{"id":528,"date":"2020-05-21T15:55:59","date_gmt":"2020-05-21T20:55:59","guid":{"rendered":"http:\/\/www.ctenergyratings.com\/blog\/?p=528"},"modified":"2020-05-21T15:55:59","modified_gmt":"2020-05-21T20:55:59","slug":"eversource-default-electric-rate-falls","status":"publish","type":"post","link":"https:\/\/www.ctenergyratings.com\/blog\/eversource-default-electric-rate-falls\/","title":{"rendered":"Eversource Default Electric Rate Falls"},"content":{"rendered":"
\"Eversource's
Will Eversource’s July 1 rate decrease save you money over the long haul or will it just set you up to pay a higher CT electric rate this winter?<\/em><\/center><\/figcaption><\/figure>\n

Eversource Electric Rate Decreases<\/h2>\n

Good news is coming to Eversource customers this summer. Starting on July 1, the default service rate<\/a> falls 22% from 9.414\u00a2 per kWh to 7.375\u00a2. Assuming Connecticut electricity customers consume about 724 kWh per month<\/a>, that means customers on Eversource’s Standard Service \u00a0will see a reduced generation charge of about $53.40 per month.<\/p>\n

Unfortunately, smart CT electricity shoppers<\/a> shouldn’t kick back and relax because they’ve found a sure-thing. Quite the opposite. Because current energy pricing reflects larger economic trends, the one thing you can be certain about this summer is more uncertainty.<\/p>\n

The State of Natural Gas<\/h3>\n

Last winter, Connecticut and many states across the country, experienced a relatively mild winter<\/a>. Mild temperatures decreased demand on heating. Since most natural gas in the U.S. is used for heating, the slumping demand led to a surplus of natural gas supply<\/a>. As a result, the low demand and high supply now means that the country is practically swimming in natural gas. And because nearly half of Connecticut’s electricity<\/a> comes from natural gas generators, cheap natural gas has led to cheaper electricity rates.<\/p>\n

To be sure, business shut-downs from Covid-19 have impacted demand<\/a> for natural gas and electricity even more.\u00a0According to EIA data, the price for natural gas at New England’s Algonquin Citygate<\/a> went from $2.15 mmBTU in January to \u00a0$1.43 per mmBTU on May 20, 2020. Meanwhile,\u00a0New England daily electricity demand<\/a>\u00a0dropped from 305,700 MWh on January 1, 2020 to 246,678 MWh on May 20.<\/p>\n

In order to stay afloat, many U.S. natural gas producers are cutting back on production. The number of natural gas rigs in the U.S. is down by 56% from last year to just 80. So while there’s practically a lake of natural gas right now, it’s going to drain away sometime. Exactly\u00a0when<\/em> is uncertain. How long CT electricity supplier<\/a> rates stay low is also uncertain.<\/p>\n

Uncertain CT Electric Rates Ahead<\/h3>\n

Though Covid-19 has kept everyone home these past months, the increased residential usage hasn’t been enough to budge prices that much. That’s especially noteworthy given the summer cooling season is just getting started. NOAA predicts<\/a> Connecticut\u00a0and the rest of the east coast can expect higher than average temperatures of the next three months. NOAA’s outlook also predicts a higher than average precipitation. Combined with higher than average temperatures, \u00a0hot, humid weather could cause higher than normal demand for cooling.<\/p>\n

As businesses in the commercial and industrial sectors reopen, higher electricity demand will begin draining the current natural gas surplus. But just when<\/em>\u00a0the\u00a0burn-down for electricity\u00a0could all happen and how fast remains uncertain.<\/p>\n

CT Electric Rates Winter 2020<\/h3>\n

So don’t take it easy! There’s a lot of uncertainty ahead for CT electricity rates this winter. The one sure thing is it’s very likely that CT electricity rates<\/a> will begin increasing\u00a0sometime<\/em>\u00a0later this summer. As natural gas stores fall towards an average level by December, electricity prices will likely have risen even higher.<\/p>\n

Yet, while\u00a0Eversource’s planned July rate decrease is great for CT Standard Service customers that only applies until December. By January, Eversource may need to increase the standard service rate and their electricity customers might see a lack of options.<\/p>\n

Don’t get trapped. Savvy CT electric customers compare and shop<\/a> for the best long term electricity plans right now. By shopping and comparing the low price plans at\u00a0www.ctenergyratings.com<\/a>, customers can lock in the best low rate for their needs for the next 12 months or even longer. Not only will you save money over the long haul, but you’ll also shield yourself from possible Eversource rate increases and winter’s price spikes.<\/p>\n","protected":false},"excerpt":{"rendered":"

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