Connecticut Electricity Rates

Connecticut’s electricity market presents a complex landscape for consumers, with rates among the highest in the nation. As of June 2024, the state’s average residential electricity rate stands at 27.98/kWh, making it the 5th highest in the United States. This comprehensive guide will help you understand Connecticut’s electricity landscape and how to leverage Energy Choice to potentially reduce your costs.

At ElectricityRates.com, we’re committed to helping Connecticut residents make informed decisions about their energy supply. Our platform provides up-to-date information and tools to compare rates from various suppliers, ensuring you have the resources you need to navigate the state’s electricity market effectively.

Average Connecticut Electricity Costs

Connecticut residents are strapped with some of the highest electricity rates in the country. The average residential rate is 27.98¢ per kWh, compared to the national average rate of 16.34¢/kWh. The states average monthly electricity bill is $176.10, almost $60 more per month than the national average monthly bill of $117.37.

27.98¢

Average Rate per/kWh

716 kWh

Average Usage per month

$176.10

Average Cost per month

HOW DOES THIS COMPARE NATIONALLY?

7th Highest

Average Rate

36th Highest

Average Usage

2nd Highest

Average Cost

These high rates are the result of several interacting factors:

1. Limited natural gas supply: Despite the increasing reliance on natural gas for electricity generation, Connecticut faces constraints in its natural gas infrastructure. This limitation can lead to higher prices, especially during peak demand periods.
2. Infrastructure constraints: The state’s aging electrical grid and the need for upgrades contribute to higher operational costs, which are ultimately passed on to consumers.
3. Stringent regulatory environment: Connecticut’s commitment to environmental protection and energy efficiency, while beneficial in many ways, can result in additional costs for utilities and energy suppliers.
4. Diverse energy source mix: While Connecticut is working towards increasing its renewable energy portfolio, the transition period and the current mix of energy sources (including nuclear, natural gas, and renewables) contribute to the overall cost structure.
Understanding these factors is crucial for Connecticut residents looking to make informed decisions about their electricity supply and potentially reduce their energy costs.

Energy Choice Program in Connecticut

Since 1998, Connecticut has operated under a deregulated electricity market, thanks to Public Act 98-28. This Energy Choice program, also known as electricity deregulation, has fundamentally changed how residents and businesses purchase their electricity.

How Energy Choice Works

1. Separation of services: Under Energy Choice, the supply and delivery of electricity are separated. While your local utility still handles the delivery of electricity and maintains the infrastructure, you have the freedom to choose your electricity supplier.
2. Supplier options: Multiple electricity suppliers compete for your business, offering various plans and rates. This competition is designed to drive innovation and potentially lower prices.
3. Utility role: Your local utility (Eversource Energy or United Illuminating) continues to deliver electricity, maintain power lines, and respond to outages, regardless of your chosen supplier.

Benefits of Energy Choice

• Potential cost savings: By comparing rates and plans from different suppliers, you may find options that are cheaper than your utility’s standard offer.
• Customized plans: Suppliers often offer plans tailored to different needs, such as fixed-rate plans for stability or green energy plans for environmentally conscious consumers.
• Innovation in energy products: Competition encourages suppliers to develop new and innovative energy products and services.

Consumer Protection

The Public Utilities Regulatory Authority (PURA) plays a crucial role in overseeing the Energy Choice program:

• Licensing and monitoring electricity suppliers
• Ensuring fair marketing practices
• Providing resources for consumer education
• Addressing customer complaints and disputes

At ElectricityRates.com, we work only with licensed suppliers vetted by PURA, ensuring that you have access to reliable and trustworthy energy options.

