Rate Communications

In 2023, Norwich Public Utilities (NPU) worked with consultants to develop a ‘Cost of Service Study’ that helps us determine what rates are necessary across our utilities to meet our expenses in order to provide safe and reliable utility services for our customers for three years.

We carefully analyzed this information and developed rates for our natural gas, electric, and water utilities. These rates were reviewed and discussed in public hearings and the NPU Board in 2023 and 2024. The NPU Board approved rates for 2023, 2024, and 2025 for natural gas, water, and electric rates.

The Cost of Service Study took a number of factors into consideration – such as inflation, supply chain issues, capital investments, staffing concerns, etc. The three-year rate track approved by the NPU Board that will take effect on November 1 of each year would increase as follows:

In November of 2023, NPU broke ground on a $200 million upgrade of our wastewater treatment plant, a facility that was built in the 1950s with a 50-year lifespan. This project will receive very significant federal and state support – more than $70 million – to minimize the impact on our customers; we continue to advocate for additional funding to reduce our rates in the future.

Given the financial and operational complexity of this very significant project, the NPU Board has approved rates for sewer customers on an annual basis, and expects to do so in the years ahead. The sewer plant upgrade project is 37% funded with grants and loans from the State of Connecticut with the balance paid for through the revenue from our 8,000 sewer customers.

In our September Board meeting, the following rate adjustment was approved, effective November 1, 2024:

Sewer                          17.06% increase

As a result of these adjustments, an average NPU residential customer would see the following impact on their bills:

• Gas          $3.46
• Electric   $4.72
• Water      $3.68
• Sewer      $13.48

TOTAL: A 4-service residential customer will see a $25.33 per month increase, or about 84 cents a day.