Eversource proposes another rate increase, but says it won’t profit from it

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    Berlin, CT (WFSB) — Eversource proposed a customer price increase to cover what it called energy supply costs in Connecticut.

The energy company submitted proposed winter electricity prices to the state’s Public Utilities Regulatory Authority on Thursday.

If approved, the residential Generation Service Charge, or GSC, would be 8.391 cents per kilowatt-hour, up from the current 7.375 cents per kilowatt-hour.

Eversource said the average residential customer using 700 kilowatt hours of electricity each month would see an increase of approximately $7.11 per month on the supply portion of their bill.

Customers in Connecticut who are signed up for the company’s standard service generation rate would see the increase starting Jan 1, 2021.

The proposal comes as Eversource continues to face scrutiny for a previous high rate increase and criticism for a prolonged response to Tropical Storm Isaias, both of which happened over the summer.

Eversource admitted during a hearing with PURA in August that it passed a $124 million increase on to customers. At first, it blamed a state-approved deal with the Millstone Power Plant, but later said it was to cover usage loses it incurred as a result of businesses closing during the COVID-19 pandemic.

Then came Tropical Storm Isaias, after which upwards of 800,000 customers were in the dark. Some homes were without power for more than a week.

However, Eversource said the new increase would be a direct pass-through cost to customers for the price of power generation with no profit to the company.

“We recognize the effect higher electricity prices can have on our customers, especially during these unprecedented times with the ongoing COVID-19 pandemic, and we want to help them better manage their energy use,” said Penni Conner, Eversource senior vice president and chief customer officer. “Like our customers, we have no control over fluctuating energy prices, but the myriad of energy-efficiency programs we offer can help people reduce their usage, tighten-up their homes and keep energy bills down year-round. We also offer various payment arrangements for customers who are having difficulty paying their energy bill, including the COVID-19 payment plan which allows them to pay past-due balances for up to 24 months.”

The new generation rate would run from Jan. 1 to June 30, 2021.

Each customer’s total bill depends on how much energy they use, their rate category, and weather conditions.

Under the state law that deregulated electricity, energy companies like Eversource bid twice a year for power supplies, award contracts to low bidders, and pass along the costs to customers without marking them up, Eversource said. The standard service price changes on Jan. 1 and July 1. All Eversource customers have the option to buy their power from state-approved third-party suppliers or go with the energy company’s standard service rate.

More information on alternative supplies and rates was posted to this website.

Details about Eversource’s energy efficiency programs can be found here.

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