Why Connecticut Eversource bills could change before 2027

As Connecticut utility regulators begin reviewing Eversource Energy’s request for a rate increase that would take effect July 1, 2027, customers should keep several key dates in mind.

Eversource, which is headquartered in Hartford and Boston, filed its rate hike request with the Connecticut Public Utilities Regulatory Authority on Tuesday. A final decision is not expected until next spring, but customers could see changes to portions of their electric bills before then.

PURA is expected to issue a final decision on whether Eversource can use securitization to recover costs from repairing storm damage to its electric distribution system between 2018 and 2023.

Under the proposal, Eversource would issue bonds backed by future customer payments, allowing the company to borrow at lower interest rates than through traditional financing. The lower borrowing costs would reduce the impact on customer bills.

PURA granted tentative approval to parts of the securitization plan last month, but commissioners are expected to make a final decision July 29. Because the outcome remains uncertain, Eversource included two scenarios in its rate increase request.

If securitization is approved, Eversource is seeking a $451 million rate increase that the company estimates would raise the average residential bill by about 11%, or roughly $20 per month.

If PURA rejects securitization, Eversource says it would seek just over $500 million, increasing the average residential bill by about 18%.

Electric rates can also change through Connecticut’s rate adjustment mechanism, which allows PURA to consider certain bill components as market conditions change.

Costs considered include electric transmission, federally mandated congestion charges and the public benefits charge, a state-mandated fee that funds nearly five dozen programs, including energy efficiency initiatives, hardship and low-income assistance, renewable energy incentives and long-term nuclear power contracts.

PURA has the option to further adjust electric rates in September if market conditions warrant.

Most recently, on May 1, Eversource customers saw rates decrease by 4.3 cents per kilowatt-hour, reducing the average monthly bill by about $30. United Illuminating customers saw rates fall by 4.9 cents per kilowatt-hour, lowering average monthly bills by about $34.

The electric supply, or standard service, portion of bills for Eversource and United Illuminating customers changes every Jan. 1 and July 1.

Most residential customers receive standard service, meaning the utilities purchase electricity on their behalf rather than customers buying power from competitive third-party suppliers, which sometimes offer lower rates.

Earlier this month, Eversource’s standard service rate fell to 11.58 cents per kilowatt-hour. Residential customers using between 700 and 800 kilowatt-hours a month are expected to save about $7 to $8.50 monthly on the supply portion of their bills.

United Illuminating’s standard service rate dropped to 11.95 cents per kilowatt-hour. Customers using between 600 and 700 kilowatt-hours per month are expected to save about $10.50 to $12 monthly on the supply portion of their bills, according to the Connecticut Office of Consumer Counsel.