House Republican Press Release

April 18, 2007

Press Office: 860-240-8700

Rep. DelGobbo: House Approves Measure to Prevent Sharp Hikes in Water Company Rates

Bill Provides for Interim Rate Adjustments to Ease Spikes and Customer Rate Shocks

A measure that would help prevent sharp spikes in water company rates and soften the effect of  rate increases on consumers was approved today by the state House of Representatives, state Representative Kevin M. DelGobbo said today.

“This legislation responds to a sharp hike in rates that was approved last year after the Connecticut Water Company approached the state Department of Public Utility Control seeking an increase after having gone without one for more than 10 years,” said Representative DelGobbo, R-Naugatuck, who spoke in favor of the measure. “The DPUC approved an increase of more than 20 percent, which was a major shock for ratepayers. This legislation will help keep water company customers throughout Connecticut from having to endure an experience like that again.”

The measure (House Bill 7178) would allow for incremental, semi-annual interim rate adjustments for private water companies, specifically for eligible projects in plans approved by the DPUC. The provision would help alleviate sharp rate spikes and the subsequent shock to consumers that can occur when companies defer filing full rate case applications because of the time and expense involved in the proceedings.

The measure applies only to customers of private water companies whose rates are regulated by the DPUC and who would benefit from improvements to the companies’ water distribution systems. It is limited only to water system improvements – not sanitary sewer or storm water projects.