'Reject every single dollar': Bipartisan lawmakers push back on Eversource's 11% rate hike

Connecticut residents already struggling with expensive utility bills may soon face another fight over their monthly expenses.

Lawmakers from both major parties are pressing state regulators over Eversource's proposed 11% increase in electric rates, according to NBC Connecticut.

Their June 11 letter, signed by nearly 70 Democrats and Republicans, asks the Public Utilities Regulatory Authority to give the proposal a meticulous review before any added costs are passed on to customers.

What happened?

Eversource told regulators last month that it plans to submit its formal request by July 14 and hopes to have the higher rates take effect in 2027, according to NBC Connecticut.

Even before the filing is submitted, lawmakers have urged PURA to "subject this application to the most rigorous scrutiny possible" and to "reject every single dollar of it that is not justified."

The utility has defended the request as necessary to maintain the electric system. In a statement, the company said, "The plan we're putting forward will demonstrate a clear need for continued investments to ensure the safety and reliability of the electric system — which is a necessity for both customers and policymakers in reaching their goals to move the state forward — and we welcome a comprehensive, open and fair review from our regulators."

Eversource also says it is operating with a $503 million deficit and claims in its letter that about half of that shortfall is connected to an attempt to improve developments on the state's power grid.

However, lawmakers were unconvinced, saying that a company that earned $1.69 billion in profit last year should not be asking its customers to absorb more of the cost.

Why does it matter?

For households already trying to keep up with rising housing, grocery, insurance, and transportation costs, another double-digit utility increase could be especially hard to absorb.

Unlike many other monthly expenses, electricity is not something most people can simply go without, which means rate hikes tend to hit everyday residents directly, with little room to cut back.

Sen. Jason Perillo, a Republican from Shelton, put it bluntly: "We've reached a point, in fact, we reached a point years ago, where residents can no longer bear the burden of these increases in utility costs."

Lawmakers also pointed to another possible source of concern: Eversource said it may seek additional money for storm cleanup tied to weather events from 2018 through 2023, according to NBC Connecticut. This raises concern for how much of the cost customers will have to shoulder, with the already shocking price hike currently under review.

What's being done?

Once Eversource formally submits its rate-hike request, PURA will review the proposal. Lawmakers are trying to shape that process early by urging regulators to challenge every unsupported expense and closely examine whether customers should be responsible for storm-related costs.

NBC Connecticut reported that regulators previously cited "significant deficiencies" in Eversource's response to Tropical Storm Isaias.

This is not the only utility dispute currently unfolding in the state, either. Lawmakers recently sent a similar letter opposing a separate 42% increase sought by Aquarion, Eversource's water company, according to NBC Connecticut.

There may be some relief on that front, however. PURA has approved the sale of Aquarion to the South Central Connecticut Regional Water Authority, according to the publication. Eversource said, "The closing of the transaction will avoid the need for the immediate rate request that is before regulators."

As Eversource's request remains under consideration, the question remains how much Connecticut customers will ultimately be asked to pay for its new development.

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