Matt Blumenthal

If you're like me, you saw an unwelcome rise to your electricity bill this month, I share your anger and frustration.

That's especially true because I have fought constantly to rein in rate increases and impose accountability and transparency on Eversource and other public utilities. I co-sponsored the Take Back Our Grid Act in 2020, which imposed accountability through performance-based ratemaking. I co-authored and helped lead passage of HB 5507 this past session, which reformed the Siting Council to create more accountability, transparency, and oversight of the process by which utilities are allowed to utilize eminent domain and be reimbursed by ratepayers for building projects.

I have also been a strong supporter of PURA Chair Marissa Gillett, who has been fighting against rate hikes and for increased accountability. Unfortunately, a significant part of this month's rate increase is based on Public Benefits charges that resulted from her being outvoted by other members on PURA. She wrote a lengthy dissent explaining why they were unfair to consumers. This decision caused roughly 23 percent of the recent spike.

In fact, the utilities hate her so much they have tried to have her fired. (I spoke up against this effort, and thankfully, Governor Lamont rejected their efforts and reappointed her). Republican legislators in Connecticut joined the chorus, attacking her for "interfer[ing]" and having an "adversarial" relationship with the utilities. If anything, I think she should be allowed to "interfere" more on behalf of the ratepayers and should be joined by PURA members who will back her up. I would also note that House and Senate Republicans forced the Millstone Power Plant subsidy in 2017, another significant part of the recent hikes (77 percent of spike) - although that was before my time in the legislature.

Chair Gillett needs more like-minded reinforcements on PURA. I will continue to fight for reforms that support ratepayers and impose accountability, transparency, and oversight on our utilities. We have much more work to do.

Please read below for a more detailed breakdown on how we ended up here and what we can do about it.

Republican-led Millstone Deal

Supply rates and public benefits can be volatile. A significant part of the rise in the public benefits portion of the bill (77 percent), however, mostly has to do with a 2017 Republican-led deal that requires Eversource and United Illuminating (UI) to purchase power from the Millstone power plant. This deal means that Millstone supplies roughly 40 percent of Connecticut's power, generally at 2.5 times the cost of other sources. The rate at which the utilities purchase power is set to adjust periodically and the resulting public benefits charge is reviewed by the Public Utilities Regulatory Authority (PURA). Utilities can phase in new charges to reduce the monthly cost to consumers, but they decided to do it all at once. The 10-month cost spike will be in place through May 2025.

Another source of the recent spike (23 percent) is from the utilities' accelerated recovery of costs they incurred during the Covid-19 pandemic's shut-off moratorium. Chair Marissa Gillett opposed the utilities' application to recover these costs over 10 months, arguing in a lengthy dissent that this would be unfair to consumers and the costs should be amortized over two to three years.

Taking Action

While we 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 at EnergizeCT.com. Additionally, the Office of Consumer Counsel offers a guide to understanding the line items on your electricity bill here.

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.

Additionally, the Appropriations, Energy and Technology and Human Services Committees will have a public hearing on Tuesday, August 13 at 11 a.m. to review the Low Income Home Energy Assistance Program (LIHEAP) Allocation Plan for federal fiscal year 2025. LIHEAP provides funding for the Connecticut Energy Assistance Program (CEAP), which helps residents afford heat for their homes. 

Please click on the links below if you wish to:

Register to Speak
Submit Written Testimony
Watch Tuesday's Public Hearing

CEAP applications are not yet open, but if you anticipate needing help with your utility bills, Operation Fuel provides emergency energy and utility assistance to households in Connecticut facing financial crisis. You can learn more at operationfuel.org/gethelp.