Consider Summer UI Rate
Smart energy shopping is all about saving money on electricity rates. That’s why all energy customers should check out the price to compare (PTC). Higher natural gas prices are raising electricity prices all across the country. Many local utility companies are passing on these higher rates to their PTC customers. Fortunately, UI’s residential customers can expect slightly cheaper PTC rates this summer. However, UI will be imposing a rate hike on small businesses.
UI Rate Hike 2022
UI’s general service (GS) PTC rates are currently 9.9109 cents per kilowatt-hour (kWh). These rates were set in January of this year and were set to last until June 30. Compare this to the residential rate of 10.6731 cents per kWh.
Usually these rates drop after the spring shoulder months (March-April). And they do for residential rates, which have a tiny drop to 10.62 cents per kWh (~ .49% drop). But small business rates are spiking to 10.6607 cents per kWh (about an 8% increase).
While this is good news for anyone working from home, restaurants, traditional offices, and other small businesses will have to deal with higher energy bills.
What Caused the UI Rate Hike?
This rate hike is odd. Especially since gas production is on the rise. So rate hikes might not make sense.
However, in a recent Natural Gas Weekly report, the EIA writes that, “Most prices along the Gulf Coast rise as a result of forecasts of higher temperatures and rising air conditioning demand.”. In other words, higher than normal temperatures could lead to heavier AC use, which means larger electricity bills.
And this isn’t an unreasonable prediction. Especially since UI’s new PTC rates are coming before a potentially hot and rainy season. Which means even more money spent on AC costs. And keep in mind that these rates last through to the end of 2022.
Consider Small Business Choice
Because these rates will go up on June 1, it means that right now is the time to shop for better rates. Today’s deals could vanish tomorrow because there’s no telling where third party supplier rates will be in the next few months. Small business owners should keep in mind that some energy companies add value with discounts, rebates, and other benefits that are worth considering. Best of all, since CT no longer allows early termination fees (ETFs), you are free to cancel or switch for better deals that might be around the corner.
CT Customers and UI Rates
The shoulder months are over and in less than two months, so will current PTC rates. And if EIA predictions come true, electricity rates may rise even higher. But small business owners can save some money by shopping now for the best electricity rates. It’s especially smart shopping to keep an eye out for rates that come with money saving benefits.
WCT customers can keep up with the news that affects your bills at https://www.ctenergyratings.com. You can also shop for great plans and find ways to save money on lower electricity rates.