Our current and proposed sky-high electric rates is the result of the regulatory agency PURA (Public Utilities Regulatory Authority), straying from a fundamental tool in establishing utility rates. Before a rate increase is granted to any public utility in the country it is typically mandated to conduct what is known as a Cost of Service Study (COSS). This is a study usually performed by outside consultants or an engineering firm to identify fixed and variable costs that serve each class of customer, i.e. residential, commercial, industrial and public authorities. The study details each of the costs incurred in producing that utility product and determines a reasonable return on the utilities’ cost of capital. The study then becomes the foundation and basis for establishing rates that still cannot be implemented unless PURA approves them.

Here is where I believe our regulators and legislature have strayed from this longstanding method of establishing a rate methodology that has been approved by the courts and every national association representing the utility industry. There is no criteria in a cost of service study that allocates public benefits or legislative social mandates to determine the true cost of a kilowatt hour of electricity or a cubic foot of water. In my opinion, those public benefits and mandates have no business being buried in your utility bill even if they are shown separately.

In addition, the utility company does not make a dime on those charges. They are simply passed through your utility bill because PURA has forced the utility company to collect those charges that have nothing to do with creating the product or the cost of transmitting and distributing that product to its customers. Ironically, if you do not pay the public benefit portion of your bill, you will be in default. In this case you face the risk of service being terminated or the unpaid portion sent to a collection agency which will have the further result of damaging your credit rating.

What the legislature has done is to delegate its taxing power to a regulatory agency and forced the cost to be collected from good-paying utility customers. Just what are these cost that have nothing to do with the cost of your utility service? The list keeps growing and now includes an extra payment to make up for people who don't pay. The charge also includes the expensive forced mandate to buy power from the Millstone Nuclear Power Plant to keep it running for its private for-profit owner Dominion Energy. The public benefit charge also includes reimbursing individuals and businesses for installing electric car chargers meant to reduce climate change.

A case can be made that these public benefit charges are needed. If so, don't hide them in a utility bill that is providing a service necessary to your health and life. Put those charges where they belong — in the general tax base of Connecticut.

Another method of assessing and collecting those charges would be through a voluntary contribution added to your bill. That certainly would not come close to offsetting these costs but is a method used in the past on utility bills by asking for a minimal contribution to help the environment.

Utilities like electric, gas and water are necessities of life and they are regulated monopolies. We cannot opt out of these services and go elsewhere. All we can do is hold the legislature and the regulatory agency's feet to the fire and hope that they do the right thing and get these public and social benefit charges off our utility bill.

Marshall Chiaraluce is a past Chairman and CEO of the Connecticut Water Company and a past president of the National Association of Water Companies.