CL&P Rate Hike Goes Into Effect on January 1st

Connecticut Light and Power electricity customers are going to see a 22% increase on their electric bills for the price they pay for power generation supply. The current rate of $0.07573, that has been in place since July 2013, will increase to $0.09235 on January 1, 2014. The rate increase will occur for those residential customers who are not currently on a competitive supply contract from a CL&P Alternative supplier.

CL&P residential customers have enjoyed low default generation rates from the utility over the last two years, which has limited growth in Connecticut’s electricity choice market. In Connecticut, when a customer does not shop for a competitive power rate they pay a default rate with their local utility, which in Connecticut is either CL&P or The United Illuminating Company. With CL&P rates being low over the last two years a lack of incentive existed for customers to get out and shop for a lower electricity rate. However, now that those default rates will be rising by more than 20 percent, electricity shopping in the state is expected to take off.

The competitive energy choice market has remained in tact even after two years of low electric default rates. Now that those defaults rates are rising, competitive electricity companies in Connecticut will attempt to get their brand out there in hopes of acquiring new customers. Connecticut residential electricity rates offered in the competitive market will allow a signifiant relief for those customers who will see their default rates rise in January.