Eversource, UI: 'Relief' Coming To Electricity Bills This Summer

CONNECTICUT — Electricity charges could get cheaper at the height of the summer air conditioning season in Connecticut, but they could creep back up in the winter months.

Eversurce Energy and United Illuminating officials said Wednesday that, after energy supply prices reached historic highs in New England last year due to natural gas supply constraints following the war in Ukraine and other global pressures, customers can expect to see a decrease on their bills when the next adjustment to the Standard Service Rate takes place in Connecticut on July 1.

With energy supply markets in a downward trend, the energy company will file new electricity supply prices it receives from power suppliers with the Connecticut Public Utilities Regulatory Authority after completing its procurement process as outlined in state regulations.

"We’re pleased to be able to let our customers know that relief is coming following historically high supply prices over the past year," Eversource Vice President of Energy Supply James Daly said. "As we finalize the next purchase of the power supply for customers who are signed up for our Standard Service rate, we also recognize that any potential decrease from historic highs will still mean high costs for our customers and urge anyone who may be struggling with their bill to reach out so that we can work together to find the best assistance program or payment plan to help in their individual case."

The news about supply costs for customers comes as international economic factors continue to play a significant role in the cost of natural gas, which provides the fuel for the majority of heat and electricity across Eversource’s three-state service area, utility officials said. While customers can expect a decrease to the supply rate when it changes in each state this summer, the energy company is also informing customers that they should expect "continued market volatility" and higher supply costs this coming winter, Eversource officials said.

A customer's total bill ultimately depends on how much energy is used, and the energy company has also been reminding customers that typically usage significantly increases during the summer months when they run appliances like air conditioners to stay cool.

"As we head into the summer months, we advise our residential and commercial customers to take stock of their usage and how it can increase significantly when we run fans and air conditioners to stay cool, while also using other appliances," Eversource Executive Vice President of Customer Experience and Energy Strategy Penni Conner said. "There are numerous energy efficiency solutions available on our website that can help customers reduce their usage, keeping their bills more affordable. Even those that feel like small actions can add up and help keep bills down when trying to stay cool this summer."

Conner continued, "Now is also the time for customers to think about their energy spending not just for this summer, but the fall and winter to come. We’re working one-on-one with our customers every day while also holding in-person events and webinars to assist customers with their bills and provide them resources and insights for savings. We want these important conversations to continue in the months ahead of the next heating season, which we expect to be similar to the most recent one when it comes to high energy supply costs and encourage our customers to continue engaging with us across these multi-channel opportunities."

In each state of its service territory, the energy supply price for Eversource electric customers changes twice a year, representing the cost that Eversource pays generators for the power that customers use.

Eversource officials said the utility only charges customers what it pays generators for producing the power and it does not earn a profit on the cost of electricity.

The timeline and other details of the process differ in accordance with each state’s specific laws and regulations, contributing to supply prices that vary in line with the broader market in the different areas of Eversource's service territory, officials said. In Connecticut, the Standard Service Rate changes every Jan. 1 and July 1. Eversource will file the July 1 rates with PURA in mid-May and the new rate will be announced at that time.

United Illuminating is a subsidiary of Avangrid Inc. and announced Wednesday that is has completed the procurement process for energy supply for the six-month period beginning July 1. It is forecasting that customers on the Standard Service Rate will see "significantly lower" bills this summer. Per statute, UI will file the results of its procurement and an updated Standard Service price, which it receives from energy generation companies, with PURA the week of May 15.

"The energy generation rates that went into effect in January have been challenging for our customers, so we are pleased that with our completed procurement we can say with confidence that customers can expect a significant decrease to the generation rate on their bill this summer," UI President and CEO Frank Reynolds said.

He continued, "While a lower generation rate beginning in July is welcome news for customers, we know that the significant structural issues in the New England energy market that led to this winter’s exorbitant price increases remain, and we will continue to call for accountability and reform until the market delivers the stable, affordable pricing and reliability our customers deserve. At the same time, we continue to focus on doing everything we can to help our customers, including holding customer engagement events throughout our service territory, and making sure customers know about the programs we offer to help them manage their bill."

Eversource and UI both offer payment plans and assistance programs.