Regulators: S. Conn. Gas made excessive profits

The state Department of Public Utility Control issued a draft decision Tuesday which said the Orange-based utility exceeded its 10 percent maximum allowable profit level, just as its sister company, Connecticut Natural Gas, did earlier this year.

A July 15 earnings report revealed the company actually earned 13.66 percent for a year, the state said.

Regulators emphasize that overearnings should not be confused with overcharging. Market conditions, paying down debts and cutting expenses can also affect profits.

"With winter approaching quickly and heating expenses rising by the week, I applaud the decision to return to rate-payers any excess earnings by Southern Connecticut Gas Co.," Gov. M. Jodi Rell said in a statement.

"The savings will be particularly welcome for consumers who use natural gas to heat their homes," she said. "The DPUC must continue to be vigilant about the earnings of regulated utilities."

The DPUC will make a final decision on ordering consumer credits later this month. The average credits would be $2.48 to $9.32 per month for SCG customers.

Southern Connecticut Gas, a subsidiary of Energy East Corp., has about 165,000 customers in 22 communities, mostly along the shoreline.