United Illuminating seeks to raise electric rates annually for next 3 years

A United Illuminating lineworker apprentice replaces an underarm disconnect in this 2014 photo. This procedure separates and isolates circuits to facilitate the restoration of power during power outages. A United Illuminating lineworker apprentice replaces an underarm disconnect in this 2014 photo. This procedure separates and isolates circuits to facilitate the restoration of power during power outages. Photo: New Haven Register File Photo Photo: New Haven Register File Photo Image 1 of / 1 Caption Close United Illuminating seeks to raise electric rates annually for next 3 years 1 / 1 Back to Gallery

ORANGE >> Customers of The United Illuminating Co. could see their monthly electric bill rise by $9 next year — and another $9 per month the next year, and an additional $9 per month the year after that — if state utility regulators approve a proposed distribution rate increase the company is seeking.

The electric distribution company, which serves 328,000 customers in 17 communities in the New Haven and Bridgeport areas, notified Connecticut’s Public Utilities Regulatory Authority Wednesday that UI intends to file its distribution rate increase plan later this summer. UI has between 30 and 60 days to file its formal application, explaining the details of the proposed rate increase and why it is needed.

The $141 million in new revenues the proposed rate increase would generate is needed to pay for ongoing modernization of UI’s distribution network, tree trimming and infrastructure improvements that has helped reduce outages as well as shorten restoration time when the power goes out, said John Prete, president and chief executive officer for the Connecticut and Massachusetts operations at Avangrid. New Haven-based Avangrid oversees all of the U.S. utilities owned by Spanish energy giant Iberdrola.

“As we continue to modernize our infrastructure, harden our delivery system and adopt state-of-the-art technologies, this new rate plan will help us maintain the safe, reliable service that our customers have come to expect from us,” Prete said in a statement.

The typical residential customer of UI uses 700 kilowatt hours per month and currently pays about $162 for their total bill. If approved, the first part of the rate increase would take effect in January 2017, increasing the customer’s bill to $171 per month. Another $9 would be added to the customer’s monthly bill at the start of 2018, increasing it to $180 followed by a hike to $189 per month at the start of 2019.

The rate increases being sought pertain only to the distribution portion of UI bills. The last time UI sought an increase in distribution rates was Feb. 2013, according to company officials, and remains in effect today.

Connecticut Attorney General George Jepsen condemned UI’s decision to seek the latest rate increase.

“Connecticut’s electric rates remain extremely high,” Jepsen said. “Any and every proposal to increase rates must be thoroughly scrutinized. My office will participate in this proceeding, and I will urge PURA to approve rates that are no more than just and reasonable, as required by law.”

Paula Panzarella, one of the co-founders of the New Haven-based consumer energy activist group Fight The Hike, called the proposed rare increase “outrageous.”

“That’s not right,” Panzarella said. “I don’t see the kind of change in their service that could warrant such an increase.”

The timing of Wednesday’s announcement allows UI to comply with one of the terms of the agreement that UI and Iberdrola signed with the state before the two companies merged at the end of 2015.

Part of that agreement was that UI would freeze rates through Jan. 1, 2017. Michael West, a spokesman for UI, said that while UI’s distribution rates are required to be frozen for that time period under the merger agreement, the company is not prohibited from starting the process necessary to obtain the increase in time for the beginning of 2017.

Call Luther Turmelle at 203-680-9388.