When Could a UI Rate Hike Come?
We all know that CT electricity rates are some of the highest energy bills in the country. So smart energy shoppers keep an eye out for when rate hikes may be on the way. That’s why many CT customers are concerned with a recent PURA decision about United Illuminating revenue returns. But does this decision mean that your bills could rise? Here’s what you need to know about the rate hike that could come with the UI revenue return increase.
Why PURA Agrees to UI Revenue Increase
Back in 2024, UI filed a request for a $105.4 million increase in revenue, which includes a significant increase in distribution revenue. After much deliberation, PURA reached a decision that allows UI to increase annual revenue by about $68 million. The utility explains that they need the money to properly invest in the grid and make it more reliable. They further explain that the increase reflects rising operating costs including hardware upgrades and modernizing the grid.
As you can guess, a lot of this income would come from distribution charges. As a result, analysts expect that UI customer rates will rise in the future. The approved rates would be effective from November 1 of last year.
How Big Would a UI Rate Hike Be?
An increase would add more hardship for some CT households struggling to pay electric bills. During the recent harsh winter season, most CT homes used more energy than normal. Early estimates suggest that possibly by October, bills for 750 kWh of use could rise by around $10 a month.
PURA Decision Criticism
As you can guess, homeowners and many lawmakers are not happy about this decision. In fact, Attorney General William Tong called out the decision in a statement from March 3. He noted the decision removed penalties for the utility for failing to clean up contamination at English Station in New Haven.
What CT Customers Can Do
The PURA decision doesn’t automatically raise the UI distribution charge. However, it does make it more likely a UI rate hike is coming in the near future. And because this affects distribution charges, all UI customers will have to pay it.
However, you can lower your bills by saving energy and shopping for cheaper electricity rates. You can start shopping for cheaper rates right here at https://www.ctenergyratings.com. You can also count on us for news and tips that could affect your bills.