CT Electric Rates Set To Soar Jan. 1: What To Know

CONNECTICUT — Electricity rates are set to increase dramatically for Eversource and United Illuminating customers that are on the standard generation plan due to the high cost of natural gas used to fuel many power plants in the area.

Here is what to know and how customers can potentially save some money in the New Year:

How much are rates going up?

Eversource and UI filed paperwork in November that would more than double their standard service generation rates come Jan. 1. The rate will be in effect until mid-year.

Eversource’s rate is set to go from 12.050 cents per kilowatt-hour to 24.172 cents. United Illuminating will increase from 10.62 cents to 21.49 cents.

Eversource customers who use 700 kilowatt-hours of electricity per month will experience about an $84 hike in bills, according to the state Office of Consumer Counsel; a similar UI customer will experience a $79 increase.

New England states are heavily reliant on natural gas for electricity production. The price of natural gas has soared due to Russia’s war in Ukraine.

If supply charge is doubling, why isn’t my full bill doubling?

There are two main portions for Eversource and United Illuminating bills. The generation charge is the cost to procure electricity generation. By law, Eversource and United Illuminating pass the cost onto consumers and aren’t allowed to mark it up. This is typically in the upper portion of the monthly bill sheet.

The second main portion is the transmission and distribution charges. This includes the cost to get the electricity to your home, plus various federal and other fees.

Eversource and UI worked with Gov. Ned Lamont’s administration to fast-track the return of long-term power contract earnings in order to provide some relief. Eversource customers should get a bill credit of $10 per month starting Jan. 1. The credit will continue through April.

Eversource is also putting $10 million at shareholder expense into energy assistance programs. UI agreed to pay $3 million to Operation Fuel as part of a settlement agreement with the Office of the Consumer Counsel. The UI agreement is subject to approval from the Public Utilities Regulatory Authority.

How do alternative suppliers work?

Customers for the two big electric utilities can enter into contracts with alternative suppliers. Fewer than one out of every 10 Eversource and UI customers did so as of October 2022, according to the OCC.

Seven out of 10 Eversource and six out of 10 UI customers who have an alternative supplier paid less than the standard utility rate as of October.

Customers can search for alternative suppliers at EnergizeCT.com. Suppliers have various rates, contract terms and price lock periods. OCC recommends that customers rely on the EnergizeCT board to compare suppliers instead of solicited offers.

Customers who sign up with an alternative supplier should continue to check their rates, especially as renewal time comes up, according to the OCC. Historically, auto-renewal rates are substantially higher than the initial supplier rate and oftentimes are higher than the standard service rate from Eversource or UI. Suppliers are required by law to inform customers of rate changes before the auto-renewal occurs.