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 Energy Choice

Energy choice is providing savings for Connecticut electricity customers. Connecticut’s energy choice laws allow consumers to shop for competitive electricity generation rates. Currently competitive rates are being offered that are significantly lower than the local utility (CL&P, United Illuminating) generation default rates.

The utility generation default rates are set for an entire calendar year. As an electricity shopper, if you can find a competitive fixed electric rate that is lower than the default rate (see below) than you can guarantee yourself electricity bill savings. Connecticut Light & Power and The United Illuminating Power Company offer default electricity rates for consumers who are slow to learn about Connecticut energy choice.

The expenses customers pay for default service are actually passed through CL&P and United Illuminating to competitive energy companies who have bid to service the default class. Many people refuse to shop for lower electric rates because they believe that staying loyal to CL&P and United Illuminating will promote the local economy. That thought process is false as the default revenues already go towards competitive energy suppliers. The Connecticut energy choice laws have unbundled the CL&P and United Illuminating so that they now only focus on delivering the power in their regulated local utility territory. Connecticut Light & Power and The United Illuminating Company do not profit from generation supply rates, and therefor do not care if their customer’s shop for lower competitive energy rates.


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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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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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Low Electric Rates in UI

Electric choice is working in Connecticut as competitive electricity prices continue to fall for United Illuminating power customers . It is hard to argue against 15% savings, which is what current (Summer 2011) low electric rates in the United Illuminating (UI) territory are yielding for customers who have switched off of default rates and moved towards competitive electricity prices.

UI customers are still relatively new to the idea of receiving multiple electric rate offers. Though Connecticut electricity has been deregulated for some years now, competitive electricity offers were not offered to residential customers until just a few years ago. Savings were small at first, but with the UI Generation Service Charge (GSV) rates recently increasing and wholesale rates remaining low, competitive electric companies have been able to offer attractive electricity prices.

UI electricity customers can be reassured that selecting a low electric rate from a alternative supplier will not upset UI or end the business relationship. The United Illuminating Company is in the business of delivering power, and they continue to charge regulated rates to all of their customers for this service. They also continue to send their customers the monthly electric bill. The generation default rate that customers pay with UI is passed through to competitive electricity companies who have won auctions for the right to service default paying customers. Believe it or not, even if you haven’t selected a competitive supplier in Connecticut, you are already paying a competitive supplier through default service.

Electricity competition is working in the United Illuminating Company service area because customers can choose from a variety of electric suppliers at electricity prices that are lower than default rates.

Current Low Electric Rate for United Illuminating Customers:


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United Illuminating Electricity Shopping

Electricity customers being serviced by United Illuminating (UI), a utility company servicing southern Connecticut, are shopping for lower electric rates as prices in the competitive market have become much lower than UI default rates.

United Illuminating power company offers a default rate of 10.62 cents per KWh for their customers who have not done power shopping. Customers who compare electric rates will find savings of 10% or more. The high UI default rates has made the United Illuminating territory attractive for competitive electricity companies to enter the market, causing prices to go down further.

MX Energy is the leading competitive supplier in the area with more than 19,000 UI customers. When UI customers choose an alternative supplier for their electric generation supply, UI continues to deliver the power and send the monthly electric bill to the customer. Electricity shopping is purely about finding savings and getting a lower rate on the monthly electric bill. Nothing else changes when a switch is made; there is no interruption of service and no one has to come to your home to adjust any lines and wires.

Here are some current competitive electricity rates for United Illuminating Customers:


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Business Electricity Companies

New energy choice markets in the northeast (Pennsylvania, New Jersey, Maryland, Connecticut) as well as existing deregulated areas such as Texas and Illnois are making some business electricity companies household names as the battle for market share has heated up.

Electricity companies who offer electric service to commercial and industrial clients buy power commitments in advance for the businesses and then sell it back to them in the form of a monthly electric bill.  Essentially these business electricity companies act as banks for large energy users.  As retail electric suppliers, they buy blocks of power on the wholesale market and then sell it to the customer with a retail markup.  This is why electricity companies require businesses to sign electricity contracts that locks them into service with the supplier for the term of the contract.

However, some of these business electricity contracts can be confusing and misleading to executives who are looking at purchasing energy for the first time.  Some of the misleading practices include “passing through” part of the charge to other sections of the bill,  thus making the rate appear lower than it really is.  Also, electricity companies can add unnecessary meter charges that can add up for businesses that have multiple meters.

