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Connecticut Electricity Rates
How to Compare Connecticut Electricity Rates in 2025
Key Takeaways
- High Electricity Rates: Connecticut's average residential rate of 33.25 cents per kilowatt-hour as of February 2025 is 55.9% higher than the national average. This significant difference makes understanding and leveraging the Energy Choice program crucial for potential savings.
- Energy Choice Program: Connecticut's deregulated market allows consumers to choose their electricity supplier. By comparing rates and plans on ElectricityRates.com, consumers can find competitive offers that could substantially reduce their electricity costs.
- Types of Plans: Connecticut offers fixed-rate, renewable, and indexed plans. Fixed-rate plans provide price stability, while renewable options support clean energy. Understanding these options is key to selecting the best plan for your needs and budget.
- Cost Reduction Strategies: Beyond choosing a competitive supplier, implementing energy efficiency measures and understanding your usage patterns can lead to significant savings. Regular plan comparisons and energy audits are effective tools for managing electricity costs.
Table of Contents
Why Switch Providers?
Average Connecticut Electricity Costs
Connecticut residents are strapped with some of the highest electricity rates in the country. As of February 2025, the average residential electricity price in Connecticut stands at 33.25 cents per kilowatt-hour, compared to the national average rate of 15.78 cents per kilowatt-hour. The state’s average monthly electricity bill is $176.10, almost $60 more per month than the national average monthly bill of $117.37.
How Does Connecticut Compare Nationally?
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33.25¢ Average Rate per/kWh as of 7th Highest Nationally -
716 kWh Average Usage per/mo 36th Highest Nationally -
$176.10 Average Cost per/mo 2nd Highest Nationally
Connecticut’s Electricity Landscape
Connecticut’s electricity rates are significantly higher than the national average, impacting both residential and business consumers. These high rates result from a combination of factors, including limited natural gas supply, infrastructure constraints, a stringent regulatory environment, and a diverse energy source mix. Connecticut faces constraints in its natural gas infrastructure, leading to higher prices, especially during peak demand periods.
The state’s aging electrical grid and the need for upgrades contribute to higher operational costs. Additionally, Connecticut’s commitment to environmental protection and energy efficiency, while beneficial in many ways, can result in additional costs for utilities and energy suppliers. 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 (known as electricity deregulation) has fundamentally changed how residents and businesses purchase their electricity. 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.
Multiple electricity suppliers compete for your business, offering various plans and rates. This competition is designed to drive innovation and potentially lower prices. Your local utility (Eversource Energy (formerly known as CL&P) or United Illuminating) continues to deliver electricity, maintain power lines, and respond to outages, regardless of your chosen supplier.
The benefits of Energy Choice include potential cost savings, customized plans tailored to different needs, and innovation in energy products. The Public Utilities Regulatory Authority (PURA) plays a crucial role in overseeing the Energy Choice program by licensing and monitoring electricity suppliers, ensuring fair marketing practices, providing resources for consumer education, and addressing customer complaints and disputes.
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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: delivery charges and supply charges.
- Delivery: Delivery charges are set by your utility company and regulated by PURA. They cover the cost of transmitting and distributing electricity to your home, including maintenance of power lines and other infrastructure.
- Supply: Supply charges reflect the cost of generating or purchasing electricity and can vary based on your chosen supplier and plan.
- Additional Charges: Your bill may also include additional charges such as transmission charges, distribution charges, public benefits charges, and Competitive Transition Assessment (CTA) charges.
Connecticut Utility Companies
Connecticut is primarily served by two major utility companies: Eversource Energy and United Illuminating (UI).
- Eversource Energy serves approximately 1.2 million electricity customers in 149 of the state’s 169 cities and towns, with a new standard service rate of 8.99 cents per kWh from July 1, 2024.
- United Illuminating serves about 335,000 customers in 17 towns and cities in the greater New Haven and Bridgeport areas
These utilities play crucial roles in Connecticut’s deregulated market by maintaining the electrical grid, responding to power outages, delivering electricity to all customers in their service areas, and providing “standard service” rates for customers who don’t choose an alternative supplier. While you can’t choose your utility company, you can choose your electricity supplier through ElectricityRates.com, potentially securing 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. When selecting a supplier, consider factors such as rate comparison, plan type, contract length, fees, renewable energy options, customer service reputation, and additional perks. ElectricityRates.com simplifies the comparison process by allowing you to enter your ZIP code to see available suppliers and plans in your area, view side-by-side comparisons, read customer reviews, and access educational resources.
Watch out for red flags such as 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 and fees, and 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. The state has set ambitious goals through its Renewable Portfolio Standard (RPS), aiming for 40% of electricity to come from renewable sources by 2030 and 100% zero carbon electricity supply by 2040. These targets drive investment in renewable energy and increase the availability of green energy plans for consumers.
As of 2025, Connecticut’s electricity generation mix includes approximately: 50% natural gas, 40% nuclear, and 10% renewable sources such as solar, wind, hydroelectric, and biomass.
Business and Commercial Electricity Rates
Connecticut businesses face unique challenges and opportunities in managing their electricity costs. As of 2024, the average commercial electricity rate in Connecticut was 19.43 ¢/kWh, significantly higher than the national average for businesses. Retail energy rates from competitive suppliers can offer substantial benefits for Connecticut businesses, including potential for significant savings, customized plans, budget certainty, and energy management solutions.
Businesses can choose from various types of electricity plans, including fixed-rate plans, indexed plans, block and index plans, and green energy plans. When selecting a plan, businesses should consider their usage patterns, contract length, demand charges, and additional services offered by suppliers.
