Connecticut Electricity Rates: Navigating High Costs with Energy Choice in 2024

Connecticut’s Electricity Landscape

Connecticut’s electricity rates are significantly higher than the national average, impacting both residential and business consumers. The current average residential rate of 27.98/kWh (as of June 2024) is 55.9% higher than the national average of 16.34/kWh.

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.

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

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 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.

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: delivery charges and supply charges. 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 charges reflect the cost of generating or purchasing electricity and can vary based on your chosen supplier and plan.

Your bill may also include additional charges such as transmission charges, distribution charges, public benefits charges, and Competitive Transition Assessment (CTA) charges.

Types of Electricity Plans in Connecticut

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

• Fixed-rate plans provide price stability and protection against market fluctuations, typically available in 6, 12, 24, or 36-month terms. These are ideal for budget-conscious consumers who prefer predictable bills.
• 100% renewable energy options support clean energy initiatives and often come as fixed-rate plans, appealing to environmentally conscious consumers
• Indexed plans have rates tied to a publicly available index and can offer savings when market prices are low, but carry more risk as prices can fluctuate monthly.
• Time-of-Use plans offer different rates for electricity based on the time of day, encouraging shifting energy use to off-peak hours for savings. These plans require smart meter technology and are ideal for consumers who can adjust their energy usage patterns.

It’s important to note that 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: 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, with a new standard service rate of 11.91 cents per kWh from July 1, 2024.

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 2024, Connecticut’s electricity generation mix includes approximately: 50% natural gas, 40% nuclear, and 10% renewable sources such as solar, wind, hydroelectric, and biomass. Many suppliers on ElectricityRates.com offer green energy plans, including 100% renewable plans, partial renewable plans, and solar-specific plans. Choosing a green energy plan can help reduce your carbon footprint, support the growth of renewable energy industries, potentially stabilize long-term energy costs, and contribute to improved air quality and public health.

Business and Commercial Electricity Rates

Connecticut businesses face unique challenges and opportunities in managing their electricity costs. As of June 2024, the average commercial electricity rate in Connecticut is 19.43 /kWh, significantly higher than the national average for businesses. The Energy Choice program offers 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. ElectricityRates.com offers specialized services for business customers, including comparison tools tailored for commercial energy needs, access to business-specific plans and rates, and resources for understanding complex business electricity contracts.

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.

Electricity Rates in Popular Connecticut Cities

The specific cost of electricity can vary by region in Connecticut. Find out more about comparing the best electricity rates and companies in the following popular Connecticut cities:

• Bridgeport
• Hartford
• New Haven
• Norwalk
• Stamford

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 Frequently Asked Questions