UI Asks for Interim Rate Relief

United Illuminating (UI) has asked for $14 million in Interim Rate Relief while it's rate case against the PURA plays out in court.

Does UI Deserve Rate Hike?

The UI rate increase fight with the CT PURA has gone to court but the utility wants a $14 million bail out to keep running.
Learn why the UI rate increase has gone to court and why the utility is asking for a $14 million life line. Will your CT electricity bills increase this winter?

Because the CT PURA denied its rate hike this past summer, United Illuminating (UI) has taken the matter to court. In the meantime, UI is requesting interim rate relief. All told the electric utility company, $14 million in relief. So now we have to ask if UI is right to make this request and if it will affect shopping for the cheapest electric rates in CT?

Why UI Requests Rate Relief

UI had requested an electricity rate hike of $130.7 million. But on August 25, PURA denied this request and authorized a $23 million increase instead. UI argues that this isn’t nearly enough to modernize and improve its grid. So they have taken CT to court to appeal the decision.

As you can imagine, this appeal could take time. So UI requested $14 million in interim relief. UI’s filing states that if PURA grants the request, its customers will be protected by a surety bond. The bond would refund customers payments “determined to be unwarranted as a result of the appeal, including carrying costs.” In other words, if UI loses the appeal, then the money relief would be returned to customers.

CT Response To UI Request

The CT Consumer Counsel argues that UI should focus on their shortcomings rather than expect relief. Consumer Counsel Coleman said that, ” The granting of interim revenues to a utility company is an extraordinary form of relief and reserved for when the company cannot provide safe and adequate service to customers,”

Attorney General Tong issued a press release calling the suit a “bad faith maneuver” that it will be opposed. He said that the original denial came after a year-long rate review by PURA and that UI could not prove its case. All the same, while UI appeals the August decision, he expects UI to honor their power commitments to the state.

What You Can Do Right Now

Right now, we have to wait to see what PURA decides regarding the relief request. We also have to wait to see how the courts will decide the UI appeal. As a result, there is a possibility that UI rates may raise its distribution rates eventually.

For now, you should shop now to protect yourself from high energy bills. This is especially important since Eversource has also warned about winter rate hikes. As always, you can shop for the best rates in town, right here at https://www.ctenergyratings.com. You can also check back often for tips and news that could affect your energy bills.

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