Gas Utilities Seek $212 Million Rate Increase
Avangrid subsidiaries Connecticut Natural Gas and Southern Connecticut Gas notified regulators of plans to request additional income over two years.
Updated on Nov. 13, 2026 in Utilities
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Connecticut Natural Gas and Southern Connecticut Gas, which together serve 1.5 million customers, notified regulators late Friday of their intent to seek $212 million in additional income over two years. The Public Utility Regulatory Authority will begin a year-long rate review process for the proposed increase.
Why it matters
The proposed increase would raise monthly residential gas bills by 24 percent for CNG customers and 34 percent for SCG customers across Connecticut. The companies attribute much of the request to state and federal policy costs and to the expiration of federal tax credits that had reduced customer bills.
The request breaks down into about $109 million tied to state and federal policy costs and about $103 million for gas distribution network work, but the final figures depend on a review that has not yet started.
The players
Avangrid
Avangrid is a U.S. energy company whose subsidiaries include Connecticut Natural Gas and Southern Connecticut Gas.
Public Utility Regulatory Authority
The Public Utility Regulatory Authority is Connecticut's state agency that regulates utility rates and will conduct the year-long review of the proposed increase.
The details
The companies filed notice late Friday, November 13, 2026, to start the rate review process. They cite $54 million in unfunded costs from expanding a state low-income payment assistance program, $55 million tied to expired federal tax credits, and $31 million to recover gas system investments made since their last rate review. PURA applied temporary customer tax credits from November 2025 to November 2027 instead of spreading them over a decade.
Timeline
Since 2024: Payment assistance program eligibility was expanded under former chairman Marissa Gillett.
November 2025 to November 2027: PURA applied temporary customer tax credits that reduced bills.
Late Friday, November 13, 2026: Companies notified regulators of their intent to seek rate increases.
Year-long: PURA's rate review process begins following the notice.
Utility Rate Pressure
The request follows the expiration of federal tax credits that had reduced customer gas bills, leaving $55 million in costs for the companies to seek through rates. The proposed increase shows how expired federal tax credits can shift costs back onto utility customers.
If approved as proposed, the increase would add about $30 per month to a typical CNG residential gas bill and about $40 per month to a typical SCG bill. Customers of both companies would see the change on their monthly statements once rates take effect.
The takeaway
Gas customers in Connecticut should watch the year-long PURA review, since the final approved amount may differ from the $212 million requested. Households can plan for possible bill changes by tracking the outcome of that proceeding.
What happens next
PURA will begin a year-long rate review process for the proposed gas rate increase following the companies' notice.
Further reading
For more on how rate reviews work, see Utilities coverage across the state.
Source note: This article includes information reported by Hartfort Courant.
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