Representatives from United Illuminating filed its proposed 2026 Rate Adjustment Mechanism (RAM) with the state’s regulatory authority Friday, announcing that they expect its customers to see an estimated 11 percent drop in their monthly electric bill starting in May.
If approved by the Public Utilities Regulatory Authority, the rate changes would take effect May 1. The 11 percent decrease equates to about a $27.89 drop for a typical residential Rate R (UI customers who are charged the same price for electricity no matter when it is used) using 700 kilowatt hours.
Friday’s filing is UI’s annual RAM, through which the state’s electric utilities go over actual costs and revenues from the previous year and submit these reports to the state for review.
The drop in the proposed rate, according to the company, is due to the reductions in the public benefits charge listed on consumers’ monthly bills. The charge includes the NBFMCC (the Non-bypassable Federally Mandated Congestion Charge) and the systems benefit charge.
These funds collected through those charges support renewable energy contracts, incentives for energy efficiency, renewable energy initiatives, Operation Fuel, and assistance for customers struggling to pay their electric bills.
“While this is great news for UI customers, we recognize this adjustment may be a short-term benefit, which is why we continue to advocate for long-term policy changes that will reduce the burden on our customers’ electric bill,” US spokesperson Angela Baccaro said. “As always, we remain committed to providing safe and reliable service at an affordable price.”
Last summer, the state Bond Commission voted to allocate $155 million to reduce the cost of the public benefits charge. Around the time that bonding was released, it was announced that another round of state bond funding was expected to be released this year that will help another round of reductions in the public benefits charges after the current one expires.
UI representatives also identify power purchase agreements with Millstone and Seabrook nuclear power plants that resulted in credits to consumers.
Gov. Ned Lamont said during his State of the State Address earlier this month that the Millstone contract is returning more than “$100 million to ratepayers this year as the price of natural gas skyrockets.”