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    Op-Ed
    Wednesday, September 18, 2024

    We can no longer be held hostage by a monopoly utility

    A significant increase hit your electric bill right in the middle of summer. I share your frustration, not only with the increase, but with partisan bickering over the cause. Here’s the truth about your electric bill.

    Despite Connecticut residents paying some of the highest electric rates nationwide, earlier this year, Eversource requested that the Public Utilities Regulatory Authority (PURA) raise the rates it currently charges customers. A 2-1 vote approved a $920 million increase over current rates — with a strong dissent from the chair due to the additional financial burden it would place on already strained households.

    Eversource is allowed to recover certain costs by law, but decides when and how much to request from PURA. While the supply cost of electricity actually decreased — driven by market forces alone — two commissioners who supported Eversource allowed the investor-owned utility to recover costs for several programs listed below. However, 77% of the recent increase dates back to the bipartisan Millstone agreement in 2017.

    Approved before I assumed office, it required our two electric distribution companies to purchase half of the Waterford power plant’s energy output through 2029 — at a fixed price. Year over year this is either a net cost or credit to ratepayers depending on the wholesale market price.

    The agreement secured jobs at Millstone and ensured the continued operation of a plant that provides 15% of New England’s and around 40% of Connecticut’s power. Eversource also included other “pass-through” costs in their request — more concerned with their financial standing than the current strain customers.

    What’s the public benefits category? Last year, I supported legislation to redesign the electric bill so residents have a better understanding of what their rates are supporting. We now have four categories instead of two. This is not a new charge, but was baked into the “Distribution” category prior to the change in law. This category includes the “Nonbypassable Federally Mandated Congestion Charge” (NBFMCC) and the “Combined Public Benefits Charge” (CPB). Let’s break it down.

    The CPB charge on electric bills consists of three components:

    ● Systems Benefit Charge (SBC): This covers costs related to payment assistance programs and connecting customers to necessary resources for relief. These costs are higher for residential consumers than commercial.

    ● Renewable Energy Investment Charge: This charge funds the Renewable Energy Investment Fund, administered by CT Green Bank, to promote renewable energy sources, set at 0.1 cent per kWh.

    ● Conservation Adjustment Mechanism (CAM) Charge: This supports energy efficiency programs, combining a state-mandated 0.3 cent per kWh charge and up to an additional 0.3 cent per kWh. It generates nearly $160 million annually to fund conservation and energy efficiency initiatives.

    The NBFMCC covers costs overseen by both FERC and PURA to reduce federally mandated transmission congestion charges, support ISO-NE and gas peaker plants and pay for reliability contracts like Millstone. Rates are set at 4.362¢ per kWh for Eversource from July 1, 2024, to April 30, 2025.

    A customer cannot avoid paying these costs while using a third-party electric supplier but may save money on a lower supply rate — visit EnergizeCT.com. Information about home energy audits can be found there as well. The Office of Consumer Counsel offers a guide to understanding the line items on your bill.

    If you are struggling financially, it’s important to contact your power supplier before missing a payment. Resources are available — reach out to your utility to see if you qualify for bill forgiveness and matching/flexible payment programs. Energy assistance is available through the Connecticut Department of Social Services for eligible customers.

    A significant portion of my constituency in Groton is served by Groton Utilities (GU), a municipal public electric utility owned by the City of Groton, which reduced rates by 9.5% earlier this year. As your State Representative, I introduced a bill that would allow communities to join an existing or start their own electric utility, which received a public hearing. Given that Eversource continues to prioritize its appearance to investors over its customers, I will re-introduce this policy during the upcoming 2025 legislative session.

    I want to be clear: I will always be a voice that represents the interests of ratepayers and will continue to propose legislation aimed at achieving energy reliability and affordability — we can no longer be held hostage by a monopoly utility. I fully support the actions of our state’s PURA Chair, Marissa Gillett, to hold utilities accountable, as well as the efforts of Consumer Counsel Claire Coleman to protect Connecticut residents from unfair rate hikes.

    State Rep. Aundré Bumgardner, a Democrat, represents the 41st District, which covers Groton and Stonington.

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