Will Eversource Electricity Costs Rise?
Bad news may be coming for CT energy customers, because Eversource wants you to pay for their storm costs. That means more of your money spent just to keep the lights on in your cozy home. But why could bills rise and how much will they hit your wallet? Let’s explore why Eversource is asking for $1.5 billion in storm costs.
Why Eversource Seeks $1.5 Billion for Storm Costs
Eversource increased standard service rates on January 1. So you may be wondering why the utility is asking for even more money. First off, the standard service rate only applies to customers who choose not to shop CT electric companies. However, PURA allows both Eversource and UI to charge all of their customers for repairs and maintenance to their delivery grids. In other words, the cost to fix their poles and wire.
But now as it turns out, the utility deferred $1.5 billion in repair costs from 43 storms between 2018 to 2023. On top of this, that amount rises by an estimated $8.1 million each month! Eversource hasn’t collected on this debt up to this point. However, they recently filed a request with the CT PURA.
How Much Could Electricity Bills Rise?
Obviously, Eversource can’t pay these costs all at once. Instead, the amount will be paid gradually with electricity bill hikes for at least the next few years. That’s why Eversource has urged PURA to convert the debt to securitized bonds. Eversource estimates that this would see the average bill rise by $1-$2 a month over the next 20 years. Without securitization, the debt would have to paid off within six years. As this would be part of the distribution charges all Eversource customers would pay about $10 more a month. To put this in perspective, the EIA estimates that CT bills in 2024 were around $199 a month!
Eversource’s Other Electricity Costs
Storm relief this isn’t the only reason bills could increase. PURA’s agreement with Eversource guarantees the utility a return on equity (profit) for their grid improvements. In 2025, it asked PURA for $209 million in profit, but only got $82 million. Plus, the utility warned lawmakers last April of possibly future distribution rate hikes approaching nearly $30 per month.
While it’s important to shop for the cheapest electricity rates, the price of electricity supply is only part of your bill. Knowing what goes into your monthly bill can also help you save money. That’s why it’s important to stay informed about CT electricity industry right here at https://www.ctenergyratings.com.