Explaining Your Electricity Bill

August 9, 2024


 
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Dearly Beloved Neighbor,

If you saw an unwelcome rise in 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, but they decided to do it all at once. The 10-month cost spike will be in place through May 2025.

Click HERE to visit the Office of Consumer Counsel for an updated description of the electric charges on your monthly bill.

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.

Checking Your Rates
Third-party electricity suppliers can potentially lower costs through reduced rates at 

EnergizeCT.com. Additionally, the Office of Consumer Counsel offers a guide to understanding the line items on your electricity bill here.

Available Programs
If you are struggling financially, call your power supplier before missing a payment if possible. Programs are available, including financial hardship designations that provide access to a Low-Income Discount Rate and payment arrangements for customers in need; energy assistance through the state Department of Social Services; negotiated flexible payment arrangements for non-financial hardship customers; and energy efficiency programs offered by utilities to evaluate customers' homes and provide rebates and discounts on needed improvements.

Additionally, the Human Services Committee, which I serve on, will join the Appropriations and Energy and Technology Committees for a public hearing on Tuesday, August 13 at 11 a.m. to review the 

Low Income Home Energy Assistance Program (LIHEAP) Allocation Plan for the federal fiscal year 2025. LIHEAP provides funding for the Connecticut Energy Assistance Program (CEAP), which helps residents afford heat for their homes. 

Please click on the links below if you wish to:


Register to Speak
Submit Written Testimony
Watch Tuesday's Public Hearing

While CEAP applications are not yet open, if you anticipate needing help with your utility bills, Operation Fuel provides emergency energy and utility assistance to households in Connecticut facing a financial crisis. You can learn more here if you'd like.

 As always, please feel free to contact me with any questions, comments, or concerns at Robyn.Porter@cga.ct.gov or 860-240-1371.

In Dedicated and Loyal Service,

Robyn Porter

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