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July 29, 2021

PURA approves scaled back increase in CT Water rates

Photo | Contributed Killingworth Reservoir is among 253 in-state reservoirs and wells tapped to provide potable water.
By Zachary Vasile

State regulators will allow the Connecticut Water Co. to raise rates by just slightly over 5%, about a quarter of the increase the Clinton-based water supplier had asked for in rate adjustment proceedings.

In a ruling released Wednesday, the Public Utilities Regulatory Authority approved a base rate revenue increase for the company of $5.2 million, which would raise customers’ rates by 5.06%, or about $40 per year for the average household. Connecticut Water in January requested a revenue increase of $20.3 million, which would have translated to a 20% rate hike, costing residential consumers about $127 more per year.

Connecticut Water — which was acquired by California-based SJW Group in 2019 — serves about 105,000 customers, or 360,000 people, across 60 communities in the state.

In its initial request, the company had argued that a 20% raise was necessary to support infrastructure investments. But PURA challenged that conclusion after weighing testimony from the Office of Consumer Counsel, which argued the company’s proposed return on equity was excessive, and comments from customers, municipalities and fire departments, which largely opposed the increase on the grounds that it would exacerbate financial hardships stemming from the COVID-19 pandemic, especially for residents on fixed incomes.

PURA also approved a water rate assistance program proposed by the company that will offer a 15% discount off the total water bill of customers in households earning up to 60% of the state’s median income.
 

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