The Connecticut Public Utilities Regulatory Authority Wednesday approved a $802 million revenue requirement for Yankee Gas Services Co., which is about 12% less than what the company proposed, according to the state agency.
The final decision will bring an estimated monthly bill impact of about $15 more for the distribution of natural gas to the average residential heating customer, according to PURA. That calculation uses 54 cubic feet of natural gas, but individual customer bill impacts will vary by customer rate class and usage, according to PURA.
“Reflected in this revenue requirement is the Company’s refunding to its customers of approximately $40 million of ratepayer money over the next three years,” according to PURA.
Eversource, the parent company of Yankee Gas, said Wednesday it is reviewing the decision.
Attorney General Tong, who previously opposed the Yankee Gas increase, said Wednesday, “This is more disappointing news for Connecticut families heading into an already expensive winter heating season.
“Once again, the utilities are being rewarded with a multi-million dollar rate hike after running their chief regulator out of town through relentless litigation and personal attacks. These costs are unsustainable and I’m going to keep pushing back in every single one of these rate cases to make sure Connecticut families aren’t paying a penny more than absolutely necessary.”
The approved revenue requirement “includes an allowed return on equity (ROE) of 9.48%,” but the authority “reduced the allowed ROE by an aggregate 16 basis points (i.e., to 9.32%) to address certain performance and management issues,” according to PURA.
PURA noted that Yankee Gas, operated by Eversource Energy, had proposed an increase of $192,955,454, or 27%, for a total revenue requirement of $912,953,454. “The Company also proposed an ROE of 10.3%, plus a 50 basis point regulatory risk premium, for a total 150 basis point increase from the currently allowed ROE of 9.3%,” according to PURA.
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Yankee Gas had sought to amend its rates to “increase its authorized revenues by approximately $209 million effective November 1, 2025, the PURA decision says.
Yankee’s proposed rate increase would have resulted “in the average residential heating customer experiencing a total annual bill impact of 43% or $46.74 monthly increase and the impact on commercial and industrial customers would range from a 14% to 42% increase. Yankee states that the increase is necessary to address a distribution operating deficiency identified as the difference between the Company’s operating and investment costs compared to total revenues Yankee has generated through the rate year,” the decision says.
Tong had said in July he filed a brief “urging” the Public Utilities Regulatory Authority to turn down a “$193 million rate hike sought by Yankee Gas.”
John Erlingheuser, AARP Connecticut senior advocacy director, said Wednesday, “the decision in the Yankee Gas rate case is a much better outcome than what was requested by the company.
“While PURA set the return on equity at 9.32%, a figure that is significantly less than Yankee Gas originally requested, it also reduced the revenue requirement for the Company to 12% less than the Company’s proposal,” he said.
However, he said,“the added cost comes at a time when many residents are already grappling with the pressures of inflation, higher living expenses, and consistently increasing electric rates.”
The contention over the proposed rate increase came amid ongoing tension between PURA and utilities in the state, including Eversource.
PURA also reported that the decision, also determines other issues, “including rate design and customer service.”
The decision is for the rate year Nov. 1, 2025, through Oct. 31, 2026.
The agency noted the authority’s new Interim Chairman Tom Wiehl recused himself from the decision due to his recent involvement in the case while in his former role as Legal and Regulatory Director at the CT Office of Consumer Counsel and that Commissioners Janice Beecher and Holly Cheeseman also recused themselves from the decision as their start dates at PURA “were just days prior to the issuance of the decision.”
PURA said its investigatory process included more than 1,300 interrogatories “submitted by PURA and participants, two in-person and one virtual public comment hearings, six days of audits, eight days of in-person evidentiary hearings, two late-filed exhibit hearings, 134 late-filed exhibits, briefs and reply briefs.”
“Through the close of the evidentiary record on July 7, 2025, the Authority received a total of 124 written comments, all of which expressed opposition to the rate increase application. Included in this total were letters from several state legislators,” the decision says.
Yankee Gas had not had “a fully adjudicated rate case since 2011,” according to PURA.
Yankee provides gas service to more than 252,000 residential, commercial, and industrial customers in 85 towns and cities in Connecticut.
