They Fought The Hike, & The Hike Lost

by Paul Bass | January 21, 2009 11:02 AM | | Comments (6)

frank%20and%20paula.JPG(Updated) State regulators sided with activists like New Haven’s Frank and Paula Panzarella, issuing a draft decision denying a request by United Illuminating for a 7.2 percent two-year rate hike.

The draft decision, issued Tuesday, would cut residential ratepayers’ average bills by 30 cents a month.

The DPUC draft decision scored UI execs for grabbing bigger salaries as they cried poverty to regulators.

UI’s request for approval of $51.4 million in additional revenues was the subject of heated public hearings.

A hearing on the draft decision is scheduled for Jan. 29. The DPUC’s final decision is expected Feb. 4.

The draft follows two years of intensive organizing by the New Haven-based group Fight the Hike.

“People always win when they organize the grass roots,” Paula Panzarella (at right in the above file demonstration photo), one of the group’s leaders, said Wednesday. “It just takes a while.”

Execs & Hard Times

Tuesday’s draft decision said regulators were “disappointed to discover that UI had granted higher executive incentives and hired more employees than authorized in the last ratecase driving down their rate of return.”

The draft decision would cut UI’s permitted rate of return from 9.75 percent to 8.75 percent. It called for UI to “cut payroll and executive incentives.”

The state can’t spare UI from the same hard times that are hitting its customers, the draft went on to argue: “[R]egulators cannot insulate utilities from all the factors that may impact their earnings. Rather, it is the task of management, with the balanced support of regulators as reflected in this Decision, to manage its way through a challenging economic climate.”

Click here to read the draft decision.

Click here and here to read Independent coverage of the combative public hearings over the proposed hike.

UI spokesman Al Carbone said it’s too early to tell whether the utility will file exceptions to the draft decision and try to get it changed.

“We just got the 136-page document yesterday. People are going through it,” he said.

More Action To Come

Fight The Hike is going through the decision, too, poised to return to action if UI decides to try to sway the DPUC to change the decision this month.

The group spent two years collecting names on petitions, holding rallies, building email and phone lists, to pressure the state and the DPUC to rein in UI and prevent rate hikes. It lobbied local governments in Branford, West Haven, Hamden, Milford, North Haven to pass resolutions against hikes. It lobbied the state to create a new energy authority aimed at reversing deregulation, promoting clean energy, and lowering rates.

“You go and ask people, ‘Do you want to pay higher electric rates?’ — you’re not going to find a lot of takers for that,” Paula Panzarella said.

After hearing from more than 1,000 citizens, “The DPUC lived up to their mandate to protect the public,” she said.

Panzarella said Fight the Hike will return to Hartford this year to push the energy authority proposal again.







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Comments

Posted by: City Hall Watch | January 20, 2009 9:01 PM

Man oh Man...this is real victory! DPUC listened and studied...awesome! Now, if we could just get City Hall to listen half as much.

Posted by: jackie | January 21, 2009 10:27 AM

yay!

Posted by: Allan Brison | January 21, 2009 12:54 PM

Great going to Frank and Paula and to all the folks of Fight the Hike!

Our rallies, lobbying efforts, and public hearing testimonies are paying off.

And kudos as well to the AG, Richard Blumenthal, for his consistent support on the right side of this issue.

Allan Brison
Alderman, Ward 10
Green Party

Posted by: cedarhillresident [TypeKey Profile Page] | January 21, 2009 1:48 PM

Bravo Frank and Paula, you and all the members of fight the hike should be an example of what people can do if they stand together for what is right!!!

BRAVO!!!!!

Frank I think your singing finally got them
http://www.youtube.com/watch?v=GENe5qDgs0M

But reality Richard Blumenthal said to the UI do the right thing and pull this request off the table.
This decision was the right one and I thank the people of the DPUC for doing what was right! THANK YOU! And my family thanks you, and all the struggling family's in my community thank you!

http://www.youtube.com/watch?v=saU9WR0l81w

Posted by: True New Havener | January 21, 2009 4:17 PM

SWEET!!

Power to the People.

Posted by: observer | January 21, 2009 9:31 PM

Unbelievable! I attended the protest meeting at the Hall of Records in December, and was impressed by the strength of the arguments that many speakers offered against the rate hike, but couldn't help feeling that they were being thrown against a brick wall.

Although the DPUC people at the front of the room did seem to be listening, I never imagined they would veer away from what seems to be their usual practice of ratifying utility rate hikes, whether they come from the electric, gas, or cable companies.

I left the meeting feeling that it had really been an event of citizens in action, but I had no hope at all that it would have any effect.

What a terrific thing to have happened on President Obama's inauguration day!

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