Why It Matters
Connecticut ratepayers served by the state’s two largest electric utilities are set to see lower supply charges on their bills this summer, offering modest but welcome relief amid persistently high energy costs in one of the nation’s most expensive electricity markets.
What Happened
Eversource and United Illuminating both announced plans to reduce their standard service rates beginning July 1, pending regulatory approval. Eversource filed notice with state regulators to cut its rate from 12.64 cents to 11.58 cents per kilowatt hour. United Illuminating separately announced a reduction from 13.69 cents to 11.99 cents per kWh.
The changes must be reviewed and approved by the Public Utilities Regulatory Authority before they take effect. Standard service rates in Connecticut are adjusted on a biannual schedule, with revisions in July and January each year.
By the Numbers
- Eversource rate change: 12.64 cents → 11.58 cents per kWh, roughly a 4% reduction in the total bill
- Eversource customer savings: Approximately $7 per month for a household consuming 700 kWh monthly
- UI rate change: 13.69 cents → 11.99 cents per kWh, a decrease of about 5.67%
- UI customer savings: Approximately $12 per month for an average customer
A Caveat on Summer Bills
Despite lower rates, customers may not see dramatically smaller bills. Summer air conditioning use typically drives total electricity consumption higher, which can offset the savings from reduced per-kWh charges. UI Chief Executive Frank Reynolds acknowledged that dynamic, noting that customers should adopt energy-saving habits “in order to feel the full benefit of these savings beginning in July.”
Historically, winter rates run higher due to competition between natural gas supplies used for heating and power generation. Summer rates tend to be lower, but demand climbs alongside seasonal temperatures.
How Connecticut Electricity Pricing Works
Most Connecticut electric bills are divided into four components: supply, transmission, distribution, and public benefits charges. The supply portion reflects the cost utilities pay to purchase electricity on wholesale markets on behalf of their customers. Under the state’s competitive electricity market structure, utilities are barred from owning generation assets and must pass procurement costs directly to customers without markup.
What’s Next
The proposed rate reductions are subject to review by the Public Utilities Regulatory Authority before the July 1 effective date. Governor Ned Lamont has pointed to utility affordability and energy policy as part of his administration’s recent legislative agenda heading into his campaign posture. Customers seeking to maximize summer savings are encouraged by both utilities to monitor usage and take advantage of efficiency programs.
For broader Connecticut energy and infrastructure developments, see also the proposed Norwich stadium project, which backers say could bring new economic activity to Eastern Connecticut.