CNG, SCG File Service Enhancement & Reliability Plans
Plans propose to enhance customers’ access to safe, reliable service by replacing aging infrastructure and adding union jobs
ORANGE, Connecticut — November 3, 2023 — Connecticut Natural Gas (CNG) and Southern Connecticut Gas (SCG), subsidiaries of Avangrid (NYSE: AGR), today announced the filing of their Service Enhancement & Reliability Plans with the Connecticut Public Utilities Regulatory Authority. The plans, the first rate filings for the companies since 2018 and 2017 respectively, will allow the companies to invest in critical infrastructure and their union workforces to improve reliability, resiliency, and customer service for Connecticut residences and businesses while addressing revenue deficiencies.
“Investments in the gas distribution system are essential to providing the top-tier service reliability our customers expect and deserve,” said Frank Reynolds, President and CEO of CNG and SCG. “As we look to build the gas distribution network of the future, the modest rate increases we are proposing will go directly towards upgrading our infrastructure, replacing leak-prone cast iron pipe, and building capital projects that ensure our customers maintain gas service on the coldest nights. I am proud of the work our team has done to prepare these Service Enhancement & Reliability Plans, and I look forward to discussing them in more detail with our stakeholders and customers.”
CNG last filed a request for a rate increase in 2018 and faces a revenue deficiency of approximately $19.8 million. Thus, the company now proposes an approximately 4 percent increase on customers’ bills, which represents an average monthly increase of approximately $6.68 and an average daily increase of just 22 cents. Meanwhile, SCG last filed a request for a rate increase in 2017 and faces a revenue deficiency of approximately $40.8 million. Thus, the company now proposes an approximately 9 percent increase on customers’ bills, which represents an average monthly increase of approximately $13.51 and an average daily increase of just 44 cents.
To minimize impact on financially disadvantaged customers, CNG and SCG both propose establishing a low-income discount rate (LIDR) in collaboration with the Public Utilities Regulatory Authority (PURA). The companies also propose increasing the number of full-time employees in key areas, including Gas Operations and Customer Service; approximately 60 percent of the new hires are expected to be union workers. Additionally, CNG and SCG aim to upgrade their infrastructure, including through the Distribution Integrity Management Plan (DIMP) program that replaces leak-prone cast iron pipe, and CNG plans to pilot sustainability programs that recapture purged gas and detect gas leaks.
“I am proud of our companies’ strong commitment to ensuring all our customers enjoy reliable service, and I also recognize building a gas utility of the future means we must do more than we’ve done in the past,” said Al Langland, Vice President of Engineering and Operations at CNG and SCG. “That’s why we’re proposing a plan that enhances customer service by expanding our union workforce; upgrades our infrastructure to prevent methane leaks; and accelerates sustainability efforts by pioneering pilot technologies. I look forward to working with PURA to fulfilling our commitments in these plans for the benefit of our customers.”
CNG was established in 1840 as Hartford City Light and serves more than 186,000 customers across 25 Connecticut communities, primarily in the greater Hartford area and the town of Greenwich. SCG was established in 1847 as New Haven City Gas Light Company and serves more than 208,000 customers in 24 Connecticut communities along or near the shoreline of Long Island Sound.
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