PUBLIC BENEFITS CHARGE CHANGES TO SAVE CONNECTICUT RATEPAYERS $500 MILLION THROUGH 2026

Connecticut electric ratepayers on average will save just over $13 per month due to newly implemented energy affordability measures reducing the state’s Public Benefits Charge, welcome news for ratepayers amid rising prices for fuel and energy.

In an informational forum presented Tuesday, the Department of Energy and Environmental Protection revealed new information showing ratepayers will see savings of more than $500 million through the end of 2026 via adjustments made to the public benefits charge.

“Energy policy in Connecticut is complicated, and the Public Benefits Charge, long maligned and targeted as costing state ratepayers, is proof of that. Saving ratepayers more than $500 million this year through renewed focus on reducing costs and diversifying our grid’s energy sources is huge, especially with energy prices rising globally,” said State Senator Norm Needleman (D-Essex), Senate Chair of the Energy and Technology Committee. “It’s the result of years of hard work through Take Back Our Grid, SB7 and SB4, among other bills the Energy and Technology Committee passed in recent years, and evidence that we’re making progress in making sure ratepayers receive the relief they deserve.”

When reviewing cost savings in energy supply procurement, the reductions include the newly online Revolution Wind offshore wind project, expected to deliver $100 million in savings each year, shifting renewable portfolio standard reforms representing $60 million each year, 67 megawatts of solar expected to come online and energy efficiency efforts reducing summer energy demand by more than 10 megawatts.

DEEP Commissioner Katie Dykes said during the forum that the state is working to exercise tools increasing state power supply to reduce future risks.

Transmission oversight, put in place by new legislation in recent years, increased returns and cut costs as well. The removal of a mechanism increasing ISO-NE’s return on equity will save up to $15 million per year, with a new Federal Energy Regulatory Commission order representing up to $30 million per year in further savings.

State policies including the state’s contract with nuclear power plant Millstone delivered $400 million in savings so far in its lifetime, with bonding for hardship charges and electric vehicle charger costs shifted to state bonding pulling another $150 million from the public benefits charge.

Legislation under consideration during this year’s legislative session to enhance the state’s nuclear workforce and extend current solar programs with an eye on keeping costs low, is expected to further aid the grid.

Both DEEP and the Office of Consumer Counsel noted Connecticut’s legislative successes are delivering real results, to the point they’re being used as a model for other states as energy costs increase nationwide.

Further information presented by ISO-NE, the independent grid operator for New England, showed the state is increasing its use of natural gas, nuclear and renewable energy in the last twenty years while reducing oil and coal power generation.

For more details, presentations by DEEP and ISO-NE is available at this link and this link, respectively.