Connecticut’s Acceptable Components of Utility Fixed Charges

In 2015, Connecticut passed a law defining acceptable components of a utility fixed charge as the fixed costs, operations and maintenance expenses that are directly related to metering, billing, service connections and customer service. In 2017, the method prescribed by the new law​ was challenged and upheld by the commission. The commission also ruled calculations could include “policy considerations, economic conditions, or other facts and circumstances,” which recognized stakeholder concerns with fixed charge impacts on low-and-moderate income customers as well as EE and DER adoption.

For context, see the Acadia Center’s release on their efforts to properly enforce the law in utility rate cases, below.