Submitted by Sarah Paduano, Eversource
(November 16, 2024) — As the winter heating season arrives in Connecticut amid continued volatility in the energy supply market, Eversource Standard Service customers can expect to pay a lower supply price compared to last winter, despite an increase from the current summer electric supply rate, consistent with the typical summer to winter upward adjustment.
Energy supply procurement is a coordinated process between utilities, the Public Utilities Regulatory Authority (PURA), and the Office of Consumer Counsel (OCC). Following restructuring of the electric industry in Connecticut more than two decades ago, electric distribution companies such as Eversource are prohibited from generating electricity and are required to purchase the power that customers use from electric generators on the wholesale market through a highly transparent regulatory process.
Overseen by PURA through its the procurement manager, and with OCC at the table, Eversource receives bids from electric generators that are determined solely by the cost of energy provided by generators on the open market. The most competitive offers received from suppliers – while complying with Connecticut’s clean energy requirements – are presented to regulators with no markup or profit to Eversource. Following state requirements, the standard bi-annual supply rate adjustment, which is 24% lower than last winter and the lowest winter supply rate since 2021, has been filed with PURA.
The state and utilities have no control over the energy supply price from power generators, which typically increases in the winter with liquefied natural gas shipped to the region to address natural gas supply constraints caused by increased demand for customers who use the fuel for heating and continued reliance on natural gas to produce roughly half of New England’s electricity. Today’s filing is not related to Eversource’s Yankee Gas distribution rate review filed earlier this week, which is focused on investments in safe, reliable natural gas distribution infrastructure for those customers and has nothing to do with electric customers or supply prices.
“The supply portion of the bill is typically the largest and most volatile because it’s vulnerable to market forces, and we’ve certainly experienced those dramatic swings in energy prices over the last few years,” said Eversource President of Connecticut Electric Operations Steve Sullivan. “Energy supply procurement is a collaborative process between the state and utilities managed by our regulators. We work together with PURA and the Office of Consumer Counsel through this process to get the best possible price for our standard service supply customers. While energy prices have come down significantly from a couple years ago, we continue to encourage customers to shop for a third-party supplier and potentially lock in a lower rate.”
If approved by PURA, the new electric supply rate for residential customers who choose to receive energy supply through Eversource, would change from the current summer supply rate of 8.99 cents per kilowatt-hour (kWh) to 11.19 cents per kWh starting January 1, 2025. The electric supply rate changes twice a year – January 1st and July 1st – and is usually higher in the winter than the summer.
As of the end of September, nearly 80% of electric residential customers are on Standard Service, and Eversource encourages customers to shop, sign up, and save by comparing options offered by third-party suppliers on EnergizeCT.com. Those who have never shopped before can find help navigating the process by going to Eversource.com/supplier.
Due to colder weather and less daylight, energy use typically increases in the winter compared to the fall months as customers spend more time indoors using appliances and lighting for longer periods. If the proposed Standard Service rate is approved by PURA, on average, an Eversource residential electric customer who uses 700 kWh of power each month could see an increase of approximately 7% over their current monthly bill – approximately $15 per month. A customer’s total bill will depend on how much energy they use, their rate category, and weather conditions.
Help is Available for Customers Who Need It
Eversource encourages customers to enroll in one of its payment plans or assistance programs if they need help with their energy bill.
- The Matching Payment Program can lower the amount customers owe on energy bills. For every dollar they pay and every dollar they receive from the Connecticut Energy Assistance Program, we will subtract a dollar from the amount they owe.
- An Electric Bill Discount is available to customers with a financial hardship status on their electric account. Based on their household income or receipt of a public assistance benefit, customers may be eligible for a 10% or 50% discount off their electric bill per month. For example, if they have a $100 monthly bill, it would be $10 less if they receive a 10% discount or $50 less if they receive the 50% discount.
- Flexible Payment Plans are available to all customers, regardless of income, to pay their past-due balance over a period of time. Residential customers with active service may be eligible for payment plans up to eighteen months.
- Winter Protection – protection for income eligible customers from service shut-off from November 1, 2024 through May 1, 2025. Customers should check the state’s income guidelines to see if they qualify for winter protection.
Customers are urged to visit Eversource.com/BillHelp to learn more about these programs or to call Eversource at 800-286-2828 for help finding the right plan for them.
