Blogs > Power to the People

Following energy issues in the state of Connecticut and beyond.

Wednesday, December 16, 2009

Decrease in CL&P Generation Rates Proposed

Connecticut Light & Power is asking state utility regulators to approve a reduction in the generation service charge portion of their customers' bills.

The majority of CL&P’s customers would see a 5.2 percent decrease in the generation service charge in January if the state’s Department of Public Utility Control approves the filing made by the company earlier this week. For those customers who use about 700 kilowatts per month, the rate decrease could translate into a $7.29 per month reduction in their bills.

Mitch Gross, a CL&P spokesman, said proposed decrease in generation service charges to customers is the result of declining natural gas prices and the long term strategy the company has taken toward purchasing electricity from power generators.

"Natural gas is driving all electric costs in New England, but we’re also always watching the market, looking for the best time to buy," Gross said. "We go out three years in advance to purchase these contracts and that is paying off."

Under the deregulated generation environment in which power providers operate here in Connecticut, utilities like CL&P and New Haven-based United Illuminating change rates every six months, according to market conditions and the types of contracts they are able secure with the companies that produce the electricity.

Gross said the decrease in generation service charges reflects a six percent decrease in the cost that CL&P pays to power generators.

For more information on this story, read Thursday's New Haven Register.

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home