BERLIN - Eversourceâ€™s standard service generation rate will be going down by 55 cents effective July 1.
The Public Utilities Regulatory Authority approved the reduction from 9.08 cents per kilowatt-hour to 8.53 cents per kilowatt-hour.
The approval came after Eversource submitted its summer cycle rates, based on competitive auctions held earlier this year to get the electricity needed to meet the forecast load, according to PURA.
The process, underlying calculations and resulting rates have been analyzed and verified by PURA.
The standard service price changes eachÂ Jan. 1 and July 1. The new rates will be in effect from July 1 to Dec. 31, according to a release from Eversource.
The new rates are a direct pass-through to customers of the price of power generation, Eversource added.
The average residential customer using 700Â kilowatt hours of electricity each month will see a decrease of abut $3.84 per month on the supply portion of the bill, according to Eversource. Each customerâ€™s total bill depends on how much energy they use, their rate category and weather conditions.
The generation rate, which recovers the cost of generating electricity, makes up 40 percent of the monthly electric bill for most residential users, PURA said in a release.
About 30 percent of Connecticutâ€™s residential customers receive standard service generation from the stateâ€™s two major providers, Eversource and United Illuminating, whose service area is in New Haven and Fairfield counties. UI customers will also be seeing their standard service generation rates drop.
Under the state law that deregulated electricity, utilities bid twice a year for power supplies, award contracts to low bidders, and pass along the costs to customers without marking them up, said Eversource.
All Eversource customers have the option to buy power from other suppliers or go with the companyâ€™s standard service rate, Eversource said.Â
Customers can find out more about alternative suppliers and rates at energizect.com/compare-energy-suppliers.
â€śWeâ€™re pleased to pass along these lower energy costs to our customers and remind them they can save even more by taking advantage of our energy efficiency programs,â€ť said Penni Conner, Eversourceâ€™s senior vice president and chief customer officer.Â â€śWe want to connect customers to solutions for savingsÂ with the variety of payment options and efficiency tips and services we offer which willÂ help reduce their usage, tighten up their homes, and keep energy bills down.â€ť
Charles Paullin can be reached at 860-801-5074 or email@example.com.