THE RATE REQUEST On February 15, 2013, The United Illuminating Company (UI) submitted a two-year rate filing with the Public Utilities Regulatory Authority (PURA) that, if approved, will provide stability for distribution rates through June 2015. Q:What is UI requesting? A:Effective July 1, 2013, UI proposes to increase its allowed distribution revenues by $69 million, or an increase to total revenues of approximately 8.7%. However, the Company proposes to not change distribution rates until January 1, 2014. At that time, UI’s proposed distribution rates would not result in an increase to customer’s bills due to the elimination of the Competitive Transition Assessment (CTA). Effective January 1, 2014, the CTA charge currently on customer bills will be eliminated. This is a reduction of approximately $80 million, or a decrease to overall revenues of about 10.3%. Thus, under UI’s proposal to PURA, on January 1, 2014, on average, customers’ overall bills will not increase. Effective July 1, 2014, UI proposes to increase distribution revenues by $26 million, or an increase to total revenues of 3.0%. Q:How can I file comments on UI’s filing? A:A customer may provide comments regarding this rate request proposal by writing to the PURA at 10 Franklin Square, New Britain, CT 06051, via e-mail addressed to [email protected], or in person at the scheduled public hearings listed below. Please include a reference to Docket No. 13-01-19 in any correspondence to PURA. To obtain a schedule with the dates, times and locations of all the hearings related to this docket, you may contact the Consumer Services section of PURA at 1-800-382-4586 or access the Docket Database section of the PURA’s Web site at www.ct.gov/pura and search the Active Docket Database under Docket No. 13-01-19 for the schedule of hearings. If you have any general questions about UI’s rate filing, you may also contact UI directly at 1-800-722-5584. Our customer service representatives are available to help you Monday through Friday, 7:00 A.M. to 7:00 P.M., and Saturday from 7:00 A.M. to 4:00 P.M. Q: What is the process and timeframe for changing utility rates? A:After filing the rate case, UI will respond to written data requests from PURA staff, the Attorney General, the Office of Consumer Counsel and others. During this public process, UI witnesses will be subject to cross examination. Public comment hearings are scheduled as follows: April 24th at 6:30 PM The Kennedy Mitchell Hall of Records, Hearing Room G2, 200 Orange Street, New Haven, CT May 2nd at 6:30 PM Bridgeport City Hall, City Common Council Chambers, 45 Lyon Terrace, Bridgeport, CT After these steps, PURA will issue a draft and subsequent final ruling on UI’s rate request. Q: How will this rate filing impact UI customers? A:If approved by PURA, through June 30, 2014, overall customer bills are not expected to change as a result of this rate filing. Effective July 1, 2014, the average increase in the total bill for a residential customer will be approximately $2/month. UI constructed its rate filing to minimize the impact on the total bills of customers. Q: Why is UI submitting a rate filing now? A:The need to increase distribution rates results from the capital investments UI has made and must continue to make to (i) replace aging infrastructure, (ii) maintain reliability, (iii) harden our delivery system to better withstand extreme weather events, and (iv) meet our public service obligations. Q: What customer charges are likely to increase? A:In UI’s proposal, certain rate components will