AG: Connecticut regulators cut utility rates by $15.1 million

Drew Smith Oct. 28, 2008, 12:33am

Richard Blumethal (D)

HARTFORD, Conn. (Legal Newsline) -- The Connecticut Department of Public Utility Control has granted Attorney General Richard Blumethal's request to slash Southern Connecticut Gas rates by $15.1 million.

The Democratic attorney general called on DPUC to roll back the rates because the utility company has earned profits larger than allowed by state regulators.

The DPUC authorized Southern to enjoy a 10 percent rate of return, but the company's July 15 earnings report revealed the company actually earned 13.66 percent for a year -- nearly $15 million in over earnings.

"Consumers will now see every penny of SCG's overearnings back in their pockets through reduced rates, as I urged. Heating bills should fall about $10 a month," Blumenthal said. "I will ask the DPUC to make the decrease permanent, providing struggling consumers with much-needed rate relief."

The average Connecticut resident will receive a $10 credit this month, Blumenthal said.

"SCG made bigger profits than regulators allowed, resulting in more than $15 million of overcharges to consumers. Utilities must adhere strictly to profit caps set by regulators, assuring consumers and businesses pay fair and reasonable rates for necessities like natural gas and power," Blumenthal said.

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