Starting July 1, Eversource Energy customers in CT will see an increase in their monthly electric bills, despite a significant drop in the cost per kilowatt hour (kWh) of electricity. The utility company has submitted a rate filing to state utility regulators, proposing electric rates for the second half of 2024 that will be nearly $48 higher per month for many average residential customers.
Rate Changes and Bill Impact
The cost of electricity for Eversource’s standard service customers will decrease from the current rate of 14.71 cents per kWh to 8.99 cents per kWh. This reduction reflects a decline in market prices for electricity. However, the total monthly bill for the average residential customer, who uses about 700 kWh per month, will increase by about 4 percent. This rise is primarily due to an increase in the portion of the bill that covers state-required and approved programs and policies.
However, as 77% of Eversource’s customers have standard service, the remaining users have 3rd-party supplier and will see a much more dramatic increase. One of the key factors driving the overall bill increase is the Public Benefits charge. Eversource proposed synchronizing the increase in this charge with the decrease in the electricity supply rate to mitigate the impact on customers. The Public Benefits charge will rise by nearly $48 per month for all residential customers and will be collected through May 1 of the following year. This increase represents the largest ever in public benefits charges, according to Jamie Ratliff, a spokeswoman for Eversource.
Steve Sullivan, Eversource’s president of electric operations in Connecticut, noted that while the drop in electricity prices is beneficial, the overall bill increase due to the Public Benefits charge is unavoidable and driven by market forces outside of the company’s control.
State Senator Norman Needleman, chairman of the General Assembly’s Energy and Technology Committee, described the rate changes as a move towards normalizing electric bills after the economic disruptions caused by the COVID-19 pandemic and the war in Ukraine. He expressed hope that supply rates will continue to stabilize and that the Public Benefits portion will normalize over time.
Looking Ahead
Eversource has proposed several solutions to the Connecticut Public Utilities Regulatory Authority (PURA) aimed at providing bill stability. These proposals are part of the company’s broader efforts to help customers manage their energy costs in the face of market volatility.
While the decrease in the electricity supply rate is a positive development, the increase in the Public Benefits charge will still result in higher overall bills for most customers. Eversource and state officials continue to work towards finding ways to balance these costs and provide relief to ratepayers.
