Eversource Files Lower Standard Service Supply Rate With Regulators

CONNECTICUT — Eversource Energy Friday filed a new Standard Service supply rate with the Connecticut Public Utilities Regulatory Authority that would go into effect on July 1.

If approved by PURA, the new rate for residential customers receiving energy supply from Eversource would change from the current 14.71 cents per kilowatt-hour to 8.99 cents per kWh, Eversource officials said. In Connecticut, the energy supply price changes twice a year — Jan. 1 and July 1. Under state law, Eversource does not earn a profit on the "cost of electricity" and charges customers only what it pays to generators, without markup, to produce the power for customers.

"A lower price for energy is certainly good news for customers, and we're glad it will help to largely offset an increase in the Public Benefits portion of the bill covering the cost to run state-mandated programs," Eversource President of Electric Operations in Connecticut Steve Sullivan said. "Unfortunately, volatility in customer bills remains an issue, and we're committed to helping to mitigate those impacts for customers, which is why we've proactively proposed solutions that would create rate stability to help businesses and families plan their budgets."

While the Standard Service supply rate will drop July 1, at the same time, all residential electric customers will see an increase of nearly $48 per month for 10 months to the “Public Benefits” portion of their bill, which covers costs for state-required and approved programs and policies.

That translates to Eversource Standard Service rate residential customers who use an average of 700 kWh per month seeing a net increase of about $8, or 4 percent on their total bill, with the increase to Public Benefits largely offset by the lower energy supply rate. Standard Service Rate customers make up about 77 percent of Eversource customers.

The net number is in line with Eversource's revised estimates announced last month.

The net impact is lower than what was previously estimated due to a further drop in the anticipated supply rate, according to Eversource officials.

Many customers enrolled with a third-party supplier may already have a lower energy price than the current Standard Service rate and are encouraged to continue monitoring EnergizeCT.com for the lowest rate, Eversource officials said.

How an individual customer's bill will be affected by the adjustments will depend on how much energy is used, their rate category and weather conditions, according to Eversource officials.

"This is the largest increase to the Public Benefits portion of the bill on record, and we share customers' frustration regarding this avoidable rate shock," Sullivan said. “The two parts of the bill changing July 1 are largely driven by market forces and relate to costs not under our control, nor do we make a profit on these items. Energy Supply and Public Benefits now make up nearly 60 percent of the bill for customers on Standard Service, while our delivery costs remain more stable."

On average, Connecticut customers use 35 percent more electricity during the summer months with air conditioners, fans and other appliances "working overtime," Eversource officials said.

They added, "Eversource encourages customers to take advantage of the many energy efficiency solutions and payment programs offered before the hot weather arrives."

State Senate Republican Leader Stephen Harding and Sen. Ryan Fazio, ranking senator on the Energy and Technology Committee issued the following statement in response to the filing:

"Earlier this month, Connecticut Senate Republicans sought to amend energy legislation to include a set of policy goals which aim to bring about long-term rate reduction, and long-term stability for consumers.

"Electricity costs in Connecticut are too damn high. One reason for that is that current government policies are inflating, rather than limiting, the cost of energy for individuals and families. We need to change the direction of our energy policies to stop future increases in electricity costs and eventually reduce them. Connecticut Republicans have a plan to reduce energy costs for every family in our state, and we'll fight for it this year and for years to come.

"The Republicans’ amendment - which was voted down by majority Democrats - sought to do the following:

1. limit all future Power Purchase Agreements so that no contract can be for more than 150% over the wholesale electric market price
2. redefine Class I renewable energy sources to include all forms of hydropower and all nuclear power to lower the cost of renewable energy sources and bring relief for ratepayers
3. separate the Department of Energy and Environmental Protection and PURA
4. study ways to increase natural gas supply in the New England region
5. study moving public policy charges off of ratepayer bills and into the budget."