What Happened With My Energy Bill?

If your energy bill went up in July and you’re asking why, you have good reason. Folks statewide are getting unwelcome news when they open their bills – here’s why the increase is happening, and what you can do to shave a few bucks off your payments in the meantime.

Earlier this year, the Public Utilities Regulatory Authority, which makes decisions on electricity regulations in Connecticut, allowed Eversource and United Illuminating to recover funds it previously expended. The ten-month order will be in place through May 2025. The amount will add up to about $30 per month for many households.

These previously allocated funds, about 77% of them, come from the 2017-2019 Millstone agreement, a Republican-led bipartisan agreement that was intended to preserve the Millstone Nuclear Power Station located in Waterford. The effort came from an effort to protect thousands of Connecticut jobs and shore up and improve Connecticut’s access to carbon-free energy resources.

The Millstone agreement was put in place and received bipartisan support amid concerns that without the agreement in place, Millstone’s financial viability would be at risk. Millstone is the only nuclear power plant in Connecticut and the only multi-unit plant in New England; there were concerns that without the agreement moving forward, the source of enough energy to light two million homes and 15% of New England’s total power generation would struggle.

Under the Millstone agreement, Eversource and UI must purchase half of the power plant’s energy output through 2029, which has had a varying cost based on the cost of energy in Connecticut. Our state uses natural gas for 55% of its total energy generation, and in some years, natural gas being much cheaper caused the deal to operate at a financial loss. In some years, like the natural gas limitations and shutoffs occurring at the start of the Ukraine-Russia conflict in 2022, it became financially advantageous.

The agreement to keep Millstone open preserved zero-carbon energy generation in our state as well as jobs. Millstone generates roughly 37% of Connecticut’s energy, heavily supporting state goals of environmentally friendly fuel generation whenever possible. When it was being debated, fluctuation in the marketplace was expected, and costs have shifted over the years.

Where does that leave you as a consumer? Third-party electricity suppliers at www.EnergizeCT.com often offer alternative rates for shoppers to consider, many of which are likely lower than current electric rates. The Office of Consumer Counsel also has a guide to understanding your energy bill better.

Those struggling financially are asked to call power suppliers before missing payments if possible. Aid programs are available including financial hardship designations, which provide access to a Low-Income Discount Rate and payment arrangements for customers in need; energy assistance through the Department of Social Services; negotiated flexible payment arrangements for non-financial hardship customers; and energy efficiency programs offered by utilities to evaluate customers’ homes and provide rebates and discounts on needed improvements.

Posted by Joe O’Leary