CT No Longer Has Second Highest Electric Rates
by Christine Stuart | Nov 28, 2011 3:00pm
(5) Comments | Commenting has expired
Posted to: Business, Energy, Environment, Weather
For the past few years, Connecticut had the distinction of having the highest electric rates in the continental United States, second only to Hawaii. However, recent data shows Alaska and New York, have overtaken Connecticut.
According to the U.S. Energy Information Administration, Connecticut’s rates fell to 16.15 cents per kilowatt hour in August, putting it behind Hawaii, New York and Alaska.
It will drop even further in January because the Public Utilities Regulatory Authority announced Monday that Connecticut Light & Power’s generation rates will decrease about 1.2 cents per kilowatt hour for residential customers, which means the average customer using 750 kilowatt hours will see their monthly bill decrease about $9.
United Illuminating’s generation rate will also decrease 1.8 cents per kilowatt hour, which means the average residential customer using 750 kilowatt hours will see their monthly bill decrease $13.50 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 about 1.4 cents/kWh while UI’s business customers will see a reduction of about 1.8 cents/kWh.
The generation rate makes up more than 50 percent of monthly electric bills for residential customers.
PURA is also set to adjust distribution and public benefit charges in December. Both Connecticut Light & Power and United Illuminating have yet to seek rate increases to cover the costs of both Tropical Storm Irene and the October Nor’Easter.
PURA officials noted in a press release that generation charges have steadily declined since 2006 when the cost to generate electricity dramatically increased. They said today’s reductions are attributable to the ability of CL&P and UI to purchase power at lower cost due to the decline in natural gas prices and to a decrease in congestion fees.
Earlier this year, the General Assembly was able to abandon plans to use part of the competitive transmission assessment, CTA, in order to pay off $1 billion in Economic Recovery Notes to help balance the 2011 state budget.
The CTA was a fee Connecticut Light & Power and United Illuminating levied on consumers for 12 years in order to pay them back for getting out of the generation business. The need to retain a portion of that fee to pay of the Economic Recovery Notes, was abandoned by the General Assembly, but not before it collected $40 million from CL&P customers.
Lawmakers abandoned plans to give the money back to ratepayers, despite attempts by Sen. Joseph Markley, R-Southington, to find some way to refund the money. The portion of the assessment the state initially sought to retain was collected from CL&P customers from Jan. 2011 until passage of the state budget in May.
Tags: electricity, competitive transmission assessment, kilowatt hour, meter, rate
(5) Comments
posted by: Noteworthy | November 29, 2011 11:09am
oooo. What a warm fuzzy. Now I can take that $9 and pay my double taxation on each gallon of gas, and my higher income taxes to keep state workers well paid and nourished; and I can take a portion of that money and pay my higher sales taxes too.
That lawmakers kept the $40 million they stole from CL & P customers really takes the cake. Maybe the Cookie Monster can defend that decision.
posted by: Careful | November 29, 2011 11:46am
Once CL&P and UI get reimbused for storm loss costs—Connecticut will lead the country in electric rates.
posted by: Disgruntled | November 29, 2011 1:20pm
This is excellent news!
WHEN I have power (about 48 weeks a year) it will cost me a bit less.
This rate cut will help me replace the rotten food in my freezer and refrigerator.
Give those CL&P folks a bonus!
posted by: ... | November 29, 2011 4:32pm
Now if only those would stay down, it would be a further benefit to CT businesses that are still struggling, or are unsure of hiring additional workers. The decline in prices for natural gas and congestion fees has been a trend that has yet to see a serious hindrance. As innovations in delivery and extraction are made in this sector of our national economy, we may finally get a bit of a break from being in the absolute top of the rate-paying tiers.
posted by: NOW What? | December 1, 2011 2:45am
jonessAC12 - I wouldn’t count on that if I were you. At least not as long as CT continues on with its current power distribution and procurement systems; both need to be completely overhauled if CT and its rate-payers are to ever see any real and lasting electricity rate reductions - especially relative to those of other states - *regardless* of the month-to-month fluctuations in the cost of fossil fuels.