HARTFORD, Conn. (AP) _ State regulators ordered Connecticut
Natural Gas on Wednesday to immediately start crediting customers
to compensate for collecting millions of dollars in profits to
which it was not entitled.
Commissioners of the state Department of Public Utility Control
voted unanimously to require the utility to keep the credits in
place on customers' monthly bills until new rates are set.
The average residential customer who uses gas for heating will
get a monthly credit of about $9.25. For the average homeowner who
uses gas for purposes other than heating, the credit would be about
$2.47 monthly.
Connecticut Natural Gas was authorized to collect 10.1 percent
in profits in its budget year ending April 30, but earned more for
at least six of the 12 months, the regulators concluded last month.
The difference was about $15.5 million in excess profits for the
year, which prompted state Attorney General Richard Blumenthal and
Consumer Counsel Mary Healey to complain to regulators.
The regulators also ordered CNG on Wednesday to file paperwork
for another rate review by Jan. 1, 2009. Those cases typically take
five to six months to conclude.
Bob Brennan, a spokesman for CNG, said Wednesday that company
officials are reviewing the decision and will start issuing the
credits as ordered by the regulators. The utility has about 155,000
customers in central Connecticut.
Since the monthly credits to customers would remain in effect
until the new rates are set, the credits will appear on customers'
monthly bills until sometime in 2009.
The DPUC authorizes the maximum profit levels that a utility can
collect in exchange having access to a market with no competition.
``After careful review of the evidence, we have determined that
a reduction in rates is necessary at this time and a credit is due
to CNG's customers,'' Anne C. George, the agency's lead
commissioner in the case, said in a written statement Wednesday.
Earning too much in profits should not be confused with
overcharging, state regulators and Healey's office have emphasized.
Other factors such as market conditions, paying down debts and
cutting expenses can cause a utility to earn more than the allowed
level.