Alternative CL&P Energy Suppliers Offer Lower Electric Bills

Electricity bills in the Connecticut Light & Power service area are increasingly being reduced due to competitive power rates being offered by alternative CL&P energy suppliers. Customers are lowering the price they pay for electricity by choosing to sign electricity agreements with alternative energy suppliers who are licensed by the state of Connecticut. Choice awareness among the CL&P residential class has expanded in recent months due to rising generation supply rates that are offered by CL&P. Customers who do not choose an alternative CL&P energy supplier pay a default rate for their electricity; that rate recently saw a 25% increase.

Alternative energy suppliers have entered the Connecticut electricity choice market in hopes of gaining market share by offering electricity rates that are lower than the CL&P default price. Energy shoppers are becoming more aware of their options as alternative electricity suppliers have increased their marketing budgets. The infusion of new energy suppliers are helping to educate a larger pool of customers so that they can take advantage of the best CL&P electricity prices being offered that can result in substantial monthly savings.

Whenever rates see a significant increase consumers start to look for alternative solutions. In energy choice states such as Connecticut, the clear alternative is to shop around for a lower electricity rate. Connecticut people who are switching to alternative suppliers for the first time are often surprised as to how easy the process is and wonder why they haven’t done it sooner. The CL&P basic generation charges, the default rate, had remained stable over the last year before January 2015. With stable prices uninterested customers had little incentive to learn about electricity choice and shop the market. Now with savings above 30%, the incentive is there for customers to learn about alternative energy suppliers and their offers.


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Connecticut Electricity Rates to Increase by 26% in January

The price that people pay for electricity in Connecticut is about to take a large increase for many residential customers. Connecticut Light & Power, the state’s largest electric utility, announced that their generation default rate for electricity will increase to $0.12629 in January from the 2014 rate of $0.0999. The increase represents a surge in price of 26% that consumers who remain on the default rate structure will see on their CL&P electric bills in the coming months.

Fortunately consumers of CL&P have the ability to shop for lower Connecticut electricity rates through the state’s energy choice act. Competitive electricity rates offered by alternative energy companies are available that will keep their energy bills under control. The rate hike will only occur for customers who do not shop and choose a competitive rate plan.

The rise in CL&P generation rates has been a trend for the past year. In July 2014 the CL&P default rate increased by 8.2% from the previous rate that had been in effect since January. The new rate that will go into effect on January 1, 2015 is 37% higher than the rate charged to customers in June 1, 2014. The new $0.12629 rate will stay in effect until June 30, 2015, at which point it could go even higher. Locking in a low fixed Connecticut electricity rate will not only offer customers savings right away, but will also provide price certainty for the second half of the year. Below are current CL&P competitive rate offers. Pries are updated on a daily basis.


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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.


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CL&P Rate Hike Goes Into Effect on January 1st

Connecticut Light and Power electricity customers are going to see a 22% increase on their electric bills for the price they pay for power generation supply. The current rate of $0.07573, that has been in place since July 2013, will increase to $0.09235 on January 1, 2014. The rate increase will occur for those residential customers who are not currently on a competitive supply contract from a CL&P Alternative supplier.

CL&P residential customers have enjoyed low default generation rates from the utility over the last two years, which has limited growth in Connecticut’s electricity choice market. In Connecticut, when a customer does not shop for a competitive power rate they pay a default rate with their local utility, which in Connecticut is either CL&P or The United Illuminating Company. With CL&P rates being low over the last two years a lack of incentive existed for customers to get out and shop for a lower electricity rate. However, now that those default rates will be rising by more than 20 percent, electricity shopping in the state is expected to take off.

The competitive energy choice market has remained in tact even after two years of low electric default rates. Now that those defaults rates are rising, competitive electricity companies in Connecticut will attempt to get their brand out there in hopes of acquiring new customers. Connecticut residential electricity rates offered in the competitive market will allow a signifiant relief for those customers who will see their default rates rise in January.


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CL&P Electricity Rates Fall in 2013

The price for electricity generation supply will be less in 2013 for Connecticut Light & Power customers than it was in 2012. The electricity rate, which was above 8 cents for the entire 2012 calendar year, dropped to 7.615 cents on January 1, 2013 and will remain at that price for the entire calendar year in 2013.

The CL&P generation rate is the default electricity rate that consumers pay who have not shopped for competitive power rates. As an energy choice state, Connecticut consumers have the ability to shop and compare electric rates from multiple competitive electricity companies. Those consumer who choose not to shop pay a default rate with their local utility. In Connecticut the two major utilities are CL&P and The United Illuminating Power Company.

While the default CL&P rates have dropped, consumers can save even more by taking the time to shop for lower competitive electric rates. Below are offers from qualified competitive electric suppliers licensed by the state of Connecticut. All electricity rate offers are updated daily.


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Connecticut Power Companies offer Savings against Default Rates

Electricity choice in Connecticut is clearly working as competition is forcing prices on a downward trend. Just a few short years ago consumers in Connecticut were paying the highest electricity rates in the country, causing state senators to draw up a Energy Bill to end electric choice. The bill was eventually vetoed by the governor, and with time prices have dropped.

Connecticut Light & Power customers have seen electricity deregulation and competition bring down their generation rates by more than 30%. In 2009, the generation default rate for CL&P residential customers was over $0.11 per KWh. Now, in 2012, that default rate has dropped to $0.0828, with competitive electricity rates as low as $0.0769.

