ORANGE — The standard supply rates for United Illuminating electric customers are expected to drop by about 13% this summer, according to the power company.
UI, a subsidiary of Avangrid Inc., announced that following its regulatory filing with the Public Utilities Regulatory Authority (PURA), the average residential customer using 700 kilowatt-hours per month can expect to see an electric bill reduction of approximately $13.19 per month.
These calculations were filed by UI Monday, May 19, with the utility regulator PURA. By Connecticut law, UI does not own power plants or generate electricity; instead, UI procures power on behalf of standard service customers and passes the cost on one-for-one at no mark-up or profit to the company.
“Electric distribution companies like UI do not control or profit from supply rates, but with energy costs top of mind for so many of our customers and other stakeholders, we are pleased that customers will soon see some measure of savings in their supply rates, which make up nearly half of the typical UI bill,” said Frank Reynolds, UI president and CEO. “We remind customers that while supply rates are going down, usage often increases during the hot summer months, primarily due to the use of air conditioning, which can diminish the savings they feel.”
Pending regulatory approval, from July 1 to Dec. 31, 2025, UI anticipates that supply rates for residential customers using its standard service rate will drop from 13.57 cents per kWh to 11.68 cents per kWh, a 13.9 percent drop in supply rates that accordingly drives a 5.24 percent drop in residential customers’ overall monthly bills.
Customers continue to be impacted by high public benefits charges, which pay for the costs of energy-related policy programs passed by legislators and implemented by PURA. Example programs include subsidies and incentives for renewable energy projects, energy efficiency programs, and other sustainability programs as well as assistance programs that reduce energy bills for residents who can provide financial hardship.
The Public Benefits Charge has been included on Connecticut energy bills since 1999, though prior to UI’s bill redesign in February 2024, it was included in the section of the bill then called “distribution.” A 257% increase in the Public Benefits Charge in summer 2024 has not reverted to previous levels, in part because policymakers continue to create and implement new programs paid for by the public benefits charge, according to UI.
