Connecticut electric rates will dip slightly in September, after utility regulators voted on Wednesday to formalize a relief package centered around $155 million in state borrowing to offset the cost of sky-high electric bills.
The Public Utilities Regulatory Authority voted unanimously to approve new rates for customers of the state’s two investor-owned utilities — Eversource and United Illuminating — that take into account the impact of that borrowing. The new, lower rates will take effect on Sept. 1.
The change will result in an average savings of around $9 a month for Eversource customers and $15 a month for UI customers, according to PURA. The exact amount of savings will vary depending on usage and whether the customer receives residential or commercial rates.
“We’re pleased customers will see a decrease thanks to several factors, including shifting certain state-mandated policy and program costs off electric bills,” Eversource spokeswoman Jamie Ratliff said in a statement following Wednesday’s decision.
Sarah Wall Fliotsos, a spokeswoman for United Illuminating, said in a statement that the new rates will “have a meaningful impact,” and she expressed appreciation for the state’s decision to borrow money to fund the rate cuts.
“We look forward to implementing these electric bill reductions for our customers while remaining mindful that several new public policy programs that would be added to the Public Benefits Charge in the future remain under consideration,” she said.
The rate change didn’t prompt any public discussion among the three members of PURA — Chairwoman Marissa Gillett, Vice Chairman David Arconti and Commissioner Michael Caron — before they voted to approve it in a virtual meeting Wednesday.
Gov. Ned Lamont introduced the borrowing plan to the State Bond Commission earlier this month, where it received unanimous approval. The plan itself was crafted by lawmakers earlier this year as part of Senate Bill 4, an omnibus legislative package addressing energy prices.
The bonding component of that bill included $125 million this year to pay off unpaid bills that accumulated during the COVID-19 pandemic, along with $30 million to cover the costs associated with the state’s electric vehicle charging program. Both costs are currently paid for by consumers as part of the public benefits charge on their bill.
An additional round of borrowing is expected to go before the Bond Commission next year, with the associated savings lasting through 2027.
Claire Coleman, head of the state’s Office of Consumer Counsel, said in a statement Wednesday, “As one of the biggest advocates for state assistance to offset high electricity costs this session, I am pleased that customers will see the results of the bond funding authorization beginning in September.”
Ratliff, the Eversource spokeswoman, said that “even more significant savings” can be achieved through other aspects of S.B. 4 that have yet to be fully implemented. Those include allowing utilities to securitize costs related to storm damage and the roll out of advanced metering technology.
“The collaboration on Senate Bill 4 was an important step forward to make progress on these issues for customers, and we look forward to continued work with lawmakers to deliver cost-effective solutions to benefit the people and businesses of Connecticut,” she said in her statement.
Wednesday’s decision marked the third time this year PURA has voted to lower electric rates. The first reduction came in April, as part of regulators’ annual rate adjustment proceedings. Two months later, PURA approved a reduction in supply rates for customers of both utilities.
Those decreases followed last year’s spike in the public benefits charge that happened to coincide with a summer heat wave that sent many bills — and public frustration — soaring to new highs.
Even with decreases taking effect this year, advocates and the utilities warn that some customers may have yet to see a decrease in their overall bill due to growing usage to power air conditioners during the hot summer months.
Connecticut’s electricity costs remain among the highest in the nation. In August, the state ranked third with an average of 26.16 cents per kilowatt hour, according to an analysis by ElectricChoice.com.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
