December 6, 2012
PURA Approves Reduction in Generation Rates for Electricity - Lower Costs Take Effect January 1, 2013
The Public Utilities Regulatory Authority (PURA) recently approved reduced generation rates for residential and business customers taking Standard Service generation from Connecticut Light & Power (CL&P) or United Illuminating (UI).
As a result of PURA’s action to approve requests submitted by the two companies, effective January 1, 2013:
CL&P’s residential generation rate will decrease about .7 cents per kilowatt-hour (kWh), from the current rate of 8.279 cents/kWh to 7.615 cents/kWh. The generation cost for a CL&P residential customer using 750 k/h would decrease by about $5 a month.
UI’s residential generation rate will decrease by just over 1 cent/kWh from the current rate of 8.727 cents/kWh to 7.6974cents/kWh. The generation cost for a UI residential customer using 750 kWh would decrease by about $7.50 a month.
Similar reductions will be applied to generation rates for business customers taking standard service from the state’s two largest electric utility companies. CL&P business customers will see a reduction of just under 1 cent/kWh while UI's business customers will see a reduction of about just over 1 cent/kWh.
The generation rate – which recovers the cost to generate electricity at power plants – makes up more than 50% of the monthly electric bill for most residential users.
Other charges on electric bills that recover the cost to deliver electricity – which will be adjusted by the PURA for 2013 in December – include distribution and public benefit charges. Delivery costs also include transmission charges, which are set by the Federal Energy Regulatory Commission.
Approximately 53% of the Connecticut’s 1.5 million residential customers take standard service generation from CL&P and UI. The remaining residential customers have opted to have their electricity provided by other approved electric suppliers, which can further reduce generation rates for consumers.
Even though CL&P and UI’s generation charges are being reduced, consumers should consider all available generation offers to obtain the most suitable and cost effective plan for their household. Helpful information about choosing an electric supplier can be found at www.ctenergyinfo.com
– just select “Choosing An Electric Supplier.”
PURA officials noted that generation charges have steadily declined in recent years due to lower costs for producing power. They also noted that the overall cost of electricity for consumers has declined by more than 17% in the last two years.