United Illuminating follows Eversource by pausing electric vehicle charger program

FILE – A sign sits at an electric vehicle charging station, March 8, 2024, at an electric vehicle charging station in London, Ohio. A new poll from The Associated Press-NORC Center for Public Affairs Research shows that 45% of adults in the United States say they have become more concerned about climate change over the past year, including roughly 6 in 10 Democrats and one-quarter of Republicans. (AP Photo/Joshua A. Bickel, File)

HARTFORD, Conn. (WTNH) — United Illuminating has become the second major utility company in Connecticut to pause its electric vehicle charging program, stating that it can’t afford it after a rate increase wasn’t fully approved.

UI stopped the EV charger incentive program on June 8, according to a statement from the company. Applications continue to be accepted, but are being placed on a waitlist.

The decision is due to the Public Utilities Regulatory Authority (PURA) not ruling on a motion and the agency blocking a rate increase, according to UI.

The company said that it is unable to process more applications “until PURA establishes a predictable, consistent path for recovery” for the state’s Revenue Adjustment Mechanism, also known as RAM. The RAM covers clean energy projects, but does not include EV incentive programs.

A written statement continues on to call on PURA to “abandon and instead work to clarify the standards of recovery for EV incentive programs, a straightforward request that PURA can fulfill quickly as there are standard ratemaking mechanisms available for an easy solution.” UI’s program will be reactivated afterward, according to the company.

Because of that decision, UI absorbs the costs of a rebate program. The company is seeing a “current deteriorating financial condition” after PURA turned down a full rate increase that UI had proposed, according to the written statement.

PURA’s final decision on the proposed rate increase was issued in August and denied the request to increase rates by $130 million over three years. The proposal would have increased the average customer bill by 15%.

Instead, PURA approved a reduced rate increase of $22 million, which will increase the average bill by 2%.

At the time, UI said the rate increase would allow them to build a stronger grid and improve investments in clean energy transformation. It would also be the first time UI increased its distribution rate since 2016. 

Eversource announced in April that it was stopping its rebate program.