Attorney General Richard Blumenthal today announced that he will fight a proposal filed by Yankee Gas Services Company to raise natural gas rates by as much as 12 percent -- or approximately $45 million -- over the next two years.

            Blumenthal said this significant rate increase will further devastate businesses and residents. He says the request is unnecessary because Yankee Gas is collecting a return on equity of at least 6 percent, when most other businesses are suffering deeper declines or shutting down.

            Yankee Gas announced the proposal in a “letter of intent” filed with the Department of Public Utility Control (DPUC) today. The company is expected to submit the official rate request -- with more details and reasoning for the request -- next month.

            “Yankee Gas has abysmal timing -- seeking to impose a massive rate increase at the worst possible economic time for small businesses and residential consumers,” Blumenthal said. “Yankee Gas is already earning reasonable revenues, but wants more from ratepayers.

            “Natural gas consumers cannot afford another $45 million in utility costs. My office is prepared to fight this rate request because Northeast Utilities should make the same sacrifices that small businesses and ratepayers are enduring during this economic downturn.”

            Yankee Gas’ preliminary filing today says the company wants to increase rates by $32.8 million, or 7.3 percent, next year -- and again by $13 million, or 2.8 percent in 2012.