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PURA adopts interim RAM adjustments for Eversource and United Illuminating; approves $100M CTA offset, commissioner urges larger storm-cost mitigation
Summary
PURA adopted interim adjustments to annual rate-adjustment mechanisms for Eversource (Connecticut Light & Power) and United Illuminating, estimating rate decreases tied to bond funding and favorable PPA outcomes and approving a one-time $100 million CTA offset for storm-cost liability; Commissioner Everett Smith urged a larger $250 million offset to better mitigate long-term rate impacts.
The Public Utilities Regulatory Authority on April 22 adopted interim decisions adjusting the rate-adjustment mechanisms (RAM) for Connecticut Light and Power (Eversource) and United Illuminating for the 05/01/2026—04/30/2027 rate year.
John Norton, presenting both decisions, said the authority adjusted components including the non-bypassable federally-mandated congestion charge (NBFMCC), system benefits charge (SBC), transmission adjustment clause (TAC) and the revenue decoupling mechanism, and performed prudence-oriented reviews to set RAM adjustments. For United Illuminating the authority estimated an aggregate decrease of about 4.9—¢ per kilowatt-hour and roughly a $34 decrease to an average residential monthly bill (assumed 700 kWh/month). For Eversource the authority estimated an aggregate decrease of about 4.3—¢/kWh and roughly a $30.30 decrease to the average residential monthly bill (700 kWh/month).
Norton said the decreases were driven largely by favorable outcomes in nuclear power purchase agreements (Millstone and Seabrook) where market rates exceeded contract rates for 2025 and by decreased hardship-protection costs and state bond funding that reduce rate impacts. The authority also approved a one-time $100,000,000 revenue-requirement increase to the CTA mechanism as an offset related to storm-cost securitization being adjudicated in a separate docket (25-12-13).
Commissioner Everett Smith, while concurring with the overall decisions, said the $100 million offset is likely insufficient given accumulated storm costs that staff and commissioners characterized as "well in excess of $1,000,000,000" in the related proceeding and suggested that an adjustment on the order of $250,000,000 would be more realistic to mitigate future ratepayer liability and reduce the risk of rate shock.
The panel thanked staff for detailed analysis, moved and seconded the interim decisions, and adopted them by unanimous roll call. The decisions direct staff and the companies to perform monthly analyses that could trigger interim NBFMCC adjustments if major over- or under-recoveries accumulate due to wholesale market volatility, and to continue consideration of potential cost-allocation changes in a future proceeding.
