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    Saturday, April 20, 2024

    Behind Eversource rate hike

    There is a lot of discussion about Eversource increasing its rates by 19%. It is reported there are two reasons for this. One is the mandate to purchase power from the Millstone plant in Waterford, and secondly, the high write-offs for unpaid electric bills. There also may be other factors at work here.

    In 2017, Eversource paid $1.7 billion to acquire Connecticut's largest investor-owned water company, Aquarion Water. Last year, they applied for the water company's first rate increase in a decade. The 27% rate increase proposed resulted in a decision by the regulatory agency to reduce rates by 11%. Couple that with Eversource's decision to exit the offshore wind business resulting in a loss of almost $2 billion and you now have the makings of a severe cash flow problem. So much so that Eversource announced that they are looking to sell Aquarion Water to raise needed cash. Good luck finding a buyer since there is a toxic relationship with regulators and Eversource in Connecticut that could stifle interest with potential buyers.

    Some have also questioned why the CEO of Eversouce should receive a salary with stock awards and incentive pay of $13 million while raising rates 19% to ratepayers? Good question.

    Marshall Chiaraluce

    Mystic

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