Torrington Water Company Rates
Water Rates

Revenue Adjustment Mechanism (RAM) and the Earnings Sharing Mechanism (ESM)

In 2013, the State of Connecticut passed Public Act 13-78 that authorized a new Revenue Adjustment Mechanism (RAM). This mechanism allows water utilities to adjust their rates, either upward or downward each year – through a surcharge or credit on customer bills – to reflect the difference between the actual revenues billed in a calendar year and the revenues that the Public Utilities Regulatory Authority approved at the time of the utilities’ last rate case. In 2016, the Company experienced a shortfall of $502,835 and therefore is allowed to recover that amount through a surcharge.
Public Act 13-78 also states that if a utility overearns from its allowed rate of return, the utility must share that overearnings with its ratepayers and shareholders. In 2016 the Company overearned by approximately $29,000 and therefore an Earnings Sharing Mechanism (ESM) will show on your bill as a credit of 0.74%.
How much is the RAM Surcharge and ESM Surcredit?
Approved by the Public Utilities Regulatory Authority on March 17, 2017, the RAM surcharge is 7.74% or approximately a $9.42 per quarter increase for a typical residential customer who uses an average of 18,000 gallons per quarter. This surcharge will begin April 1, 2017.
The ESM credit is 0.74% or approximately a $0.90 per quarter decrease for a typical residential customer and will also begin April 1, 2017.

If you desire more information about the surcharge, please call us at (860) 489-4149.

Very Truly Yours,

Susan M. Suhanovsky