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Governor Lamont, Commissioner Dykes, Consumer Counsel Coleman Statements on Eversource and United Illuminating Supply Rate Increases
(HARTFORD, CT) – Governor Ned Lamont, Department of Energy and Environmental Protection Commissioner Katie Dykes, and Consumer Counsel Claire Coleman released the following statements in response to new service supply rates from Eversource and United Illuminating (UI) effective January 1, 2023, that were submitted today to the Connecticut Public Utilities Regulatory Authority (PURA):
Governor Lamont said, “This is unwelcome news to close out a year that has been challenging for so many in our state. In the coming days, I will be calling the General Assembly into special session to adopt legislation focused on providing relief for Connecticut residents, including by ensuring our energy assistance program is adequately funded to at least last year’s level so support is available for electricity and heating oil costs. I am disappointed electric distribution utilities are enjoying historic profits at the same time electric generation rates are increasing and customers are experiencing economic hardships, and I call on UI and Eversource to come to the table with solutions that recognize their investors and executives can and should support customers while we work together towards long-term solutions that untether us from the volatility of global fossil fuel markets. While it may be a small consolation, we are in a similar position as other New England states, and we have mitigated the felt impact thanks to proactive actions our administration has taken. I want residents to know that programs are available for those who need support paying their electric bills this winter, including our energy efficiency programs, which we’ve kept funded and provided supplemental funds to in order to help those most in need.”
Commissioner Dykes said, “The state has taken several actions to help insulate residents from situations like this, which is why we kept the Millstone Power Station online, providing a cheap, reliable, and carbon-free source of electricity online that is generating net profits that are being returned to Eversource and UI customers. This is why we employ strategic electricity procurement practices, and why the governor has kept our energy efficiency programs funded. It’s also why the state is working hard to diversify its energy mix and has pursued past and ongoing procurements for clean energy resources such as solar and offshore wind that will reduce our reliance on fossil fuel resources over time.”
Consumer Counsel Coleman said, “Like all Connecticut residents, I am greatly concerned about the impact that the rising electricity prices announced today will have on consumers’ ability to afford their electricity bills. Customers are now facing doubling supply prices while also contending with higher costs for home heating, food, and other necessities. This is a result of a global energy crisis that warrants an all-of-government response, and I thank Governor Lamont for calling the legislature into special session to address electricity costs. While state and federal funding is critical, I hope that Eversource and United Illuminating will consider sharing some of their recent healthy profits with customers to help them through the winter. I can assure Connecticut consumers that I will be actively working with state and federal leaders to get Connecticut residents the assistance they need to pay their electric and heating bills because no one should have to worry about how to stay warm or keep the lights on this winter.”
Background
Eversource and UI today filed with PURA their new rates for standard service, which is one component of the residential electric bill. The new standard service supply rates are approximately doubling, which means the total residential electric rates for Connecticut utilities will be increasing by approximately 40% above rates currently in effect and above last winter. Once approved by PURA, these new rates will go into effect from January 1, 2023, through the first six months of the year.
As of January 1, 2023, Connecticut’s all-in residential electric rates ($0.35/kWh) for both Eversource and UI will be within the same range as most New England utilities, including New Hampshire ($0.33/kWh to $0.39/kWh) and Rhode Island ($0.29/kWh). Only Maine ($0.24/kWh to $0.28/kWh) and Vermont* ($0.18/kWh) are lower. Meanwhile, customers of National Grid and Unitil in Massachusetts are paying over 40% higher rates than Connecticut at $0.48/kWh and $0.42/kwh (Note: Electric rates change seasonally and on different timeframes for each utility; these figures are subject to change).
Historically, Connecticut has typically had the highest or nearly the highest electric rates in New England, and the continental United States. Connecticut’s strategic electricity policies enacted in recent years have helped to buck that trend and hedge the impact of these new standard service increases.
To keep prices lower and less volatile, Connecticut has taken the following actions:
*Vermont is a vertically integrated system and procures electricity through long-term contracts, thus Vermont rates tend to be more static over time.
**Given the energy prices over the past several months, the trend of Millstone’s profitability has continued between April and October but the particular numbers are not public yet.
Governor Lamont said, “This is unwelcome news to close out a year that has been challenging for so many in our state. In the coming days, I will be calling the General Assembly into special session to adopt legislation focused on providing relief for Connecticut residents, including by ensuring our energy assistance program is adequately funded to at least last year’s level so support is available for electricity and heating oil costs. I am disappointed electric distribution utilities are enjoying historic profits at the same time electric generation rates are increasing and customers are experiencing economic hardships, and I call on UI and Eversource to come to the table with solutions that recognize their investors and executives can and should support customers while we work together towards long-term solutions that untether us from the volatility of global fossil fuel markets. While it may be a small consolation, we are in a similar position as other New England states, and we have mitigated the felt impact thanks to proactive actions our administration has taken. I want residents to know that programs are available for those who need support paying their electric bills this winter, including our energy efficiency programs, which we’ve kept funded and provided supplemental funds to in order to help those most in need.”
Commissioner Dykes said, “The state has taken several actions to help insulate residents from situations like this, which is why we kept the Millstone Power Station online, providing a cheap, reliable, and carbon-free source of electricity online that is generating net profits that are being returned to Eversource and UI customers. This is why we employ strategic electricity procurement practices, and why the governor has kept our energy efficiency programs funded. It’s also why the state is working hard to diversify its energy mix and has pursued past and ongoing procurements for clean energy resources such as solar and offshore wind that will reduce our reliance on fossil fuel resources over time.”
