Josh Elliott

I hope you are well. Many of you were wondering what the utilities were saying as a defense of these prices increases - so I wanted to forward what they sent to us.

Below please find information from Frank Reynolds from UI:
 
Good afternoon, 
 
Attached please find UI’s press statement regarding our residential standard service rate filing submitted to the Public Utilities Regulatory Authority (PURA) yesterday. As you may have read in the press, the cost for residential Standard Service will rise from 10.62 to 21.94 cents per Kilowatt Hour (kWh) beginning January 1, 2023. This rate increase of 43% directly and exclusively reflects the cost of energy purchased by UI on behalf of our customers and will result in an average monthly increase of $79 for the typical UI residential customer.  This rate is the product of UI’s approved and well-established competitive procurement process, which benefits from the direct and meaningful oversight by PURA’s appointed Procurement Manager and the input of Office of Consumer Counsel during the bidding process.
 
As you are aware, energy prices across the globe have increased, especially natural gas – the primary fuel in New England – due to supply chain constraints, high inflation, and the ongoing conflict in Ukraine. The standard service is a pass-through rate only, meaning customers pay the exact same price that we pay to the supplier who we purchase the electricity from - without any profit or mark-up.(See Office of Consumer Counsel’s Update:   https://portal.ct.gov/-/media/OCC/20221117-Consumer-Update-Winter-Rates---Updated420pm.pdf ) 
 
Thus, while UI is bearing much of the blame for these price hikes, we lack any capability to control them. This stems from the decision to deregulate the supply side of the utility bill that the State of Connecticut made over 20 years ago to create competition and lower prices.  Since that decision, the state’s electric utility companies were forced by law to sell off their generation assets and have been prohibited from owning generation.  Therefore, the state’s electric utility companies are required to purchase electricity from the suppliers in the market and pass through those costs (without markup or profit) to our customers. The intent of deregulation was to create a robust retail electricity market and provide choice to customers, but the lack of options currently requires utilities to procure power for close to 80% of our customers.  As you are all aware, the retail supply market has had its own well-documented challenges. In the long-term, all of us at UI would welcome the opportunity to work with you to empower utilities to have further control over the price of generation, but as the situation currently stands, utilities are at the mercy of the market, the same as our customers would be should they choose an alternate supplier.
 
Stock prices for the electric generators that have bid into the supply auction have risen significantly since 2017, with top performers, NextEra and Constellation increasing 111% and 114% respectively, while the AVANGRID stock price has decreased 21% (see chart below).  We make no profit from electric generation supply.  Moreover, over this same time period, our distribution rates have supported over $1 billion investment in the electric grid to improve reliability, growing jobs and the local economy, while earning UI a modest income growth of 4.5%. Accordingly, UI has had the highest reliability of any Connecticut utility over the last five years.  During a time of unprecedented growth, we are asking the region’s generators to come to the table to be a part of the solution. 
 
Regardless, we recognize the challenges this unwelcome news will bring to your constituents, and we wanted to make sure that you have the information you might need to direct them to some programs that might be of assistance. We strongly encourage your constituents to reach out to our company to help connect them with these programs by calling our Customer Care Center at (800) 722-5584 or visiting our website at https://www.uinet.com/support/contact-us
 
Frank Reynolds
President & CEO
UIL 
 
 
To help customers manage increase supply costs, UI is reminding those having difficulty paying their bill of the following programs the company offers to provide assistance and relief: 
 
•              Matching Payment Program  – Residential customers covered by the Winter Protection Program and who heat by electricity may qualify for UI’s Matching Payment Program. If you qualify, we will work with you to develop a monthly budget agreement. If you keep that agreement, we will match your payments to reduce your back balance.https://www.uinet.com/web/uinet/account/waystopay/help-with-bill/matching-payment-program
 
•              Bill Forgiveness Program – This program helps low-income customers maintain year-round service and pay down delinquent balances by company-matched dollars. A payment arrangement plan helps qualified hardship customers pay past-due electric bills. Under BFP, if payments are current, a past-due balance can be "forgiven" over time.  https://www.uinet.com/web/uinet/account/waystopay/help-with-bill/ui-matching-payment-plan
 
•              Winter Protection Program – UI offers winter protection to all our customers that qualify. If you meet eligibility requirements, we will not turn off your electricity between November 1 and May 1. The Winter Protection Plan must be renewed annually, beginning in October. To prevent your service from being shut off after May 1, contact UI to set up a payment arrangement.
 
•              Flexible Payment Arrangements – UI will work with customers if they are having trouble paying their electric bill. UI offers flexible payment arrangements for all customers needing assistance. These arrangements can be spread out up to 18 months for residential customers and 6 months for non-residential customers. Current payment arrangements may be renegotiated due to a change in financial circumstances Per Conn. Agencies Reg. § 16-3-100(b)(3)(A). These arrangements may be discussed confidentially by calling our Customer Care Center at 800.722.5584.
 
•              Called to Active Duty? – Customers may qualify for temporary suspension of collections action and disconnection of their electric service if they are called into active duty in the U.S. military.
 
•              Home Energy Solutions-Income Eligible (HES-IE) – Through the Connecticut Energy Efficiency Fund, United Illuminating administers the HES-IE program.  This weatherization program is designed to help customers with limited income or financial needs reduce their energy bills. 
 
For more information on financial assistance programs offered by UI, please visit the UI website or call (800) 722-5584. For more information on Home Energy Solutions visit the UI website or call (877) 947-3873.