UI Electric Bills Expected to Remain Largely Unchanged Following Standard Service Supply Rate Decrease Beginning July 1

Average residential customer to see an approximate $1.55/month overall bill decrease for six-month period between July 1 and December 31, 2024
257% increase in Public Benefits charge to be mitigated by a 30% drop in Supply rate for customers using Standard Service


ORANGE, Conn. — May 17, 2024 — Following its filing with the Public Utilities Regulatory Authority (PURA) today, United Illuminating (UI), a subsidiary of Avangrid, Inc. (NYSE: AGR), announced that following an increase to the Public Benefits charge and a decrease in Supply rates effective July 1, 2024, electric bills for UI’s Standard Service customers are not expected to change significantly, with an approximate $1.55/month overall bill decrease per month expected for the average residential customer. UI filed the result with PURA for the agency’s approval today following the conclusion of its six-month power procurement process for Standard Service customers, who comprise approximately 82 percent of its residential customer base. The 257% increase in the Public Benefits charge, which pays for the costs of policymakers’ sustainability and hardship assistance programs, will be mitigated by a 30% decrease in supply rates, which is passed on from customers to the generation companies that produce electricity, netting out to a 0.64% decrease on the total electric bill. Neither Supply rates nor the Public Benefits charge contribute to UI’s profit margin.


“While Connecticut’s electric distribution companies, including UI, do not control supply rates or the Public Benefits charge, we have been concerned since February, when our analysis of the cost impacts of policymakers’ priorities and programs began, that our customers would see a significantly higher bill when those increases took effect,” said Frank Reynolds, President & CEO of UI. “Thankfully, the Public Benefits cost increases were mitigated entirely by a drop in Supply rates, so UI residential customers will see very little change in their total electric bill beginning July 1 and continuing through the end of the year. Still, we understand and empathize with our customers who are frustrated with the volatility of their bills driven by both the unregulated electricity supply market and the costs of legislative and regulatory programs, and we look forward to partnering with policymakers to deliver solutions to these concerns.”


From July 1 to December 31, 2024, UI anticipates that supply rates for customers using its Standard Service rate will drop from 17.06 cents per kilowatt-hour to 11.91 cents per kilowatt-hour, a 30.2% decrease. Following the annual Revenue Adjustment Mechanism (RAM) process that began in February 2024, the Public Benefits charge are expected to increase from 1.73 cents per kilowatt-hour to 6.18 cents per kilowatt hour, a 257% increase, primarily to pay for the fixed-price power purchase agreements (PPAs) with Millstone and Seabrook nuclear power plants as well as the financial hardship assistance programs, such as the new low-income discount rate. UI estimates that the Supply rate decrease and the Public Benefits charge increase will net out to a 0.64% decrease on the residential (Rate R) electric bill, equating to savings of $1.55 for the average residential (Rate R) UI customer using 700 kilowatt-hours of electricity per month. PURA oversees both the energy procurement process to determine supply price and the RAM process to ensure that both Supply and Public Benefits charges are passed on to customers at no mark-up or profit to the utility company.


UI encourages customers interested in learning more about their electric bill to visit uinet.com/understand-your-bill, where they can access a Bill Explainer Video that describes the four components of the electric bill and how the two components that will be adjusted on July 1 – Supply and Public Benefits – are not controlled by UI, are not marked up by UI, and do not contribute to UI’s bottom-line.


UI also encourages customers to explore their options for Supply rates. While many UI customers choose to use UI’s Standard Service rate, in which UI procures energy supply on their behalf, some customers elect to purchase electricity from alternate suppliers. Customers are encouraged to review their bill to make sure they know who their supplier of choice is and the end date of their service. Customers can visit energizect.com/rate-board/choosing-a-supplier to compare prices.


UI is also reminding residents of simple actions they can take to help make their home as efficient as possible and reduce the impact of rising supply costs on their energy bill.


Insulation

  • Install wall-outlet and switch-plate gaskets to reduce the flow of cold air.
  • Install storm windows, or purchase window insulator kits to reduce drafts.
  • Be sure your home’s insulation meets U.S. Department of Energy specifications for your geographic area, and that ceilings, walls, and floors over unfinished crawl spaces are all properly insulated.
  • Insulate hot water pipes.
  • Install storm doors to reduce heat transfer to the outside.

Heating & Cooling

  • Have your heating equipment periodically checked by a service professional.
  • Dust or vacuum radiator surfaces and vents frequently and keep them unobstructed.
  • Keep insulated drapes or shades closed in summer and open on sunny winter days. Close curtains or drapes on winter nights to reduce heat loss.
  • Close fireplace dampers when not in use to keep heated or cooled air from escaping up the chimney.
  • Set the thermostat as low as comfort permits. Each degree above 68º F can use 3% more energy.
  • Open windows in spring and fall rather than using air conditioning.
  • Install programmable or wi-fi thermostat to automatically control heating and cooling.
  • Clean or replace furnace filters periodically, and have your furnace burner checked and cleaned annually.
  • Use ceiling or portable fans in place of room air conditioners whenever possible.
  • If you use electric heat, consider replacing it with a high efficiency ductless heat pump system, which can cut electricity use by as much as 50 percent.

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Media Contact:

Leo Rosales
leo.rosales@avangrid.com
518.419.2401

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