Building a stronger, smarter grid for customers
ORANGE, CT – September 9, 2022 – The United Illuminating Company (UI), a subsidiary of AVANGRID, Inc. (NYSE: AGR), today announced that it has officially filed its distribution rate case with the Connecticut Public Utilities Regulatory Authority (PURA).
UI will spend the next twelve months working with PURA on new rates for customers proposed to begin in September 2023. This follows the Letter of Intent submitted last month to PURA indicating that UI would file for a Rate Case beginning in September.
UI’s last distribution rate case was in 2016 and UI’s customers’ distribution rates have not increased since January 1, 2019. In an effort to continue to deliver top-tier reliability, deploy innovative technologies to the grid and meet customers’ energy needs, UI is asking for a 4.9% levelized rate increase in the three-year plan.
The proposed rate plan will enable UI to continue to provide safe and reliable service while maintaining top quartile reliability and increasing the resiliency of the system to meet customers’ needs. Further, the plan provides for additional investments in clean energy innovation and grid modernization efforts, like the Electric Vehicle and Energy Storage programs as well as the UCONN and AVANGRID Clean Earth Initiative.
“UI’s rate plan will enable UI to build a stronger, smarter, and more resilient grid, focusing on maintaining reliability and strengthening the resiliency of the system to meet customer needs and expectations,” said Frank Reynolds, President & CEO of UI. “We have some of the highest reliability in the region; therefore, it is critical that we continue to invest in the grid and update the system so that we can continue to deliver power on blue-sky days and in times of emergency.”
The UCONN and AVANGRID Clean Earth initiative will focus on science-based solutions to support decarbonization and grid modernization while providing data and analytical support for extreme weather decision-making, and understanding the impacts of solar and wind generation.
“When taking a practical and evidence-based approach to solving the environmental and energy crises of our time, it’s critical we have a team that understands the nuances of the energy industry and how that fits in with decarbonization and a push for greener energy. Partnerships like these will improve how we do business and help Connecticut meet its clean energy goals,” said Reynolds.
To minimize customer impact, the company is proposing to levelize the rate increase over three years. If approved, the average residential UI customer would see a bill increase of $10.37. If the levelized plan is not approved, the average UI customer will see an increase of 8%, a $16.63 increase in the first year, and remain relatively flat in the following two years.
“We value our customers and understand the impacts of rising costs on households,” added Reynolds. “Therefore, UI is focused on making investments that are necessary to maintain our infrastructure and to help those most in need. In this new rate plan, UI is proposing a fixed low-income rate for customers facing tougher financial challenges.”
For customers facing financial hardship, the company continues to offer energy assistance programs. For more information on the company’s payment plans and energy assistance: visit the UI website or call 800-722-5584.
“We’re doing this all while keeping the proposed rate increase below the rate of inflation,” Reynolds concluded.
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About UI: The United Illuminating Company (UI) is a subsidiary of AVANGRID, Inc. Established in 1899, UI operates approximately 3,600 miles of electric distribution lines and 138 miles of transmission lines. It serves approximately 341,000 customers in the greater New Haven and Bridgeport areas of Connecticut. UI received the Edison Electric Institute’s Emergency Recovery Award in 2019 and 2021. For more information, visit uinet.com.
About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $40 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs approximately 7,000 people and has been recognized by JUST Capital in 2021 and 2022 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2022, AVANGRID ranked second within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2022 for the fourth consecutive year by the Ethisphere Institute. For more information, visit avangrid.com.
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