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PURA adopts interim rate adjustments for Eversource and United Illuminating; panel cites LMP-related customer savings
Summary
The Public Utilities Regulatory Authority adopted interim decisions for dockets 250103 and 250104 on April 23, setting rate adjustment mechanisms for May 1, 2025–April 30, 2026, and accounting for locational marginal price effects and other program changes affecting customer charges.
The Public Utilities Regulatory Authority on April 23 adopted interim decisions adjusting annual rate adjustment mechanisms (RAM) for the Connecticut Light and Power Company (doing business as Eversource) and the United Illuminating Company, setting rates effective May 1, 2025, through April 30, 2026.
The panel’s interim decisions revise multiple RAM components — including the non-bypassable federally mandated congestion charge (NBFMCC), transmission adjustment clause (TAC), system benefits charge (SBC), competitive transition assessment (CTA), electric system improvements (ESI) and the revenue decoupling mechanism (RDM) — to reflect 2025 calendar-year revenue requirements and to remove amounts already incorporated in rates for January–April 2025.
Authority staff attorney Russ Bowman summarized the scope of the two proceedings and the mechanisms under review, saying the dockets examine the companies’ RAMs, including “the generation service charge, bypassable federally mandated congestion charge, the non bypassable federally mandated congestion charge or NBFMCC, the transmission adjustment clause or TAC, the system benefits charge or SBC, and the revenue decoupling mechanism or RDM.” He also stated that the RAM adjustments are set effective May 1, 2025, through April 30, 2026.
In docket 250104 (United Illuminating), the authority ordered downward adjustments to the NBFMCC, TAC and SBC to reflect prior-year deferral balances already recovered in January–April 2025 rates. The decision also adjusted the NBFMCC for potential power-purchase-agreement (PPA) revenue impacts tied to locational marginal price (LMP) fluctuations and added credits for anticipated alternative compliance payments in 2025. The authority made SBC adjustments to reflect program changes tied to the low-income discount rate and the discontinuation of the energy affordability dashboard.
In docket 250103 (Connecticut Light and Power/Eversource), the authority similarly adjusted the NBFMCC, TAC, SBC, CTA and ESI to account for prior-year deferral balances incorporated into January–April 2025 rates. Among other changes, the authority removed the company’s proposed revenue increase intended to replenish a storm reserve and removed prospective 2025 plant additions from the ESI calculation. The authority also adjusted SBC to reflect expected costs tied to Eversource’s implementation of a five-tier low-income discount program in 2025. The authority approved each company’s proposed RDM rate.
Commissioner Akhante, during discussion, highlighted the decision’s use of observed LMPs for the first quarter of 2025 and described the effect on customers: “This is gonna result in a hundred and $42,000,000 benefit to customers.” The panel noted that the authority will continue to review LMP trends and may make further adjustments during the second phase of the annual RAM review in September.
Authority staff recommended both interim decisions for approval. The panel moved, seconded and adopted the interim decisions for docket numbers 250103 and 250104 by roll call; Commissioners Michael Karen and David Arconti and Chairman Marissa Gillette each recorded votes of “yes.”
The decisions implement changes limited to the interim period noted above; the authority described further prudency reviews of actual revenues and expenses from the prior calendar year and possible additional rate adjustments effective Sept. 1, 2025.
