Date: Fri 24-Oct-1997
Date: Fri 24-Oct-1997
Publication: Bee
Author: ANDYG
Quick Words:
Fairfield-Hills-fire-mutual
Full Text:
Water Company Seeks Rate Increase
NEW MILFORD -- United Water Connecticut filed an application on Tuesday with
the Connecticut Department of Public Utility Control requesting a 2.4 percent
rate increase.
United Water President David Chardavoyne said the rate increase was needed to
help the company comply with a new financial accounting standard, required
under changes in the Connecticut tax law, for its employees' retirement
benefits. Under the filing, United Water requested that the rate increase
become effective on or before January 1, 1998.
"All of this request is needed to comply with a new financial accounting
standard dealing with retirement benefits for medical and life insurance,"
said Mr Chardavoyne. "Previously, all utilities accounted for these expenses
on a pay-as-you-go basis, recording the expense and receiving ratemaking
treatment for it as the benefits were paid out. The new accounting standard
requires that these expenses be recognized when employees are actually
providing service to customers and earning the future retirement benefits."
If approved by the PUC, the company's request for rate relief would increase
the average residential customer's quarterly bill by about $2.32, bringing the
average bill to $98.45. United Water Connecticut, a subsidiary of United Water
Resources, provides water service to more than 4,600 customers, including
1,036 in Newtown. The company's last rate increase was in 1993.
