Orange Customers Face $9.75/Month More as PURA Approves $68M UI Rate Hike

United Illuminating Customers in Orange Face $9.75 Monthly Bill Increase After State Approves $68M Rate Hike

Residents served by United Illuminating in Orange and across the utility's Connecticut service territory will see their monthly electric bills rise by $9.50 to $9.75, following a Connecticut Public Utilities Regulatory Authority decision granting the company a roughly $68 million increase in annual electric distribution revenues.

The ruling sets UI's electric distribution revenue requirement at approximately $452.8 million and authorizes a 9.45% return on equity — far below the 10.5% return and $105.4 million increase the company had originally sought in October 2024, but still a significant rate adjustment that drew sharp criticism from the state's top law enforcement official.

PURA Decision Reverses English Station Penalty

Beyond the rate increase itself, the decision drew attention for eliminating a financial penalty tied to UI's handling of the contaminated English Station coal-fired power plant site in New Haven. PURA indicated that environmental oversight issues related to the site could be addressed in future proceedings but would not be resolved in this rate case.

The English Station site has been a long-running source of regulatory scrutiny. Its removal from the penalty calculation benefited UI's financial position in the rate case at a time when the company was seeking to expand its authorized revenue.

AG Tong Criticizes the Ruling

Attorney General William Tong sharply opposed the decision. "This decision delivers $68 million more in profits and hundreds of thousands of dollars in bonus pay for corporate executives," Tong said in a statement following the ruling.

Tong indicated the state would continue challenging UI in court and future regulatory proceedings. The Office of Consumer Counsel had separately argued for a lower rate increase during the proceeding, emphasizing affordability concerns for households and businesses already managing elevated energy costs.

UI Spokesperson Angela Baccaro defended the decision, noting the company "continues to invest in reliability, resilience, and customer service" while working to maintain an affordable and modern grid.

Orange Impact: More Than $115 Per Year

For the average Orange household using 750 kilowatt-hours of electricity per month — roughly the statewide residential average — the rate change translates to approximately $9.50 to $9.75 per month in additional costs, or more than $115 per year.

The increase applies to the distribution portion of UI customer bills, which covers the cost of delivering power through local lines. It does not include separate changes to supply rates, which have also been in flux. UI's Standard Service supply rate saw a roughly 17% increase in early 2026, adding further pressure on household energy budgets.

Orange is located within United Illuminating's service territory in New Haven County. UI serves approximately 340,000 customers across the greater New Haven and Bridgeport regions.

Regulatory Context

The PURA decision comes amid a broader period of scrutiny over Connecticut utility regulation. State lawmakers have been actively discussing reforms to utility oversight and electricity supply — with proposals targeting increased grid capacity and greater accountability for how rate changes are approved and communicated to consumers.

Consumer advocates have argued that PURA's approval process has not adequately protected ratepayers, while utilities contend that increasing revenues are necessary to fund infrastructure investments and maintain grid reliability as Connecticut transitions to a cleaner energy mix.

The rate change takes effect as part of UI's rate year running from November 1, 2025, through October 31, 2026.

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