Connecticut

How Electricity has been Changing Since 2000 in Connecticut

Since 2000 Connecticut has had the opportunity for their homes and businesses to choose deregulated electricity. However, it wasn’t until 2005 that people really started to take advantage of this deal. Since then, over 450,000 residents (over 30% of Connecticut’s population) have compared providers and made the switch.

The powerhouse service providers in Connecticut before electricity deregulation really took hold were Connecticut Light & Power and The United Illuminating Company.  Both companies are engaged in the purchase, transmission, distribution and sale of electricity and related services to the residential, commercial and industrial customers in different areas of Connecticut. However, with deregulated electricity other providers are available for the distribution aspect of the electricity sale.

When executed correctly, switching providers more or less guarantees that a household will save money. There’s no change to the electrical wires or the physical bill; the only real difference for customers of alternate providers is that they pay less money for electricity every month! Remember, you might be switching electric companies for the distribution of your electricity, but CLP or UI will still be the companies coming to fix power outages or working with you for any customer service needs you might come across. Those companies still supply the electricity your house uses – what you’re changing is simply the price amount on the bottom of your monthly bill!

Watch your Rates

Rates are important, but the rate you see advertised isn’t necessarily the one you’ll be paying for the duration of your contract. Here are some questions to ask about the new electricity contract you’re signing.

• How will the rate change each month?
  • Does it stay the same or vary with the market? A variable-rate plan is going to save you money relative to your existing plan—but maybe a fixed rate would be better than both.
• How long does the contract last?
  • Six months, one year, two years, or longer? You have to decide how long you’ll want to stay with this specific company with these specific terms.
• Does the company offer a signup bonus? Will this bonus have been worth it after the full contract with this company?
• Where does your electricity come from?

Understanding how your rates might change throughout your contract is essential for optimizing the deals available with changing providers. In addition to understanding the differences between contract rates, you also need to understand the difference between regular and green electricity providers, and compare renewable electricity options.

Consumers who choose green electricity service providers put pressure on utility companies to:

• increase the amount of green energy they purchase from the pool, which lowers the amount of non-green energy they buy (so decreasing the amount of non-green energy they purchase);
• directly develop new green energy sources if insufficient are available; or
• or contract with a third party green electricity service provider to obtain renewable energy, which will support construction of more green energy facilities.