Ambit Energy
- Energy Options
- Service Areas CT, IL, MA, MD, NJ, NY, OH, PA, TX
Provider Bio
Headquartered in Dallas, Texas, Ambit Energy provides electricity and natural gas to customers in 17 areas of the United States with deregulated energy markets. Ambit operates in California, Connecticut, Delaware, Illinois, Indiana, Maryland, Massachusetts, Maine, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, and Washington, D.C.
Champion Energy
- Provider Score™ 4.42 / 5
- Energy Options
- Service Areas CT, IL, MA, MD, NJ, NY, OH, PA, TX
Provider Bio
Champion Energy is a retail electricity provider serving hundreds of thousands of residents and businesses, primarily in Texas. As a subsidiary of Calpine, one of the largest natural gas and geothermal electricity generators, this provider brings a solid selection of affordable energy solutions to the retail electricity market.
Constellation
- Provider Score™ 4.82 / 5
- Energy Options
- Service Areas CT, DC, GA, IL, MA, MD, NJ, NY, OH, PA, TX
Provider Bio
Constellation is the nation's leading provider of carbon-free energy with a commitment to be 100% carbon-free by 2040. They serve over 2.5 million residential and business customers across the United States.
Direct Energy
- Provider Score™ 4.64 / 5
- Energy Options
- Service Areas CT, DC, IL, MA, MD, NH, NJ, NY, OH, PA, TX
Provider Bio
Serving nearly 4 million residential customers, Direct Energy is one of the largest electricity, natural gas and home services providers in North America. They are also one of the largest commercial and industrial electricity with over 240,000 business electricity customers.
Energy Plus
- Energy Options
- Service Areas CT, IL, MA, MD, NJ, NY, OH, PA
Provider Bio
Based out of Philadelphia, Energy Plus is one of the fastest-growing electricity providers in the country. The company started only recently and has already grown to serve almost all of the states that have implemented electricity deregulation, starting with New York, but expanding to include much of the Northeast, Illinois, and Texas.
Major Energy
- Provider Score™ 3.24 / 5
- Energy Options
- Service Areas CT, DC, IL, MA, MD, NJ, NY, OH, PA
Provider Bio
Major Energy is an electricity company based out of Houston that serves deregulated electricity and natural gas markets throughout the Northeast and Midwest. Major Energy offers multiple fixed-rate electricity plans, and also provides the ability to manage your account online.
Public Power
- Provider Score™ 4.29 / 5
- Energy Options
- Service Areas CT, DC, IL, MA, MD, NY, OH, PA, RI
Provider Bio
Public Power is a retail energy provider that serves states throughout the Northeast and Midwest. Since 2008, they have served over one million homes and businesses. They pride themselves on offering competitive, and straight-forward energy plans with hassle-free customer service.
Spark Energy
- Provider Score™ 3.98 / 5
- Energy Options
- Service Areas CT, IL, MA, NJ, NY, PA, TX
Provider Bio
Spark Energy was found in 1999 in Houston, Texas and was an early pioneer in the retail energy market. Spark Energy prides itself on 3 specialties that set them apart from the rest: energy savings knowledge, customer service and community support.
Verde Energy
- Provider Score™ 3.57 / 5
- Energy Options
- Service Areas CT, DC, MA, NJ, NY, OH, PA
Provider Bio
Verde Energy USA was founded to help residents and businesses take advantage of the savings associated with state energy deregulation and the choice it provides. They are also committed to helping Americans move toward a more environmentally sound and economically sustainable renewable energy infrastructure.
Xoom Energy
- Provider Score™ 3 / 5
- Energy Options
- Service Areas CT, IL, MA, MI, NJ, NY, OH, PA, TX
Provider Bio
Xoom Energy is an independent energy provider that provides natural gas and electricity services in 19 states and over 100 utility markets nationwide. As one of the fastest-growing energy providers in the US, Xoom Energy was listed on the Forbes Inc. 5000 list in 2015, 2016 and 2017.
Tips for Reducing Electricity Costs in Connecticut
While choosing the right supplier through ElectricityRates.com can lead to significant savings, implementing energy-efficient practices can further reduce your electricity costs. Effective strategies include leveraging Energy Choice effectively, implementing energy efficiency measures, taking advantage of time-of-use rates, performing regular maintenance on energy-consuming systems, utilizing natural light and heating/cooling, monitoring your usage, considering renewable energy options, taking advantage of energy audits, educating household members or employees about energy conservation, and staying informed about energy-saving programs.
By combining these energy-saving strategies with a competitive electricity plan from ElectricityRates.com, Connecticut residents and businesses can significantly reduce their energy costs while contributing to a more sustainable future.
Conclusion
Navigating Connecticut’s high electricity rates can be challenging, but the state’s Energy Choice program provides opportunities for consumers to potentially reduce their costs. By understanding the factors driving Connecticut’s electricity prices, leveraging the competitive supplier market, and implementing energy-saving strategies, both residential and business customers can take control of their energy expenses.
Connecticut Electricity Rates FAQs
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Energy Choice allows businesses and residents in the state to switch electricity providers. It gives consumers more control over their electricity and can help them save money on their electricity bills.
When you switch electricity providers in Connecticut, your utility company still bills you and delivers electricity to your home.
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According to the EIA, the average cost of electricity for Connecticut residents is 29.5¢ per kilowatt-hour as of February 2024.
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Connecticut’s electricity is expensive because it is hard to get natural gas to the area. This is mainly attributed to a resistance to building more pipelines. The good news is that CT residents may be able to save by switching electricity providers.
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The breakdown for electricity generation by source for Connecticut is as follows:
Natural Gas: 59.1%Nuclear: 35.9%Renewables: 2.8%
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There are two primary utility providers in Connecticut.
– Eversource – Serves the majority of Connecticut, including the cities of Hartford, Stamford and Norwalk.
– United Illuminating (UI) – Serves towns in southern Connecticut, including the cities of Bridgeport and New Haven.