It is important for businesses to do their due diligence or work with a energy consulting company who has a clear expertise in the field of deregulated electricity.  Electricity brokering companies can compare electricity contracts, rates, and suppliers.

Businesses should be weary of electricity companies offering variable rates that are contract free.  Usually the offer will not guarantee any type of rate allowing the electricity supplier to charge whatever they want in any given month.

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Integrys Energy Review

This article pertains to commercial and industrial electricity customers in deregulated markets where Integrys Energy is active, including but not limited to Maryland, New Jersey, Pennsylvania, Connecticut, Delaware, and New York.

Integrys Energy has offered electricity contracts with misleading rate quotes to commercial and industrial customers.  If you are deciding to use Integrys Energy as your supplier it is extremely important that you either review the contract thoroughly, or work with a consultant or energy broker who is equipped to do so.

As a business electricity customer, here is what you need to know:

Every deregulated electricity state divides their bill into two basic parts, the regulated delivery part and the competitive supply part.  Depending on who is your local regulated utility will depend on how these charges are viewed on your bill.  Sometimes, like in the case of PSEG in New Jersey, the two parts are clearly divided.  Other times, like in the case of PPL in Pennsylvania, the charges are not so clearly separated.

The competitive supply portion of the bill can further be separated into several components (energy charge, transmission, capacity, line losses, etc.).  When you receive a competitive rate offer from an energy supplier, the rate should include every component of the competitive supply portion.  However, what some suppliers do is give a quote that only includes a portion, and then passes on the rest of the charges in a subsection on the bill.

So for example, you might get an offer from Electric Supplier (A) for a rate of 8 cents that includes every aspect of the competitive supply part.  Then Electric Supplier (B) might offer you a rate of 7 cents that only includes part, say the energy charge, of the competitive supply part.  The remaining part of the competitive supply part (transmission, capacity, line losses) will show up on the bill in a different section, and all of a sudden 7 cents is really 9.5 cents.

Integrys Energy practices the method of Electric Supplier (B) from the example above.  Recently I reviewed a contract that they presented to a customer.  After reviewing the contract I found that the customer would have paid exactly double to what they thought they would have paid.  This is because Integrys divided the competive supply part into two sections, and gave both sections the same exact rate.  This was extremely misleading as the implementation of the exact rate for two different sections was designed to make it appear as if everything would be charged the single rate once.  But after taking a closer look, I was able to see that there would in fact be two separate charges.

To summarize the above paragraph, had the customer signed they would have paid:

6 cents per KWh for (energy commodity)

6 cents per KWH for (capacity, transmission, line losses)

12 cents total

The sales person representing Integrys presented the rate as 6 cents.  The customer thought that the 6 cents was a great offer compared to the 8 cents offer they were getting from another legitimate supplier (the 8 cents offer was found to include the entire portion of the competitive supply part).  In reality the 8 cents should have been compared to 12 cents, and not 6 cents.

People making electricity decisions for businesses need to be aware of these deceitful practices.

A simple way to do this is to email the sales person and ask them:  Does the rate include energy, capacity, transmission, line losses, and all other components of the utility price to compare?

Anything less than a “yes” means that there will be some surprises.

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CT Electric Suppliers

The 1.5 million electricity customers serviced by Connecticut utilities CL&P and UI have close to a dozen options when it comes to choosing a Connecticut electric supplier.

CT electric suppliers range from small start up companies to sister companies of fortune 500 energy companies.  Some of the CT electric suppliers are only offering service to residential electric customers, some only to commercial and industrial electricity users, and others are offering service to all energy users.

Currently, more than one million Connecticut customers have not chosen a competitive CT Electric supplier.  Those who have not chosen a supplier pay a high default rate with either CLP or UI, who act as the electricity delivery companies for the majority of the state.  Residential customers can save up to 18.7% by choosing a new electric company to provide electric generation service.

When a customer chooses an alternative electricity generation (or supply) company, they simply are choosing a lower rate versus the CLP or UI default rate.  In most cases, the customer will still get their monthly electric bill from the utility.

Some CT electric suppliers, like MX Energy (click here), offer fixed rates that lock in a specific rate for a specific period of time.  In Connecticut, the default rates are set for one year at a time, so getting a fixed electric rate with an electric supplier can guarantee savings.

Other CT electric suppliers, like Positive Energy (click here), offer a variable electric rate that can fluctuate from month to month but gives the customer the option to leave at any point without penalty.

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