HARTFORD, Conn. — Last week, both major utility companies in Connecticut announced new rates that will take effect July 1, pending approval from the Public Utilities Regulatory Authority. Eversource customers may see an increase on their monthly bill.
Electric bills in Connecticut are made up of four major categories: supply, transmission, local delivery and public benefits.
The supply portion of the bill is the cost that power utility companies like Eversource and United Illuminating must pay for the power customers use during the billing period. Both utility companies buy power from third parties as state law prohibits them from owning and operating power plants. This amount is largely impacted by the cost of natural gas.
Eversource officials said customers will see a drop in this amount starting July 1, as the price of natural gas is currently cheaper.
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But the drop in supply cost is being met with an increase in the public benefits portion of the bill covering state contracts and funding state mandated programs, some of which help customers who can’t afford their bill.
“A lower price for energy is certainly good news for customers, and we’re glad it will help to largely offset an increase in the public benefits portion of the bill covering the cost to run state-mandated programs,” said Eversource President of Electric Operations in Connecticut Steve Sullivan.
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Eversource officials say this is due to cost adding up over time.
“The main driver is that the costs have increased in the past, our regulator has not allowed rates to increase at a level that reflects the underlying costs. So, it's just like with a credit card. If you pay a minimum monthly bill at some point in the future, you're going to have to pay off the rest of the balance and that's what's happened here. We've had costs building up that are now coming due for our customers and resulting in a large increase in the public benefits portion of a customer's bill,” said Doug Horton, vice president of distribution rates at Eversource.
The public benefits portion will increase about $48 per month for 10 months, which is when state regulators will reevaluate rates. Overall, it will result in an $8 per month, or a 4% increase depending on usage.
For United Illuminating customers, the offset in supply and public benefits will result in savings of about $1.55 per month, depending on usage.
Eversource officials said customers could save even more on their bill by switching suppliers, which could offer a cheaper rate. Those rates are available here.
Eversource encourages customers who may be struggling with their bills to contact them because you may qualify for assistance. They are also offering the following advice to help save money this summer.
- Keep air conditioners set as warm as comfort allows. For every degree higher on the thermostat, the air conditioner will use 1-3% less electricity.
- Don’t block air flow. Keep air vents clear of obstructions such as furniture, curtains, and rugs.
- Operate major appliances during the cooler parts of the day. Energy is conserved by using appliances like clothes washers and dryers early in the morning or late in the evening when there is also less demand on the electric system.
- Keep blinds closed when it’s hot out to prevent unwanted heat from entering a home through windows. Using curtains, shades, and blinds can lower indoor temperatures by up to 20 degrees.
- Switch to ENERGY STAR®-certified LED lights. The energy-efficient bulbs run cooler and last up to 25 times longer than incandescent lights.
- Set ceiling fans to rotate counterclockwise and at a higher speed in the summer to circulate the air more effectively, creating a cooling, wind chill effect. Remember to turn the fan off when leaving the room.
Jake Garcia is a multimedia journalist for FOX61 News. He can be reached at jgarcia@fox61.com. Follow him on Facebook, Twitter, and Instagram.
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