This just in from State Regulators:
The Connecticut Public Utilities Regulatory Authority approved on Monday, Nov. 28, reduced generation rates for residential and business customers taking Standard Service generation from Connecticut Light & Power or United Illuminating.
As a result of PURA’s action to approve requests submitted by the two companies, effective January 1, 2012:
- CL&P’s residential generation rate will decrease about 1.2 cents per kilowatt-hour (kWh), from the current rate of 9.482 cents/kWh to 8.279 cents/kWh. The generation cost for a CL&P residential customer using 750 k/h would decrease by about $9 a month.
- UI’s residential generation rate will decrease 1.8 cents/kWh from the current rate of 10.616 cents/kWh to 8.727 cents/kWh. The generation cost for a UI residential customer using 750 kWh would decrease by about $13.50 a month.
Similar reductions will be applied to generation rates for business customers taking standard service from the state’s two largest electric utility companies. CL&P business customers will see a reduction of about 1.4 cents/kWh while UI’s business customers will see a reduction of about 1.8 cents/kWh.
The generation rate – which recovers the cost to generate electricity at power plants – makes up more than 50% of the monthly electric bill for most residential users.
Other charges on electric bills that recover the cost to deliver electricity – which will be adjusted by the PURA for 2012 in December – include distribution and public benefit charges. Delivery costs also include transmission charges, which are set by the Federal Energy Regulatory Commission.
Approximately 53% of the Connecticut’s 1.5 million residential customers take standard service generation from CL&P and UI. The remaining residential customers have opted to have their electricity provided by other approved electric suppliers, which can further reduce generation rates for consumers.
Even though CL&P and UI’s generation charges are being reduced , consumers should consider all available generation offers to obtain the most suitable and cost effective plan for their household. Helpful information about choosing an electric supplier can be found at www.ctenergyinfo.com - just select Choosing An Electric Supplier.
PURA officials noted that generation charges have steadily declined since 2006 when the cost to generate electricity dramatically increased. They said today’s reductions are attributable to the ability of CL&P and UI to purchase power at lower cost due to the decline in natural gas prices and to a decrease in congestion fees
