CL&P recently announced a price increase for the generation electricity supply that they charge to their customers. On January 1, 2015 residential customers in Connecticut who are on the CL&P standard service rate will experience a 16% increase from what they had been paying since July. The standard service rate applies to all customers who pay CL&P directly for the generation portion of their electric bill and therefore have not chosen an alternative electricity supplier through the Connecticut electricity choice program.
Customers on the standard service rate who are looking to avoid the 16% increase can do so by shopping for a competitive residential Connecticut electricity rate. As of December, the lowest competitive rates available in the market are yielding 22% savings versus the new CL&P standard service rate that will take effect in January. CL&P’s standard service rate, which had been set to $0.08228 since July of 2015, will shoot up to $0.09555 the second the calendar turns to 2016. Meanwhile, the lowest competitive rates are in the $0.075 to $0.085 range.
Competitive activity in the CL&P market has seen an arch since customer choice began in 2006. The number of active shopping customers peaked at 46.5% towards the end of 2012 when the standard service rate was at an all time high. Since that time the standard service rate has sea-sawed back and forth. In the first half of 2015 the rate was at $0.12629 before dropping to $0.08228 for the second half for an annual average of $0.104284. While the 2016 rate will start out slightly below the 2015 average, competitive rates are still substantially lower providing an easy way for CL&P customers to save money on their monthly electric bills.
Below are a list of current rate offers that can replace the standard service rate. All electricity companies are licensed by the state of Connecticut. The switch process happens on a computer, so customers do not have to worry about a repair person coming to their house to make a wire switch. THe end result is simply just receiving the same CL&P electric bill with a lower price.