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Connecticut Gas Distribution Rate Review
What is Going On?
Regulators are requiring a rate review of our natural gas operations, which is why we filed a base distribution rate change application on November 12, 2024, with the Public Utilities Regulatory Authority (PURA).
The last time we filed for an adjustment to gas base distribution rates was in 2018.
This review will include public hearings over the course of a year, and PURA will make a ruling on the request after an extensive regulatory review process. If approved, new rates would go into effect November 1, 2025.
The request to adjust distribution rates is necessary to ensure they reflect the current costs to best serve you. Stable, predictable, and steady investments are needed to provide safe and reliable natural gas service to residence and businesses.
Bill Impacts
If approved as proposed, residential natural gas heating customers would see a total annual bill impact of 43%, which equals an average monthly bill increase of approximately $46.74 starting November 1, 2025.
At the same time, a proposed supply-related credit would reduce that increase to 38% for the first year.
Your specific bill impact will depend on seasonal usage. You would see the increase within the delivery portion of your gas bill.
Reasons for the Proposed Adjustment
This increase is driven by the substantial investments we’ve made in the natural gas distribution system since 2018 and to cover continued investments to address aging infrastructure, including replacing existing cast iron and bare steel gas main with newer plastic pipe, which is safer and more durable.
While we strive to limit costs through careful control of our operating budgets and rigorous cost management, we are not immune to increases caused by significant inflationary impacts and other factors that increase operating costs.
Approximately 252,000 customers in 85 Connecticut cities and towns use natural gas to heat their homes and businesses, which is why it’s critical we continue to support investments and upgrades on the system to enhance resiliency and reliability.
Working on natural gas system upgrades in Naugatuck.
Examples of system investments and future plans
- Since 2018, we’ve replaced nearly 200 miles of bare steel or cast iron pipe with newer plastic pipe, which is safer and more durable, enhancing reliability.
- When averaging the last three years, we’ve invested approximately $153 million annually in capital projects not related to our replacement program. These substantial investments are vital to public safety, reliability and emission reduction goals.
- Our Flood Hardening Program is a 14-year plan that began in 2019 to benefit customers both during a flood and after by ensuring the system is better able to withstand flood damage, prevent outages and minimize costly restoration efforts.
- In the coming years, we anticipate additional state and federal regulations focused on safety requirements and reducing greenhouse gas emissions, which will require significant investments to implement and maintain.
- We expect to spend approximately $900 million between 2025 and 2029 in support of our leak-prone infrastructure replacement program. This investment is necessary due to increasing costs and to meet PURA’s replacement timeline.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (Budgeted) | |
| Replacement program investments | $43.2 million | $67.7 million | $76.4 million | $100.1 million | $114.9 million | $137.1 million | $150.3 million |
Billing and Emissions Proposals
Bill discount for income-eligible gas customers
In recognition of this challenging economic environment, we’re proposing a gas bill discount for income-eligible residential customers, a discount that is currently available to income-eligible electric customers.
Our proposal is a five-tier discount rate, which is beneficial for customers because it allows for gradual movement between tiers.
Performance-Based Regulation (PBR)
Recent PURA precedent has led to regulatory outcomes that result in higher costs for customers over shorter periods of time.
To avoid that, we’re proposing a Performance-Based Regulatory (PBR) plan that sets rates over multiple years, which:
- Strengthens the tie between customer rates and our performance while increasing transparency and accountability.
- Establishes metrics to promote safety and reliability, customer satisfaction and engagement, and reduced emissions.
- Provides greater rate stability by supporting infrastructure investments with rates that gradually change over time – resulting in more stable and predictable rate changes for customers over the course of the PBR term.
- Supports current public policy goals.
Clean energy and reduced-emission investments
We propose deploying a networked geothermal system project in Connecticut that moves the state forward on clean energy innovation, further reduces greenhouse gas emissions and proactively tests the abilities and potential benefits of new technologies.
We’ve had great success in our first-of-its kind networked geothermal pilot project in neighboring Massachusetts, and we would like to bring that innovative, groundbreaking approach to sustainable energy to Connecticut.
Through steady investments, we remain focused and continue to make progress on lowering our total methane emissions every year.
Over the last decade, we’ve reduced methane emissions for our gas operations in the state by nearly half.
