Editorial: Our Skyrocketing Electricity Bill

There is a lot going on in Hartford this legislative session that has the potential to affect Greenwich. In fact, we could probably devote an entire section to legislative activities each week if we thought our readers would not revolt. We did, however, want to comment on one area of proposed legislation.

It has been unseasonably warm this winter. You would have to be, we don’t know, a groundhog not to have noticed. So far there has only been one 48-hour period when it has been really cold. So why have our Eversource electric bills skyrocketed since January 1? It seems counterintuitive.

How our electricity, which many relay on for heat, gets to us is governed by a combination of regulatory rules. This week the Energy and Technology Committee held hearings to investigate giving regulators more options when it comes to setting rates, to move some costs from ratepayers to shareholders, such as executive compensations and lobbying costs.

That makes sense especially when we read that Eversource had record profits of $1.4 billion in 2022. However, it is more complicated than just profit and loss. Your electric bill is divided between supply costs and distribution costs. Because much of New England relies on electricity created from natural gas our supply costs have skyrocketed. Supply costs are now between 50 and 70 percent of our electric bills. And that increase is on top of Connecticut having the highest electricity costs in the continental US going into this winter’s increase! In addition to providing electricity to much of Connecticut, Eversource also provides natural gas and water to customers. So, it gets a little complicated.

Added to that is the fact that since tropical storm Isaias in 2020, Eversource has negotiated settlements with the state to address infrastructure and response issues from the storm that left many without power. The settlements took the place of formal rate proceedings that would allow the Public Utility Regulatory Authority (PURA) to review current rates and for a deeper look at Eversource’s finances.

According to its own website PURA “is statutorily charged with ensuring that Connecticut’s investor-owned utilities, including the state’s electric, natural gas, water, and telecommunications companies, provide safe, clean, reliable, and affordable utility service and infrastructure.”

While the settlements are good for the state, the last one from Isaias gave the state $103 million – it is time for a formal rate review. PURA’s Chair, Marissa Gillett, who the governor hired four years ago to bring an outsider’s perspective, agrees. It will provide the transparency and information that Eversource says they want the public to know.

Clearly there is evidence of growing frustration with how our utilities operate in Connecticut. There are several bills this session whose purposes are reform, transparency, and creating cost efficiencies. One we like is Proposed Senate Bill 123, which will remove PURA from the Department of Energy and Environmental Protection (DEEP). PURA became part of the DEEP about 14 years ago and it never really made sense to us.

Lawmakers from both parties are increasingly feeling that the PURA should be removed from the DEEP. Democrats and Republicans have filed several bills to make this change. Greenwich’s Senator Ryan Fazio, the ranking Senate Republican on the Energy Committee and who sponsored the proposed legislation, said: “Subordinating PURA to DEEP has subordinated the interests of ratepayers.”

Fazio’s bill also has several other sections aimed at reducing costs to consumers. According to Fazio: “There are two overarching goals of our plan, first, to reduce costs and improve reliability of the grid, and second, to strengthen oversight of our utilities to protect rate payers.” That sounds good to us. Stay tuned as we continue to monitor this legislation.

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