Connecticut Natural Gas customers to receive bill credits

Connecticut Natural Gas customers will see an as-yet-undetermined bill credit over the final three months of 2023 after state officials found that the Orange-based utility earned $8 million more than the company was allowed.

Connecticut’s Public Utilities Regulatory Authority on Monday approved bill credits in excess of $4.06 million to be spread across CNG’s 184,000 customers in Greenwich and 25 central Connecticut communities starting Oct. 1 and ending through Dec. 31.

The actual amount of the bill credits is still being calculated, according to officials with the office of Connecticut Attorney General William Tong.

“CNG is profiting off the backs of Connecticut families and businesses,” Tong said in a statement released Monday. “We pay far too much for our utilities as it is, we should not be charged a penny more than needed. CNG needs to come before PURA right away for a full rate hearing so we can scrutinize their books and get these inflated costs under control.”

Connecticut utilities regulated by PURA are supposed to appear before regulators every four years, but CNG’s last rate case was five years ago. In the CNG’s last rate case, it was required to split any excess earnings with its customers.

So, even though CNG earned $8 million more than it was allowed, bill credits will only total half that amount, with the other $4 million going to shareholders of the utility, which is a subsidiary of Orange-based Avangrid.

While CNG hasn’t violated any state statutes, a joint filing by Tong, Consumer Counsel Claire Coleman and a trade group known as Connecticut Industrial Energy Consumers have submitted a peti

tion contending what the utility has been collecting from customers does not accurately reflect current conditions.

“Connecticut ratepayers should not be subsidizing CNG shareholders,” Tong said.

Coleman said when rates have fallen “out of sync with a utility’s actual cost needs, the pocketbooks and quality of life of Connecticut residents can suffer. As the state’s independent ratepayer advocate, we’ve joined our partners to call CNG before PURA for a line-by-line accounting of the their earnings.”

Jay Goodman, an attorney for the Connecticut Industrial Energy Consumers, called CNG’s rise in earnings “appalling.”

“This hurts businesses and makes it harder to grow the economy in the company’s service territory,” Goodman said in a statement.

“The Connecticut Industrial Energy Consumers is pleased to collaborate with the Attorney General, the Consumer Counsel, and the Authority’s Office of Education, Outreach, and Enforcement to advocate for new gas rates that are just, reasonable, and do not force customers to continue paying extra money every month to fund excessive shareholder profits,” said Goodman.

Craig Gilvarg, a CNG spokesman, said “the company is pleased to be able to return money to ratepayers this year.”

“While CNG is reviewing the motion filed by the Attorney General’s Office this morning, PURA has already approved CNG’s proposal to return over $4 million to its ratepayers this upcoming heating season,” Gilvarg said.