Eversource Price Hike LEads Many to Seek Alternate Suppliers
By Avice Meehan
Asking someone what they pay per kilowatt hour of electricity is more likely to generate a confused stare than spark a lively conversation. At least that was true until November, when local energy provider Eversource announced it would seek a 50 percent hike in the cost of supplying electricity to residential and other customers.
What’s known as the standard service supply rate went up to $0.24172 per kilowatt hour on January 1, 2023, an increase that will be in effect until at least June 1, when the winter billing period ends. To put the impact in perspective, imagine a family that spent $69 for electricity for the December billing period now facing costs of roughly $102 for January—with little change in usage. (See “Electric Bill Basics.”)
That was enough for many in Norfolk to go shopping in search of better rates, including Ann Havemeyer, director of the Norfolk Library. The new standard rate increased the library’s electric bill to $750 from $620—and that reflected only a partial month. “I wish we had done this sooner, but it was definitely prompted by the increase in supply rates,” says Havemeyer.
Havemeyer could tap the expertise of her husband, Tom Stromolo, a long-time energy consultant and solar advocate who has seen the evolution of Connecticut’s energy marketplace from the Wild West into its current, more reliable form. (See “Where to Shop for Electricity.”)
“The website EnergizeCT is like a shopping cart for suppliers,” says Stromolo. “In the early days, most of the suppliers were rip-offs. Now, the only ones that are left are reliable, predictable, honest suppliers.”
It’s where Norfolk resident Babs Perkins began the process of comparison shopping for a new supplier before taking her research a step further by cross-checking companies with the Better Business Bureau and any Connecticut regulatory complaint.
Looking for a good deal on power is nothing new for the Town of Norfolk, however. First Selectman Matt Riiska says the town has long bought electricity in a consortium with the other towns in the Northwest Hills Council of Governments. For the record, the current rate from Nextera is $0.07901 per kilowatt hour.
Electric Bill Basics
Connecticut deregulated its electric utilities more than two decades ago and separated power generation from the distribution network—that is, lines, poles, and infrastructure—and this means that a customer can buy electricity from any number of providers. An electric bill is divided into two parts: supply (the cost of electricity) and delivery (the cost of bringing that power to your home or business). For a primer on utility regulation and more, watch this presentation from Marissa Gillett, Chair of the Public Utilities Regulatory Authority: www.youtube.com/watch?v=5wl2R8cJG7A.
The standard service rate charged by Eversource is adjusted twice a year, effective Jan. 1 and June 30, with winter rates typically higher than those charged in the summer. Eversource buys electricity directly from a wholesaler and does not make a profit on the service. It’s worth noting that 40 percent of New England’s power supply is generated through natural gas, a source heavily affected by Russia’s invasion of Ukraine. To track where your power comes from—be it nuclear, renewables or imported fuel—visit www.iso-ne.com, the company that manages the regional grid.
Where to Shop for Electricity
Connecticut has made it easy for residential and commercial consumers to shop for competitive electric rates through online resource energizect.com. The Rate Board feature provides information and quotes from licensed suppliers, including renewable sources and renewable energy credits.
For many years, the standard rate offered by Eversource was a better deal for consumers. Indeed, the Office of Consumer Counsel estimates that retail buyers overpaid almost $300 million for electric supply between 2015 and today. The balance has begun to shift in favor of the savvy consumer, but only 8 percent of all customers bought power from other suppliers as of November. Although residential consumers can opt out of a supply contract without a penalty, it’s important to stay on top of contract renewal dates.
Energy Assistance and Relief
The sharp increase in electric supply costs poses a significant hardship for many Connecticut residents. Eversource has assembled robust resources about available programs at www.eversource.com/billhelp. Customers who qualify for financial hardship will receive an interim 10 percent discount until a new, low-income rate program goes into effect next January.
The General Assembly also met in special session in November to ensure adequate funding for the Connecticut Energy Assistance Program and other initiatives. Visit www.ct.gov/heatinghelp for more information or call 211 to reach a community action agency.
Norfolk also has a town fuel assistance program, funded by donations from private individuals, organizations like the Lions Club and ARPA funds. First Selectman Matt Riiska encourages residents who need assistance to call Norfolk’s social services coordinator, Tara Yard, at 860-542-2887. She can help them navigate the process and work with outside agencies to seek fuel assistance options.