PURA approves Hazardville Water Co. rate increase, sets $4.85M revenue requirement

The Public Utilities Regulatory Authority on May 1 approved a final decision in Docket 250712 that sets Hazardville Water Company’s annual revenue requirement at $4,848,876 for the April 1, 2026–March 30, 2027 rate year and authorizes a 9.5% return on equity.

Authority staff attorney Bowman said Hazardville serves about 7,500 customers across Enfield, Somers and East Windsor and initially filed for a $2,457,778 revenue increase (a total requested requirement of $5,861,474) and a 10.6% return on equity. Bowman told the panel that, while the company communicated a 72% increase to customers, staff determined a 37% characterization is more accurate after accounting for existing surcharges and other revenue streams; the company later trimmed its request to $2,340,603 (about a 34% effective increase). The Office of Consumer Counsel recommended a $5,308,382 requirement and a 9.5% return on equity, which OCC said would produce roughly a 24% effective increase.

The authority said it conducted an extensive, 260‑day investigatory process that included two public comment hearings, prefiled testimony, an on‑site audit and engineering inspection, more than 200 interrogatories, three days of in‑person hearings and multiple late‑filed exhibits. The panel said it was guided by General Statutes §§16‑19 and 16‑19E in evaluating whether the proposed rates are just and reasonable.

"This decision does just that," Vice Chairman David Arconti said in explaining the panel’s balance between allowing utilities to recover prudent costs and protecting ratepayers. Arconti and other commissioners acknowledged strong public participation raising affordability and water‑quality concerns.

The approved revenue requirement represents an effective increase of approximately 13% over current authorized operating revenues once the authority reset the company’s water infrastructure and conservation adjustment (WICA) surcharge. The decision approves an allowed return on equity of 9.5%.

The order also imposes several compliance and reporting requirements on Hazardville. The company must amend its customer service logs to better capture aesthetic water‑quality complaints (hardness, color, clarity and odor), develop and disseminate a customer survey to inform potential water‑treatment needs, provide annual updates on the status and timelines for lead service line inventories and replacement activities, and report monitoring and remediation results for per‑ and polyfluoroalkyl substances (PFAS).

Commissioner Everett Smith announced he would abstain on Docket 250712, saying the record was largely established before he joined PURA in January and he did not believe he could render a fully fact‑based decision. "I will abstain on Docket 250712," Smith said.

Commissioner Jean Beecher thanked the company, PURA staff, OCC and DEEP and said she found the process fair and the outcome "just and reasonable." Chairman Tom Wheel, noting that Hazardville’s base rates had not been evaluated since 2009, said the authority had carefully scrutinized plant additions and excluded $998,442 in plant that lacked sufficient record support.

Miss Lupoli called the roll. Chair Tom Wheel, Vice Chairman David Arconti, Commissioner Jean Beecher and Commissioner Holly Cheeseman voted yes; Commissioner Everett Smith recorded an abstention. The panel announced the item adopted and adjourned, scheduling its next regular meeting for May 6 at 9:00 a.m. via remote teleconference.

Docket and action details: Docket 250712, Hazardville Water Company — final decision adopted; approved annual revenue requirement $4,848,876; authorized return on equity 9.5%; effective rate year April 1, 2026–March 30, 2027. OCC recommended a higher revenue requirement ($5,308,382) and the company had initially requested $5,861,474 before revising its request.