The head of Avangrid-owned Connecticut Natural Gas and Southern Connecticut Gas is pushing back against the Public Utilities Regulatory Agency’s draft decision to cut their rates. The decision comes after both companies requested a rate increase. Connecticut’s other gas company, Yankee Gas, has also requested an increase.
SCG and CNG president Frank Reynolds said the revenue cuts could lower their credit ratings, leading to higher prices and worse service for customers.
“Credit rating downgrades significantly impact customers’ experience of reliable, resilient and affordable service,” Reynolds said. “Because downgraded credit ratings cripple our ability to access capital at affordable rates, the investments needed to facilitate both reliability and a sustainable future for the natural gas industry will be deferred, and customers will bear higher prices as we are forced to offer our bonds at a premium.”
Connecticut Attorney General William Tong said he supports PURA’s decision.
“We combed through every cent of CNG and SCG’s applications,” Tong said. “Both were riddled with unjustified profits and unnecessary expenses. PURA was absolutely right to impose these significant rate decreases for CNG and SCG. Connecticut families are getting slammed by skyrocketing utility bills right now, and we will keep fighting at every step of these proceedings.”
PURA’s decision would lower customer’s energy bills by $12 to $13 a month. PURA’s final decision is expected on Nov. 18.
