Recovery from the Shut-off Moratorium: (23% of the increase)
Around 23% of the increase is due to assistance programs like the Low-Income Discount Rate that was championed and voted on almost unanimously by both Republicans and Democrats in the Take Back Our Grid Act (sec 5), in addition to bills that were unpaid by those suffering financial hardship during the COVID moratorium. The moratorium did not preclude people from being on a payment plan, rather, it prevented those that did not pay from being shut off. Since the moratorium has been lifted, utilities are able to shut people off and return to some of the pre-Covid collection practices. To be clear, the moratorium was not debt forgiveness. If a customer did not pay their bill, they are in debt – a debt stays with them and is not forgiven. The utility will work with them to put them on a plan to pay down that debt. As customers pay back their debt from the moratorium, that money will go back to the utilities, and will then will be adjusted in future proceedings - when the money is paid back it will be reflected as a decrease in the public benefits portion of your bill.
And just one more clarification of some of the misinformation I am hearing - there was never a legislative vote on the moratorium on the House floor.
What else did PURA approve this week?
On the heels of last week’s hike, PURA voted 3-0 on Wednesday to approve an average $3-4/month increase starting in September, to start recovering the cost of the state’s electric vehicle charger discount program. This is something I would like to see fall under the state budget, but current spending caps will not allow for that. I will be meeting with House leadership, E&T Committee leadership, as well as budgetarily cognizant committees to explore legislative solutions to this issue in the coming days and months.
Taking Action
While we do intend to evaluate the public benefits charge during the next legislative session that begins in January 2025, previous action to control electricity costs is just coming online. We passed the Take Back Our Grid Act in 2021, which contained some significant reforms, including strengthening PURA's ability to scrutinize and review rate increases and performance-based regulation. In 2023, PA 23-102 became law, and it is robust pro-consumer legislation that provides predictability and transparency for rate payers and prohibits utility companies from using electric rates to pay for their lobbying, marketing, and travel/lodging for company executives.
At the federal level, the U.S. Department of Energy has also selected the Power Up New England proposal submitted by Connecticut and its neighboring New England states to receive an award of up to $389 million through the second round of the Bipartisan Infrastructure Law’s competitive Grid Innovation Program (GIP). Power Up features significant investments in regional electric infrastructure that will provide the New England region with access to thousands of megawatts of offshore wind, greater resource diversity, and increased reliability while lowering consumer costs and reducing greenhouse gas emissions.
Checking Your Rates
Third-party electricity suppliers can potentially lower costs through reduced rates atEnergizeCT.com. Additionally, the Office of Consumer Counsel offers a guide to understanding the line items on your electricity bill here. And while I do recommend always monitoring any third party bills for sudden or unexpected rate increases, I have spoken to multiple Ridgefield constituents in recent days who have had success with these providers.
Available Programs
If you are struggling financially, call your power supplier before missing a payment if possible. Programs are available, including financial hardship designations that provide access to a Low-Income Discount Rate and payment arrangements for customers in need; energy assistance through the state Department of Social Services; negotiated flexible payment arrangements for non-financial hardship customers; and energy efficiency programs offered by utilities to evaluate customers' homes and provide rebates and discounts on needed improvements.
This is a lot of information to digest, I know. If you would like to speak with me directly about any of this, as always, please do not hesitate to reach out.
|