While electric rates this winter are expected to be lower than last year’s historically high rates, Eversource and UI have asked regulators to increase rates next year.
Pending approval by the Public Utilities Regulatory Authority (PURA), electricity supply costs are expected to decrease from January through June of 2024 compared to the same winter period in 2023.
“We’re stuck with utility bills so if it can come down, it’s kind of out of our control and it would be welcome,” Matt Menard, of Madison, said.
In 2024, from January through June, Eversource customers will pay 14.7 cents per kilowatt-hour compared to 24.1 cents during the same period in 2023. That’s approximately a 39% reduction in standard service residential monthly supply rate across the same winter period.
“If you’re looking at the winter rate year over year, that difference is about 19% if you look all in, supply, delivery, public policy, which represents about a $46 per month saving,” Eversource CT President Steve Sullivan said.
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Meanwhile, UI announced that customers will pay 17.06 cents per kilowatt-hour in supply charges as opposed to the 21.94 cents in the winter period of 2023. That decrease results in about $34 in monthly savings compared to the same January-June period last year.
“It’s kind of a drop in the bucket these days, but every little bit helps,” Menard said.
Eversource, which buys energy from various producers, cited a more favorable global market as the main reason for the decrease.
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“The winter price is all driven by these natural gas generators. They rely on LNG, liquid natural gas, and that’s essentially correct, the liquid natural gas forward looking market is less this winter than it was last winter,” Sullivan said.
However, even with the decrease, Eversource said the proposed winter supply rates are still higher than they were two years ago.
To help offset costs, Eversource is starting a new, low-income discount rate beginning Dec. 1.
“Customers who are in households that are low income will either get a 10% or 50% discount off their total bill,” Eversource CT Vice President of Customer Operations Jessica Cain said.
She said the other option is through the state’s Connecticut Energy Assistance Program.
“Customers can get up to $530 towards their heating bill by going to their local community action agency and getting CEAP assistance,” Cain said.
