Eversource Energy is asking Connecticut lawmakers to authorize $700 million in borrowing to blunt the impact of losses from Tropical Storm Isaias, the COVID-19 pandemic and the rollback of a recent rate increase. The theory behind securitization plans is simple: Rather than hit ratepayers with a big increase due to extraordinary losses by a utility, spread out the impact over time through borrowing that Eversource would call “rate reduction bonds.” But the details are complex, and lawmakers said Eversource’s proposal asks Connecticut’s part-time legislature to take on a task that belongs to PURA, the Public Utilities Regulatory Authority. Such a pitch to PURA would be subjected to a painstaking and public review over months. While securitization never was raised by Eversource during either of two hearings recently held by the Energy and Technology Committee, Gross said the proposal was consistent with the company’s promise to work with “legislators and regulators to develop creative solutions to reduce rate impacts on our customers.” Asked for the governor’s assessment of the proposal, an administration spokesman offered neither praise nor criticism.
https://www.hartfordbusiness.com/article/eversource-quietly-pitches-700m-in-borrowing-to-ct