Connecticut’s electricity prices have long been among the nation’s highest, but of late, a neighboring state has been nipping at its heels.
In the past year, Rhode Island’s electricity prices have topped Connecticut’s more often.
The most recent federal data show that Rhode Island had higher prices than Connecticut in six out of the last 12 months spanning from June 2018 to May 2019.
Rhode Island’s monthly electricity price was higher than Connecticut’s just twice in each of the two prior years, U.S. Energy Information Administration data show.
Alaska and Hawaii are almost always the most expensive states, due to having isolated grids, and other factors.
It’s unclear exactly what’s causing the trend, but in general, New England states are heavily reliant on imported energy from other states, particularly natural gas from deposits in other regions. That requires longer distance, more expensive pipeline shipments.
Transmission, power plants, regulations and weather conditions can also play a role in energy prices, according to EIA.
It’s also possible that renewable energy is part of the trend, although any impacts are likely small for now.
The first commercial offshore wind farm in the country began operating in May 2017 off the coast of Block Island.
Under a 20-year contract with National Grid, the developer is receiving an above-market price of 24 cents per kilowatt hour, with guaranteed increases over time, for the electricity produced by the 30 megawatt farm, according to the Washington Post.
Ørsted acquired that wind farm last year, and won a 200-megawatt contract from Connecticut for its Revolution Wind farm. The company, which has a 50-50 partnership with Eversource, is expected to bid more offshore megawatts, following Connecticut’s release last week of a final RFP for wind power, part of its new goal of incenting the development of 2,000 megawatts of offshore wind by 2030.
However, the prices utilities ultimately negotiate with winning bidders could be well under 24 cents (that doesn’t include certain other costs that ultimately end up in ratepayer bills).
Officials familiar with the projects have said recently that they could be somewhere around 10 cents.
That price, according to WPRI, would be in line with more recent Rhode Island wind awards.
Connecticut ratepayers paid an additional $250 million for renewable power in 2017, according to the Department of Energy and Environmental Protection, which projected at the time that the annual net cost would rise to $400 million in the years ahead.
