PURA: PURA Approves Revised Standard Service Electric Rates

2015 Press Release
 
November 16, 2015
 
PURA Approves Revised Standard Service Electric Rates
New Rates Take Effect January 1, 2016
 

The Public Utilities Regulatory Authority (PURA) has approved revised generation rates for residential and business customers taking Standard Service generation from The Connecticut Light and Power Company dba Eversource Energy (Eversource) and the United Illuminating Company (UI).

Eversource and UI recently submitted proposed winter cycle rates based on competitive auctions held earlier this year to procure the electricity needed to meet forecasted load. The bid process, underlying calculations and resulting rates were analyzed and verified by PURA technical staff, and approved today by PURA's commissioners at a public meeting.

Effective January 1, 2016, Eversource's residential generation rate will change from 8.228 cents per kilowatt-hour (kWh) to 9.555 cents/kWh. UI's residential generation rate will change from 9.1241 cents/kWh to 10.7358 cents/kWh.

The Standard Service generation service rates for other residential and business customer classes are also set to change effective January 1, 2016.

The new rates will be in effect through June 30th, and represent an approximately 24% reduction when compared to the winter cycle rates in effect from January 2015 to June 30, 2015 for Eversource.  For UI, the year-to-year reduction in winter cycle rates is 20%.

The generation rate – which recovers the cost to generate electricity – comprises roughly 50% of the monthly electric bill for most residential users.

Other charges on electric bills that recover the cost to deliver electricity were adjusted by the PURA earlier this year, and include distribution and public benefit charges. Delivery costs also include transmission charges, which are set by the Federal Energy Regulatory Commission.

Approximately two-thirds of Connecticut’s residential customers receive Standard Service generation from Eversource and UI. The remaining residential customers have chosen to receive their electricity from licensed electric suppliers, whose rates may be more or less than the Standard Service depending upon contract terms and the energy source.

Customers can compare UI and Eversource Standard Service generation rates to licensed suppliers' current offers on Connecticut's official generation rate board at www.energizect.com. From the home page select "Choose Your Electric Supplier."