Electricity rate increases coming; businesses preparing

(Sept. 12, 2006) Change coming to Connecticut’s electricity marketplace has been a leading topic of public discussion this year as new state and federal rules will soon push rates significantly higher for many customers in the state.

One of the most dramatic changes in Connecticut is that all customers’ rates will reflect the actual cost of producing electricity — which has risen significantly since the utility companies last contracted for power supplies, especially for United Illuminating (UI) customers.

What’s more, a new federal charge also is being added to electricity bills because of a new power marketplace design in New England, and the need to stimulate more electricity generation in Connecticut. In addition, commercial and industrial customers will face new rules for their energy purchasing.

Meetings

Last week, legislative leaders held the first in a series of “Energize CT” energy forums around the state to help educate residents and businesses on becoming more energy efficient.

CBIA will hold meetings this month with members who are located in Connecticut Light & Power (Rocky Hill) and UI (Bridgeport) territory. The association also hosted a meeting in August with UI business customers in North Haven to help them understand the upcoming rate increases and learn how to increase their companies’ energy efficiency.

And a statewide, “What’s the Deal?” conference on Oct. 24 in Cromwell (see article, next column) will explore energy solutions for businesses.

All of the discussions are designed to alert businesses to the impending rate hikes so they can start planning how they will deal with these increases and try to minimize their costs.

UI customers will face increases which could range from 30% to 50%. But CL&P customers could also see their rates rise, but not as high. Last month, CL&P customers were subject to an approximate 3% rate increase from a Department of Public Utility Control order issued in July.

Already conserving

Most companies in Connecticut are already taking steps to conserve energy. According to the 2006 Survey of Connecticut Businesses, 69% of all types of companies, and 87% of manufacturers in the state have taken steps to conserve energy.

Even so, businesses still have a number of opportunities for solutions that could provide more real energy-cost relief.

Still, utility companies can advise businesses if they are currently using energy as efficiently as possible. They can also help businesses take advantage of programs to help them conserve energy.

For example:

• Connecticut’s 2005 Energy Independence Act has made several new incentive programs available.
• Regional demand-response programs also pay eligible businesses to avoid using power during certain peak times.
• The federal Energy Policy Act of 2005 contains significant tax incentives that can be used in conjunction with state and regional incentives.
• Businesses can also take advantage of opportunities offered by today’s competitive electricity marketplace – by obtaining a long-term energy contract with a supplier before rates go up, for instance.
  

The “What’s the Deal? VII” Conference will feature businesses across the state that have used all of these programs to control their energy costs.

The state Department of Public Utility Control’s Web site, www.state.ct.us/dpuc, has a complete list of suppliers and programs; CBIA Energy Connections is one of them.

For more information about Connecticut Energy Efficiency Programs, call 1-877-WISEUSE.

Or contact CBIA’s Rob Earley at 860-244-1900 or earleyr@cbia.com.