Victory for Consumers and Clean Energy in Connecticut Electric Rate Case
Approved Settlement Significantly Reduces Eversource Residential Customer Charges
HARTFORD, CT – On April 18, 2018, the Connecticut Public Utility Regulatory Authority (PURA) announced its decision to lower the customer charge for Eversource residential customers from $19.25 to below $9.50. This 50% reduction follows the requirements of a 2015 law enacted by the Connecticut General Assembly to limit residential customer charges, the fixed fee that customers pay regardless of the amount of energy used. Acadia Center first raised this issue in Connecticut in Eversource’s previous 2014 rate case, and, since 2015, has participated in two rate cases and a generic proceeding to ensure the proper implementation of the law.
“Connecticut has taken an important step today towards a clean and consumer-friendly energy system,” said Daniel Sosland, President of Acadia Center. “The Office of Consumer Counsel, Attorney General’s Office, and the Connecticut General Assembly have made major progress in bringing relief to Connecticut’s electric customers, and Acadia Center looks forward to working with these partners as the state moves forward with further reforms to the energy system.”
Customer charges for residential electric customers typically range from $5 to $10 a month, but in some states are significantly higher. High customer charges disproportionately burden seniors and low-income customers, who typically use less electricity than average. They also reduce the incentive for customers to lower their electricity bills through conservation, investment in energy efficiency, or renewable energy technologies like solar power. Before the implementation of the new law, Connecticut’s residential customer charges for its two major utilities were $19 per month and $19.25 per month respectively.
Bill Dornbos, Acadia Center’s Advocacy Director, said, “Consumers everywhere prefer choice and control, and this lower monthly fixed charge will give customers substantially more control over their electric bills. The new rate design will also help promote energy efficiency and renewable energy, more closely aligning Connecticut’s electricity rates with its energy policy goals.”
“By enacting this significant reduction, Connecticut brings the state’s residential customer charges down to levels that are comparable with national best practices and recognizes that high fixed charges run counter to consumer interests and a clean energy future,” said Mark LeBel, staff attorney for Acadia Center. “This is a significant step at a time when states around the country, including neighboring New York, are debating how to move forward on this important issue.”
Mark LeBel, Staff Attorney
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Krysia Wazny, Communications Director
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