Gas bills for 400,000 Connecticut customers could jump by up to a third under new rate applications filed by Avangrid subsidiaries, Yahoo reported.
The rate requests cover an area spanning 1.5 million residents across central Connecticut and the shore. Utility regulators face a year-long review process starting from the filings.
Gas Companies Seek $212 Million in Additional Income
- Connecticut Natural Gas and Southern Connecticut Gas asked for a combined $212 million in additional income over two years.
- Average monthly residential gas bills are currently about $127 for CNG customers and $125 for SCG customers.
- State and federal policy costs account for slightly more than half of the requested increase at about $109 million.
Rate Hike Requests Filed by Avangrid Subsidiaries
Connecticut Natural Gas and Southern Connecticut Gas notified utility regulators late Friday that they intend to apply for steep rate increases, Yahoo reported. The filings seek a combined $212 million in additional income over two years.
Under the proposed increase, the CNG bill would jump by 24 percent or $30 from the current average of about $127. For SCG subscribers, who recently experienced greater relief through savings tied to expiring federal tax credits, monthly bills would climb by 34 percent or $40 from an approximate baseline of $125.
Roughly half of the total hike—approximately $109 million—would be dedicated to funding short-term state and federal directives that fall outside the utilities’ operational control, according to the corporations. Those policies resulted in $54 million in unfunded costs associated with expansion of a state payment assistance program for low income customers. Another $55 million connects to the expiration of the federal tax credits that had temporarily reduced customer bills.
The remaining portion of the requested adjustment, totaling around $103 million, is slated to be split between finished and ongoing initiatives centered on gas distribution networks. The companies want $31 million to recover investments made since their last rate review, and $72 million for continued investment including replacing aging infrastructure.
“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 Gas Reliability and Development
In the portion of the rate requests addressing forward-looking work, the companies raise concerns about gas reliability. Both companies reported that their distribution networks are nearing capacity thresholds or bottlenecks that jeopardize their capability to supply gas at adequate pressure levels.
Such constraints could limit gas dependent commercial and residential development, the companies stated. The bottlenecks have emerged as a prominent issue in the Hartford-area towns of Avon, Canton, Simsbury, and Granby, as well as in Greenwich.
“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 CNG rate notice said. “Without timely recovery of investment, these constraints can limit CNG’s ability to serve new housing, businesses, and other development, potentially creating barriers to community growth and economic development.”
CNG provides gas service to Greenwich and 24 communities in the Hartford area. SCG provides service to 24 towns along the shore from Westport to Old Saybrook.
Rising Assistance Costs and Expiring Tax Credits Drive Rate Requests
The payment assistance program requires utilities to make payments on behalf of customers who can show they are unable to pay bills. Gas companies are entitled to recover their costs associated with the assistance program when making periodic rate requests, Yahoo reported.
The utilities have not submitted a formal rate application to PURA since Marissa Gillett, the agency’s former chairwoman, broadened program eligibility criteria in 2024. Since then the two companies’ costs have risen by about 300 percent.
Another part of the rate application involves the expiration of temporary customer tax credits. Seeking to soften the blow of a subsequent rate spike once those credits ran out, the gas providers requested that PURA spread the savings over a 10-year period.
Instead, the regulatory authority elected to distribute the credits between November 2025 and November 2027, creating a narrower window that yields a sharper, more abrupt contraction in monthly statements.
A veteran industry analyst told Yahoo News that PURA frequently trims utility rate-hike requests following extended evaluations, a trajectory likely to recur with the two Avangrid-affiliated gas providers.
| Utility Company | Current Average Monthly Bill | Proposed Increase (%) | Proposed Increase ($) |
|---|---|---|---|
| Connecticut Natural Gas (CNG) | $127 | 24% | $30 |
| Southern Connecticut Gas (SCG) | $125 | 34% | $40 |
The Public Utility Regulatory Authority will conduct a year-long rate review process starting from the late Friday notice.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
