Eversource Energy recently announced a price hike for their Connecticut customers on the default generation rate. All residential and business customers in Connecticut who are serviced by Eversource Energy, and who are not purchasing their power from a competitive electricity company, will be effected by the rate increase. Customers who are currently on the default rate can avoid the price increase and possibly even lower their current Eversource electric bills by shopping for lower competitive Connecticut electricity prices.
Formerly named Connecticut Light and Power, and still referred to by many as CLP Energy, Eversource Connecticut is the largest electricity utility in Connecticut delivering power to approximately 1.2 million customers. Through the Connecticut electricity choice law, Eversource is responsible for providing a default generation electricity price for all of their customers who have not selected a competitive electricity supplier. The default generation service rate is determined through an auction process that takes into account wholesale energy market prices during various points throughout the year. Eversource changes their Connecticut default rates twice a year on the first of the months of January and July.
The next default rate increase that will take place on July 1, 2017 will not be a huge price hike for residential customers. Eversource Energy of Connecticut has been charging their residential customers $0.07874 per KWh since January of 2017. The current rate will rise 1.77% to $0.08014 per KWh. Though the price hike is minimal, the amount of savings offered through Connecticut electricity choice is substantial as competitive suppliers are offering rates well below the current generation default rates. When a Connecticut electricity customer chooses a competitive generation supplier, the rate offered by the competitive supplier replaces the Eversource default generation rate. As a result, if a customer can find a competitive price lower than the default price they will be able to achieve savings on their monthly Eversource Connecticut electric bill.
Connecticut businesses face a larger increase on July 1 as the commercial default rate will increase by 7.5% from the current price of $0.07733 per KWh to $0.08313 per KWh. As is the case with the residential customers, commercial customers can avoid the price increase by shopping for competitive Connecticut commercial electricity rates. Competitive Connecticut electricity suppliers will offer rates to businesses depending on the size of the customer and how much power they consume. Unlike the residential market where suppliers offer the same rate to all customers no matter how big their home, commercial customers often get more individualized pricing structures.