Eversource customers looking at another rate increase
May 21—Citing the global impact of Russia's invasion of Ukraine, the state Office of Consumer Counsel announced this week that the average Eversource customer will see an increase of almost $4 per month starting in July.
Consumer Counsel Claire E. Coleman in a news release said the energy company is paying more for oil and natural gas, which are used to generate a majority of the state's electricity.
The average customer who buys electricity directly from Eversource and uses 700 kilowatt hours of electricity will see their rates rise to 12.1 cents per kilowatt hour, up 4.93% from the January bill. That amounts to roughly $3.96 more per month.
The increase comes after customers in January saw a 64% increase compared to the previous July.
"The oil/natural gas markets are global and even though the United States only imports a small amount from Eastern Europe, the disruptions are affecting prices worldwide, including in the United States," the consumer counsel's office said.
Officials also cited ramped-up demand for natural gas amid reduced supply as the world economy recovers from the pandemic. The market price of natural gas has more than doubled over the past year, they said.
Those who buy from a third party supplier won't be immediately affected, officials said. Residential customers of United Illuminating Company will see a slight decrease in the resident, after rising 33% in January compared to the previous July.
Coleman in an email said the reason why Eversource customers are seeing an increase while United Illuminating customers are not revolves around timing. It has to do with the process for purchasing electricity on the wholesale market.
The energy companies seek competitive bids on a quarterly basis from electric generators and suppliers, she said. That procurement process is overseen by the Public Utilities Regulatory Authority with involvement from her office.
"The Eversource procurement took place after the UI procurement, and after prices had jumped more as a result of the war in Ukraine and related geopolitical tensions and supply constraints," she said in an email.
Officials encouraged people who need help paying their utility bills to sign up for the state's energy assistance program. Applicants must make less than 60% of the state's median income, which amounts to $75,052 for a family of four.
The program covers the primary source of heating for the household, with payments ranging from $410 and $1,015 per bill depending on individual circumstances. Applications are available at ct.gov/heatinghelp/apply.
