Connecticut electricity prices will drop for five more years before a variety of market factors could force a 38 percent rise in prices by 2022, a new report says.
The state Department of Energy & Environmental Protection released its Integrated Resource Plan on Thursday following months of examining the energy market and the impact of state and regional policies. The IRP is meant to serve as a guide for the state’s energy policy for the next 10 years.
In the report, DEEP officials said they expect the generation price of electricity – about half the amount of a total electric bill – to remain at 8 cents per kilowatt hour or below through 2017. The low prices are due almost entirely to the dropping price and increasing domestic supply of natural gas.
However, from 2017 to 2022, electricity generation could rise as much as 3 cents per kilowatt hour because of increased demand, rising natural gas prices, and New England’s commitment to renewable energy.
To mitigate the potential increase, the IRP recommends Connecticut focus on cost-effective renewable power, increase its investments in energy efficiency, and make sure the region has enough natural gas supplies to meet rising demand in the electricity and heating sectors.
