NEW HAVEN, Conn. (WTNH)– If you’re a United Illuminating customer you may soon be paying more for your electric bill. UI plans to initiate a rate request this year.
UI will be proposing a new 3-year rate plan that will increase annual rates in 2017, 2018 and 2019. What does that mean for your bill?
If the new rates are approved, your monthly electric bill would go up by about 5 percent in each year, starting in January of 2017. That’s less than a dollar a day in the plan’s final year. A typical monthly bill would go up about nine dollars in each of the plan’s three years. It will phase in the new rates over the three years in roughly equal installments to make it easier on customers.
The company says the increase will help pay for infrastructure replacement and system updates and that this will help UI maintain its reliability and protect its system against future storms. The company spent $92 million in 2014 and 2015 on maintenance and new infrastructure to try to reduce the number of power outages.
UI now has 30 to 60 days to file a formal application with the Connecticut public utilities regulatory authority, or Pura. Pura will review it and will likely make a decision within 180 days. This request only would pertain to the distribution portion of customer rates reflecting the company’s cost to operate and maintain its system.
UI last filed a rate request in February 2013, it’s still operating under the old rate plan.