The Public Utilities Regulatory Authority approved the proposed utility default standard service rates for electricity generation from Connecticut Light & Power and United Illuminating.
Effective Jan. 1, CL&P’s residential generation rate will increase from 9.99 cents per kilowatthour to 12.629 cents per kilowatthour. On the same date, UI’s residential generation rate will increase from 8.6657 cents per kilowatthour to 13.3108 cents per killowatthour.
These rates, which comprise only a portion of ratepayer bills, pay for the utilities to purchase electricity from power plants. The utilities receive no profit in these rates, as the cost of buying the power is passed directly onto the ratepayer.
Connecticut residents and businesses have the option to switch to a competitive electric supplier to buy their power, instead of using the default utility rate. Those competitive rates are negotiated between the individual supplier and ratepayer.
Regardless of who supplies their power, ratepayers still receive their bills from CL&P and UI, which deliver the electricity to homes and businesses. The generation rate comprises only a portion of the bill, which also includes taxes, government programs for efficiency and renewable generations, and the transmission and distribution rates.
