CONNECTICUT – Eversource Energy Friday submitted a new standard service supply rate to the Connecticut Public Utility Regulatory Commission that will go into effect July 1.
If approved by PURA, the new price for residential customers receiving energy supplies from Eversource would change from the current rate of 14.71 cents per kilowatt-hour to 8.99 cents per kilowatt-hour, Eversource officials said. In Connecticut, the price of energy supplies changes twice a year – January 1 and July 1. Under state law, Eversource does not make a profit on the “cost of electricity” and charges customers only what it pays the generators, no markup, for the cost of the electricity. Energy production for customers.
“The lower energy price is certainly good news for customers, and we are pleased that it will help largely offset the increase in the public benefits portion of the bill that covers the cost of running state-mandated programs,” Eversource President of Electric Operations Steve Sullivan in Connecticut said. “Unfortunately, volatility in customer bills continues to be an issue, and we are committed to helping mitigate these impacts for customers, which is why we have proactively proposed solutions that will create price stability to help businesses and families plan their budgets.”
While the standard service supply rate will decrease on July 1, at the same time, all residential electric customers will see an increase of approximately $48 per month for 10 months in the “public benefits” portion of their bill, which covers the costs of state requirements and approved programs and policies.
This translates to residential customers at Eversource’s standard service rate using an average of 700 kilowatt-hours per month and seeing a net increase of about $8, or 4 percent, on their total bill, with the increase in overhead benefits largely offset by the lower energy supply rate. Standard service rate customers make up about 77 percent of Eversource’s customers.
The net figure is in line with revised Eversource estimates announced last month.
The net impact is less than previously estimated due to the additional reduction in expected supply rate, according to Eversource officials.
Eversource officials said many customers registered with a third-party supplier may already have a lower energy price than their current standard service price and are encouraged to continue monitoring EnergizeCT.com for the lowest price.
How an individual customer’s bill will be affected by the modifications will depend on the amount of energy used, rate class and weather conditions, according to Eversource officials.
“This is the largest increase on record in the public benefits portion of the bill, and we share customers’ frustration about the avoidable price shock,” Sullivan said. “The two parts of the bill changed on July 1 are largely driven by market forces and relate to costs that are not within our control, and we do not make a profit on these items. Energy supplies and utilities now make up approximately 60 percent of service customers’ bills standard, 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.
“Eversource encourages customers to take advantage of the many energy efficiency solutions and payment programs offered before the warm weather arrives,” they added.
Republican leader in the state Senate Stephen Harding And Sin. Ryan FazioThe 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 aimed at lowering long-term interest rates and long-term stability for consumers.
“Electricity costs in Connecticut are very high. One reason for this is that current government policies are inflating the cost of energy for individuals and families rather than reducing it. We need to change the direction of our energy policies to stop future increases in energy.” Electricity Costs and Ultimately Lowering Connecticut Republicans have a plan to lower energy costs for every household in our state, and we will fight to achieve it this year and for years to come.
“The Republican amendment — which was voted on by the Democratic majority — sought to do the following:
- Limit all future power purchase agreements so that no contract can be more than 150% of the wholesale electricity market price
- Redefining Class I renewables to include all forms of hydroelectric power and all nuclear power to lower the cost of renewables and provide relief to taxpayers.
- Separation of the Department of Energy and Environmental Protection and PURA
- Study ways to increase natural gas supplies in the New England region
- Study of moving public policy charges from taxpayer bills to the budget.”
