The price that people pay for electricity in Connecticut is about to take a large increase for many residential customers. Connecticut Light & Power, the state’s largest electric utility, announced that their generation default rate for electricity will increase to $0.12629 in January from the 2014 rate of $0.0999. The increase represents a surge in price of 26% that consumers who remain on the default rate structure will see on their CL&P electric bills in the coming months.

Fortunately consumers of CL&P have the ability to shop for lower Connecticut electricity rates through the state’s energy choice act. Competitive electricity rates offered by alternative energy companies are available that will keep their energy bills under control. The rate hike will only occur for customers who do not shop and choose a competitive rate plan.

The rise in CL&P generation rates has been a trend for the past year. In July 2014 the CL&P default rate increased by 8.2% from the previous rate that had been in effect since January. The new rate that will go into effect on January 1, 2015 is 37% higher than the rate charged to customers in June 1, 2014. The new $0.12629 rate will stay in effect until June 30, 2015, at which point it could go even higher. Locking in a low fixed Connecticut electricity rate will not only offer customers savings right away, but will also provide price certainty for the second half of the year. Below are current CL&P competitive rate offers. Pries are updated on a daily basis.

CL&P has posted a rate increase for their residential customers for the generations portion of their electric bill. The rate increase will take effect on July 1, 2014 and remain in tact through the end of the year. Connecticut Light and Power is the state’s largest electric utility providing power to more than 1.2 million customers. Electricity customers in Connecticut, through the Connecticut Energy Choice Act, have the ability to shop for competitive electric rates from alternative suppliers who are licensed by the Connecticut Public Utilities Regulatory Authority.

In 2013, 43% of customers who receive their power from CL&P elected to purchase their power supply form a competitive electricity company. Due to low CL&P default rates, the number of participating electricity shoppers has steadily declined since 2012 reaching its current number at 39.9%. During this time it was difficult for competitive electricity companies to offer rates that were below the default price for electricity. When shopping for the lowest CL&P electricity prices, customers are encouraged to find a fixed rate below the default rate in order to ensure savings on their electric bill. With the CL&P default rate being the lowest fixed rate available during large stretches in 2012 and 2013 many consumers chose to go back onto default service instead of renewing their competitive plan.

Electricity shopping activity is expected to regain its growth due to the CL&P rate increase that will be taking place during the second half of 2014. Residential customers who are on the CL&P default rate will see the price they pay for generation service rise from $0.09235 to $0.0999 per KWH, which equates to a 8.2% increase. The rate increase also comes at a time when competitive electricity companies are seeing wholesale prices stabilize, allowing them to offer competitive electric rates below the default prices.

Below are competitive Connecticut electricity rates offered to CL&P customers. If the fixed rates are below the CL&P default rate the customer will save money on their monthly CL&P electric bill.

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.

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.

The Governor of Connecticut vetoed an energy bill that was pushed through the state house and senate at a rapid pace.

The bill has many components with one of the main points dealing with the structure of Connecticut’s deregulated electricity market.  Supporters of the bill noted that Connecticut pays some of the highest electric rates in the country and that the bill would allow incumbent providers CL&P and UI to lower their default rates.  These high electric rates are the default rates that CL&P and UI charge customers who do not shop the competitive market for alternative providers offering lower rates.

Any consumer who is upset that the bill did not get passed because they were hoping for lower rates on their bills can still achieve lower rates by shopping for a competitive rate, it’s that simple.  Savings versus the utility’s price to compare are out there at the tune of 20%.

By supporting energy deregulation in years past, Connecticut has put themselves in a position to benefit from competition.  All they need to do now in order to lower the average consumer’s electric rate is to educate their consumers about deregulation.  There is still strong misunderstanding out there about electricity deregulation, and the recent attempt to pass this energy bill does not make any thing clearer for the average consumer.

The fact is that CL&P (Connecticut Light & Power) and UI (United Illuminating) are no longer in the energy supply business, they are solely responsible for the delivering power.  They are given the responsibility, by the state, to provide default rates to those customers who do not switch to an alternative supplier.  Those who do switch and find a lower rate will see their bills decrease;  the great thing is that their incumbent provider (CL&P or UI) will continue to send them the bills, so the only thing that changes is the rate and amount that they will pay.

Feel free to comment or send us an email with any questions.  Electric savings are available in Connecticut.

The state of Connecticut reported that as of January 31, 2010 a staggering 58% of small businesses are still on default service with either CLP or UI as opposed to shopping the competitive electricity market and saving money.  The number for residential customers is even higher at 83%.

What makes these numbers so shocking is that competitive rates have in recent months dropped due to a decline in natural gas prices.  Default rates for Connecticut Light & Power (CLP) small business customers is 11.723 cents per kilowatt hour.  Rates can be found in the competitive market at 9.7 cents per kilowatt hour, which equals savings of 19%.

One theory as to why so many businesses have been slow to switch is the uncertainty of the electricity contract that needs to be signed in order to realize these savings.  Consumers should not worry about the contract and instead see it as a benifit.  When you elect to receive a low fixed rate with a competitive provider, they will provide you with a contract that will state the term for which you will receive the low rate.  You should be worried if a provider does not offer you a contract.  In the non-contract scenario you are putting yourself in an position where the provider can charge whatever they want.  The contract binds them to offer you the rate that you agreed upon and will be stated in the agreement.

For more information on electricity contracts or for a list of providers that can offer you savings, feel free to email us, leave a comment, or join our club.