As Gas & Electricity Bills Prep To Spike, CT Readies Assistance

CONNECTICUT — Connecticut residents should expect to pay more for gas and electricity come the new year, as the Standard Service rates will increase on Jan. 1.

For Eversource, the new rate of $0.11484 is an increase of $0.04481 per kWh, or a 64 percent increase, over the rate that was in effect as of July 1, 2021. For UI, the new rate is an increase of $0.012616 per kWh, or a 14 percent increase over the rate that was in effect from Jan. 1, 2021 to June 30, 2021.

Although the hike seems severe, a news release from the state's Office of Consumer Council points out that a January increase over the previous July rate is common. A more meaningful reference is a year-to-year comparison. For Eversource, the new rate is a 37 percent increase over the rate that was in effect from Jan. 1, 2021 to June 30, 2021. For UI, the rate increase adds up to the same 14 percent.

Customers who use natural gas may see rates go up in the range of 10 to 20 percent. Home heating oil customers can expect an increase of 40 percent above last year and a 15 percent increase over the average of the last five years. Gasoline customers are already seeing higher prices at the pump.

The spike in costs can be traced to increased energy demand as the world shakes loose from the coronavirus pandemic, according to Connecticut Department of Energy and Environmental Protection Commissioner Katie Dykes. The average closing price for natural gas in 2020 was lower than it has been in more than twenty years.

Market supply has also taken a hit, according to the OCC, due to a huge reduction in oil drilling, which caused a substantial reduction in the production of natural gas.

Neither Eversource nor United Illuminating derive any profits from the pass-through Standard Service rate. The money consumers pay to their regulated electric distribution company is passed on directly to the supplier from whom they purchase the electricity.

The rate will be effective until June 30, 2022 and a newer rate will take effect July 1, 2022.

The state has suffered worse. Standard Service rates as of Jan. 1, 2015 were $0.12629 and $0.133108 for Eversource and UI, respectively. Those rates were 10 percent higher than the upcoming rate for Eversource, and 25 percent higher than the upcoming rate for UI.

What Is Being Done About It?

The state has expanded electric utility bill assistance as one of many efforts to soften the impact of the energy price hit. UniteCT is providing rental and utility assistance funding for those financially impacted by the pandemic. Residents who rent their homes can apply through their electric utility company or municipal electric company.

Additionally, heating bill assistance is available for income-eligible households. The Connecticut Energy Assistance Program provides winter heating cost assistance to income-eligible households, regardless of their heat source. Residents should contact their local Community Action Agency to apply. Statewide consumer information on this program is available on the web or by calling 2-1-1. In addition, Operation Fuel and other nonprofits provide year-round emergency energy assistance to low-to-moderate-income households who don't qualify for CEAP or who run out of CEAP benefits.

"This winter, our energy assistance program has significantly higher benefit levels from a record $135 million in federal funding to help heat Connecticut homes," said Deidre S. Gifford, Commissioner of the Connecticut Department of Social Services which manages the program. "It’s important to note that both homeowners and renters can be eligible. We help enrollees afford the cost of natural gas and electric heat, as well as deliverable fuels like oil and propane. Applications are now open, and so far nearly 23,000 households have been approved for benefits by our Community Action Agency partners."

Consumers can track real-time price information for natural gas, propane, and heating oil on the Connecticut Department of Energy and Environmental Protection’s website. Residents who would like to shop for lower prices may do so at the Energizect.com website, where electric supply may be purchased from third-party suppliers. Dykes is advising residents to be sure to compare the prices and conditions offered by third parties to the Standard Service rates offered by Eversource and UI.

Connecticut Public Utilities Regulatory Authority Chairman Marissa Gillett announced a moratorium on heating source shut-offs for eligible households through May 1. "PURA urges customers to contact their utility and inquire about the Winter Protection Program, as well as other programs for which they may be eligible," Gillett said.

On Wednesday, Eversource warned their customers to expect higher-than-normal winter bills, and detailed its own assistance programs.

The OCC is also warning residents that an increase in Standard Service prices is often accompanied by an increase in high-pressure, and sometimes deceptive, sales pitches by third-party suppliers via telephone and door-to-door solicitation. The agency is advising consumers to be vigilant about potential scams.

State officials made their remarks at the Department of Energy and Environmental Protection in Hartford on Friday morning.