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).

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.

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:

Electricity prices will lower in Connecticut for CL&P residential customers who remain on generation default service.  Despite the lower prices, Connecticut Light and Power customers can still save even more by choosing an electric rate offer from an third party electricity supplier.

Over the last year electric rates for residential customers were on average 15% lower than Connecticut Light and Power default rates.  Despite this only 32.5 percent of customers who are serviced by the utility CL&P had chosen an alternative electric company.

Much of the hesitation remains on the side of confusion of consumers.  Many consumers wish to “stay loyal” to CL&P, however based on the Connecticut Electric Choice Act that statement would not make sense.  CL&P does not profit off of their Generation Service Charge, which is default service for electricity customers who have not chosen an alternative electric offer.  They now only profit off of the regulated rates and charges of the delivery portion of the bill.

Connecticut Light and Power customers can also find attractive introductory bonuses in addition to lower electric rates.

The variable rate will give you the option of leaving at anytime.  Though we feel it is better to lock in a low fixed rate, if you are looking to get your feet wet with electricity choice, the variable rate can offer a good starting point.

On January 1, 2011 electricity customers of the utility Connecticut Light and Power (CL&P) who are on default generation service will see their rates drop from the 2010 prices.  Residential electric users who are still on default service will see their rates drop from $0.11051 to $0.0942 and small businesses will see a new rate of $0.10188 from the previous rate of $0.11723.

The lower rates are a result of the wholesale electric and gas markets dropping over the last year.  CL&P buys their power for their default customers on intervals.  A portion of the default rates were bought when wholesale prices were higher than they are today.  This means that electricity customers in Connecticut can still get an even lower rate than the new 2011 CLP default rates.

MX Energy is currently offering a 6 month rate of $0.0899 for residential customers.

Connecticut Commercial electric rates below $0.095 can be found here.

So far 32% of CL&P residential customers have switched off of default service and are using a competitive electric supplier.  54% of small businesses in the area have found more competitive electric offers.

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.

Connecticut Light and Power (CL&P) residential customers are finding lower electric rates in the Connecticut competitive electricity market.  Many CL&P residential customers have still not switched electricity suppliers because they are unaware of the savings and benefits of shopping for low electric rates.

Many electricity customers who have not switched are not well informed on the details of the Connecticut Electricity Restructuring Act.  The act allows for CL&P and United Illuminating (UI) to continue to control the delivery of the power and the billing.  These utility companies only offer supply electricity rates as a default service.  Connecticut customers who do switch electric companies continue to receive their monthly electric bill from CL&P, or UI, but instead of paying the higher default supply electric rate, they pay the new lower rate that they signed for with the alternative electricity company.

Visit our Electricity Prices page for current electric rates in Connecticut.

Both offers can be chosen online.  The fixed electric rate will require a commitment of 6 months.  The variable rate has no commitment, however the rate can go up at anytime.  We recommend the fixed rate offer at this time.

Residential power customers are seeing the benefits of electricity deregulation first hand as the electric bills for those electric consumers who have shopped the market are dropping.  Connecticut electric companies are allowing customers to save on their monthly electric bills by offering lower electric prices compared to the default Connecticut electric rates.

CL&P and UI, the incumbent Connecticut Electric Utilities, offer high default electric rates known as the “price to compare”.  The Connecticut Electric utilities do not profit off of the default rates but are mandated to offer the rates to those electric customers who do not choose another Connecticut electric supplier.

Those Connecticut electric customers who do compare electric offers, both residential and commercial, are seeing significant savings on their electric bill.

Connecticut electric residential customers can save an easy 11.5% by locking in a rate with MX Energy of $0.0979 /kwh compared to the residential default rate in the CLP territory of $0.011051.

Positive Energy offers a “no contract” option with a current introductory rate of $0.1006 /kwh.  The no contract option allows you to leave Positive Energy service anytime and go back to the CLP default rate if you wish to do so.

The Connecticut Electric utilities continue to bill the electric customers and control the lines and wires.  When Connecticut electric customers choose another electric supplier, the only thing that changes is the actual rate they pay, everything else from billing to service remains the same.

For electricity business options in Connecticut, email us for a comparison sheet and savings analysis.

Connecticut Light and Power (CLP) customers can reduce their home electricity bills by finding a cheaper electric rate for the supply section on their electric bill.  There are still a number of Connecticut residences who are unaware of their electricity choice options.

For CL&P residential customers, you can find your competitive electric rate underneath the section “Supplier Service Detail”.  If it says “Generation Service Charge $0.11051 then you are paying the CL&P default price to compare rate.  This is the rate that you should compare against alternative electric rate offers.

Compared to the default rate, MX Energy is offering the lowest fixed electric rate at $0.095.  This represents a savings of 14% that you can save on your monthly electric bill by taking the time to compare electricity companies.  CLP continues to manage the delivery of the power and will also continue to send out the monthly electric bill even after you choose a lower electric rate.

Connecticut set up their deregulated electricity market so that the Utilities (CLP and UI) do not care if their customers leave their default service and choose an alternative electric company.  Connecticut Light and Power, as well as United Illuminating Company, receive their profits through the delivery charges on your bill which are still regulated by the state.

For the lowest fixed rate in Connecticut, click here and type in your zip code.

Nearly 80,000 businesses in Connecticut are still paying default electric rates with either Connecticut Light and Power or United Illuminating Power Company.  That is 80,000 companies who are over paying for electricity by as much as 25% in some cases.

The generation rate that CLP charges their customers who have not chosen an alternative electricity supplier is 11.723 cents per kilowatt hour.  ElectricityWatch has found fixed rate offers as low as 9.5 cents per kilowatt hour, an easy way to save 19% on the electric bill.

Over 70% of Connecticut Light and Power residential electric customers are paying the generation default rate of 11.051 cents.  They too can secure a competitive generation electric rate of 9.5 cents and save money on their electric bill.

Email us for a list of commercial electric providers and rates in order to compare electric companies side by side.