Updates on the Electric Rate Increases

August 16, 2024

I am just as upset as you are about the recent rate hikes that have led to outrageous increases in our electric bills, and was absolutely stunned to learn of yet another Public Utilities Regulatory Authority (PURA) approved rate increase this week. It is important to note that PURA Chair Marissa Gillett did try to protect ratepayers, but, as the only dissenting voice, was outvoted.

This is a rapidly evolving issue, with more info coming to light every day, but please know I am actively working to find potential solutions to protect consumers, and have included details of my immediate steps as well as some potential long-term fixes. Below you will also find a detailed summary of how we got here, and an explanation of both the primary and secondary elements of the rate increase. It’s a lot of info, so here are some highlights:

In brief:

  • While supply rates for electricity have dropped, the public benefits portion of the bill saw a sharp increase, reflecting nearly 60% of our total bill
  • The public benefits portion is primarily comprised of two parts:
    • 1) 77% of this charge stems from the Republican-led Millstone agreement which passed in the CT General Assembly in 2017
    • 2) The remaining 23% of the fee stems from assistance programs that were created under the bi-partisan Take Back Our Grid Act, and also from the utilities recovering loss from the shutoff moratorium enacted during the Covid pandemic.
  • This week PURA voted to allow Eversource to collect $3-4/month starting in September, to begin recovering the cost of the state’s electric vehicle charger discount program. 
  • There are multiple solutions being investigated as we speak, to address the collective hardship caused by this increase.

Before I get into the details of the bullet points above, these are the actions I am taking at this moment:  

  • I have filed a complaint with PURA, specifically for allowing this increase to happen all at once over a 10 month period, rather than spreading it across 22 months and with a phase-in, as they could (and should) have done. I have also expressed vehement disagreement with allowing another separate increase at the same time. You can also file a complaint HERE
  • I am working with members of the Energy and Technology Committee and other colleagues to develop a proposal for next session that would include making all communications between utilities and commissioners subject to Freedom of Information (FOiA), as well as giving legislators and municipal CEOs auto-intervenor status, which would increase transparency for both utilities AND agencies. Additionally, I will be proposing that multiple rate increases cannot be implemented simultaneously.
  • I have been assured of a commitment by the Energy and Technology Committee to evaluate the public benefits charge during the next legislative session that begins in January 2025, and just this morning, leadership of that committee formally submitted a request to PURA to reconsider their recent decisions, an action I fully support and one that is allowable by law. 
  • I am now exploring shareholder profits at Eversource, after hearing their CEO complain about a low return on equity, with my eye on determining what action(s) can be taken to prevent shareholders from profiting on the backs of ratepayers. 

What is The Public Benefits portion of my bill?

This portion of the bill represents two general areas, the Millstone deal and recovery assistance programs.

Republican-led Millstone Deal (77% of the increase)

Supply rates and public benefits are extremely volatile and are not subject to control by utility companies like Eversource and United Illuminating. The rise in the public benefits portion of the bill, however, mostly has to do with a 2017 Republican-led deal that requires Eversource and UI to purchase power from the Millstone power plant. The rate at which the utilities purchase power is set to adjust periodically, and the resulting public benefits charges are reviewed by the Public Utilities Regulatory Authority (PURA). Utilities can phase in new charges to reduce the monthly cost to consumers, but Eversource decided to do it all at once. The 10-month cost spike will be in place through May 2025.

While the Millstone legislation does pre-date my tenure in the legislature, I have taken a deep dive into the proposal and vote, including the roll-call tally in the House, and the circumstances around it. It is important to note that most of the folks I hear pointing blame at a Democratic majority for this increase actually proposed and/or voted in favor of the bill. The concerns that came from those who supported the bill were fair, and included loss of over 1000 jobs, as well as loss of a plant that provides 37% of CT’s energy, but the accusations of blame have become disingenuously politicized and should be clarified. In the spirit of full transparency, you can find the vote tally from the House HERE

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.