Will Your Electric Rate Rise This Spring?
Both Eversource and UI have filed to raise rates starting this spring. This means that your CT electricity bills may become considerably higher than is normal for the warmer months. But it begs the question, “can we still shop for the cheapest electric rates“? Let’s talk about what’s in the big CT utility rate hike requests.
What Will CT Rate Hike Affect?
First, the recently filed electricity rate hikes do not affect the generation charges for the energy you use each month. Instead, it is part of the delivery charges that CT utilities pay to maintain the energy grid.
If PURA approves the request, then starting this May, Eversource customers would see bills rise by about $38 a month. Meanwhile, UI customer bills would rise by about $26 a month. These estimates assume the CT state average of about 700 kWh of energy used each month.
Why Are CT Rates Rising?
The rate increases are said to be a result of policy changes adopted in the state over the past few years.
For instance, more than three-quarters of the hike is a result of a 2019 deal where CT agreed to guarantee the Millstone nuclear power station a minimum rate for 10 years. This deal prevented Dominion Energy, MIllstone’s owner, from shutting down the plant. Eversource claims that the mandate has cost them over $600 million.
In addition, the hike intends to recoup costs for unpaid bills from the pandemic. For example, families that suffered financial losses during the pandemic were protected by CT’s moratorium on service shutdowns.
What You Can Do Today
Because these are distribution charges, all CT electricity customers will have to pay the increased rates. That’s still true even if your home is served by a third-party energy supplier. On the other hand, energy supplier plans can save you money, especially if you lock in a long-term fixed rate. Right now, we’re in the milder spring shoulder month period. This is when energy demand and prices tend to be low.
While we can’t fully predict where energy prices will be later this year, there is a chance that a La Nina could form. If that happens, then the US North will likely see a much colder winter than last year. And that means the potential for high energy demand to drive up prices unless you lock in to cheap rates today!
Beat The Utility Rate Hike
The possible rate hikes could lead to bigger bills starting in May. But you can offset the costs if you act now. That’s because prices are low so now is the best time to find cheaper rates. And you can always count on https://www.ctenergyratings.com when you’re shopping for the best prices in town. You can also visit us for all the news that could affect your bills.