Residential customers should see their energy rates drop by an average of around $11 per month starting July 1, as both United Illuminating and Eversource have submitted their proposed rates with state regulatory authorities.
But representatives from both utility companies cautioned that despite the anticipated lower rates, increased usage due to the heat may mean customers’ costs won’t go down much if they aren’t careful to conserve energy.
Energy supply rates change twice a year, on Jan. 1 and July 1. Eversource and UI can only charge customers based on the cost to produce power.
United Illuminating announced its regulatory filing with the Public Utilities Regulatory Authority (PURA) on Monday. Standard supply rates are expected to drop by 13.1%. Residential customers on average will be paying an estimated $13.19 less for their monthly bills — a 5.24% drop from their current bills, according to the company.
Currently the UI supply rate for residential customers is 13.57 cents per kilowatt-hour (kWh). If PURA approves the proposed rates, the cost will go down to 11.68 cents per kWh, according to UI.
Eversource also announced a lower rate for residential customers, who will see a decrease of around $10 in their monthly bills— about 5%. If regulatory authorities approve its plan, Eversource’s rates will decrease from 11.19 cents per kWh to 9.75 cents per kWh starting July 1, the company stated last week.
These standard service supply rates are approved by PURA, which oversees the competitive process through which UI and Eversource supply electricity, which the companies then sell to consumers at no more or less than the actual cost of that supply.
UI President and CEO Frank Reynolds reminded customers that electric usage does tend to increase in the summer months with air conditioning running due to the heat, adding there are tips they can follow, such as weatherizing their homes or turning up the thermostat on cooler days.
According to a statement from Eversource, customers use about 35 percent more electricity during the summer months, and that percentage can be more if there are multiple heat waves.
Eversource President of Connecticut Electric Operations Steve Sullivan said through the statement that the lower rate does not always mean a lower bill for customers.
“How much electricity you use will ultimately determine your energy bill’s bottom line, which is why it’s a great idea to consider energy efficiency measures that can help reduce your usage,” he said.
While UI and Eversource provide standard service to Connecticut residents, those residents can shop for lower rates and opt for a third-party electricity supplier by going to EnergizeCT.com.