Understanding Your Connecticut Electricity Bill

Deciphering your electricity bill is key to making informed decisions about your energy supply. Connecticut electricity bills typically consist of two main components:

1. Delivery Charges

• Set by your utility company (Eversource Energy or United Illuminating)
• Regulated by PURA
• Covers the cost of transmitting and distributing electricity to your home
• Includes maintenance of power lines, transformers, and other infrastructure
• Usually includes a fixed monthly customer service charge

2. Supply Charges

• This is the portion you can control through Energy Choice
• Reflects the cost of generating or purchasing electricity
• Can vary based on your chosen supplier and plan
• May be listed as “Generation Services Charge” on your bill

Understanding the “Price to Compare”

The “Price to Compare” is a crucial figure on your bill:

• Represents your utility’s current supply rate
• Typically expressed in cents per kilowatt-hour (/kWh)
• Use this figure to evaluate offers from alternative suppliers
• If a supplier’s rate is lower than this price, you may save money by switching

Additional Charges and Fees

Your bill may also include:

• Transmission charges
• Distribution charges
• Public benefits charges (for energy efficiency programs)
• Competitive Transition Assessment (CTA) charges

By understanding these components, you can better evaluate your current electricity costs and compare them with offers from alternative suppliers.

Types of Electricity Plans in Connecticut

Connecticut offers several types of electricity plans to suit different needs and preferences:

1. Fixed-Rate Plans

• Rate per kWh remains constant for the duration of the contract
• Provides price stability and protection against market fluctuations
• Typically available in 6, 12, 24, or 36-month terms
• Ideal for budget-conscious consumers who prefer predictable bills

2. 100% Renewable Energy Options

• Electricity supply comes from renewable sources like wind, solar, or hydropower
• May be slightly more expensive but supports clean energy initiatives
• Often available as fixed-rate plans
• Appeals to environmentally conscious consumers

3. Indexed Plans

• Rates tied to a publicly available index (e.g., wholesale market prices)
• Can offer savings when market prices are low
• Carries more risk as prices can fluctuate monthly
• Suitable for consumers comfortable with some price variability

4. Time-of-Use Plans

• Different rates for electricity based on the time of day
• Encourages shifting energy use to off-peak hours for savings
• Requires smart meter technology
• Ideal for consumers who can adjust their energy usage patterns

Important Note on Variable-Rate Plans

Variable-rate plans have been banned in Connecticut since 2015 to protect consumers from unexpected price spikes. All residential plans must have a fixed rate for at least the first three billing cycles.

At ElectricityRates.com, we offer a variety of these plan types from multiple suppliers, allowing you to compare and choose the option that best fits your needs and preferences.

Major Utility Providers in Connecticut

Connecticut is primarily served by two major utility companies:

1. Eversource Energy

• Serves approximately 1.2 million electricity customers in Connecticut
• Coverage area includes 149 of the state’s 169 cities and towns
• New standard service rate: 8.99 cents per kWh (from July 1, 2024)
• Responsible for power distribution and infrastructure maintenance in its service area

2. United Illuminating (UI)

• Serves approximately 335,000 residential, commercial, and industrial customers
• Coverage area includes 17 towns and cities in the greater New Haven and Bridgeport areas
• New standard service rate: 11.91 cents per kWh (from July 1, 2024)
• Handles power distribution and infrastructure in its service territory

These utilities play crucial roles in Connecticut’s deregulated market:

• They maintain the electrical grid and respond to power outages
• They deliver electricity to all customers in their service areas, regardless of the chosen supplier
• They provide “standard service” rates for customers who don’t choose an alternative supplier
• They work with alternative suppliers to ensure smooth billing and service transitions

While you can’t choose your utility company, you can choose your electricity supplier through ElectricityRates.com. This allows you to potentially secure better rates while still receiving reliable service from your local utility.

Selecting an Electricity Supplier

Choosing the right electricity supplier is a crucial decision that can significantly impact your energy costs. Here’s how to approach the selection process:

Factors to Consider:

1. Rate Comparison: Compare the supplier’s rate to your utility’s “Price to Compare.” A lower rate could mean savings.
2. Plan Type: Decide between fixed-rate, renewable, or indexed plans based on your preference for price stability or potential savings.
3. Contract Length: Consider how long you’re willing to commit. Longer contracts often offer lower rates but less flexibility.
4. Fees: Look for any sign-up fees, early termination fees, or monthly service charges that could affect your overall costs.
5. Renewable Energy Options: If environmental impact is important to you, consider suppliers offering green energy plans.
6. Customer Service: Research the supplier’s reputation for customer service and billing accuracy.
7. Additional Perks: Some suppliers offer rewards programs, energy-saving tools, or other value-added services.

