Are CT Electric Bills Still Crazy?
Many CT energy customers struggle with their high electricity bills from the state’s two main electric companies. For many, the situation seems to get worse and worse every month. It leaves many to wonder “why are CT electric bills so high”? As it turns out, the answer might be found if we look back at the year 2017. Let’s talk about CT electric bills and why consumers still seek relief.
What Causes High Electric Bills?
It can’t be denied that CT has a problem with high electric bills. And the problem has only gotten worse with the new public benefits charge on our bills. In fact, the charge has seen standard offer rates rise by nearly $2 and $8 for UI and Eversource customers respectively!
The charge intends to cover costs for state-required programs and policies. This includes paying for the moratorium on shutdowns for families who couldn’t pay their bills during the pandemic. But when you break down the charges, it turns out that nearly 80% of it comes from a 2017 deal made with the Millstone Power Station.
To explain briefly, UI and Eversource are required to purchase a certain amount of power from Millstone at a price that benefits the power plant. This was done for fear of the power station closing down because of the high cost of nuclear power at the time. While this deal has saved CT money in the past when natural gas prices were high, it costs consumers more when natural gas prices are low. In effect, the public benefits charge passes on these costs to customers.
CT Consumers Seek Relief
As you can guess, no one is happy with these rate hikes. Especially when you consider the need for cheaper electricity rates in lower income communities. That’s why Governor Ned Lamont has been meeting with legislators to discuss electric rate relief.
In one meeting, legislators considered how leftover funds from the American Rescue Plan Act (ARPA) could be used. This money could provide money to help pay down the $200 million owed to CT utilities. In effect, this could lower the impact of the public benefits charge in the short term.
Lawmakers also discussed saving a few dollars by cutting programs covered by the charges. As Senator Buckbee said, “…there are a lot of pieces of that that can come out of that right away.” In addition, lawmakers talked about spreading out the payback over a longer period of time, to reduce bill spikes.
Reporting suggests that long-term relief was also another topic. The measures above could mitigate the current problem, but they don’t do enough to address future energy cost problems. And those include the costs and environmental impacts of natural gas, and renewables such as solar and off-shore wind have not yet been discussed. Governor Lamont has been silent about offshore-wind. While, in the long-term, wind power could become a cheap alternative source, building off-shore wind farms won’t be cheap and worry-free.
How CT Consumers Can Find Savings
Most energy consumers aren’t involved in these major policy decisions. Right now, basic service rates are low. However, 3rd party energy plan rates may drop as we enter the fall shoulder months. Additionally, January basic service rates tend to be much higher than they are in July.
That’s why you should drop by https://www.ctenergyratings.com to shop and lock in cheap rates when they arrive. You can also count on us for the news that could affect your bills.