Two recent events will reduce Ridgefielders’ cost of electricity next year — but not by a whole lot.
The Public Utilities Regulatory Authority (PURA) recently approved reduced generation rates for residential and business customers taking Standard Service generation from Connecticut Light & Power.
Effective Jan. 1, CL&P’s residential generation rate will decrease about 0.7 cents per kilowatt-hour (kWh), from the current rate of 8.279 cents/kWh to 7.615 cents/kWh. The generation cost for a CL&P residential customer using 750 k/h would decrease by about $5 a month.
Similar reductions will be applied to generation rates for business customers
The generation rate — which recovers the cost to generate electricity at power plants — makes up more than 50% of the monthly electric bill for most residential users.
Electric ratepayers will also benefit from $5 million through a settlement between the Federal Energy Regulatory Commission (FERC) and the Constellation Energy Commodities Group, Inc., reported Attorney General George Jepsen, Consumer Counsel Elin Swanson Katz and PURA Chairman Arthur House.
In March, FERC reached a settlement with Constellation Energy to resolve an investigation into manipulation in energy markets, including the New England region. The settlement included a $135-million fine paid to the federal government and a $110-million forfeiture of unjust profits.
As part of that forfeiture, Constellation was to pay $20 million to the New England area for the benefit of consumers.
“Any manipulation in our energy markets negatively impacts consumers,” Attorney General Jepsen said. “Our goal in this matter was to provide some restitution to electric ratepayers in a fair and reasonable manner and, working cooperatively, we were able to achieve that goal. All Connecticut electric ratepayers will rightly benefit from this settlement.”
Connecticut’s $5 million allocation is about 25% of the total disbursement to the New England states. All Connecticut electric ratepayers will receive credits on their electric bills beginning in January 2013.