Attorney General William Tong has commented on the Public Utilities Regulatory Authority's (PURA) decision to reduce revenue for Connecticut Natural Gas (CNG) and Southern Connecticut Gas (SCG). The decision will decrease CNG's revenue by $24 million, or about 5.4%, resulting in a monthly bill reduction of approximately $7-8. SCG's revenue will be reduced by $11 million, or around 2.5%, lowering bills by roughly $3.50-4.00 per month. Initially, CNG had requested a $19.7 million increase, while SCG sought a $43 million hike.
Both gas companies are owned by Avangrid, whereas Yankee Gas is owned by Eversource and has separately applied for a $209 million rate increase.
"This is finally a bit of good news for Connecticut families desperately in need of relief from unaffordable energy costs," said Attorney General Tong. He added that "CNG over-collected millions of dollars from ratepayers" and emphasized that PURA was correct in reducing their revenue demands, which he described as "packed with inflated profits and unnecessary expenses."
The rate reduction follows a 2023 earnings report indicating that CNG over-collected $8 million from customers. Half of this amount was returned to offset winter heating bills, while the remaining $4 million went to shareholders. This led Attorney General Tong, along with Consumer Counsel Claire E. Coleman and other stakeholders, to petition PURA for a new rate hearing aimed at reducing consumer costs.
Despite the overearning findings, both CNG and SCG filed applications seeking rate increases. Attorney General Tong opposed these requests on behalf of consumers and businesses, highlighting unjustified expenses and an excessive proposed return on equity in his submitted briefs.