Here is a more in-depth look at how we got to this point and where we go from 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.
There were fears that due to the lower cost of natural gas, the plant would close if more power was not generated and purchased from the plant. A deal was struck to prevent that, but the legislation included this caveat: because the utilities were required to purchase a set percentage of their power from Millstone, if the cost of generating power through the plant was less expensive than through the general market, the savings would be passed along to the consumers. On the flip side, if the cost was more expensive to Eversource or United Illuminating, the extra costs would be also be passed along to the consumers. We, the customer, are getting both the benefit and the risk in this deal.
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). On its own website, PURA is defined as:
The Public Utilities Regulatory Authority (PURA) is statutorily-charged with ensuring that Connecticut's investor-owned utilities, including the state’s electric, natural gas, water, and telecommunications companies, provide safe, clean, reliable, and affordable utility service and infrastructure. PURA’s mission is essential to advancing the state’s energy, economic, and environmental goals and is critical to maintaining public health and safety as well as a robust economy.
PURA is a quasi-judicial agency that interprets and applies the statutes and regulations governing all aspects of Connecticut’s utility sector. Among other things, PURA sets the rates charged by investor-owned utilities, advances the modernization of the electric distribution system, regulates the retail electric supplier market, implements federal requirements for natural gas pipeline safety, ensures adequate water system infrastructure investments, reviews mergers and acquisitions, provides education and outreach for consumers, and regulates the expansion of telecommunications infrastructure.
This means that PURA is supposed to work with the utilities to ensure their success, and protect and advocate for the public.
The Chairperson of PURA, Marissa Gillett, strongly urged that the charges be phased in over 22 months rather than 10 months, but she was out voted 2-1 by the other members of the authority. The utilities could have also chosen to phase in new charges to reduce the monthly cost to consumers, but they decided to do implement it immediately and in full. The 10-month cost spike will be in place through May 2025.
About 23% of the increase of the public benefits charge is due to the moratorium on shutting off people’s electricity during the pandemic. This action was supported almost unanimously by both Democrats and Republicans as so many residents were facing serious hardships in that time. It is important to note, however, that the moratorium did not erase those electric bills. That debt stays with a customer, it is not forgiven. Now that the freeze has been lifted, utility companies are able to collect those owed monies. As the debts are collected, the public benefits charge on our bills will decrease. Understanding that we all can unexpectedly hit hard times and need assistance, it is the combination of these charges that are unintentionally causing more hardship to many.
The approval of the additional rate hike for EV infrastructure is adding insult to injury. This should not have been approved. A mid-May motion ruling from PURA supported a delay and analysis of these cost recovery options; in my opinion this decision should revert back to that and delay the implementation immediately.
The timing of both of these decisions is also making the situation worse. On average, customers typically use about 35% more electricity in the summer months. However, as we all know, this year Connecticut has seen one heat wave after another, resulting in even higher bills and usage than normal. Each summer has gotten hotter, year after year. We need to be having serious discussions about what this means for our power grids and ratepayers.
Next Steps:
My colleagues and I are actively working on options that may provide relief, including requesting that these decisions by PURA be reopened. I know how much many of us are financially burdened with the increase costs of everything already; this additional and unexpected stress is too much for families and small businesses.
I have also filed an official complaint with PURA on behalf of the residents of the district.
I have heard from a lot of residents asking what they should do as they don’t qualify for hardship assistance but cannot afford these incredibly high bills they weren’t expecting. I strongly suggest that you contact your provider as soon as possible – preferably before missing any payments – to ask about setting up a flexible payment plan and establish that communication on your account.
There are other programs 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; and energy efficiency programs offered by utilities to evaluate customers' homes and provide rebates and discounts on needed improvements.
Additionally, some previous action to control electricity costs is starting to go into effect. 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. This is also why we are now seeing the charges broken down into clearly labeled sections on our utility bills.
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.
I honestly wish that I had a better update than this. I know how this is hurting people. While this deal was done before I was in the legislature, I will do whatever I can to fix it. I have already communicated different proposals to protect ratepayers to my colleagues and will continue to work on this.
