Eversource, United Illuminating announce unprecedented supply charge increase
Connecticut residents' utility bills will be much higher in the coming weeks. Both Eversource and United Illuminating filed for an unprecedented supply charge increase of nearly 50%.
The supply part of customers' bill is what will be going up, which is what Eversource and UI pay their suppliers for electricity. The delivery charge, their part of of the bill, will remain the same.
Both companies say this will increase customers' bill by about $84 a month.
Eversource says the main reason for the supply rate increase is because of the ongoing war in Ukraine. This has caused higher prices for oil and natural gas.
The increased market price of the natural gas means the supply rates on customers' bill are going to increase as well.
Eversource and UI want to make it clear that the standard service rate is passed on directly from their supplier to the electricity customers use, meaning they are not making any profits from this increased standard service rate.
Eversource is looking to raise rates and has asked the state Public Utilities Regulatory Authority to approve an increase that the company said could increase the bill for an average customer by nearly 50%, or $85 per month, on the supply portion of the bill.
Eversource said, if approved, the increased rates would be in effect from Jan. 1, 2023, through June 30, 2023.
This will impact the average Eversource residential customer using 700 kWh per month by increasing a monthly bill by approximately $84.85.
This will impact the average United Illuminating residential customer using 700 kWh per month by increasing a monthly bill by approximately $79.24.
Eversource and UI say there are resources available to help customers pay their bill.
Attorney General William Tong released a statement saying in part, "This is a massive increase that will be unaffordable for many Connecticut families and businesses. We pay far too much for our energy in Connecticut as it is, and these winter rates are nothing short of punishing. Both as a country and a state, we need to take a hard look at our energy sources and reduce our reliance on sources like natural gas that produce these wild, unaffordable surges in rates."