DPU Issues Decision on WMECo Rate Case
Increased Revenues of $16.8 million approved
|CONTACT:||Sandra Ahearn||Lacey Ryan|
|Office:||(413) 787-1055||(413) 787-1018|
SPRINGFIELD, Mass., February 1, 2011 – The Massachusetts Department of Public Utilities (DPU) today issued a decision on Western Massachusetts Electric Company’s (WMECo) request for an increase in electric distribution rates, effective February 1, 2011.
“We worked very hard to put together a fair and thoughtful proposal that weighed the needs of our customers with the economic impact on them. We appreciate the Department’s careful consideration of the issues and will move forward to serve our customers within the framework of the decision,” said Peter J. Clarke, WMECo president and chief operating officer.
In its decision, the DPU approved:
· A $16.8 million increase in distribution revenues. WMECo originally requested a $28.4 million increase.
· An allowed Return on Equity (ROE) set at 9.6 percent. WMECo originally requested an allowed ROE of 10.5 percent.
· A decoupling mechanism with no inflation adjustment.
· An inclining block rate structure for residential customers. Monthly usage over 600 kilowatt hours (kWh) will be billed at a higher rate for non-heating customers.
· The Company’s request to partially recover balances of active hardship accounts.
· WMECo’s proposal to recover storm costs over five years.
The DPU did not approve:
· The creation of eight new line worker trainee positions.
· The $20 million sought for increased infrastructure investment.
WMECo is currently reviewing the DPU’s decision and will make a compliance filing in the coming days. The DPU must approve the compliance filing before rates can be finalized and bills sent out. Therefore, February bills may be delayed for some customers.
|Western Massachusetts Electric Company, part of the Northeast Utilities System (NYSE:NU), serves approximately 210,000 customers in 59 communities throughout western Massachusetts and is committed to the environment, economic development and the health of the communities it serves. For more information about WMECo, visit our Web site at www.wmeco.com. |