CONNECTICUT, USA — Electric rates are going up again in Connecticut.
On Friday, Eversource announced their new standard service residential rate for the months of January through June.
For those wondering why the rate always seems to go up in the winter, it’s due to more demand for natural gas. Natural gas is still the primary method used to generate electricity in Connecticut. It represents about half of the state’s generation portfolio which also includes nuclear, solar and offshore wind. But when it comes to natural gas, New England is at the end of the supply pipeline.
“It never goes down,” remarked Thalia Longo, of Manchester.
So, get ready to ring in 2025 with a 7% increase to your electric bill.
“Not very happy with it,” said John Pelow, of Newington.
Eversource President of Electric Operations Steve Sullivan made the announcement from the company’s headquarters in Berlin. He stood prominently in front of a sign where Eversource insists they don’t profit from energy supply.
“There’s no markup on the supply piece. That’s a pure pass through for us,” said Sullivan.
“I’m not convinced they make nothing on anything,” responded state Sen. Norm Needleman, the chair of the legislature’s Energy and Technology Committee.
Eversource claims determining the new rate, which is 11.19 cents per k/w hour, was a transparent process.
“We essentially go to the wholesale power market with bids. The Office of Consumer Counsel gets to comment on those bids and our regulator, PURA, also reviews those bids,” explained Sullivan.
But PURA, the state’s utility regulator, said Eversource never gave it advance notice about the new rate. It was filed at 12:37 p.m., the exact minute it was announced to the press.
“I can’t answer the specifics of what individual person has seen it, but we’ve definitely filed the rate,” said Sullivan.
Eversource, PURA and legislators have had a contentious relationship that came to a head in May when a dramatic spike in the public benefits portion of the bill resulted in public outcry and a game of finger pointing.
“I don’t know exactly what it will be because that is really based on state policies,” said Sullivan.
Needleman responded, “They are suing. They are doing FOIs. They are threatening and doing everything they can to protect the revenue stream that they have. I don’t take anything they do at face value and frankly everything they do is self serving."
The public benefits portion of a customer’s bill is made up of a cornucopia of public policy decisions including contractual costs associated with saving the state’s Millstone nuclear power plant. It also consists of a cost sharing agreement associated with a shutoff moratorium imposed during COVID to protect customers from having their lights turned off during a global pandemic.
Eversource has claimed they warned legislators in advance that the public benefits deductions were not meeting the expense obligations.
In dollars and cents, the 7% increase to your bill starting in January means about $15 more a month. It’s hitting residents right where it hurts.
“I’m retired, so I’m on a fixed income, and when the rates go up, it affects my pocketbook,” Pelow.
“Not good. I mean everything is going up. Groceries are going up, gas is going up, electricity is going up. What’s not going up?” asked Thalia Longo of Manchester.
The new rate does represent a 24% decrease from the same time the previous year.
Those seeking a lower rate can do so penalty free on the Energize CT rate board.
“They can get their own power. But only about 20% of our customers tend to do that,” said Sullivan.
Eversource said they don’t have plans to raise their delivery charge and they expect the public benefits charge to level out by May.
Legislators say in the next session they’ll be taking a hard look at how they can regulate and hold utility companies more accountable.
Connecticut’s energy marketplace was deregulated in the 1990’s, and it's a decision that’s been the subject of debate ever since. Other states with a regulated system tend to have lower rates.
“I don’t think we can put that genie back in the bottle,” said Sullivan.
Eversource didn’t know what percentage of their customers are hardship customers but they said programs are available that can help people consolidate or manage their payments.
----
Matt Caron is a reporter at FOX61 News. He can be reached at mcaron@fox61.com. Follow him on Facebook, X and Instagram.
----
Do you have a story idea or something on your mind you want to share? We want to hear from you! Email us at newstips@fox61.com.
----
HERE ARE MORE WAYS TO GET FOX61 NEWS
Download the FOX61 News APP
iTunes: Click here to download
Google Play: Click here to download
Stream Live on ROKU: Add the channel from the ROKU store or by searching FOX61.
Steam Live on FIRE TV: Search ‘FOX61’ and click ‘Get’ to download.