Connecticut Light and Power, United Illuminating Customers Could See Large Bill Increases

Connecticut Light and Power Co. and United Illuminating customers will see bills increase by an average of $18 and $35 respectively per month if rate increases scheduled to begin next year are approved.

CL&P cited a dramatic increase in the price of electricity and constraints in existing natural gas pipelines as reasons for the proposed rate hike.

CL&P’s average rate for Standard Service would increase to 12.45 cents per kilowatt-hour from the current average of 9.96 cents. The fee is separate than the CL&P delivery rate, which is what customers pay to get the electricity distributed.

The average cost increase are calculated based off of the use of 750 kilowatts per month, according to the Connecticut Post.

Electricity customers in Connecticut can select a supplier besides CL&P or UI. The respective company would still be in charge of delivery services (including outage repair), but the customer could select who generates the electricity and potentially pay a lower rate on that service.

Each company offers a different rate and prices are fixed for a number of months depending on the offer.

“We’re always mindful of the effect these supplier increases have on our customers, particularly those who are facing difficult financial circumstances,” said Penni Conner, Senior Vice President and Chief Customer Officer at Northeast Utilities, CL&P’s parent company in a statement. “We’re urging all CL&P customers to take advantage of our efficiency programs to help reduce their usage, tighten-up their homes and keep energy bills down this winter.”

State Attorney General George Jepsen said that the Public Utilities Regulatory Authority, which approves rate changes, must carefully scrutinize the reasons behind the cost increase, according to the Connecticut Post.

He previously said that a $221 million rate increase request intended to upgrade equipment in anticipation of future storms was excessive.

More than half of New England’s electricity is produced using natural gas, which is abundant and inexpensive compared to other fuels, according to a CL&P release. Regional pipeline limitations push the cost up, but Northeast Utilities (parent company of CL&P) proposed to expand natural gas capacity using existing pipeline routes. The change would come in November 2018.

The proposed Northern Pass Project would bring energy produced from Hydro-Quebec’s hydroelectric plants to New England.

Image via Shutterstock.

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