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On June 29, 2007, the Connecticut Department of Public Utility Control issued its final decision regarding the application of Yankee Gas Services Company for a rate increase, which the company filed on December 29, 2006. Yankee’s application proposed to recover additional revenues needed for the liquefied natural gas facility in Waterbury, Conn., and the increased costs of providing distribution services.
Overall, the Department’s decision approves with some limited changes the settlement reached on May 16, 2007, between Yankee Gas, the Office of Consumer Counsel and the Prosecutorial designees of the Department. It strikes an appropriate balance between ratepayers’ and shareholders’ interests. It provides ratepayers mitigated cost increases, improved system reliability and assurance that the rate increase is reasonable.
The distribution component of customer bills will increase by about 35% with this rate increase being applied across-the-board to all distribution components of rates, which are customer charge, per Ccf charge(s), demand meter charge, demand charge and merchant charge. This increase is expected to be offset by the lower cost of gas supply. This across-the-board change will be for all firm and seasonal rate customers beginning with service on and after July 1, 2007.
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