Consumers who do not shop for competitive electricity pay the default rate that is offered by CL&P. Though they may not realize it, the drop is a result of increased competition. However, to maximize the benefits of Connecticut electricity choice, consumers should shop for low electricity prices.

Below are some current competitive electricity rates from Connecticut Power Companies offering service in the CL&P territory. Even after a competitive rate is chosen, the customer will still receive their monthly electric bill from CL&P, and CL&P will continue to respond to power failures and emergencies. The only thing that changes is the rate (i.e. you pay less on your monthly electric bill).


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North American Power Review

Electricity customers approached by sales reps from North American Power should be careful before signing an electricity contract with the supplier. North American Power contracts that offer a variable rate are likely to increase almost immediately. Their contracts do not even guarantee that the rates they advertise on their site will be locked in for the first month.

The company promotes their rates by emphasizing that by choosing them you will be supporting charitable organizations. This is true, however it should be noted that you will be doing this as an extra cost to you, by paying more on your electric bill. You can support these charitable organizations without choosing North American Power as your electricity supplier. By choosing a variable rate with North American Power, you will pay a price for electricity at the company’s choosing.

Current North American Power prices for customers in the Connecticut Light & Power (CL&P) territory are listed as $0.0899 per KWh. However, customers in this area are paying $0.0999 cents per KWh on their most recent bill, a price that is even higher than the CL&P default rate.

We strongly recommend not choosing a variable rate for your electricity for the simple reason that the price has no ceiling. In contrast, a low fixed electric rate can guarantee you savings if the rate is lower than your utility’s default price to compare. The fixed rate will be fixed for a set term indicated on the electricity agreement that you choose.

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CT Energy Savings

Connecticut consumers continue to benefit from the state’s decision to deregulate their electricity market several years ago. Electric choice in Connecticut is providing energy customers with lower prices and more options when buying their electricity.

Almost everyone in Connecticut is serviced by either Connecticut Light & Power (CL&P) or the United Illuminating Company. Prior to CT Energy Choice these two utilities were regulated monopolies of electricity generation, transmission and distribution. The decision to create an energy choice market changed the role of CL&P and United Illuminating Company for their customers. Now they are only responsible for the transmission and distribution of electricity and are no longer in the business of offering generation rates to customers. Consumers can shop for competitive generation electric rates to find the offer that best fits their needs.


Consumers who do not shop for lower electricity prices pay a default rate that is charged by their utility company and regulated by the state. The default charge is determined by a series of auctions that the state holds for competitive energy companies who bid to serve a certain percentage of default paying consumers. While the money for default generation rates are collected by the utilities (CL&P and United Illuminating), the revenues for these charges are passed through to the energy companies who have won the previously held auction. Electricity choice is about customers getting the best deal that they can find, and not settling for a default rate.


While Connecticut has been a very successful energy choice state, the majority of customers are still paying high default electric rates. Less than 40% of CL&P residential customers and only 45% of United Illuminating residential customers have chosen to purchase energy from alternative suppliers. Currently CL&P default paying customers can save 10% on their monthly electric bill by choosing a low cost electric supplier. United Illuminating consumers can save as much as 20% versus their default generation prices.

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Low Electric Rates in Hartford CT

Connecticut energy customers in the state’s largest electric utility, Connecticut Light & Power (CLP), can reduce their electric bills by shopping for competitive electricity prices. CLP is the regulated electric utility for all of Hartford.

Hartford energy customers who do not choose their electricity supplier pay a generation service default rate through CLP. Even though the default generation rate was reduced 14% from 2010 to 2011, even lower electric rates can be obtained for those consumers who take the time to learn about Connecticut electricity choice and find the lowest prices available in the competitive market. CLP remains the power delivery company for all of their customers including those who select an alternative electricity company. The Connecticut energy choice law has unbundled CLP from a full service electricity generation and delivery company to just a regulated electricity delivery company.

Choosing an alternative energy company in Connecticut does not affect the quality of power that you receive. As the local utility company in Hartford, residences will continue to receive their monthly electric bill from CLP even after thy select a less expensive electricity supplier.

Here are the lowest electricity rates in Hartford, CT (updated daily):


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Connecticut Light and Power

Electricity prices will lower in Connecticut for CL&P residential customers who remain on generation default service.  Despite the lower prices, Connecticut Light and Power customers can still save even more by choosing an electric rate offer from an third party electricity supplier.

Over the last year electric rates for residential customers were on average 15% lower than Connecticut Light and Power default rates.  Despite this only 32.5 percent of customers who are serviced by the utility CL&P had chosen an alternative electric company.

Much of the hesitation remains on the side of confusion of consumers.  Many consumers wish to “stay loyal” to CL&P, however based on the Connecticut Electric Choice Act that statement would not make sense.  CL&P does not profit off of their Generation Service Charge, which is default service for electricity customers who have not chosen an alternative electric offer.  They now only profit off of the regulated rates and charges of the delivery portion of the bill.

Connecticut Light and Power customers can also find attractive introductory bonuses in addition to lower electric rates.


The variable rate will give you the option of leaving at anytime.  Though we feel it is better to lock in a low fixed rate, if you are looking to get your feet wet with electricity choice, the variable rate can offer a good starting point.

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