Eversource cuts budget, investments, blaming PURA and credit downgrades

In a letter to the communities it serves, Eversource blamed PURA and national credit agencies for its reduced investments in the coming year.

BERLIN, Conn. — Eversource is warning Connecticut communities of a budget cut to investment projects in the coming year, and they’re placing the blame at the feet of regulators and credit agencies.

On Dec. 30, 2024, Eversource sent a letter to community partners outlining the planned reductions and warned that over the coming years, service levels will decrease up to 15% due to the reduced investment.

In the letter, Eversource blames the reduced investment and budget on the Connecticut Public Utilities Regulatory Authority (PURA) and national credit rating agencies. Late last year, Moody’s and S&G Global downgraded Eversource’s credit rating through subsidiaries like Yankee Gas Services Co. and Connecticut Light & Power Co.

In the letter, Eversource said, “Contrary to what some state officials have said following the downgrades, the credit-rating actions are not good news and will not lead to lower overall bills for customers.”

Eversource explained that customers will have to pay more for any investment the company makes in the system as a “result of a growing backlog of deferred improvements and higher financing costs.”

The battle between Eversource and state regulators over rate increases and reductions was also brought up in Eversource’s letter.

Sign up for the FOX61 newsletters: Morning Forecast, Morning Headlines, Evening Headlines

“PURA’s rate reductions of only a few dollars a month do not make utility rates more affordable for customers and are achievable only by severely constricting the revenues available to operate and invest in utility operations,” Eversource stated. “Under this paradigm, service levels will suffer, and restoring those previous levels of service quality and reliability will cost customers a far greater amount down the road. PURA’s rate cuts are adverse to the interests of customers in the long run.”

Eversource, PURA, and legislators have had a contentious relationship that came to a head in May 2024 when a dramatic spike in the public benefits portion of the bill resulted in public outcry and a game of finger-pointing.

“In particular, we are sensitive to the fact that investment in our communities ensures that the property taxes paid by Eversource remain stable (or increasing) so that funding is maintained for community services like police, fire, schools, and street maintenance. However, our ability to sustain investment levels in our communities is now impeded,” Eversource stated in their letter.

Beginning this month, those with Eversource will see their rate increase by about 7%; it was announced in November.

In dollars and cents, the 7% increase to customer bills mean about $15 more a month.

Legislators said in November that in the next session, they’ll be taking a hard look at how they can regulate and hold utility companies more accountable.

In the meantime, Eversource made it clear that there will now be millions less in investment across the 149 communities it serves, both from an electric and natural gas standpoint.

Jennifer Glatz is a digital content producer at FOX61 News. She can be reached at [email protected].

Have a story idea or something on your mind you want to share? We want to hear from you! Email us at [email protected]