Connecticut’s Public Utilities Regulatory Authority (PURA) has approved a plan that allows United Illuminating and Eversource to apply to recoup costs associated with the state’s Electric Vehicle Charging Program, the Hartford Courant reports.
Earlier this year, both utilities “paused” their participation in the state’s EV charging program, arguing that regulations were harming their ability to perform grid improvements, per the Courant. After months of negotiations and threats of fines, it seems the parties have come to an agreement, and ratepayers will pay an additional $3 per month in “public benefit” charges beginning this September until April 2025 to recover about $80 million that the utilities say they’ve spent on the program.
Ratepayers will likely be less than pleased. The additional $3 per month on their bill comes just after the public benefit charges were increased by 400% or more in July – an increase that will remain for 9 months, according to the Courant.
The program, established in 2021, requires utilities to offer incentives for EV charger infrastructure, increased incentive amounts for underserved communities, and special electricity rates for charging EVs. The EV Charging Program is intended to offer incentives for the deployment of EVSE in five program areas, or market segments:
- Residential Single-Family Level 2 Charging;
- Residential Multi-Unit Dwellings (MUDs) Level 2 Charging;
- Direct current fast charging (DCFC);
- Destination Level 2 Charging; and
- Workplace & Light-Duty Fleet Level 2 Charging.
However, earlier this year, United Illuminating and Eversource both “paused” their participation in the program, the Courant reports, after arguing with regulators over how much the utilities are able to recoup from rate increases. The utilities claim that current regulations have caused their stock and credit ratings to fall, which in turn has reduced their ability to finance grid projects. Gov. Ned Lamont, speaking with the Courant, suggested that Eversource may be suffering from losses in its offshore wind investments – a claim the utility denied.
Both utilities said they were limiting their spending in Connecticut to only delivering electricity – meaning no more grid improvements until an agreement was reached. In May, the utilities said they would resume the EV charging program if PURA allowed them to apply to recover costs as part of the yearly rate adjustment process, the Courant reports. PURA initially told the utilities they would need to wait at least a year to make such a request, and threatened to fine them $10,000 for each day the EV charging program remained paused.
In late June, Eversource said it was reverting the “pause” it put on the EV charging program, indicates the Courant, following a 90-minute session between utilities and regulators. At the time, United Illuminating said it had not made a decision. Finally, after months of back-and-forth, PURA approved a plan that will allow the utilities to recover costs related to the EV charging program.