United Illuminating is seeking permission to raise distribution rates over the next couple of years. According to
this letter (pdf) from UI president Anthony Vallillo, the rate increase is due in part to a reduction in demand. While the amount that the company collects depends entirely on customer usage, the cost of maintaining the grid does not vary linearly with demand. Therefore, they say, UI needs to raise the per-KWh rates to make up the difference (and to make up for an increase in uncollectables, pension plans, and new capital expenditures). Since United Illuminating's services are heavily regulated by the state, they need permission from the DPUC in order to raise rates.
The rate increase will affect only the distribution portion of your bill, so while that rate will increase by about 40% over the next two years (26% in 2009 and another 13.1% in 2010), your total bill will increase by about 10%. If you haven't already replaced all your lights with
CFLs, now is a good time.
Come hear the case and share your thoughts on the matter. Here is the meeting info:
Tuesday, Dec 16th, 6:30 PM
Hall of Records, Room G-2
200 Orange Street
New Haven, CT
