Consumer Alert from the Office of Consumer Counsel (OCC): Eversource and United Illuminating File New and Increasing Supply Rates with PURA for January 1, 2023 - June 30, 2023
Pending approval by the Public Utilities Regulatory Authority (PURA), based on filings by The Connecticut Light and Power Company, d/b/a Eversource Energy (“Eversource”) and the United Illuminating Company today, the supply portion of electric bills for customers paying the Standard Service supply rate is scheduled to increase on January 1, 2023, as follows:
- CL&P/Eversource Fixed Standard Service Residential Rate (Per kWh of customer usage):
- $0.11484 (beginning 1/1/2022);
- to $0.12050 (beginning 7/1/2022);
- to $0.24172(beginning 1/1/2023)
- United Illuminating Fixed Standard Service Residential Rate
- $0.106731 (beginning 1/1/2022);
- to $0.1062 (beginning 7/1/2022);
- to $0.2149 (beginning 1/1/2023)
The scheduled increase will affect Connecticut customers of Eversource and United Illuminating who have their electricity supplied directly from Eversource or UI, as opposed to from a third-party supplier.
- This will impact the average Eversource residential customer using 700 kWh per month by increasing a monthly bill by approximately $84.85.
- This will impact the average United Illuminating residential customer using 700 kWh per month by increasing a monthly bill by approximately $79.24.
The main reason for the supply rate increase is the global impact of Russia’s invasion of Ukraine, which has caused higher prices for oil and natural gas globally and here in the U.S. Connecticut, like all New England states, is heavily reliant on natural gas for electricity, and, therefore, when the market price of natural gas increases, supply rates also increase.
The supply rates are directly affected by the natural gas market price, which is the fuel used to generate the majority of Connecticut’s electricity. When the market price of natural gas increases, supply rates also increase.
The oil/natural gas markets are global, and the market price of natural gas is affected by many factors. Russia’s war in Ukraine has created volatile energy markets and is putting upward pressure on oil and natural gas prices. Even though the United States only imports a small amount from Eastern Europe, the disruptions are affecting prices worldwide, including in the United States and particularly in New England, where we still rely heavily on natural gas and on Liquified Natural Gas (LNG), which has been in higher demand in Europe resulting in significant increases to the price of LNG, which sets the market price. These factors have impacted Connecticut’s procurements this summer and fall, despite Connecticut’s proactive procurement practices and efforts to insulate against natural gas price volatility.
Information is provided below on how consumers can seek financial assistance with electric and heating bills, third party supplier information, and energy conservation and efficiency programs |