Brace for Winter: UI's New Electricity Rates Start January 1, 2026

The Critical Distribution Charge Increase (Effective Nov 1)

In a separate regulatory proceeding, the Public Utilities Regulatory Authority (PURA) issued a Final Decision in October 2025 approving an increase to the revenue UI can collect through its Distribution Charges. This increase took effect on November 1, 2025.

• Estimated Monthly Distribution Increase: The distribution portion of the bill is expected to increase by approximately $9.99 to $13.00 per month for the average residential customer using 700 kWh to $750 kWh of electricity.
• Reasons for the Distribution Increase: This part of your bill covers UI’s costs for delivering electricity, including the maintenance and upgrading of poles, wires, substations, and other infrastructure. PURA approved a $66 million increase in the company’s annual revenue requirement to fund these operations and capital investments.

How Will This Affect Your Total Bill?

The net effect on your total bill results from three major components shifting simultaneously: the rise in the Supply Rate, the recent increase in the Distribution Charge, and a legislatively mandated reduction in the Public Benefits Charge. This seasonal increase is a customary trend in New England, driven by higher winter wholesale energy costs.

Comparing the upcoming winter period (January 1, 2026 – June 30, 2026) to the preceding summer period (July 1, 2025 – December 31, 2025), UI customers can expect their total monthly bill to increase.

• Projected Average Monthly Bill (Jan-Jun 2026): $252.12 for an average residential customer using 700 kWh per month.
• Previous Average Monthly Bill (Jul-Dec 2025): $244.28 current summer rate period.
• Increase Compared to Summer 2025: This represents an estimated 3% increase in your total monthly bill.

Why Are Rates Increasing? (The Supply Side)

The most significant factor driving the general increase in the supply portion of United Illuminating’s (UI) bill starting in January is the seasonal cost of natural gas.

The New England region relies heavily on natural gas for electricity generation. During the colder winter months, from January 1st to June 30th, natural gas is in high demand for both generating electricity and heating residential and commercial properties. This peak demand, coupled with constrained natural gas pipeline capacity throughout New England, forces power generators to switch to more expensive supplemental fuels, such as imported Liquefied Natural Gas (LNG) and fuel oil. The use of these costlier alternatives significantly drives up the wholesale price of electricity.

It is important to note that the supply rate, known as Standard Service, is a pass-through cost for UI, meaning the company does not profit from it. UI procures this power on the wholesale market under state oversight and passes the exact cost directly to customers. This specific rate is reset and announced twice per year, taking effect on January 1st and July 1st.

Utility Assistance Programs in Connecticut

If you are concerned about your ability to pay your bills, several state and federal programs are available to assist Connecticut residents:

• Connecticut Energy Assistance Program (CEAP): This is the state’s main heating assistance program (funded by the federal LIHEAP – Low Income Home Energy Assistance Program) that helps eligible households pay for their primary heating source, whether it’s electric, oil, gas, or other fuels. Applications are typically processed by local Community Action Agencies (CAAs).
• Matching Payment Program (MPP): Available to eligible UI customers with hardship status, this program helps manage overdue balances by matching a customer’s payments with credits from the utility and energy assistance funds, often helping to eliminate old debt over time.
• Winter Protection Program/Winter Moratorium: Protects customers with a financial hardship status from utility service shut-offs between November 1 and May 1.
• Low-Income Discount Rate: Provides a monthly discount (10% or 50% based on income) on electric usage for customers who qualify for financial hardship status.
• Operation Fuel: A private, non-profit program that provides emergency financial assistance with energy and utility bills for households that may not qualify for federal/state aid, often with slightly higher income limits.

Get Started: The best starting point for most energy assistance programs is to call 2-1-1 or visit the 211 Connecticut website, as they can connect you with your local Community Action Agency for applications.

How Energize CT Helps Connecticut Residents Save Energy and Money

The Energize CT initiative is the State of Connecticut’s comprehensive program designed to empower residents to cut down on energy costs, enhance home comfort, and promote the use of clean energy technologies. Funded by a charge on customer utility bills, this program provides a wide array of resources, rebates, and low-interest financing options for virtually all residents.

The primary entry point for most residents is the Home Energy Solutions (HES) assessment. During an HES visit, a certified technician conducts a thorough evaluation of the home’s energy performance, including tests for air leaks and checks on heating/cooling systems. Crucially, the technician installs immediate, on-the-spot energy-saving measures, such as sealing major air leaks, installing energy-efficient lighting (LED bulbs), and adding water-saving fixtures at little to no cost. For customers who meet income requirements, the comprehensive assessment and weatherization services are often provided completely free of charge.

Beyond the initial assessment, Energize CT offers significant rebates and financial incentives for major energy-saving upgrades. These incentives can cover a substantial portion of the cost for high-efficiency equipment, notably including generous rebates of up to $15,000 for the installation of air source and geothermal heat pumps, which are vital for efficient heating and cooling. Substantial rebates are also available to cover up to 75% of the cost for crucial upgrades like attic and wall insulation.

How to Compare Rates and Secure a Fixed-Rate Plan

Connecticut consumers have several avenues available to explore competitive electricity rates and potentially lock in a fixed-rate plan to avoid UI’s Price to Compare fluctuations:

1. Explore the Energize CT Website: The Energize CT website offers a comprehensive marketplace with potentially hundreds of competing energy offers. While this provides a wide array of choices, navigating through numerous plans and determining the best supplier for your specific needs can sometimes feel overwhelming.
2. Simplify Your Search with ElectricityRates.com: ElectricityRates.com offers a secure, fast, and simple process designed to streamline your rate comparison experience. We present you with only the best rates from top-rated and trusted electricity suppliers serving Connecticut, saving you time and effort in your search for the ideal plan.
3. Shop Directly Through Supplier Websites: You also have the option to visit individual energy suppliers’ websites. However, keep in mind that you will only see the plans offered by that specific supplier, requiring you to visit multiple websites to get a broader view of the competitive landscape.

Connecticut residents have some of the highest electricity rates in the country. Don’t wait until the bill arrives to take action! Understanding the changes and utilizing available resources are your best defenses against rising energy costs this winter.