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PURA continues Hazardville Water rate hearing as staff presses company on swap, financing and performance adder
Summary
On Day 2 of the Public Utilities Regulatory Authority hearing, commissioners and staff questioned Hazardville Water Company witnesses about the embedded cost of debt (a disputed 3.96% figure), how an interest-rate swap affects the company's loan costs, an anticipated $3.9 million construction loan and whether the company merits a 50-basis-point ROE performance adder. PURA staff issued multiple late-file and read-in requests to clarify calculations and supporting documents.
The Public Utilities Regulatory Authority (PURA) reconvened an evidentiary hearing on the Hazardville Water Company rate case for a second day and spent much of the morning testing the company's cost-of-capital claims and accounting treatment of recent financings.
Authority staff asked the company to explain a line in testimony that states the company's embedded long-term cost of debt is 3.96 percent as of Aug. 1, 2025. Jonathan Norton of PURA staff said the percentage appears higher than the interest rates listed on Schedule D-1 and asked whether the company had included all long-term financings and the effects of an interest-rate swap in that calculation. "In the company's testimony filed 08/06/2025 ... the company's embedded cost of long term debt is 3.96%," Norton said at the hearing.
Company witnesses confirmed the swap is recorded and said they generally use the fixed leg…
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