Dear Friends,
What Happened on My Energy Bill?
If your energy bill recently went up and you are asking why – and you have good reason – here is information on what is contributing to the change.
Recently, the Public Utilities Regulatory Authority (PURA), which makes decisions on electricity regulations in Connecticut, allowed Eversource and United Illuminating to recover funds it previously expended. There was not full agreement on what that recovery timeline looked like and the utilities pushed hard to see more immediate action – they ultimately won with two of three members voting to have the higher cost spread out over ten months, while the board chair wanted it spread over two years. The ten-month order will be in place through May 2025 and will likely add up to about $30 per month for many households.
What previously allocated funds?
About 77% of the current increase in the public benefit cost on your bill originates from the bipartisan agreement half a decade ago to save the Millstone Nuclear Power Station located in Waterford, CT. This effort came from a good place, with a need to shore up our state’s carbon-free energy resources and protect thousands of jobs in Connecticut.
Wait, what Millstone agreement?
From 2017 to 2019, lawmakers led passage of a bipartisan agreement between the state and the Millstone power plant. This agreement was put in place to protect Millstone, which generates nuclear energy – the only nuclear plant in Connecticut and the only multi-unit plant in New England. There were concerns that without this agreement, the plant’s financial viability would be at risk, which was important as it generates enough energy to light two million homes and represents 15% of New England’s power. The agreement preserved thousands of jobs in the state as well.
Under the Millstone agreement, the state’s electric distribution companies (Eversource and UI) must purchase half of the plant’s energy output through 2029. At different points in time, the rising and falling costs of natural gas and nuclear power have impacted the cost of energy in Connecticut, as 55% of New England’s energy is generated via natural gas. In some years, cheap natural gas made this deal operate at a financial loss, while the natural gas limitations and shutoffs that occurred at the start of the Ukraine-Russia conflict in 2022 made it financially advantageous for the state in that year.
Keeping Millstone open preserved not only state jobs but a zero-carbon energy source, as it generates 37% of the state’s energy, heavily contributing to the state’s goal of utilizing environmentally friendly fuel sources when possible. Its bipartisan support years ago came with a knowledge of fluctuation in the marketplace, and those fluctuations have come with cost over the years.
How to get support
Customers can pursue third-party suppliers to potentially reduce costs through reduced electric rates, while a rate board at www.EnergizeCT.com shows alternative rates shoppers can consider. The Office of Consumer Counsel also offers a guide to understanding the line items on your energy bill here. The legislature has passed a consumer protection measure that prevents the charge of penalties or fees associated with switching suppliers, so if there is a lower rate, it is advantageous to make the change. Because supply costs have recently dropped, in many cases the increase in public benefits charges can be offset by a reduction in the supply rates.
If you are struggling financially, call your power supplier before missing a payment if possible. Programs are available including financial hardship designations, which provide access to a Low-Income Discount Rate and payment arrangements for customers in need; energy assistance through the Department of Social Services; negotiated flexible payment arrangements for non-financial hardship customers; and energy efficiency programs offered by utilities to evaluate customers’ homes and provide rebates and discounts on needed improvements.
As both a Connecticut homeowner and business owner, I’m really getting a one-two punch on this increase and feel just as frustrated as I’m sure you are. I’ve recently changed suppliers to save some money and found the process of doing so to be quite simple and straightforward.
You can read more about this issue here, and if you have any questions, comments or concerns please don’t hesitate to reach out to my office – we are here to help.
Stay safe. Be well.
Christine