New Law Targets CT Power Costs; Here's How Much You Will Save

CONNECTICUT — Gov. Ned Lamont said he intends to sign into law a bipartisan bill aimed at lowering electricity costs for Connecticut consumers by nearly $400 million annually.

But how much will it save each household?

The measure, Senate Bill 4, titled "An Act Concerning Energy Affordability, Access and Accountability," passed the General Assembly with broad support — a 34-1 vote in the Senate and a 144-3 vote in the House.

"Under this legislation, customers can expect to see an estimated savings of approximately $4 per month through a reduction of their share of paying for Public Benefits charges," Eversource spokesperson Jamie Ratliff said in an email. "Other aspects of the legislation will need to play out, and it’s unclear at the current time what the bill impact will be, such as the changes to energy procurement."

The Public Benefits charges make up around 60 percent of the electric bill, according to United Illuminating officials, who also told Patch they envision their customers will enjoy a savings of "less than $5/month."

There was much discussion this session around what charges would be moved off the electric bill and into state bonding, but lawmakers ultimately decided only two sets of charges will be bonded: the electric vehicle incentive programs, and non-payment by customers whose service is shut-off but who still do not pay their bill.

Related: CT Regulators Approve Another Rate Hike For Eversource, UI Customers

Although in near unanimous accord in their final votes, Connecticut lawmakers continued to whinge as the bill makes it way to Lamont's desk.

“This was not an easy vote,” said Republican State Sen. Tony Hwang. “For too long, Connecticut residents have been burdened by some of the highest energy costs in the country, with hidden charges and little accountability. This bill takes important first steps to lower costs for families and small businesses, but it falls short of the comprehensive reform we desperately need.”

Democrat State Rep. Raghib Allie-Brennan also set constituents' sights low:

“This bill won’t fix everything overnight and I want to be clear about that,” he said in a statement. "But it’s a meaningful step toward easing the burden on ratepayers and building on the accountability measures I helped pass as Vice Chair of the Energy & Technology Committee. This continues the work of putting consumers first and holding utilities responsible."

Electricity costs have been a sore point around the Connecticut kitchen table for years, and lawmakers have made multiple efforts to address the high cost of plugging in, including regulatory reforms, rate reductions, and investments in renewable energy.

Related: CT Seeks Penalties, Credits For Eversource's Isaias Response

"New policies to increase the stability and predictability of the state’s regulatory environment can also put Connecticut on the right track to enable the investment and grid modernization in the electric grid that our customers sorely need," said Sarah Wall Fliotsos, UI spokesperson.

Lamont called the legislation a meaningful first step toward addressing Connecticut’s high energy costs, which he attributed to longstanding policy decisions from both major parties.

“Like many people, I think electric bills are too damn high, and this bipartisan bill is a first step in addressing a complex issue,” Lamont said in a statement. “We should not stop here.”

The bill's projected savings come on top of a 25 percent reduction in the public benefits charge recently approved by the Public Utilities Regulatory Authority and a scheduled 13 percent drop in electricity supply rates beginning July 1.

See Also: Connecticut AG Calls For 'Significant' Eversource Rate Reduction

The legislation now moves to the Legislative Commissioners’ Office for engrossing and final formatting. It must then be reviewed by the offices of the House Clerk, Senate Clerk, and Secretary of the State before being sent to the governor for signing. Lamont’s office will announce a signing date once the process is complete.