Connecticut Light & Power Service Charge to Go Up

The Choose Energy Team
By The Choose Energy Team July 30th, 2014
For business

Connecticut Light & Power service charge could jump to $25 per month.

Connecticut Light and Power, the largest utility in Connecticut, service charge could jump to $25.50 per month; a 60% increase from the current charge. This fee is from the utility, and is what you pay the utility for delivering the energy to your home or business.

A Higher Monthly Fixed Fee

This jump, up from $16, would make the fixed fee (shown as the delivery charge on your bill) now ~20% of the total energy charges, up from 12%, according to the Hartford Courant.

Why This Charge Is Rising

These charges exist to help the utility recoup charges incurred in delivering electricity to residences and businesses. Connecticut Light and Power expenses tend to stay static, and do not vary on customers usage. Therefore, a static monthly delivery fee makes sense for Connecticut Light and Power.

Where You’ll See This Charge

If approved, this charge will be part of the delivery charges, and will not be part of the supply charges. There are two parts to most electricity bills: supply charges and delivery charges. The Connecticut Light & Power service charge will show up in the demand charge section of the bill.

Supply Charges

Supply charges are what you pay for the electricity your home or business consumes. These are typically charged by the kilowatt hour (kWh). The good news is those in Connecticut can change the rate they pay for electricity supply.

Demand Charges

If approved, this service charge would show up in the “demand” or “distribution” section of the electricity bill. This section is typically a flat, monthly fee, and goes to paying the utility for maintaining the infrastructure for delivering the electricity to your home or business.

Learn More: Decode Your Electricity Bill To Save Money

What You Can Do

The bad news is that if this service charge is approved, you’ll be paying $300 per year just for the energy to be delivered to your home. On top of that, Connecticut has some of the highest electricity rates in the country, and this service charge jump certainly won’t help.

However, you can save significantly by switching to a cheaper supplier. Connecticut Light and Power is a deregulated electrical utility, meaning that customers can choose a different electricity provider and could save significantly.

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