Connecticut Attorney General's Office

Press Release

Attorney General's Statement On CL&P Standard Service Rate Decrease

December 16, 2009

"This rate decrease makes a small dent in our highest-in-the-nation electricity rates -- reflecting purchasing reforms ordered with my support by the DPUC, and lower gas prices. Even with this decrease, Connecticut's rates will remain among the highest nationally.

"My office will continue to fight unnecessary rate increases by utilities, and push even harder to establish a public power authority to compete with generators and increase purchasing flexibility to further drive down costs in the industry.

"Most immediately, we will strongly oppose CL&P's plans to seek a $210 million rate request that would erase an expected 5 percent rate decrease. Now more than ever, consumers deserve relief through reduced rates. Without CL&P's request, consumers' bills would drop even deeper than the reductions announced today.

"CL&P is taking advantage of consumers, when consumers should have a chance to take advantage of falling rates. We will ask the DPUC to reject this rate request to further relieve consumers.

"As part of a legislative and Department of Public Utility Control order that we supported, power purchasing practices have been reformed to enable consumers to take advantage of decreased generation costs. Through a blend of contracts, utilities now secure the stability and safety of long-term contracts, but also take greater advantage of falling prices in the market with short-term contracts.

"These new purchasing practices have allowed utilities to secure cheaper generation contracts for consumers, now reducing generation service rates by 5.2 percent -- or a decrease of $7.29 monthly for the average consumer."