Electricity

Understanding Your Electric Bill

Electric Bill/Rate Components

 

The Office of Consumer Counsel (OCC) provides an updated description of the electric charges on the monthly residential bill as of September 1, 2024.

Please note that the electric companies have implemented a new bill format as required by Public Act 23-102 and directed by PURA in Docket No. 14-07-19RE06.

 

The first page of your electric bill summarizes your account.

 

The second page of your bill breaks down your electricity cost into four parts: Supply, Transmission, Local Delivery, and Public Benefits.

 

• The Supply portion of your bill reflects the cost of the generation of electricity, which is deregulated. Eversource and United Illuminating do not make any profit from the supply of electricity which state agencies and the utilities procure through an established Procurement Plan. Customers who do not select a third-party electricity supplier will automatically get their electricity through standard service. Utilizing a third-party electricity supplier may increase or decrease the cost of your electricity supply.

   

• The Transmission part of your bill is regulated by the Federal Energy Regulatory Commission (FERC). Eversource and the United Illuminating Company earn a return on their transmission investments, which are authorized and regulated by FERC. OCC advocates before our regional grid operator, ISO-NE as well as FERC to keep transmission rates as low as possible.

   

• The Local Delivery part of your bill is regulated by the Public Utilities Regulatory Authority (PURA). Eversource and the United Illuminating Company also earn a return on their distribution investments, which are authorized and regulated by PURA.

   

• The Public Benefits part of your bill reflects costs incurred by the electric companies in furtherance of grid reliability, affordability, clean energy and other energy policy directives from the State of Connecticut.

Impacts of September 1, 2024, Rate Changes on Customers

UI Customers -- As a result of the proceeding before PURA in Docket No. 24-01-04, PURA Annual Review of the Rate Adjustment Mechanisms of the United Illuminating Company, rates have changed within two rate components for United Illuminating customers: the TAC and NBFMCC. All acronyms listed are explained in detail below.

The OCC estimates that average standard service and non-standard customers (using 700 kWh per month) will see a monthly bill increase of $3.21, starting in September 2024.

Eversource Customers -- The proceeding before PURA in Docket 24-01-03, PURA Annual Review of the Rate Adjustment Mechanisms of the Connecticut Light And Power Company also resulted rate changes for Eversource customers, within one rate component which is the NBFMCC.

The OCC is estimating an average 700 kWh usage customer to see a monthly increase of $2.69 starting in September 2024. Customers who are on standard service or non-standard service will see the same cost increase.

 

More Details to help Customers Understand the Electric Bill and its Rate Components

As discussed above, your monthly electric bill is divided into four components:

 

Supply

The Supply portion of your bill includes the Generation Services Charge (GSC) and the Bypassable Federally Mandated Congestion Charge (BFMCC).

This number reflects the charge for the actual electricity or kilowatt hours that you use, measured in kilowatt hours (kWh) per month. This charge may differ depending on whether you are with a retail electric supplier or have “Standard Service.” You have a choice of how much you pay based on this part of your bill, depending on which supplier you select. Standard Service is the default service for electricity provided to you by your electric distribution company (Eversource or United Illuminating), which will be charged to you unless you opt to purchase your electricity from a retail electric supplier. The rates for standard service change on January 1 and July 1 each year. The electricity sold through Standard Service is purchased or “procured” by the electric distribution companies, overseen by staff and consultants from PURA and the OCC. (Effective July 1, 2024, Eversource’s GSC is 8.889¢ per kWh for Residential Rate 1 customers. UI’s is 11.9101¢ per kWh for Rate R). 

Customers in Connecticut may also choose a third-party supplier, many of whom sell electricity at rates below the Standard Service rate.   To see the rates and for more information about how to select a third-party supplier, go to EnergizeCT.com. 

Supply charges may also include Bypassable Federally Mandated Congestion Charges (BFMCC) (Also called FMCC-Generation). “Bypassable” FMCCs are charges that customers may avoid by selecting a retail energy supplier rather than receiving service through the electric companies’ Standard Service rates. These “energy-related” charges include charges from the Independent System Operator-New England (ISO-NE), costs related to congestion on the transmission system, and certain financial instruments meant to offset those costs. 

