Overview:
Avangrid took over United Illuminating in 2015. UIL employees work for all of Connecticut’s Avangrid-owned utilities.
HARTFORD, CT — Senate President Pro Tempore Martin M. Looney is urging the Public Utility Regulatory Authority to hold Avangrid accountable for what he calls “broken promises” to United Illuminating and UIL Holdings retirees while also attempting to raise its utility rates.
“When United Illuminating was acquired by Avangrid the agreement included guarantees that retirement benefits (including pensions and healthcare) would not be adversely affected by this transaction,” Looney wrote in a recent letter to PURA Chair Marissa Paslick Gillett.
PURA Chair Marissa Gillett listens to a question during a public hearing Thursday, Feb. 20, 2025, before the Executive and Legislative Nominations Committee. Credit: Doug Hardy / CTNewsJunkie
However, Looney said non-union UI/UIL retirees received a notice from Avangrid at the end of June stating that, effective Jan. 1, 2026, the company plans to eliminate the current Medicare Part B premium reimbursement and transition the current Health Reimbursement Account to a Contingent HRA. This also affects non-union retirees at Southern Connecticut Gas, according to the notice.
“(This) reduces the annual base subsidy by almost half for each retiree and their eligible dependents,” said Looney, a Democrat representing New Haven. “It appears disingenuous for the company to claim it needs to increase rates to cover retiree costs at the same time it is breaking its promises and cutting retiree benefits.”
Avangrid took over United Illuminating in 2015. UIL employees work for all of Connecticut’s Avangrid-owned utilities.
“UI is adjusting its retiree benefits packages to align with recent innovations in the healthcare marketplace,” said Sarah Wall Fliotsos, UI/UIL spokesperson, when asked about Looney’s letter.
United Illuminating truck. Credit: Thomas Breen photo
The utility company sent out a letter to those affected offering virtual information sessions in September and October on the new Contingent HRA plan, which will be split into a base subsidy and a variable subsidy for retirees. While the base subsidy will be lowered, the company is hoping the newly added variable subsidy will help offset some of the costs of ending Medicare Part B reimbursement.
“With out-of-pocket medical expenses consistently on the rise, we are glad to be able to offer an additional $3,000 to help offset these costs in the new ‘variable subsidy’ offering under this revised healthcare plan for UI and UIL retirees,” Wall Fliotsos said. “As always, we remain committed to ensuring we are offering best-in-class healthcare options for our retirees, while considering the costs of any programs that are borne by all our customers.”
Looney urged PURA to include in its rate case decision a requirement for Avangrid to keep its previously agreed-upon commitment to its retirees. His letter and other correspondence in the case have been added to PURA dockets and the agency has issued a procedural order asking for a response from Avangrid and UI.
Avangrid has indicated it plans to respond ahead of the Sept. 12 deadline set by PURA.
A group of more than 200 retirees also sent letters in July and August calling on Avangrid to cancel its planned actions and calling on PURA to enforce the company’s commitments to employees, Looney said.