Yankee Gas rate settlement OK’d

State utility regulators have given final approval to a settlement agreement reached in September by the state Office of Consumer Counsel and Eversource Energy’s Yankee Gas division.

Wednesday’s approval of the agreement by the Public Utilities Regulatory Authority comes two weeks after commissioners with the state agency tentatively approved the settlement, which was announced Sept. 5. Under the terms of the settlement, next year’s distribution rate increase will be just 0.3 percent, followed by a 2.9 percent hike the following year and 2.3 percent in the final year.

Officials with Eversource Energy and the Office of Consumer Counsel provided differing information on the effect the agreement will have customers’ bills.

Rich Sobolewski, supervisor of OCC’s Technical Analysis unit, said a Yankee Gas customer who uses 100 cubic feet of the fuel each month will see their bill increase by 84 cents, from $143.02 to $143.86. Starting Jan. 1, 2020, that same customer would see a $4.85 increase to $148.71 In the third year, that customer would see their bill increase by $3.61 cents per month to $152.32.

Eversource officials say customer’s bill would increase by $1.87 per month in the first full year, with increases in the second and third years to be determined. Mitch Gross, an Eversource spokesman, said he could not explain why the company’s calculations on the rate increase and those from OCC were different.

The settlement agreement, according to PURA Commissioner Michael Caron, strikes a delicate balance between guaranteeing the safety of Yankee Gas’ natural gas distribution network and the cost to ratepayers.

“No one likes higher rates,” Caron said in a statement. “But we also want to ensure that the integrity of the gas distribution system is maintained, that it is well managed, that older pipes are being replaced and that rates are reasonable.”

PURA commissioners reached their decision after a pair of public hearings. There were 53 people at the two hearings.

Among key provisions of the settlement agreement are:

⏩ Customers will receive credits for the full tax savings the company got from the Federal Tax Cuts and Jobs Act. Those credits are retroactive to Jan. 1 of this year.

⏩ Maintaining the program for replacing all of the Yankee Gas’ leak-prone cast iron pipes within 11 years.

⏩ Implementing a fee-free program for credit or debit card payments.