Fairfield County”™s two primary electricity utilities are seeking long-term supply contracts from power generators, following a change in state policy.
Connecticut Light & Power Co. and United Illuminating Co. indicated the new rules could help stabilize rates by reducing the use of short-term power contracts that can cause rates to fluctuate with prices on oil and natural gas.
CL&P is a subsidiary of Berlin-based Northeast Utilities, and United Illuminating is owned by New Haven-based UIL Holdings Corp.
Despite an increase in second-quarter profits, United Illuminating filed to raise rates 4.1 percent, which would add $6.60 monthly to the bill of the average residence. The company said the increase is needed due to investments in the grid, an increase in uncollected invoices and a decline in electricity sales, which dropped by $800,000 to $216 million.
In the second quarter, UIL had an $11.3 million profit, up from $9.8 million a year earlier.
Northeast Utilities attributed its improved second-quarter results to its own infrastructure investments in the region, as the company”™s profits climbed 19 percent to $58 million despite a 5 percent drop in revenue to $1.3 billion.
“These projects are making southwest Connecticut”™s transmission system far more robust and reliable, and have enabled grid operators to depend far less frequently on older, inefficient, more costly and less environmentally friendly plants to serve loads in a region that consumes half of Connecticut”™s electricity,” said Charles Shivery, chief executive officer of Northeast Utilities, in a conference call with analysts in early August. “These projects also have been the most significant factor in our improved financial performance in the recent years.”
