Lower Electric RatesJune 28, 2023
Beginning July 1, Eversource and United Illuminating (UI), Connecticut's two electric distribution companies, will lower their standard service rates for residential customers for the next six months.
The rate reduction will be in effect from July 1 through December 31 based on utility company filings with the Connecticut Public Utilities Regulatory Authority (PURA). Average residential electric bills are expected to decrease significantly from current levels during this period.
Eversource and UI file to change rates twice annually, with the rates going into effect on January 1 and July 1 of each year. The cost of natural gas, which provides the fuel for most of the heat and electricity across Connecticut and New England, is subject to continued market volatility and international factors like Russia’s invasion of Ukraine. As a result, present bills were pushed as much as $80 higher on average since the beginning of 2023 and running through June 30.
While dropping electricity rates is positive news, PURA also recently took a significant step toward additional accountability for Eversource and UI by implementing performance-based regulation (PBR) starting in 2024. Connecticut is one of the first states in the country to establish such a system, which was part of the “Take Back Our Grid Act” we passed in October 2020.
Under PBR, Eversource and UI will be expected to fulfill certain public policies, including empowering customers, improving utility performance, and providing reasonable, equitable and affordable rates as opposed to roller coaster increases and decreases.
Read more on the electric rate decrease in this article from the Connecticut Post.