Could CT Consumers See Their Electric Price Drop?
It’s impossible to deny that CT electricity rates are way too high. We can pay close to $200 a month just to keep our homes powered and comfy. And that doesn’t even cover summer and winter costs! But recently, CT lawmakers have passed a bill that may give customers the break they need. Here’s what you need to know about Senate Bill 4 and how lower the price on your electric bill.
What’s In SB4?
The final draft of Senate Bill 4 (SB4) passed through both the state house and senate with overwhelming support. The bill, aimed at improving energy services and lowering bills, then went to Governor Lamont’s desk to be signed into law.
SB4 sets rules to contain and reduce costs that are passed along to residents through their bills. This includes CT’s public benefits charge as well as lowering subsidies for solar and renewable energy sources. It also promotes grid technology improvements to improve stability and reliability. Finally, the bill gives utilities more options to purchase power at cheaper rates for their customers.
How SB4 May Lower Electric Price
As you can guess, the modest rate relief is one of the most important parts of this bill.
All told, SB 4 is expected to save CT customers between $325 million and $350 million over the next two years. To put this in perspective, it would save around 1 to 2 cents per kilowatt-hour (kWh). An average CT homes uses about 591 kWh per month. So, the savings equal about $6-12 per month or around $100 per year!
This program is paid, in part, through bonds to cover costs of public benefits programs. These also include debt from unpaid bills that came up during the COVID-19 pandemic. Other bonds would pay for storm costs and installing advanced metering technology. CT customers would pay for these bonds through the public benefits charge. However, the charges would be spread out over a longer period of time at lower interest rates than the current laws. So, while the public benefits charge will remain, but it will likely cost less.
CT Utility Rate Drops
Meanwhile, Eversource customers have even more good news to look forward to.
Recently, the utility filed their summer default service rates. Starting in July, Standard Service rates will drop to 9.748 cents per kWh. This is about 13% less than the current rate of 11.190 cents per kWh. So, an average month’s supply charge for 591 kWh will fall from about $66 to $57! These rates are set to last until the end of December, 2025.
Shop For the Best Electric Price
Lawmakers predict welcome rate relief once SB4 is signed into law. However, lower Standard Service rates mean electricity supplier rates will need to come down to stay competitive. So, CT consumers definitely can save more if they shop around for the cheapest rates in town.
You can start shopping right here at https://www.ctenergyratings.com. We’re also your best source for news and tips that could affect your bills.