Connecticut residential gas bills could jump by more than a third under steep rate increases requested by two major utility companies serving 400,000 customers.
Avangrid subsidiaries Connecticut Natural Gas and Southern Connecticut Gas notified utility regulators late Friday that they want a combined $212 million in additional income over two years. The filings initiate a year-long rate review process by the Public Utility Regulatory Authority.
Average monthly gas bills currently sit at about $127 for Connecticut Natural Gas customers and $125 for Southern Connecticut Gas customers. Under the proposed changes, monthly bills would climb by $30 for Connecticut Natural Gas customers. Southern Connecticut Gas customers face a $40 monthly increase.
Slightly more than half of the requested $212 million increase covers short-term state and federal policies outside company control.
That figure includes $54 million for unfunded costs tied to an expanded state payment assistance program for low-income customers. Another $55 million stems from expiring federal tax credits that previously lowered customer bills.
The remaining $103 million is split between completed and ongoing gas distribution network upgrades. The companies want $31 million to recover past infrastructure investments and $72 million for continued system replacements.
“CNG and SCG are committed to providing safe, reliable natural gas while keeping bills as affordable as possible,” Frank Reynolds, President and CEO of CNG and SCG, told Yahoo News. “Some of what we are addressing today reflects decisions and costs from prior years, while the rest is about what our system needs going forward.”
Distribution Network Constraints Threaten Regional Development
Both utility companies report hitting capacity constraints across their distribution networks that threaten delivery pressure. These limits could restrict future commercial and residential development in specific municipalities.
Capacity concerns have emerged in Greenwich as well as Avon, Canton, Simsbury, and Granby north and west of Hartford. Connecticut Natural Gas serves Greenwich and 24 communities in the Hartford area, while Southern Connecticut Gas serves 24 shore towns from Westport to Old Saybrook.
“As communities grow and demand for gas supply increases, CNG’s system requires reinforcements and upgrades to maintain reliability for existing customers and to connect new homes and businesses,” the Connecticut Natural Gas rate notice stated. Without timely investment recovery, these limits could restrict housing and economic development.
Regulatory Review Will Scrutinize Low-Income Assistance Costs
The Public Utility Regulatory Authority typically reduces utility rate increase applications following prolonged reviews. The upcoming review will scrutinize costs tied to the low-income payment assistance program. Utility companies must make payments on behalf of customers unable to pay bills and can recover those costs during rate requests. Costs for the assistance program have risen by about 300 percent since former chairman Marissa Gillett expanded eligibility in 2024.
The companies have not submitted a rate application to the regulatory authority since that expansion. Tax credits that temporarily reduced bills also play a role in the filings. The gas companies previously asked regulators to spread the credits over a decade to cushion the eventual rate jump. Instead, regulators applied the credits from November 2025 to November 2027, creating a steeper drop in bills followed by a sharper gap in service costs.
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