UI Files Appeal of PURA’s Denial of Application for Interim Rate Increase

 


ORANGE, Conn. — February 9, 2024 — United Illuminating (UI), a subsidiary of Avangrid, Inc. (NYSE: AGR), today issued the following statement regarding its appeal of PURA’s denial of its Application for an Interim Rates Increase to Superior Court: 
“In order to provide the reliable, resilient electric service our customers expect and deserve, UI must have the revenues we need to invest in our infrastructure, secure our essential front-line workers, and maintain the financial integrity of our company,” said Frank Reynolds, President and CEO of United Illuminating. “PURA’s decisions continue to compromise our ability to make these essential investments. By denying 87 percent of our requested base revenue increase in August, PURA crippled our ability to sustain and build the electric grid of the 21st century. Subsequently, PURA’s decision to deny our Application for an Interim Rate Increase – without opening the evidentiary record to consider the harms exacted by their August decision – exposes a momentous breach in due process. That is why today, we filed an appeal to ask the court to remand this Application back to the Authority for further proceedings.

“While the material harm on UI’s financial condition is undeniable and incurable without relief from the courts, the impacts of the rate decision are even farther-reaching. As our Application described, the decision continues to impair our invaluable workforce by denying front-line workers hard-earned incentive compensation and benefits. Planned investments, such as completing our transition to innovative smart-meter technology and upgrading our oldest substations, must also be deferred at exactly the moment when electric utilities must look to increase these kinds of investments to make way for an electrified future.

“These represent only a fraction of the damaging impacts of PURA’s August decision that we raised in our Application, of which even one would be worthy of full discussion and deliberation in the evidentiary process. PURA’s wholesale denial of our Application, without a single hearing or evidentiary procedure, is thus astonishing and indicates an unwillingness of the Authority to hear or consider the consequences of their decisions. Thus, we have appealed to the courts, and we ask that they require the Authority, a quasi-judicial body, to uphold their commitment to a fair, just process by providing our Application, and the underlying issues raised in it, the complete review they deserve.”

Background 

  • UI filed its Application for an Interim Rate Increase on November 30, 2023, requesting PURA to provide an increase of $14 million annually in incremental base revenues beginning February 1, 2024. 
  • The Application for an Interim Rate Increase was necessitated by the Final Decision rendered in UI’s most recent rate case (Docket No. 22-08-08) on August 25, 2023. While UI requested a three-year rate increase in which it would raise base rates by $91 million in Year 1, PURA instead disallowed 87 percent of PURA’s requested revenue increase. PURA imposed denying recovery of both “used and useful” and future capital projects as well as operating expenses, in contravention of Connecticut law, U.S. Supreme Court precedent, and the Authority’s own precedent. 
  • UI’s Application for an Interim Rate Increase can be found here: 2. 23-11-XX UI Application for Interim Rate Relief (11.30.2023 FINAL).pdf (state.ct.us). Exhibits and other documents related to the Application can be found on PURA’s website under Motion 079 in Docket No. 22-08-08, linked here: Motion (state.ct.us).
  • On December 29, 2023, PURA issued its Final Decision to deny this Application without a hearing or opening an evidentiary record. That Decision can be found here: 22-08-08 Motion No.79 Ruling.pdf (state.ct.us).
     

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