Crystal Water Gets Approval for 21.35% Rate Increase, Allowed Return on Equity Set at 10%
Connecticut Water Service, Inc. announced that its Crystal Water Co. of Danielson subsidiary has received approval from the Connecticut Department of Public Utility Control (DPUC) to raise rates 21.35% across the board. The DPUC decision allows the company a 10% return on equity. The rate increase will raise revenues by approximately $600,000 per year.
Crystal Water Co. applied to the DPUC for rate relief on July 8, 2005. The company had requested a 27.6% across-the-board rate increase and an allowed return on equity of 10.5%. The DPUC rendered its final decision on December 28, 2005.
According to Marshall T. Chiaraluce, chairman and president of Connecticut Water Service, the company believes the DPUC decision is fair and balanced. Chiaraluce said, "We are pleased that the Department recognized our more than $10 million infrastructure investment in the company since the last rate increase in the mid-1990's, and we believe the decision validates our strategy of prudent capital investment in our water systems."
The DPUC stated in its final decision, "The Department's inspection on September 2, 2005, revealed that the seven water systems (of Crystal Water) are in good operating condition and well maintained. All of the water systems have sufficient supply to meet both average day and maximum demand."