Going Up: United Illuminating Files Letter of Intent to Increase Rates

The great thing about going solar is that you are protected from rising utility costs. Unfortunately, there are rumors of these costs rising significantly within the next year.

According to a story in the New Haven Register, United Illuminating has filed a Letter of Intent with PURA, requesting a 3 year rate increase starting 1-1-2017. Currently, there is a freeze on rate increases, since United Illuminating was acquired by multi-national electric company Iberdrola.
The increase will affect the distribution portion of the consumer’s UI bill. The proposed rate plan would increase a typical 700-kwh monthly residential bill of $162 by about $9 per month in the over the 3 year period, according to YahooFinance.
The same article explains that UI’s Standard Service generation rate, which reflects the cost of the energy itself, is set separately and adjusted twice annually by PURA. That generation rate will fall by about 25 percent on July 1 of this year, from 10.74 cents to 8.02 cents per kilowatt hour. Generation accounts for about 40 percent of a typical residential electricity bill.
Eversource has not filed a Letter of Intent for a rate increase as of 6-6-16.
While the increase in distribution pricing coupled with the decrease in generation pricing may only add up to a minor difference, or none at all for some people, it’s a good time to explore other energy options. Increased electricity bills will cause a shorter payback time for solar systems. If you haven’t considered ownership, consider having a solar site assessment by filling out the form here or calling us in the office at 203-878-9123.

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