Aundré Bumgardner

Connecticut residents already pay some of the highest electric rates in the country, and now Eversource and its CEO Joe Nolan will be rewarded with a handsome rate adjustment. Eversource will raise its tariffs by 19%, following Nolan’s recent statements that the investor-owned utility intends to withdraw $500 million in planned grid upgrades unless he gets his way with regulators.

Despite an executive compensation package of 18 million (representing an increase from the $13 million he was paid just the year earlier), Nolan has repeatedly complained about the changing regulatory environment in which Connecticut and its Public Utility Regulatory Authority seeks to make rate increases based on utility performance rather than just a straight mathematic return on investment. Instead of caving to these bullying tactics, Governor Ned Lamont, as well as many of my colleagues and I, intend to fight back.

Nolan's attempts to bully the state have backfired spectacularly since the rate increase. Lamont swiftly reappointed Marissa Gillett, chair of PURA (and sole no vote in Eversource’s rate adjustment case), to a four-year term. 

In another surprising move, Eversource announced it will end its rebate program for electric vehicle chargers, just a day after PURA granted its rate adjustment request. Starting May 23, 2024, ratepayers seeking rebates for purchasing or installing EV chargers will be placed on a waitlist instead.

They also threatened investments of over $50 million to expand access to electric vehicle charging programs– including $1,000 rebates for residential customers, up to $40,000 for level 2 chargers and up to $250,000 for DC fast chargers. These actions will slow the adoption of electric vehicles in the region, undermining efforts to decarbonize our transportation sector.

Now let’s get back to the rate increase. How did we get here?
 
The upcoming price hike is a confluence of two forces: a scheduled mid-year rate adjustment to so-called “supply rates” (the cost of electricity used) and a separate set of bill charges, which Connecticut regulators recently approved to go up for 10 months starting July 1. The company listed a litany of factors for the rate increases, including a substantial $634 million request for reimbursement associated with preparing for and repairing damage from 32 storms over the four-year span from 2018 to 2021.
 
According to Eversource, a significant portion of the damage expenses—more than half—was incurred during two particularly devastating hurricanes: Isaias and Ida. These two events alone highlight the extreme and unpredictable nature of storm-related damage that utilities must contend with climate change.
 
Nolan's tenure is marked by significant mishaps, including an over $1 billion write-off on abandoned offshore wind investments. Eversource recently announced the potential sale of Aquarion, the seventh-largest water company in the country. This move aims to address Eversource's need for $1.3 billion in equity. 
 
Aquarion, headquartered in Bridgeport, services approximately 241,000 customers across Connecticut, Massachusetts, and New Hampshire, with 92% of its customer base in Connecticut alone, including parts of Mystic and Stonington. Acquired by Eversource for $1.7 billion in 2017, this strategic divestiture is intended to bolster Eversource's financial position amid ongoing challenges.
 
For many years, I have argued for the ability for ratepayers to take back ownership of the grid from investor-owned utilities. For example, Groton Utilities, our municipal electric utility serving the eastern half of Groton, recently announced a rate DECREASE of 9.5%.
 
What is Groton Utilities doing differently than Eversource? Why can’t ratepayers living in the eastern half of Groton enjoy those same services?
 
My colleagues like Energy & Technology Committee chair State Senator Norm Needleman even suggested reviewing Eversource's monopoly status. This is a serious challenge to Eversource's dominance and a clear message to the board: pay attention to your CEO's missteps.
 
As your state representative, I will always fight in the interests of ratepayers and will put forth legislation to explore breaking up the Eversource monopoly, as I did last session. I fully support the actions of PURA chair Marissa Gillett to hold utilities accountable as well as the efforts Office of Consumer Counsel to protect Connecticut residents from unfair rate hikes.

• Provide $100,000 to the surviving family members or beneficiaries of any Connecticut local or state police officer killed in the line of duty or who sustained injuries that were the direct and proximate cause of the officer's death.

• Allow the surviving family members of police officers killed in the line of duty who were covered by that officer’s health insurance at the time of their death to remain on that coverage for up to five years.

Sincerely,

Aundré Bumgardner
State Representative