NEW HAVEN, Conn. — At a Public Utilities Regulatory Authority evidentiary hearing on Oct. 30, 2025, staff and the Office of Consumer Counsel repeatedly pressed GB 2 New Haven LLC about the treatment and timing of a FERC‑approved interconnection refund and about apparent variances in the company’s proposed annual fixed revenue requirement (AFRR) for 2026.

Lede: Authority staff asked why a FERC refund tied to interconnection costs would be applied across two AFRR periods rather than captured in a single period, and instructed GB 2 to revise filing schedules or include the refund in the 2026 AFRR where appropriate. Staff also flagged an apparent 31% increase in fixed O&M between 2025 and 2026 AFRR exhibits and required updated exhibits explaining the variance.

Key procedural outcomes

• Refund timing and schedules: Staff referenced the company's interrogatory response (RU‑38) and asked why the FERC refund would be allocated across two AFRR true‑ups. GB 2 explained the refund payment and accounting timing do not align with a single AFRR year and said it is open to capturing the refund in the current AFRR. Staff asked GB 2 to adjust schedules C‑2, C‑1 and A‑1 if it elects to reflect the refund in the 2026 AFRR; the company agreed to provide revisions as a late file.

• Late files and exhibit updates established on the record: The presiding officer and parties agreed a series of late files to clarify and finalize AFRR exhibits and technical back‑up. Significant late‑file directions recorded on the public record include:
- Late file 1: placeholder for final AFRR adjustments at close of record (company agreed).
- Late file 2: update RU‑4 to reflect through Oct. 31, 2025 (fixed O&M reconciliation request).
- Late file 3: model revenue impact of revisions to interconnection expense.
- Late file 4: explanation for increase in normal maintenance from $249,000 (2025 filing basis) to $415,000 (2026 AFRR).
- Late file 8: update working‑capital fuel calculation with the most current heating‑oil futures and ULSD/heating oil spread.
- Late file 9: provide fuel delivery contracts and narrative explaining surcharges (can be filed as protected if necessary).
- Additional late files were set for transformer‑related vendor documents and inventory listings (see transformer article).

• O&M and outage questions: Staff and GB 2 discussed biannual spring and fall outages, typical seven‑day outages per unit for seasonal readiness, and a notable increase tied to an earlier DCS upgrade and a hydraulic control unit issue. Staff requested a late file describing the maintenance drivers behind the year‑over‑year increase.

• Schedule: The authority stated late files are due Nov. 7 at 4:00 p.m.; parties may request a late‑file hearing on Nov. 12; briefs are due Nov. 17; and a proposed final decision date is currently scheduled for Dec. 2, 2025.

Company position

GB 2 said it achieved a financing improvement when new debt replaced PSEG’s prior financing, reducing debt costs from 5.36% to 4.27% and offering to flow savings to ratepayers. The company also said the timing of certain refunds and invoice periods creates mechanical timing issues for true‑up calculations covering overlapping invoice periods, which is why it initially proposed allocating a refund across two AFRR periods.

Quotes on the record

Authority staff: "Why would this not be captured in 2027 AFR?" (cross‑examination on refund timing). Michael Bruno (GB 2): "We could…reduce the cost in the current AFRR to capture the refund" and said the company is open to updating schedules to show the change.

Why this matters

How refunds, interconnection expenses and O&M variances are handled in the AFRR affects the company’s revenue requirement and the amount recovered from ratepayers. The late‑file schedule gives the authority time to receive updated exhibits and then consider those numbers in the post‑hearing briefing before issuing a decision.

Next steps

Late exhibits due Nov. 7 at 4:00 p.m.; parties may request a late‑file hearing Nov. 12; briefs due Nov. 17; proposed final decision target Dec. 2, 2025. Staff directed GB 2 to file the revised schedules and supporting exhibits identified on the record.