Cost of electricity is a major election issue in Connecticut. Here is why UI wants to raise rates

United Illuminating says it needs to make hundreds of infrastructure repairs. But utilities and candidates are facing fierce pushback from voters frustrated with high bills.

John Craven

Oct 28, 2024, 9:23 PM

Updated 26 days ago

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As Connecticut voters head to the polls, the high cost of electricity is a major issue in state and local races.
United Illuminating is asking for a $105 million increase to pay for hundreds of upgrades. On Monday, the utility showed reporters where the money would go.
CRITICAL NEEDS
Along the shores of Long Island Sound, UI’s Pequonnock Substation keeps the lights on for 20,000 customers in Bridgeport. But during Hurricane Irene and Superstorm Sandy, it came dangerously close to flooding.
“Our infrastructure is aging,” said Chuck Eaves, United Illuminating’s vice president of Electric Operations. “Our infrastructure will fail at some point in its life.”
UI built a replacement substation on higher ground that should last at least six decades. But it came with a hefty price tag – $145 million. Pequonnock is one of 40 substations across the utility’s coverage area. Others, like the Old Town Substation serving northern Bridgeport, also need to be replaced.
“Not funding these replacements does not solve the issue,” Eaves said. “It pushes the issue into the future.”
UI hopes to complete hundreds of system upgrades. Another critical project sits in front of Bridgeport’s M&T Bank Building in Downtown Bridgeport. Concrete is falling onto an underground “network vault” that distributes electricity to the entire downtown area.
If it fails, the results could be deadly.
“It would likely be a fire and explosion on this vault here,” Eaves said.
POLITICAL FALLOUT
United Illuminating is asking the Connecticut Public Utilities Regulatory Commission (PURA) for a $105 million increase over one year. UI estimates that the average bill would go up about $15 per month.
But the request comes as voters head to the polls, demanding relief for high electric bills. Last week, 68,000 customers presented a petition to Gov. Ned Lamont asking for a special legislative session on rates.
“My bill was $3,200,” business owner Donnetta Campbell told NBC Connecticut. “I just about fell off my chair.”
Much of the anger surrounds the “public benefits” portion of electric bills, which went up substantially in July. UI and Eversource do not control those charges. Instead, the hike was driven by increased costs for nuclear power and utilities recovering losses from a four-year COVID-19 shut-off moratorium ordered by Lamont.
“We can actually move these taxes off of people’s bills,” said state Sen. Jeff Gordon (R-Woodstock). “We have money already in the budget we can reconfigure, we have ARPA money that has been unspent that we can use.”
UI’s request is also facing scrutiny from Attorney General William Tong.
“This revenue grab is a tone-deaf slap in the face to Connecticut families,” Tong said in a statement. “Electric rates are through the roof right now and consumers cannot afford to pay more. United Illuminating asked for and received a revenue increase just last year.”
But the utility said that customers can pay a little more now – or be stuck with much bigger costs later.
“We provide a service that’s essential to modern life,” Eaves said. “It has to be there. These things have to be done.”
WHAT’S NEXT?
United Illuminating will formally file its rate request in November. Last year, UI asked for $131 million over three years, but PURA said no and lowered it to $23 million over one year.