 

Transmission

The Transmission portion of your bill, as shown in the Transmission Adjustment Clause (TAC), reflects the price for delivery of electricity over high voltage power lines from the generation company to the distribution company. The Federal Energy Regulatory Commission reviews and approves these charges. Transmission charges have increased significantly since Connecticut restructured its electric industry. In the last twenty years, companies have spent billions of dollars on transmission lines throughout New England.  As New England’s electricity demands grew, the transmission companies invested in large power lines to bring power into Connecticut from across the region, including Canada, and to transmit power generated in Connecticut out to other parts of the Northeast and Canada. Transmission charges include local (CT only) charges as well as regional charges, which are charges from all of New England. (Effective September 1, 2024, Eversource Rate 1, Transmission is 3.401¢ per kWh.  Effective July 1, 2024 UI Transmission for Rate R is 4.6888¢ per kWh, but will adjust upwards on September 1, 2024)

 

Local Delivery

The Local Delivery portion of your bill represents the costs Eversource or United Illuminating incur in building, maintaining, and operating the distribution grid - including their authorized return, or profit. There are many charges included under Delivery Services and you do not have a choice of how much you have to pay. No matter which Retail Electric Supplier you choose, Eversource or UI still will deliver your electricity and send you a bill each month for these delivery services.

The charges you pay for Local Delivery services include:

1. Customer Service Charge (Distribution) – Labeled “Fixed Monthly Charge” (both companies), this charge covers costs related to customer billing, meter reading, customer service and maintaining the service line. The amount of the service charge varies by the type and size of customer, with larger customers paying higher monthly service charges. Currently, Eversource charges $9.62 per month for Rate 1: UI’s monthly customer charge for Rate R is $11.34)
2. Electric System Improvements (ESI) – Labeled “Local Delivery Improvements,” the ESI is a ratemaking mechanism created in Eversource’s 2017 Rate Case to recover the Company’s investments that protect, strengthen, or modernize the electric grid. These investments were over and above those contained in the approved Rate Plan and associated with approved system resiliency and/or grid modernization. Eversource’s Rate 1 ESI charge is 1.967 cents per kWh. UI does not currently have an approved ESI mechanism.
3. Distribution Charge – Labeled “Local Delivery” (Eversource) or “Distribution per kwh” (UI), this figure represents the price for delivery of electricity using the local wires, transformers, substations, and other equipment used to deliver electricity to end-use consumers from the high voltage transmission lines. As of December 31, 2022, Eversource has approximately $ 6.05 Billion invested in its Connecticut distribution system; UI’s distribution system has approximately $1.326 Billion in in its distribution system. Currently: Eversource’s Rate 1 Distribution rate is 5.844¢ per kWh; UI’s Rate R Distribution rate is 10.0714 ¢ per kWh.)
4. Revenue Decoupling (RDM) – Labeled “Revenue Decoupling” (Eversource) or “Decoupling Adjustment” (UI), this phrase stands for “revenue decoupling mechanism,” a ratemaking device that allows PURA to adjust each distribution company’s annual distribution revenues to the level allowed in that company’s last rate case. Revenue decoupling prevents the companies from collecting too much in rates while ensuring that customers pay only what they owe according to the last rate case. Customers are charged if total annual revenues are below that set in a rate case, but customers are credited when total revenues exceed allowed levels. Effective September 1, 2024– April 30, 2025, Eversource’s RDM is 0.195¢ per kWh; UI’s charge is 0.0518¢ per kWh.
5. Competitive Transition Assessment (CTA) – Originally, the CTA covered the electric distribution company's stranded generation costs that remained on the company’s books at the time of restructuring.While the companies sold some assets for above book value, they also sold others at below book value. The majority of these costs were recovered in 2011 for CL&P and 2013 for UI. Currently, the remaining charges and credits vary year to year and are associated with long-term purchased power contracts that remain from the 1980’s-90’s from cogeneration facilities that generated electricity and useful heat commonly used in large industrial process plants and trash to energy facilities. For Eversource, the Rate 1 CTA is a credit of 0.038¢ per kWh. UI’s CTA is 0.00¢ per kWh.

