CONNECTICUT, USA — For Eversource and United Illuminating customers, the new year will begin with a new rate hike.
And due to a decades-old law, there is nothing that regulators can do about it.
According to officials, customers will see their electric bills increase by about $80 a month. Eversource said global demand has resulted in historically high energy supply prices.
Energy supply prices change twice a year, and this rate hike would last at least from Jan. 1, 2023, through June 30, 2023.
Eversource has payment plans and assistance customers can opt-in to. Click here to find out more.
UI is offering assistance programs to help customers manage rising costs. They encourage those affected to look through the company's website to set up payment plans, winter protection, and bill forgiveness.
Why can't this rate hike be stopped?
Your utility bills are broken down by supply and delivery charges. The Public Utilities Regulatory Authority (PURA) can push back - and has - on delivery charges. But in 1998, Connecticut passed a law that deregulated the energy market. It also stripped PURA of its oversight authority.
“It’s not like a rate hike that we might see on the delivery side of the table where PURA has the ability to scrutinize those rate hikes and we can modify and reject those hikes. There is no comparable mechanism on the generation side. PURA cannot not accept these rates,” explained Marissa Gillett, the Chair of PURA.
Connecticut already has some of the highest energy costs in the country due in large part to our reliance on natural gas.
The state has made tremendous progress in lessening our reliance on natural gas. Connecticut has pending offshore wind turbine contracts and robust rooftop and utility-scale solar generation. Additionally, the state’s agreement with the Millstone nuclear power plant has led to around a $10 monthly savings for ratepayers.
PURA has fought back against Eversource and United Illuminating before, particularly in 2020.
Both companies have been levied heavy fines from PURA for their lack of communication and underperformance on preparedness and power restoration during Tropical Storm Isaias.
Can I switch suppliers?
Is it possible to avoid the increase? The answer is yes – but there’s some important information from the state that consumers are advised to know first.
Connecticut has what’s called a deregulated energy marketplace. That means you can shop around for a power supplier. But, as with most things, the devil is in the details, and reading that fine print is essential.
FOX61 put supply shopping to the test on Connecticut’s rate board, Energize CT. We found we could save about $60 a month, and Eversource actually encourages it.
“If they find a third-party supplier with a more attractive per kilowatt hour charge, they should certainly shop,” said Eversource Spokesperson Mitch Gross.
But, “It is confusing,” said Gillett. That's the rub.
Since 2015, customers using a third-party supplier have paid a combined $300 million more than standard service customers. But over the last year, that’s changed with customers saving a combined $10 million.
Data from September shows seven of 10 former Eversource customers and six of 10 United Illuminating customers have paid less to switch.
But, stay on top of it month to month, read the terms and conditions, and make sure you understand it fully.
Some contracts contain auto-renewals at a much higher rate and some third-party suppliers have gotten into hot water with state regulators for deceptive marketing practices.
If you do want to shop, just know that you legally cannot be charged a signup fee or extra monthly fees. Your rate must be guaranteed for at least four months, and in Connecticut, you cannot be charged a fee for early termination.
If the rates change again in summer 2023, make sure the chosen third-party supplier still makes economic sense.
It also might be helpful to know that by law, suppliers must send you a letter before your contract auto-renews. If you think a third-party supplier violated any regulations, report it to PURA.
How do I get help paying my energy bill?
Both companies offer ways you can help save on your bill or acquire assistance when paying your energy bill.
Eversource has tips on making your home energy efficient as well as options for paying your bill and resources for state and federal assistance.
To see Eversource's resources, click here.
United Illuminating has assistance programs as well as flexible paying programs available. They, too, also have resources for state and federal assistance.
To see United Illuminating's resources, click here.
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Jennifer Glatz is a digital content producer at FOX61 News. She can be reached at jglatz@fox61.com.
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