Initial Filing Date: 8/1/2022
Summary: 3 Year Plan starting 9/2023 with an increase of 5% per year across all classes
Effective Date: 9/1/2023
The United Illuminating Company submitted an application to amend its rate schedules to the Public Utilities Regulatory Authority on 8/1/2022. The Application requests approval of a three-year rate plan commencing September 1, 2023 and extending through August 31, 2026. The Application requests an increase in revenues necessary to address a distribution operating deficiency of $102.1 million for the rate year beginning September 1, 2023 (“Rate Year 1”), an incremental $17.2 million in the rate year beginning September 1, 2024 (“Rate Year 2”), and an incremental $17.2 million in the rate year beginning September 1, 2025 (“Rate Year 3”), compared to total revenues that would otherwise be recovered under UI’s current rate schedules. Net of the transfer of revenues currently recovered through the decoupling mechanism, the net rate increase in Rate Year 1 is $89.9 million. The proposed revenue change is based on a test year ending December 31, 2021 adjusted for known and measurable changes. UI’s application includes a rate levelization proposal to spread the proposed total rate increase over the three rate years, which would reduce the change in revenue in Rate Year 1 to approximately $54.2 million, net of the transfer of revenues currently recovered through the decoupling mechanism, and produce an average total bill increase of approximately 4.9% per year across all rate classes. The balance of the revenue deficiency in Rate Year 1 would be deferred for recovery in Rate Years 2 and 3. The deferred portion of the revenue increase would accumulate carrying charges through the end of Rate Year 3 of $3.9 million.