UI Predicting Average Summer Bill Decreases Of $28

CONNECTICUT — United Illuminating, a subsidiary of Avangrid Inc., announced Wednesday that the company has filed its power procurement for energy supply for the six-month period beginning July 1, estimating that the average residential customer with see a monthly bill decrease of approximately $28.

The result was filed for approval with the Public Utilities Regulatory Authority, which oversees the procurement of power for Standard Service. By law, utility companies in Connecticut are required to procure Standard Service on behalf of their customers, which is entirely a pass-through rate at no markup or profit to the utility company.

"The energy generation rates that went into effect in January have been challenging for our customers, so we are pleased to file this updated Standard Service rate with PURA that will bring lower prices for our customers on the generation portion of their bill over the next six months," UI President and CEO Frank Reynolds said. "While a lower generation rate beginning in July is welcome news for customers, our region remains at the mercy of a New England energy market that faces significant issues. While we are pleased that our customers will see lower bills this summer, the underlying issues that drove this winter’s exorbitant price increases remain unaddressed, and we will continue to call for accountability and reform until the market delivers the stable, affordable pricing and reliability our customers deserve."

With the filing, United Illuminating is anticipating that the Standard Service price for UI residential customers will decrease from 21.94 to 14.37 cents per Kilowatt Hour beginning July 1. That is a bill decrease "impact" of 35 percent, or average monthly decrease of $28 for the typical UI residential customer, according to the filing.

The Standard Service price is the cost of energy used by customers, and purchased by UI on their behalf without any markup or profit. Energy prices across the globe have increased, especially natural gas – the primary fuel in New England – due to supply chain constraints, high inflation, and the ongoing conflict in Ukraine. Due to these factors, prices for Standard Service remain elevated as compared to the six-month period spanning July-January 2022, officials said. UI serves as a pass-through mechanism for the recovery of these costs and does not profit form them in in any way, according to the filing.

Cost adjustments will also take place on the delivery portion of customer’s bills beginning July 1, which captures adjustments to the transmission, NBFMCC, Systems Benefit Charge, and Revenue Decoupling Mechanism components of the bill, the filing states.

That is primarily due to the expiration of the Millstone energy credit that was in place between January-July. Combined, UI customers enrolled in Standard Service and consuming 700 kWh per month will see an overall decrease of $28 per month, a bill reduction of 11.5 percent, the filing states.

To help customers manage the unprecedented spike in energy supply costs, in January 2023, UI announced the implementation of an urgent financial relief package that will deliver approximately $40 monthly in direct financial relief to customers enrolled as financial hardship between January and July. Additionally, UI directed $3.3 million to Operation Fuel to support the organization’s mission to provide emergency energy and utility assistance to households in Connecticut that are facing financial crisis. The measures were designed in partnership with the Administration of Governor Lamont and the Office of Consumer Counsel, and approved by the Connecticut Public Utilities Regulatory Authority, officials said.