Some electric bills will decline this summer
Customers who are signed up for Eversource Connecticut’s standard service will see significant savings on their electric bill beginning July 1, according to a press release from the utility.
The Generation Service Charge (GSC) for standard service customers is a pass-through charge for the cost of generating power. Because of lower wholesale power prices, Eversource was able to secure a lower price for customers, which will be in effect from July 1 to Dec. 31.
The new generation rate approved by the Public Utilities Regulatory Authority – 6.61 cents per kilowatt-hour (kWh) – is the lowest since 2004. This is a savings of nearly three cents from the current 9.56 cents per kWh, so the average residential customer using 700 kWh monthly will see a reduction of about $21 in their electric bill. Sixty-six percent of Eversource’s 1.2 million customers in Connecticut are signed up for standard service and will see savings as a result of this price change.
As a hedge against energy price volatility, Eversource has embarked on a number of innovative projects. 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. 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.
Additionally, Eversource’s proposed Northern Pass Project will bring low-cost energy from Hydro-Quebec’s hydroelectric plants into New England.
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 state 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.
For information about alternate suppliers and rates, visit http://www.energizect.com/compare-energy-suppliers.