How Low Will CT Rates This July?
Recently, Eversource and UI announced they are cutting their summer standard service rates. This comes as welcome news to families who were expecting big bills due to home cooling costs. But Eversource has also filed new rate cases that could see distribution rates rise. Why is this happening and how will it affect you when you shop for the best electric rates? Let’s see why Eversource and United Illuminating rates are falling and the facts about the new rate case.
Summer Electricity Rates Fall In July
On May 15, Eversource and UI announced that their standard service rates would drop this summer. Eversource filed a notice that its rate would drop from 12.64 cents per kilowatt-hour (kWh) to 11.58 cents per kWh. This represents a 4% drop in energy prices. For the average customer using using 700 kWh per month, Eversource calculates a savings of $7. Similarly, UI rates will fall from 13.69 cents to 11.99 cents per kWh. At a 5.67% drop, the utility calculates the average customer will save $12 on their bill. Either way, when you fire up your AC this summer is that you’ll pay less per kWh. However, consumers should note that this only affects these utilities’ summer rates. Rates could rise this winter.
Third party electricity rates may fall as well, but there’s no guarantee. However, it’s possible the electric companies may feel the pressure and do likewise.
Could CT Bills Increase This Summer?
The standard service rate drops only affect the supply portion of your bill. Unfortunately, utilities use the distribution rate charge for grid upgrades, storm repairs, and to make a profit. The reason for mentioning it here is that Eversource has recently filed for an 11% increase to their distribution rate.
According to the utility, the $503 million rate hike helps the utility keep the grid reliable while keeping up with inflation. Depending on results, distribution charges may rise to anywhere from $4 a month to $12 a month for the average customer.
It’s interesting to note that this is the first rate increase Eversource has filed in nearly a decade. Since 2021, the utility was barred from raising their distribution rate through 2024 as a result of a settlement agreement over its inadequate response to Tropical Storm Isaias. All told since 2018, the utility has invested $3.3 billion into the CT grid. Of that, it still seeks to recover $600 million from customers.
We don’t yet know if PURA will approve an Eversource rate hike. But if they do, it would go into effect on July 1, 2027.
Lower Summer Energy Bills
In the short term, CT customers can expect cheaper rates. You can make the most out of these rates by saving energy when you can, especially when it comes to keeping cool.
But you may also find savings if you shop for cheap rates at https://www.ctenergyratings.com. We’re also your best source of tips and news that could affect your bills.