Consumer Counsel Coleman said, “Like all Connecticut residents, I am greatly concerned about the impact that the rising electricity prices announced today will have on consumers’ ability to afford their electricity bills. Customers are now facing doubling supply prices while also contending with higher costs for home heating, food, and other necessities. This is a result of a global energy crisis that warrants an all-of-government response, and I thank Governor Lamont for calling the legislature into special session to address electricity costs. While state and federal funding is critical, I hope that Eversource and United Illuminating will consider sharing some of their recent healthy profits with customers to help them through the winter. I can assure Connecticut consumers that I will be actively working with state and federal leaders to get Connecticut residents the assistance they need to pay their electric and heating bills because no one should have to worry about how to stay warm or keep the lights on this winter.”
Background
Eversource and UI today filed with PURA their new rates for standard service, which is one component of the residential electric bill. The new standard service supply rates are approximately doubling, which means the total residential electric rates for Connecticut utilities will be increasing by approximately 40% above rates currently in effect and above last winter. Once approved by PURA, these new rates will go into effect from January 1, 2023, through the first six months of the year.
As of January 1, 2023, Connecticut’s all-in residential electric rates ($0.35/kWh) for both Eversource and UI will be within the same range as most New England utilities, including New Hampshire ($0.33/kWh to $0.39/kWh) and Rhode Island ($0.29/kWh). Only Maine ($0.24/kWh to $0.28/kWh) and Vermont* ($0.18/kWh) are lower. Meanwhile, customers of National Grid and Unitil in Massachusetts are paying over 40% higher rates than Connecticut at $0.48/kWh and $0.42/kwh (Note: Electric rates change seasonally and on different timeframes for each utility; these figures are subject to change).
Historically, Connecticut has typically had the highest or nearly the highest electric rates in New England, and the continental United States. Connecticut’s strategic electricity policies enacted in recent years have helped to buck that trend and hedge the impact of these new standard service increases.
To keep prices lower and less volatile, Connecticut has taken the following actions:
- Entered into a contract with Millstone that has generated substantial net profits ( around $128 million between January and April 2022** alone), which are being directly refunded to UI and Eversource customers. As of September 1, 2022, the average Eversource and UI residential customer saw an electric bill reduction of $9.78/month and $7.72/month, respectively.
- Helped customers install efficiency upgrades and weatherize their homes to lower their energy costs, including, at the direction of Governor Lamont, adding $3.5 million this summer to the EnergizeCT efficiency programs. (For more information on the state’s energy efficiency programs, visit energizect.com.)
- Spread out the purchase of electricity for standard service by Eversource and UI over time to minimize the impact of spiking prices and volatility in the electricity markets.
- Passed Public Act 20-5, known as the “Take Back Our Grid Act.” This legislation increased accountability among Connecticut’s utility companies by implementing a performance-based incentive system that ensures their earnings and profits are tied to good performance, while also enabling PURA to implement low income and economic development rates.
- PURA is currently in the process of implementing performance-based ratemaking.
- On October 19, 2022, PURA released its final decision to implement a low-income discount rate whereby, beginning in January 2024, eligible customers will receive either a 10% or 50% discount on their utility bills based on their overall household income.
- Enacted a series of protections for customers of electric suppliers over the past decade, including prohibiting variable rates and giving PURA the discretion to prevent customers who were designated as “utility hardship” from being switched to electric suppliers, prohibiting cancellation fees for residential customers who are under contract with an electric supplier, and strengthening PURA’s oversight over electric suppliers. As a result, Connecticut has some of the strongest consumer protection laws in the nation with respect to residential competitive electric supply.
- Provided heating bill assistance for income-eligible households. The Connecticut Energy Assistance Program (CEAP), administered by the Connecticut Department of Social Services, provides winter heating cost assistance to income-eligible households, regardless of their heat source. People should contact their local Community Action Agency to apply. Statewide consumer information on this program is available on the web at www.ct.gov/staywarm or by calling 2-1-1. Connecticut’s Congressional delegation recently successfully supported a $1 billion increase in federal funding for energy assistance programs, which delivered an additional $19 million to Connecticut. In addition, Operation Fuel and other nonprofits provide year-round emergency energy assistance to low-to-moderate-income households who don’t qualify for CEAP or who run out of CEAP benefits.
- At the start of the COVID-19 pandemic, PURA directed the electric and gas utilities to cease all service terminations for non-payment. While the moratorium was since lifted for certain segments of customers, it is currently still in place for residential customers with a financial hardship designation and for customers who are medically protected due to a serious illness.
- In 2021-22, the Connecticut Department of Housing implemented the UniteCT program, which provided up to 12 months and/or $15,000 in rental assistance and up to 12 months of electric arrearage assistance on behalf of Connecticut households financially impacted by the COVID-19 pandemic with income up to 80% of area median income. UniteCT has provided $48.9 million in utility assistance.
*Vermont is a vertically integrated system and procures electricity through long-term contracts, thus Vermont rates tend to be more static over time.
**Given the energy prices over the past several months, the trend of Millstone’s profitability has continued between April and October but the particular numbers are not public yet.
