Eversource is looking to lower a part of customers’ energy bills. But that doesn’t necessarily mean that people will pay less.
Eversource is planning to lower its supply rate this summer, but it won’t be enough to offset state-mandated increases elsewhere in the bill.
The utility company filed paperwork with the Public Utilities Regulatory Authority (PURA) on Friday to lower the supply rate, which covers the cost Eversource pays to purchase electricity.
“We purchase the generation, the electricity and we pass those costs on to our customers,” Doug Horton, Eversource’s vice president of rates and regulatory requirements, said.
That would start in July 1, and Eversource estimates it would save the average homeowner $40 a month.
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That same customer will pay an extra $48 per month, though, because of an increase public benefit costs. Ultimately, Eversource said, the average customer’s bill will go up $8 a month starting July 1.
The public benefit rate increase, approved by PURA, will cover costs related to a deal lawmakers approved in 2019 to help keep the Millstone Nuclear Power Plant open.
“Yes it’s public policy, but yes saving millstone was critical for the state,” Sen. Norman Needleman (D-Essex) said.
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Needleman was not a lawmaker at the time, but the chairman of the Energy and Technology Committee said he supported the deal.
He also said he wanted PURA to spread out costs of the payment over more time, but regulators decided to have customers pay them over a 10-month period. The public benefit rate should go back down after that.
Many Republicans also supported the deal at the time.
Sen. Stephen Harding (R-Minority Leader) said that doesn’t mean lawmakers should avoid revisiting the costs associated with it.
He also said there’s other ways lawmakers can bring down mandated costs on utility bills, such as capping the purchase agreements the state enters for renewable energies.
“I think the causes are noble, we’re trying to curb our carbon footprint, but at the same time these measures, these mandates are driving up costs,” Harding said.
Horton said he hopes lawmakers will be more collaborative in finding ways to bring down energy costs in Connecticut. Consumers in the state pay among the highest prices annually.
Needleman said Eversource’s pushback is an attempt to avoid scrutiny.
“They’re waging a war and, really, just be more accountable,” he said.
Republicans have been critical of Democratic lawmakers and Gov. Ned Lamont for overregulating the utility companies. Harding said the utilities share some of the blame, though.
“Some of their reactions to restoring power after storms has been lacking, some of the rate increases they’ve requested, if you look at the corporate payroll of some of these companies,” he said.
The impact on an individual homeowner’s bill will depend on energy usage. Many homeowners use electricity in the summer.
Eversource suggests ways to reduce energy usage, including:
- Setting the temperature on air conditioners as warm as you comfortably can
- Operating appliances in the morning or at night, when demand is lower
- Keeping blinds and curtains closed on hot days
- Purchasing energy star-certified LED lights
“As we went the summer months, customers tend to use more electricity as they use their fans and air conditioners more,” Horton said.
