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United Illuminating challenges 'ROE' penalties and inflation rulings in PURA evidentiary hearing
Summary
At PURA, UI argued the final rate decision produced unjust and unreasonable rates, contesting ROE penalties tied to DERMS and the water-heater program and asking for clearer rules on inflation and O&M adjustments; UI presented a witness panel to support factual assertions and to describe financial impacts.
United Illuminating told the Public Utilities Regulatory Authority that the authority’s final decision in the company’s 2024 rate case produced rates UI considers "not just and reasonable," pointing to ROE (return-on-equity) penalties tied to DERMS and the water-heater rental program, differences in allowed inflation/O&M adjustments, and new inclusions such as East Shore remediation.
UI’s vice president for electric operations, Chuck Euse, described DERMS (distribution energy resource management system) as a centralized operational control system proposed in UI’s 2022 filing that UI characterized as a multiyear, "nice to have" investment rather than an immediate necessity. Euse recounted learning from other jurisdictions—including a conversation with Hawaiian Electric—that high distributed energy resource penetration can, in some instances, be managed without DERMS: "I walked away from that... understanding that…
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