Using ElectricityRates.com to Compare Suppliers

At ElectricityRates.com, we simplify the comparison process:

1. Enter your ZIP Code to see available suppliers and plans in your area.
2. View side-by-side comparisons of rates, contract terms, and plan features.
3. Read customer reviews and ratings for different suppliers.
4. Access educational resources to help you understand different plan types and terms.
5. Easily switch to a new supplier directly through our platform.

Red Flags to Watch Out For

• Extremely low introductory rates that increase dramatically after a short period
• Pressure to sign up immediately without reviewing terms
• Lack of clear information about rates, fees, or contract terms
• Unsolicited door-to-door sales or high-pressure phone tactics

Remember, all suppliers listed on ElectricityRates.com are licensed by PURA and adhere to strict consumer protection guidelines.

Renewable Energy in Connecticut

Connecticut has made significant strides in promoting renewable energy, offering residents more green options than ever before. Understanding the state’s renewable energy landscape can help you make environmentally conscious choices about your electricity supply.

Connecticut’s Renewable Portfolio Standard (RPS)

Connecticut has set ambitious goals for renewable energy adoption:

• By 2030: 40% of the state’s electricity must come from renewable sources
• By 2040: 100% zero carbon electricity supply

These targets drive investment in renewable energy and increase the availability of green energy plans for consumers.

Breakdown of Electricity Generation Sources

As of 2024, Connecticut’s electricity generation mix includes:

• Natural Gas: Approximately 50%
• Nuclear: About 40%
• Renewable Sources: Around 10%, including: Solar, Wind, Hydroelectric, and Biomass

Benefits of Choosing Green Energy

• Reduce your carbon footprint
• Support the growth of renewable energy industries
• Potentially stabilize long-term energy costs as renewable technologies improve
• Contribute to improved air quality and public health

Considerations When Choosing Green Plans

• Rates may be slightly higher than conventional plans
• Verify the source of renewable energy (local vs. national projects)
• Check if the plan uses RECs or direct renewable energy purchases

By choosing a green energy plan through ElectricityRates.com, you can support Connecticut’s renewable energy goals while potentially saving on your electricity costs.

Business and Commercial Electricity Rates

Connecticut businesses face unique challenges and opportunities in managing their electricity costs. As of May 2024, the average commercial electricity rate in Connecticut is 19.37 /kWh, significantly higher than the national average for businesses.

Energy Choice for Businesses

The Energy Choice program offers substantial benefits for Connecticut businesses:

1. Potential for Significant Savings: Due to higher usage, even small rate differences can lead to considerable cost reductions.
2. Customized Plans: Suppliers often offer plans tailored to specific business needs and usage patterns.
3. Budget Certainty: Fixed-rate plans can provide predictable energy costs, aiding in financial planning and budgeting.
4. Energy Management Solutions: Many suppliers offer tools and services to help businesses optimize their energy usage.

Types of Business Electricity Plans

1. Fixed-Rate Plans: Offer price stability for the duration of the contract.
2. Indexed Plans: Rates tied to market indicators, potentially offering savings in favorable market conditions.
3. Block and Index Plans: A portion of usage is fixed-rate, while the remainder follows an index.
4. Green Energy Plans: Support renewable energy while potentially benefiting from long-term price stability.

Considerations for Business Customers

• Usage Patterns: Analyze your business’s energy consumption to choose the most suitable plan.
• Contract Length: Consider your business’s long-term plans when selecting contract duration.
• Demand Charges: Be aware of how demand charges (based on peak usage) affect your total costs.
• Additional Services: Look for suppliers offering energy audits, efficiency recommendations, or load management tools.

How ElectricityRates.com Can Help Businesses

At ElectricityRates.com, we offer specialized services for business customers:

• Comparison tools tailored for commercial energy needs
• Access to business-specific plans and rates
• Resources for understanding complex business electricity contracts
• Assistance in navigating the procurement process

By leveraging Energy Choice through ElectricityRates.com, Connecticut businesses can potentially reduce one of their most significant operating expenses while accessing innovative energy solutions.

Connecticut Electricity Frequently Asked Questions