Press Releases

06/20/2024

Attorney General Tong Seeks Rate Decreases for Connecticut Natural Gas and Southern Connecticut Gas Customers Following Millions in Over-Collections

(Hartford, CT) – In briefs filed today with the Public Utilities Regulatory Authority, Attorney General William Tong sought rate decreases for both Connecticut Natural Gas (CNG) and Southern Connecticut Gas (SCG) customers following millions of dollars in over-earnings by CNG.

In 2023, earnings reports for CNG showed $8 million in over-collections from Connecticut families and businesses. While half of the over-earning was returned to ratepayers to offset winter heating bills, approximately $4 million was distributed to shareholders.

This was not a billing error—the company was accurately collecting previously approved rates. It was apparent that the approved rates were in excess of what the company needed to cover their expenses.

Following the over-earnings report, Attorney General Tong, Consumer Counsel Claire E. Coleman, Connecticut Industrial Energy Consumers, and the Public Utilities Regulatory Authority Office of Education, Outreach, and Enforcement submitted a joint petition to the Public Utilities Regulatory Authority seeking a new rate hearing to drive down costs for consumers.

In response, both CNG and SCG submitted applications seeking rate increases. CNG sought $20 million more, equating to a 4.3 percent increase in overall revenue. For the average residential user, that would translate to about $6-7 more per month. SCG asked for an additional $41 million, equating to a 9 percent increase. For the average residential user, that would translate to about $13 more per month.

Attorney General Tong’s briefs identify numerous areas where the companies’ requests are unjustified and unwarranted, including unnecessary expenses and a proposed return on equity far higher than currently authorized. If adopted, Attorney General Tong’s recommended decreases would save SCG customers approximately $2-4 per month, and CNG customers approximately $9-11 per month.

“CNG has over-collected millions of dollars from Connecticut ratepayers, and now they want millions more. That’s a non-starter. My office has scrutinized every page of both applications from CNG and SCG and we found millions of dollars in unjustified and unwarranted requests, including inflated profits and unnecessary expenses. It’s clear that Connecticut families and businesses are owed substantial rate relief,” said Attorney General Tong.

Click here for the CNG brief. Click here for the SCG brief.

Assistant Attorney General John Wright, Assistant Attorney General Brendan Flynn, Paralegal Specialist Casey Ryback and Deputy Associate Attorney General Michael Wertheimer, Chief of the Consumer Protection Section are assisting the Attorney General in this matter.

Twitter: @AGWilliamTong

Facebook: CT Attorney General

Media Contact:

Elizabeth Benton
elizabeth.benton@ct.gov

Consumer Inquiries:

860-808-5318
attorney.general@ct.gov