AARP Connecticut Urges PURA to Reject Yankee Gas Service Company Natural Gas Rate Increase Request

Public Hearings in February, March & April Offer Ratepayers Opportunity to Provide Testimony

AARP Connecticut urges the Public Utilities Regulatory Authority (PURA) to deny the proposal by Yankee Gas Services Company d/b/a Eversource Energy to implement a rate increase that will significantly raise the cost of natural gas for Connecticut residential customers. The complete testimony submitted to PURA by AARP Connecticut is below.

Under the proposed application, Yankee Gas Services requests an increase in the fixed monthly charge by 39% and an overall rate increase of approximately 43% which would translate to a raise in Connecticut ratepayers’ monthly bill by $46.

“AARP calls on PURA to reject the latest rate increase proposal by one of Connecticut’s residential energy providers,” said John Erlingheuser, AARP Connecticut Senior Advocacy Director. “The excessive rate increase, which will raise bills before consumers even adjust their thermostats, will be one more financial worry for Connecticut residents 50-plus and their families – especially older and low-income residents – already facing a daily challenge to make ends meet, especially in the current inflationary environment.”

AARP Connecticut encourages potentially impacted ratepayers to voice their position on the unreasonable and unacceptable rate increase. PURA will hold three public comment hearings to receive ratepayer feedback on the application by Yankee Gas Services to amend the rates:

• Monday, Feb. 10, at 5:30 p.m.: Danbury Police Department, 375 Main Street, Danbury, CT
• Monday, March 17, at 5:30 p.m.: Vernon Town Hall, 14 Park Place, Vernon, CT
• Wednesday, April 9, at noon: virtually via Zoom

AARP Connecticut’s submitted comments to PURA in opposition to the sizable rate increase request by Yankee Gas Services Company d/b/a Eversource Energy follows:

The Yankee Gas Service Company Natural Gas Rate Case Application to Amend its Rate Schedules

Public Utilities Regulatory Authority (“PURA”) Docket No. 24-12-01

Comments of AARP Connecticut - January 29, 2025

AARP hereby submits comments on the Yankee Gas Services Company d/b/a Eversource Energy request for an increase in electric rates before the PURA.

AARP represents residential customers, particularly the over fifty population. Many of our members are on fixed incomes. Others are low income and struggle to make ends meet, especially in this current inflationary environment.

The request to increase natural gas rates by approximately $209 million, net of certain offsets, which translates to a 43% increase, or a bill increase of $46 per month, which is an unreasonable and unacceptable increase.

Our specific comments are as follows:

The Increase is Too High
PURA should disallow any unnecessary spending to reduce the overall rate increase.

The Customer Charge Should Not Be Increased
The Company proposes to increase residential heating fixed customer charges from $17.00 to $23.63, or 39.0%, which may exceed the fixed costs to serve each customer upon a complete review of the Yankee’s cost of service study. This would cause customers to experience an increase in their bills before they even adjust their thermostats. The Company’s proposed increases to the fixed customer charges for residential heating customers appear to exceed the overall increase to revenue requirements which removes pricing signals for customers to conserve natural gas. High fixed charges make controlling your energy bill more difficult. PURA should reject this request.

Residential Customers are Bearing Too Much of the Increase
The Company proposes to increase revenues collected from the Residential Heating customer class by an amount much larger than the overall proposed revenue increase. This is unfair and inappropriate and should be rejected.

The 10.3% Return is Too High
The request for a 10.3% return is excessive compared with what other utilities are getting around the country. The Public Utility Regulatory Authority has already authorized multiple financial risk-mitigating ratemaking policies that allow the company to begin recovery of certain capital investments between rate proceedings. Therefore, the ROE should be reduced accordingly. We also oppose the proposed regulatory risk premium.

The PBR Plan Should Be Scrutinized
The performance-based ratemaking (PBR) plan proposes five incentive/penalty metrics and two other metrics which would be the first of their kind before PURA. The proposed PBR mechanism is exceedingly complex and deserves scrutiny. Utilities should not be rewarded with bonuses for doing their regular job. Further, the PBR proposal would allow for almost automatic changes to customers’ rates annually on November first of each year 2026, 2027, and 2028 outside of a general rate case. This is inappropriate as regulatory scrutiny is lacking.

AARP appreciates this opportunity to comment on this proceeding and looks forward to providing more feedback as the docket advances.

John Erlingheuser
AARP Connecticut Senior Associate State Director, Advocacy