CT Electric Rates May Rise In 2027
The next few years may get even harder for CT electricity customers. CT’s largest electric utility, Eversource, has warned that another rate hike could be coming in 2027. That means CT electricity rates, already known to be some of the highest in the country, could climb even higher. But why is the utility asking for more money? More importantly, what can you do about this 2027 Eversource rate hike?
How High is the Eversource Rate Hike?
In a recent letter to CT lawmakers, Eversource warned that they may raise distribution rates to recover $3.2 billion. The utility calculates that a home using 700 kilowatt-hours (kWh) per month would see their bills rise by over $40 per month. Of that, $25 would be permanent while the rest would phase out over a 6 year period.
This new hike falls on top of the 7.2% rate increase from this past January. Also, much like the January increase, this rate hike would affect the distribution part of your bill. As a result, all CT Eversource customers would see this added on to their electricity bills. Currently, an average home pays a little over $56 per month in distribution charges. With the new rate hike, that goes up $40 to around $97 and it doesn’t include the energy used. Monthly bills could easily total close to $250.
Why Will Eversource Hike its Rate?
Eversource explains the rate hike by pointing to their investments into the grid. This includes $1.2 billion for storm recovery efforts over six years. In addition, the company wants $1.2 billion for smart meters to ensure accurate billing and outage reporting. Lastly, the company also wants a whopping $400 million for mandated grid upgrades.
Bear in mind, that it could have been even worse.
Back in 2003, Eversource estimated that it would cost $28 billion to bury one of every four miles of their CT power lines underground. While this could lower long-term maintenance costs and cut the risk for weather-related outages, PURA declared the cost too high.
While lawmakers recognize the need to bring down consumer costs, few seem ready to carve out a comprise that everyone can stomach. That’s especially true with the turmoil over PURA’s chair person, Marissa Gillett. Gillett, who has just been appointed to a second term, has continually stymied both Eversource and UI rate filings and become an energy policy lightning rod in the CT statehouse.
Cut Your CT Energy Costs
It’s too early to tell how Eversource’s $40 distribution rate hike will progress. But even if it’ s spread out over time, it still means bigger bills for struggling families. And in these uncertain economic times, that’s why it’s important to find ways to save energy and cut costs. Easy ways to do this include:
- Use a smart thermostat to turn your heat down at night or while you’re at work
- Caulk your windows and weatherstrip your doors
- Make sure your attic is insulated to reduce seasonal HVAC energy waste
- Replace old appliances with modern energy-efficient models.
You should also shop for the best electric rates in town. Locking in today’s fixed rate during the shoulder months can shield your wallet from rising supply rates. On top of that, some companies offer extra benefits including shopping and dining discounts.
There’s no better place to shop for cheap electricity rates than https://www.ctenergyratings.com. You can also count on us for news and tips that could affect your bills.