increase by 20% or more on January 1, 2014, as detailed in the following tables. In addition, the table for residential rates includes all distribution rate components and the proposed change. See Reverse for Rates El 15 de febrero de 2013 The United Illuminating Company (UI) presentó las tarifas para dos años ante la Public Utilities Regulatory Authority (PURA). De ser aprobadas, se proporcionará una estabilidad en las tarifas de distribución hasta junio de 2015. P: ¿Qué solicita UI? R:A partir del 1º de julio de 2013, UI propone aumentar sus ingresos de distribución permitidos en $69 millones, o sea un aumento de los ingresos totales de aproximadamente el 8.7%. No obstante, la empresa propone no cambiar las tarifas de distribución hasta el 1º de enero de 2014. En ese momento, las tarifas de distribución propuestas por UI no darían como resultado un aumento en las facturas de los clientes debido a la eliminación de un cargo denominado Competitive Transition Assessment (CTA). A partir del 1º de enero de 2014 se eliminará el cargo de CTA que actualmente aparece en las facturas de los clientes. Esta es una reducción de aproximadamente $80 millones, o sea una disminución de los ingresos generales de alrededor del 10.3%. Por lo tanto, en virtud de la propuesta de UI ante PURA, el 1º de enero de 2014, en promedio, las facturas generales de los clientes no aumentarán. A partir del 1º de julio de 2014, UI propone aumentar los ingresos de distribución en $26 millones, o sea un aumento de los ingresos totales del 3.0%. P: ¿Cómo puedo presentar comentarios sobre la propuesta de UI? R:El cliente puede presentar comentarios sobre esta propuesta de solicitud de tarifas escribiendo a PURA, 10 Franklin Square, New Britain, CT 06051, por correo electrónico dirigido a [email protected], o personalmente en las audiencias públicas programadas que se detallan a continuación. En toda correspondencia dirigida a PURA, incluya una referencia a Caso N. º 13-01-19. Para obtener un programa con las fechas, horarios y ubicaciones de todas las audiencias relacionadas con este caso, puede comunicarse con la sección de Servicios al Consumidor de PURA al 1-800-382-4586 o acceder a la sección Base de Datos de Casos en el sitio web de PURA, en www.ct.gov/pura y buscar, en la Base de Datos de Casos Activos, el Caso N. º 13-01-19 para obtener el programa de audiencias. Si tiene preguntas generales sobre la presentación de tarifas de UI, también puede comunicarse con UI directamente al1-800-722-5584. Nuestros representantes de servicio al cliente están disponibles para ayudarlo, de lunes a viernes de 7:00 a.m. a 7:00 p.m., y los sábados de 7:00 a.m. a 4:00 p.m. P: ¿Cuál es el proceso y el plazo para cambiar las tarifas de los servicios? R:Luego de presentar el caso de las tarifas, UI responderá a las solicitudes de información escritas pedidas por el personal de PURA, el Fiscal General, la Oficina de Asesoría al Consumidor, entre otros. Durante este proceso público, los testigos de UI serán sometidos a una evaluación cruzada. A continuación, el programa de audiencias y comentarios públicos: 4 de abril @ 6:30 p.m. 2 Sala de audiencias G2, en Kennedy Mitchell Hall of Records 200 Orange Street, New Haven, Connecticut 2 de mayo @ 6:30 p.m. Cámaras del Consejo Común de la Ciudad en City Hall 45 Lyon Terrace, Bridgeport, Connecticut Luego de estos pasos, PURA presentará una copia preliminar y una resolución final subsiguiente sobre la solicitud de tarifas de UI. P:¿De qué manera impactará esta presentación de tarifas a los clientes de UI? R:De ser aprobada