Groton ― Groton Utilities has announced that its average customer will see their monthly electricity bill decrease by about 9.4%, under new rates that went into effect at the start of the month.

Daniel Bouges, manager of communications and community outreach for Groton Utilities, said energy costs are decreasing, and the utility used $1 million from its rate stabilization fund to further decrease the rates.

“We try to keep the rates as low as possible while being fiscally responsible,” he said.

He explained that while this is the first year of a three-year rate schedule of anticipated 1.3% annual increases, the rates can change depending on factors ― and the cost of energy is the biggest factor.

“We are always fighting to get the rate as low as possible, so this is a win and we are very happy about it,” he said.

The average customer who uses 700kWh of electricity in a month will see about a 9.4% decrease. Customers who use just 250 kWh will see about a 6.1% decrease and customers who use 2000 kWh will see about an 11.1% decrease.

Bouges said that many factors go into the rates, including transmission and distribution, which are increasing, but decreasing energy costs and the use of funds from the utility’s rainy day fund help offset those increases.

Bouges said that after peaking last year, wholesale energy prices have decreased, in part due to a decrease in natural gas costs.

He said energy costs are down 21%. When the war in Ukraine started and natural gas became difficult to come by, rates shot up for everybody, but costs have stabilized since the winter of 2022.

k.drelich@theday.com