News
Attorney General demands immediate CNG rate decrease
By Attorney General's office
Jul 16, 2008 - 10:39:34 AM

Attorney General Richard Blumenthal today called for an immediate $15.5 million rate decrease for Connecticut Natural Gas (CNG) after the company received significant unauthorized overearnings.

In a formal brief filed with the Department of Public Utility Control (DPUC), Blumenthal said that reducing CNG’s profits to its approved levels means an average rate reduction of about $9.25 per customer per heating month, or about $60 per customer per year.

In approving CNG’s last rate increase, which Blumenthal strongly opposed, the DPUC authorized the company to receive a 10.1 percent profit margin. CNG’s earned 14.27 percent for the 12 months ended April 30.

These significant overearnings prompted the DPUC’s review of CNG’s rates under the state’s “overearnings statute,” which requires the DPUC hold a hearing on an interim rate decrease when a public service company for six consecutive months earns profits exceeding the rate approved by the DPUC.

“An immediate rate cut must stop these unacceptable overearnings -- particularly as consumers desperately struggle to pay spiraling utility costs,” Blumenthal said. “After unjust and unreasonable charges for nearly half a year, consumers deserve prompt relief, as much as $9 per heating month for the average consumer. Every dollar counts for Connecticut citizens facing out-of-control energy, home and food costs.

“CNG’s sustained overearnings are an unfortunate and unwelcome vindication of our fight against its 2007 rate increase, proving that their $14 million increase was unwarranted. CNG can no longer hide its rate reality, as it collects millions of dollars in unauthorized profits at the expense of its consumers.”

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