 

Public Benefits

 

The Public Benefits section on your electric bill reflects the Nonbypassable Federally Mandated Congestion Charge (“NBFMCC”) as well as the Combined Public Benefits Charge:

1. Combined Public Benefits (CPB) Charge - The CPB charge on electric bills combines three separate charges: (a) Systems Benefit Charge, (b) Renewable Energy Investment Charge, and (c) Conservation and Load Management (C&LM) Charge.
   1. Systems Benefits Charge (SBC) - The cost of public education, hardship programs and other societal costs. The SBC varies by electric company over time. SBC funds pay electric company costs associated with hardship customers, providing a program that matches payments made by customers with arrearages that further reduces the amount they owe, and the low-income discount rate program. Because most of these charges are related to residential consumers (as opposed to businesses), the residential SBC charges are higher than for commercial and industrial consumers. The SBC will cost approximately $351.830 million for Eversource and $34.935 million for UI. Effective September 1, 2024 – April 30, 2025, Eversource Rate 1, SBC rate is 3.326¢ per kWh; UI Rate R, SBC is 2.7419¢ per kWh).
   2. Renewable Energy Investment Charge - The payments to the Renewable Energy Investment Fund, which promotes the growth, development, and sale of renewable energy sources. The renewables charge is a 0.1 cent per kWh charge to support renewable energy programs. It is the primary funding source for the Connecticut Clean Energy Fund, administered by the Connecticut Green Bank. Among other things, the Clean Energy Fund supports programs that provide incentives for residential, commercial, and industrial renewable energy programs.
   3. Conservation Adjustment Mechanism (CAM) Charge - This charge supports energy efficiency programs. The CAM Charge includes the state mandated 0.3 cent per kWh Conservation & Load Management Charge and up to an additional 0.3 cent per kWh through the Conservation Adjustment Mechanism (CAM). The two C&LM Charges collected through the CAM line item brings in nearly $160 million annually to fund conservation and energy efficiency programs.

       

2. Non-Bypassable Federally Mandated Congestion Charge (NBFMCC) (Also called FMCC-Delivery) By law, NBFMCCs are collected on electricity bills to cover certain costs approved by the Federal Energy Regulatory Commission (FERC) and related costs approved by the Public Utility Regulatory Authority (PURA) to reduce federally mandated congestion charges and pay for reliability “must run” contracts (CGS § 16- 1(35)). PURA reviews these charges to ensure that the electric companies recover no more (or less) than their costs. A customer cannot avoid paying these reliability related NBFMCC costs by choosing a retail electric supplier.Non-bypassable NBFMCCs include costs associated with ISO-NE, costs to avoid congestion on the transmission system, costs for gas peaker plants, renewable energy incentives, the Millstone and Seabrook nuclear contracts, and other initiatives required by state law. The new NBFMCC rate is 4.791 ¢ per kWh for Eversource and is 3.2911 per kWh for UI for September 1, 2024 – April 30, 2025.
   
   

ELECTRIC DISTRIBUTION COMPANIES CONTACT INFORMATION & SERVICE TERRITORIES:

DISTRIBUTION COMPANY	ADDRESS	PHONE	WEB SITE	SERVING
Eversource	107 Selden Street, Berlin, CT 06037	800-286-2000	www.eversource.com	All towns in Connecticut except those served by The United Illuminating Company and the municipal companies of Groton, Jewett City, South Norwalk, Norwalk Third Taxing District, Wallingford, and Norwich. Eversource Service Territory Map
The United Illuminating Company (UI)	180 Marsh Hill Road, Orange, CT 06477	800-722-5584	www.uinet.com	Ansonia, Bridgeport, Derby, East Haven, Easton, Fairfield, Hamden, Milford, New Haven, North Branford, North Haven, Orange, Shelton, Stratford, Trumbull, West Haven and Woodbridge. UI Service Territory Map: UI Service Territory

 

 

Other Resources

• Glossary of Electric Terms
• List of Competitive Suppliers
• Public Utilities Regulatory Authority