Connecticut Electricity

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.

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CT Electric Suppliers

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.

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Low CT Electric Rates

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.

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Connecticut Electric Prices

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.

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Compare CLP Electricity

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.

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Residential Providers in Connecticut

February 15, 2010

Currently in Connecticut there are ten retail electric providers offering service to residential customers as an alternative to CL&P and UI GSC default rates.  However, of these ten, only four of them (Direct Energy, ConEd Solutions, MX Energy, Dominion) offer fixed rates.  With a fixed rate you know the exact rate you will pay for electricity for a set term (usually 12 months). Shopping for competitive Connecticut electric rates can save both residential and commercial customers money.

The other six providers offer different types of variable rates that can, and often do, change from month to month.  These variable rate providers often advertise a low introductory rate that will be good for the first month of service.  After the initial month, you can expect the rate to increase.

These providers are in a marketing war with each other.  They will show that they are offering savings versus CL&P and UI default rates with their introductory rate.  However there is no guarantee that they will continue to show savings after that first month.  They are hoping that once you switch to their service you will remain their customer for a long period of time no matter how high their rates become.  On the plus side, these variable rate contracts are usually month-to-month, so if you keep an eye on your rate you can leave if it becomes too high.

If you are a homeowner with good credit we recommend looking into one of the providers with fixed rates.  With a fixed rate you will know exactly how much you are savings versus CL&P or UI default rates, and you will have the peace of mind of knowing that the rate will be good for a set period of time.  The electricity market has a wholesale and retail side.  The wholesale market prices are constantly changing and have proven to be very volatile over the years.  Variable pricing can result in huge rate increases over a short period of time.

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