por PURA, al 30 de junio de 2014 no se espera un cambio en las facturas generales de los clientes como resultado de esta presentación de tarifas. A partir del 1º de julio de 2014, el aumento promedio en la factura total para un cliente residencial será de aproximadamente $2/mes. UI generó esta presentación de tarifas para minimizar el impacto en las facturas totales de los clientes. P: ¿Por qué UI realiza esta presentación de tarifas ahora? R:La necesidad de aumentar las tarifas de distribución proviene de las inversiones en capital que ha realizado UI, y que debe seguir realizando, para (i) reemplazar la infraestructura antigua, (ii) mantener la confiabilidad, (iii) fortalecer nuestro sistema de distribución para soportar mejor los sucesos climáticos extremos y (iv) satisfacer nuestras obligaciones del servicio público. P: ¿Qué cargos del cliente podrían aumentar? R:En la propuesta de UI, ciertos componentes de la tarifa aumentarán un 20% o más el 1º de enero de 2014, según se especifica en los siguientes cuadros. Asimismo, el cuadro de tarifas residenciales incluye todos los componentes de la tarifa de distribución y el cambio propuesto. Ver reverso para tarifas THE Current Proposed Proposed vs. Current Proposed Proposed vs. Current Rate Rate Difference % Change * Rate Difference % Change (eff. date 1/1/14) (eff. date 1/1/14) (eff. date 1/1/14) (eff. date 1/1/14) (eff. date 7/1/14) (eff. date 7/1/14) (eff. date 7/1/14) RESIDENTIAL RATES Rate R Basic Service Charge $ 15.85 $16.50 $0.65 4% $17.25 $1.40 9% Distribution Charge per kWh (summer, Jun-Sep) 0 - 500 kWh per month $ 0.049113 $ 0.053190 $ 0.004077 8% $ 0.055696 $ 0.006583 13% Excess of 500 kWh per month $ 0.049113 $ 0.085000 $ 0.035887 73% $ 0.088981 $ 0.039868 81% Distribution Charge per kWh (winter, Oct - May) $ 0.049113 $ 0.061791 $ 0.012678 26% $ 0.064728 $ 0.015615 32% Rate RT Basic Service Charge $ 15.85 $ 16.50 $ 0.65 4% $ 17.25 $1.40 9% Distribution Charge per kWh (summer, Jun-Sep) On-Peak $ 0.048995 $ 0.085000 $ 0.036005 73% $ 0.088981 $ 0.039986 82% Off-Peak $ 0.048995 $ 0.056273 $ 0.007278 15% $ 0.059995 $ 0.011000 22% Distribution Charge per kWh (winter, Oct - May) On-Peak $ 0.048995 $ 0.061793 $ 0.012798 26% $ 0.065913 $ 0.016918 35% Off-Peak $ 0.048995 $ 0.061793 $ 0.012798 26% $ 0.065913 $ 0.016918 35% COMMERCIAL & INDUSTRIAL RATES Rate GS - Secondary Voltage - Demand is unbilled, unmetered Distribution Charge per kWh (summer, Jun - Sep) $ 0.051765 $ 0.076781 $ 0.025016 48% $ 0.081650 $ 0.029885 58% Distribution Charge per kWh (winter, Oct - May) $ 0.051765 $ 0.061425 $ 0.009660 19% $ 0.068920 $ 0.017155 33% Rate GS - Primary Voltage - Demand is unbilled, unmetered Distribution Charge per kWh (summer, Jun - Sep) $ 0.051765 $ 0.074478 $ 0.022713 44% $ 0.083566 $ 0.031801 61% Rate GS - Secondary Voltage - Demand is unbilled Distribution Charge per kWh (summer, Jun - Sep) $ 0.050832 $ 0.074559 $ 0.023727 47% $ 0.083407 $ 0.032575 64% Rate GS - Primary Voltage - Demand is unbilled Distribution Charge per kWh (summer, Jun - Sep) $ 0.050832 $ 0.072322 $ 0.021490 42% $ 0.080905 $ 0.030073 59% Rate GS - Secondary Voltage - Demand is billed Basic Service Charge $ 39.19 $ 47.81 $ 8.62 Distribution Demand Charge per kW (summer, Jun - Sep) $ 6.12 $ 9.31 $ 3.19 Distribution Demand Charge per kW (winter, Oct - May) $ 6.12 $ 7.45 $ 1.33 22% $ 52.30 $ 13.11 52% $ 10.60 $ 4.48 22% $ 8.48 $ 2.36 33% 73% 39% Rate GS - Primary Voltage - Demand is billed Basic Service Charge $ 39.19 $ 47.81 $ 8.62 Distribution Demand Charge per kW (summer, Jun - Sep) $ 6.12 $ 9.31 $ 3.19 Distribution Demand Charge per kW (winter, Oct - May) $ 6.12 $ 7.45 $ 1.33 22% 52% 22% $ 52.30 $ 13.11 $ 10.60 $ 4.48 $ 8.48 $ 2.36 33% 73% 39% Rate GST - Secondary Voltage - Demand is unbilled Basic Service Charge $ 24.69 $ 30.86 $ 6.17 25% Distribution Charge per kWh (summer, Jun - Sep) On-Peak $ 0.016337 $ 0.034613 $ 0.018276 112% $ 0.046115 $ 0.029778 Off-Peak $ 0.016337 $ 0.027690 $ 0.011353 69% $ 0.036892 $ 0.020555 Distribution Charge per kWh (winter, Oct - May) On-Peak $ 0.016337 $ 0.027690 $ 0.011353 69% $ 0.036892 $ 0.020555 Off-Peak $ 0.016337 $ 0.027690 $ 0.011353 69% $ 0.036892 $ 0.020555 Rate GST - Primary Voltage - Demand is unbilled Basic Service Charge $ 24.69 $ 30.86 $ 6.17 Distribution Charge per kWh (summer, Jun - Sep) On-Peak $ 0.016337 $ 0.033575 $ 0.017238 Off-Peak $ 0.016337 $ 0.026859 $ 0.010522 Distribution Charge per kWh (winter, Oct - May) On-Peak $ 0.016337 $ 0.026859 $ 0.010522 Off-Peak $ 0.016337 $ 0.026859 $ 0.010522 106% $ 0.044732 $ 0.028395 64% $ 0.035785 $ 0.019448 64% $ 0.035785 $ 0.019448 64% $ 0.035785 $ 0.019448 Rate GST - Secondary Voltage - Demand is billed Basic Service Charge $ 66.82 $ 83.53 $ 16.71 Distribution Charge per kWh (summer, Jun - Sep) On-Peak $ 0.014199 $ 0.030818 $ 0.016619 Off-Peak $ 0.014199 $ 0.024654 $ 0.010455 Distribution Charge per kWh (winter, Oct - May) On-Peak $ 0.014199 $ 0.024654 $ 0.010455 Off-Peak $ 0.014199 $ 0.024654 $ 0.010455 117% $ 0.037286 $ 0.023087 74% $ 0.029829 $ 0.015630 74% $ 0.029829 $ 0.015630 74% $ 0.029829 $ 0.015630 Rate GST - Primary Voltage - Demand is billed Basic Service Charge $ 66.82 $ 83.53 $ 16.71 Distribution Charge per kWh (summer, Jun - Sep) On-Peak $ 0.014199 $ 0.029893 $ 0.015694 Off-Peak $ 0.014199 $ 0.023914 $0.009715 Distribution Charge per kWh (winter, Oct - May) On-Peak $ 0.014199 $ 0.023914 $ 0.009715 Off-Peak $ 0.014199 $ 0.023914 $ 0.009715 111% $ 0.036167 $ 0.021968 68% $ 0.028934 $ 0.014735 68% $ 0.028934 $ 0.014735 68% $ 0.028934 $ 0.014735 Rate LPT - Secondary Voltage Basic Service Charge $ 276.15 $ 345.19 $ 69.04 Distribution Demand Charge per kW (summer, Jun - Sep) On-Peak $ 7.89 $15.11 $ 7.22 Shoulder, excess kW $ 7.89 $12.09 $ 4.20 Off-Peak, excess kW $ 7.89 $12.09 $ 4.20 Distribution Demand Charge per kW (winter, Oct - May) On-Peak $ 7.89 $12.09 $ 4.20 Shoulder, excess kW $ 7.89 $12.09 $ 4.20 Off-Peak, excess kW $ 7.89 $12.09 $ 4.20 25% 92% $ 17.75 $ 9.86 53% $ 14.20 $ 6.31 53% $ 14.20 $ 6.31 53% $ 14.20 $ 6.31 53% $ 14.20 $ 6.31 53% $ 14.20 $ 6.31 Rate LPT - Primary Voltage Basic Service Charge $ 276.15 $ 345.19 $ 69.04 Distribution Demand Charge per kW (summer, Jun - Sep) On-Peak $ 7.89 $ 15.11 $ 7.22 Shoulder, excess kW $ 7.89 $ 12.09 $ 4.20 Off-Peak, excess kW $ 7.89 $ 12.09 $ 4.20 Distribution Demand Charge per kW (winter, Oct - May) On-Peak $ 7.89 $ 12.09 $ 4.20 Shoulder, excess kW $ 7.89 $ 12.09 $ 4.20 Off-Peak, excess kW $ 7.89 $ 12.09 $ 4.20 92% $ 17.75 $ 9.86 53% $ 14.20 $ 6.31 53% $ 14.20 $ 6.31 53% $ 14.20 $ 6.31 53% $ 14.20 $ 6.31 53% $ 14.20 $ 6.31 25% 25% 25% 25% ** 182% 126% 126% 126% ** 174% 119% 119% 119% ** 163% 110% 110% 110% ** 155% 104% 104% 104% ** 125% 80% 80% 80% 80% 80% ** 125% 80% 80% 80% 80% 80% * NOTE: If UI’s request is approved the proposed increase in the charges listed above will be offset with a decrease in the Competitive Transition Assessment, resulting in no net increase to the average customer’s bill in January 2014. ** No change from rate effective January 1, 2014 2013 The United Illuminating Company Paid for by UI Customers | Revised | 30548-I-0140