Connecticut Attorney General William Tong is mounting an aggressive challenge to Eversource's proposed 18% electric rate increase, calling the utility company’s request unaffordable for families and questioning why customers should pay hundreds of millions of dollars in financing costs tied to years-old storm recovery expenses.
The utility is seeking state approval for the major increase in electric distribution rates, saying in a statement the additional revenue is needed to maintain and strengthen Connecticut's electric grid after nearly a decade without a distribution rate review. The state’s Public Utilities Regulatory Authority is considering the proposal and is expected to discuss it at a meeting Wednesday.
But Tong said even stripping away the disputed storm costs, the proposal would still amount to an increase of approximately 11%.
"I think they're out of their minds if they're looking for an 18% increase," Tong said. "Even in the best case... that's also untenable for Connecticut families who are getting crushed."
Tong questions storm cost timeline
Much of Tong's criticism centers on the portion of the proposal related to storm recovery costs dating as far back as 2018.
Tong said while he believes utilities are entitled to recover legitimate storm restoration expenses, he argues Eversource has delayed requesting reimbursements in a way that hampers regulators from promptly reviewing whether the costs are justified.
"They're supposed to come in on a regular basis and tell us... what it cost," Tong said. "Instead, they've waited forever, and then they incurred all this interest."
Tong said Eversource is seeking over $300 million in interest costs on top of the underlying storm recovery expenses.
Eversource disputes attorney general's account
Eversource strongly rejected Tong's assertion that it waited too long to seek reimbursement.
In a written statement provided to Connecticut Public, the company said it first filed for recovery of approximately $634 million in storm costs in December 2023, much of it stemming from Tropical Storm Isaias in 2020 and Tropical Storm Henri in 2021. It later filed additional requests covering storms from 2022 and 2023.
The company said those filings occurred within its typical three-to-four-year timetable.
Instead, Eversource contends the financing costs accumulated because the Public Utilities Regulatory Authority did not move quickly enough to review the filings.
"The costs are now pancaked because the former PURA chairperson refused to move a review of the costs forward, while the financing costs piled up," the company wrote.
Eversource said it repeatedly asked regulators to begin reviewing the storm costs and twice sought permission to reduce the outstanding balance through customer-supported revenue contributions, requests it says were denied.
The company also noted it agrees with Tong that storm costs should only be recovered if they are shown to have been "reasonably and prudently incurred," adding that utility employees have answered roughly 1,700 questions and testified during four days of evidentiary hearings to support those expenditures.
Eversource declined Connecticut Public's request for an interview but said it is willing to participate in an interview later during the year-long rate review process.
Utility says investments improve reliability
Beyond storm recovery, Eversource argues its broader rate request is necessary to maintain a more reliable electric system.
The company says customers have benefited from years of infrastructure investment, noting that the average customer experienced an outage only once every 20 months in 2025. It also points to rising costs for transformers, wire, utility poles and other equipment, along with inflation and higher labor costs.
Eversource says that if historical storm costs are ultimately financed separately through securitization, the average increase for a typical residential customer using 700 kilowatt-hours per month would be about 11%, or roughly $20 a month, instead of the approximately 18% increase or $32 per month reflected in the filing if those storm costs are recovered through base rates. The company says securitization would allow the storm costs to be repaid over 20 years at lower interest rates, significantly reducing the impact on customers' bills.
Debate over who should bear the costs
Tong said he supports investments that genuinely improve the electric grid but insists those expenditures must be necessary and justified. And, Tong says Eversource’s strong financial position puts the company in a position to shift the burden away from consumers.
"I'm not worried about a company that the stock price has gone up over 14% year over year and is giving ever more money in dividends to their shareholders," Tong said. "They are fine. They can afford it."
Eversource responded that its obligation is to provide the level of reliability customers expect, particularly during major storms when outside crews are needed to restore power and clear blocked roads quickly.
The utility said recovering those costs is consistent with Connecticut law and necessary to ensure safe, reliable electric service.
Editor's note: Eversource Energy executive Gregory B. Butler is a member of Connecticut Public's Board of Trustees.
