Energy Co-Chairs Hit Pause on Eversource Request To Borrow $700M

BERLIN, CT —The co-chairs of the legislature’s Energy and Technology Committee said there’s no chance at this moment that they would allow Eversource Energy to borrow $700 million to cover the cost of Tropical Storm Isaias, the July rate increase, and COVID-related expenses.

Eversource wants the legislature, later this month, to approve $700 million in borrowing for costs it will eventually need to recover from ratepayers.

Doug Horton, vice president of distribution rates for Eversource, says lawmakers don’t have to approve the proposal this month. He said it could wait until lawmakers reconvene in January, but he thinks it’s a good deal for ratepayers and there’s no benefit to shareholders.

The idea is to allow the utility to securitize about $700 million in costs to ratepayers at a 2% interest rate over a 20-year period versus a 9% rate over a six-year period.

Read more: https://www.ctnewsjunkie.com/archives/entry/20200918_energy_co-chairs_hit_pause_on_eversource_request_to_borrow_700m/