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Testimony from Operation Fuel Chief Executive Officer, Perkin Simpson – February 4th, 2025.
Energy and Technology Committee Public Hearing Tuesday, February 4, 2025 Submitted by Perkin Simpson, Ph.D., Chief Executive Officer of Operation Fuel, Inc.
Dear Co-Chairs Rep. Steinberg, Sen. Needleman, Ranking Members Rep. Marra, Sen. Fazio, Vice-Chairs Rep. Sanchez and Sen. Maroney, and Honorable Members of the Energy and Technology Committee:
Thank you for the opportunity to provide written testimony on behalf of Operation Fuel, in support of H.B. 6777, An Act Concerning Water Utility and Water Quality and Treatment Surcharges. Operation Fuel is a 501(c)3 private nonprofit founded in 1977 during the oil embargo crisis, when energy price shocks destabilized household budgets and the national economy. Today, we continue to provide emergency energy and utility assistance to low- and moderate-income Connecticut households experiencing financial crisis.
We applaud this committee and the Connecticut General Assembly for your leadership I to ensure that Connecticut residents benefit from safe, affordable drinking water. This bill responds to the public health and legal mandates that Connecticut water companies remove perfluoroalkyl and polyfluoroalkyl substances (PFAS) found in Connecticut public water systems, in a way that protects consumers from price shocks in their water bills.
H.B. 6777 would allow Connecticut water companies the opportunity to file a report for approval by the Public Utilities Regulatory Authority (PURA or the Authority) to identify, “any proposed water infrastructure additions, upgrades, improvements or replacements of a water system, or any component of such system”2 to comply with state or federal mandated drinking water regulations in mitigating the presence of PFAS, lead or other contaminants. The Authority may hold a hearing to solicit input on the water companies report, and if approved, the water company shall apply a surcharge that “shall not exceed fifteen per cent of the water company’s annual retail water revenues approved in its most recent rate filing, and shall not exceed seven and one half per cent of such revenues for any twelve-month period. “3 The overall goal of this bill is to have water companies recover costs, to comply with PFAS regulations incrementally, rather than all at once. H.B. 6777 provides a funding mechanism to remove PFAs from the water supply with a staggered approach instead of hitting customers with a surprise bill. Operation Fuel recognizes that Connecticut’s current system of regulated monopoly investor-owned utilities means that ratepayers will pick up the costs for PFAs treatment in Connecticut’s water systems. We appreciate CWC for working to ensure those costs are distributed over time to ease the burden on customers.
The introducer of this bill, Connecticut Water Company (CWC), is one of Operation Fuel’s most critical partners. Together, we help low-income residents of the company’s 60 town territory keep up with their water bills. What drives Operation Fuel-CWC partnership, and Operation Fuel’s ability to serve an increasing number of Connecticut residents each year, is CWC’s customer centric approach. Their customer service and collections teams recognize that aggressive collections practices and shutoff threats create a negative, threatening dynamic between utility companies and customers. When people need help paying their utility bills, it is most cost effective to help them pay their bills. CWC shareholders would rather have customers access the resources needed, instead of punitive collections approach.
CWC consistently demonstrates their commitment to support low-income customers struggling to pay their bills. Starting in 2020, CWC began the H20 (Help 2 Our Customers) program[1]providing up to $500 a year in bill assistance for customers earning up to 60% State Median Income (SMI) in all 60 of their service territories, all year long. As funding dwindled in October 2023, CWC increased their financial commitment to ensure those asking for help would not be turned away.
In CWC’s rate case that same year, Operation Fuel submitted written comments to PURA[2]supporting the innovative Water Rate Assistance Program (WRAP) [3], a three-tiered discount rate for customers earning 60% State Median Income (SMI) and below, which PURA approved in the June 28, 2024 Final Decision[4]. This program is based on an affordability threshold expecting households to commit
2% of their income to water utility. WRAP provides the lowest-income CWC customers (those with incomes at and below 100% Federal Poverty Level) with an 80% discount off their water bills. Beginning September 2024, Operation Fuel began administering the discount rate program for CT Water.
| Customer’s Income Guidelines | Customer’s Discount off Monthl Bill | Family Size | Income Level |
| Income at 100% Federal Povertv Level | 80% | 1 | $15,060 |
| Incomes at 200% of the Federal Pove Level | 40% | 1 | $30,120 |
| Incomes at 60% of State Median Inconne Level | 1 | $41,553 |
As of February 3, 2025, Operation Fuel has helped 77 CT Water customers receive assistance grants and enroll them in the proper WRAP tiers. CWC has committed approximately $30,000 during this time toward bill assistance for those struggling to pay. For customers who struggle to keep up with the additional charges, Operation Fuel’s experience working closely with CWC indicates that the company will continue making every effort to support their struggling customers.
While we support H.B. 6777 as a means to remove toxins from our state’s water supply at a reasonably paced cost, Operation Fuel recommends that the committee consider further revisions before final passage. Language in lines 146-149 instructs water companies to notify customers about the surcharge through a bill insert or other communication piece, after the first surcharge is applied. The bill should ensure that utility companies communicate effectively with customers before a new surcharge is applied, to prevent rate shock for customers. We appreciate that C WC and the Office of Consumer Counsel continue analyzing the language to ensure a transparent process for ratepayers to follow.
In conclusion, Operation Fuel recognizes the importance of safe drinking water, free from harmful chemicals. H.B. 6777 provides a funding mechanism to remove PFAs from the water supply with a staggered approach instead of hitting customers with a surprise bill. Operation Fuel is encouraged to see water companies, especially C WC work with this committee to ensure that necessary health and legal mandates are met with proper investments, while mitigating the price shocks to consumers. Operation Fuel appreciates our partnership with CT Water, as we work together to help struggling qualifying customers direct bill assistance.
Thank you for the opportunity to submit written testimony. We appreciate your leadership for the residents of Connecticut. We are glad to work with the committee on this and other issues before you. Please contact Operation Fuel’s Public Affairs & Policy Advisor, Mike Turaj, at mike@operationfuel.org to discuss more.
[1] https://www.ctwater.com/service-billing/your-bil[/pay-your-bill/financial-support/h20-help-2-ourcustomers-program/
[2] https•.//www.dpuc.state.ct.us/dockcurr.nsf/8e6fc37a5411 Oe3e852576190052b64d/a81 b2419ffce203d85258 08500674fce?OpenDocument
[3] https://wwvv.ctwater.com/service-billing/your-bill/pay-you r-bill/financial-support/water-rate-assistanceprogram-wrap/
[4] https•.//www.dpuc.state.ct.us/dockcurr.nsf/8e6fc37a5411 Oe3e852576190052b64d/21133615b 17e21488525 8b4a004cb0c8?OpenDocument