HARTFORD, Conn. (Legal Newsline) - Connecticut Natural Gas may be ordered to return more than $15 million in alleged overearnings, partly thanks to the efforts of state Attorney General Richard Blumenthal.
Blumenthal's continual criticism of CNG's rates may have paid off with Friday's draft decision by the state's Department of Public Utility Control, which says CNG should give line item credits to consumers.
"This victory gives us precisely what my office and consumers demanded -- immediate rate cuts for consumers to compensate for CNG's unlawful and unjust overearnings," Blumenthal said.
"CNG received unacceptable overearnings at consumers' expense during the toughest possible economic climate."
Blumenthal promised continued action against Southern Connecticut Gas consumers.
In the year ending April 30, Blumenthal said CNG made $15.5 million more than it was allowed. The company was authorized to receive a 10.1 percent profit margin, but posted earnings of 14.27 percent.
The average non-heating residential customer using 40 ccfs per month will save around $2.47 per month, while heating residential customers using 150 ccfs per month will receive a credit of approximately $9.25 per month.
Also, CNG must submit a full rate case by the end of the year. The case will take 5-6 months to conlude, while the credit will remain in place until new rates are set.
A final decision will be rendered Wednesday.
From Legal Newsline: Reach John O'Brien by e-mail at email@example.com.