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If you saw an unwelcome rise to your electricity bill this month, I share your frustration and want to provide more information about the factors contributing to it.
While supply rates for electricity have dropped, the public benefits portion of the bill saw a sharp increase, and since supply and public benefits now make up nearly 60% of a total electricity bill, what does this mean for you and how did we get here?
Republican-led Millstone Deal
Supply rates and public benefits are extremely volatile and are not subject to control by utility companies like Eversource and United Illuminating. The rise in the public benefits portion of the bill, however, mostly has to do with a 2017 Republican-led deal that requires Eversource and UI to purchase power from the Millstone power plant. The rate at which the utilities purchase power is set to adjust periodically and the resulting public benefits charge is reviewed by the Public Utilities Regulatory Authority (PURA). Utilities can phase in new charges to reduce the monthly cost to consumers as PURA suggested, but they decided to do it all at once. The 10-month cost spike will be in place through May 2025.
Taking Action
While we intend to evaluate the public benefits charge during the next legislative session that begins in January 2025, previous action to control electricity costs is just coming online. We passed the Take Back Our Grid Act in 2021, which contained some significant reforms, including strengthening PURA's ability to scrutinize and review rate increases and performance-based regulation. In 2023, PA 23-102 became law, and it is robust pro-consumer legislation that provides predictability and transparency for rate payers and prohibits utility companies from using electric rates to pay for their lobbying, marketing, and travel/lodging for company executives.
At the federal level, the U.S. Department of Energy has also selected the Power Up New England proposal submitted by Connecticut and its neighboring New England states to receive an award of up to $389 million through the second round of the Bipartisan Infrastructure Law’s competitive Grid Innovation Program (GIP). Power Up features significant investments in regional electric infrastructure that will provide the New England region with access to thousands of megawatts of offshore wind, greater resource diversity, and increased reliability while lowering consumer costs and reducing greenhouse gas emissions.
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