Eversource customers will see a drop in one portion of their electric bills beginning this month. The average supply rate for “standard service” customers will decrease from 12.42 cents per kilowatt-hour (kWh) to 8.25 cents, a savings of almost 20%.
According to the utility, an average residential customer using 700 kWh monthly will see a reduction of almost $31 in their monthly bill. The new rates will be in effect from July 1 through Dec. 31.
The decrease was made possible by a drop in prices paid to electricity generators to levels “even better than a year ago,” according to Penni Conner, senior vice president and chief customer officer at Eversource. “We’re thrilled to pass along the savings to our customers at the time of year when air conditioner use will be at its peak.”
As a regulated energy distribution company, Eversource purchases electricity from wholesale suppliers on behalf of its customers and passes the cost directly to them with no profit to the company. By law, the standard service price changes twice a year, on Jan. 1 and July 1. All Eversource customers have the option to buy their power from other retail suppliers or go with the company’s standard service rate. The new rate will affect approximately 801,000 or 64% of Eversource’s 1.25 million Connecticut customers and is separate from the company’s delivery rates.
More than half of New England’s electricity is now produced using natural gas. Though natural gas remains an abundant and inexpensive fuel, regional pipeline limitations and the growing dependency on gas to produce electricity will continue to affect electricity prices in the near-term, particularly during the winter months when demand for natural gas is highest, a press release from Eversource said.
“Eversource is committed to pursuing strategic projects to help solve these challenges. For example, the company has partnered with Spectra Energy and National Grid on the proposed Access Northeast project to expand the region’s natural gas capacity using existing pipeline routes,” the release said. “Additionally, Eversource’s proposed Northern Pass Project will bring clean, low-cost energy from Hydro-Quebec’s world-class hydroelectric plants into New England.”