Will UI Raise Customer Bills?
There’s nothing spookier this month except how high CT electricity bills can be. But it can still get worse for United Illuminating (UI) customers if the utility gets its way. UI has recently requested a staggering rate hike that could cost you big if their request is granted by the PURA. But if you’re looking for the lowest electric rates in the New Haven area, UI’s increase is pretty upsetting. So, let’s dig further into the UI 9% customer bill rate hike.
Why UI Requests 9% Rate Hike
Early this month, UI announced their rate hike request. UI states that they want to raise $105 million in new revenues and would have to raise rates by 9.3% to get it. The utility claims that the money would be needed to cover several infrastructure projects including rebuilding the Old Town substation.
However, this motive has come under fire.
You may recall that last year, PURA cut back UI’s $130 million revenue increase request to just $22 million. TYou may recall that last year, PURA cut back UI’s $130 million revenue increase request to just $22 million. In response, UI appealed the PURA decision in court. Then, late last year, UI requested an interim rate relief. PURA denied this request this past January. All the same, UI argues that deferring cost recovery has been behind the rate increase requests all along.
It’s important to note that this increase would affect the distribution part of your bill. This means that everyone would have to pay it, even if you get your electricity from a 3rd party energy supplier.
How Much Could UI Bills Rise?
The average CT home uses close to 750 kilowatt-hours (kWh) of energy per month. According to UI, this rate increase could add between $25 and $30 to the average bill. As you can guess, this amount could rise sharply during the summer and winter months when homes use more energy for heating and cooling.
The shocking part of this proposal is that UI only has about 341,000 customers. Despite this, these customers pay an average of $275 per month for their power!
Lawmakers Respond To UI Rate Request
Attorney General William Tong has called the UI requested hike tone-deaf, saying, “Electric rates are through the roof right now and consumers cannot afford to pay more.” As a result, the request will be deeply scrutinized for fairness. Thankfully, even if it is approved, the rate increase wouldn’t take effect until the end of next year.
Meanwhile, state lawmakers argue that the high bill problem will keep hitting CT customers. Many have urged Governor Lamont and state legislature to hold a special session to find lasting solutions to the energy cost crisis.
What UI Customers Can Do Today
Keep in mind that most US homes use nearly 3% less energy between 2015 – 2023. Despite this, bills have increased by 27% as utility rates rise more each year. So, while the UI rate hike plays out, UI customers may be able to cut down on their bills by shopping for cheap electricity rates. Right now, we are in the shoulder month period when CT rates tend to be at their best.
That’s why you should shop for the cheapest rates at https://www.ctenergyratings.com. You can also count on us for the news that could affect your bills.