CL&P Rate Increase Taking Effect in July 2014
CL&P has posted a rate increase for their residential customers for the generations portion of their electric bill. The rate increase will take effect on July 1, 2014 and remain in tact through the end of the year. Connecticut Light and Power is the state’s largest electric utility providing power to more than 1.2 million customers. Electricity customers in Connecticut, through the Connecticut Energy Choice Act, have the ability to shop for competitive electric rates from alternative suppliers who are licensed by the Connecticut Public Utilities Regulatory Authority.
In 2013, 43% of customers who receive their power from CL&P elected to purchase their power supply form a competitive electricity company. Due to low CL&P default rates, the number of participating electricity shoppers has steadily declined since 2012 reaching its current number at 39.9%. During this time it was difficult for competitive electricity companies to offer rates that were below the default price for electricity. When shopping for the lowest CL&P electricity prices, customers are encouraged to find a fixed rate below the default rate in order to ensure savings on their electric bill. With the CL&P default rate being the lowest fixed rate available during large stretches in 2012 and 2013 many consumers chose to go back onto default service instead of renewing their competitive plan.
Electricity shopping activity is expected to regain its growth due to the CL&P rate increase that will be taking place during the second half of 2014. Residential customers who are on the CL&P default rate will see the price they pay for generation service rise from $0.09235 to $0.0999 per KWH, which equates to a 8.2% increase. The rate increase also comes at a time when competitive electricity companies are seeing wholesale prices stabilize, allowing them to offer competitive electric rates below the default prices.
Below are competitive Connecticut electricity rates offered to CL&P customers. If the fixed rates are below the CL&P default rate the customer will save money on their monthly CL&P electric bill.
