 2 |
14 (effective 1/07), 6 (effective 4/08) |
Avon Water |
3/06 |
36 |
35 |
Hazardville Water |
3/05 |
24. 1 |
14. 9 |
Aquarion Water |
10/04 |
13. 9 |
-2. 0 |
The size of the rate increase sought by the companies vary due to several factors, including the length of time between rate cases and the amount the company invested in its infrastructure during this time. The relationship between the company's request and what DPUC approved also varies due to several factors, including (1) the rate of return the company seeks to earn on its investments and what DPUC determines is reasonable and (2) the degree to which DPUC determines that the company had experienced unavoidable cost increases, such as for the power or natural gas the company bought for its customers.
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