Electric Choice Gains Momentum in Connecticut

Although the electric industry in Connecticut has been deregulated for over 10 years the movement of consumers to alternate electric generation providers has only recently begun to gain significant momentum.  As of September 30 over 160,000 residential customers and over 60,000 business customers in the state get the generation portion of their electricity from a company other than CL&P or UI.  These levels are up significantly since January of this year.

Before deregulation CL&P and UI both generated all the electrical power in the state and transmitted it to each home and business.  With deregulation these local utility companies were forced to sell their power generation plants. They held on to all their transmission and distribution assets (the towers, poles and power lines) and continue to maintain this infrastructure.  All consumers were given a choice on who supplies the electricity and if they did not make a choice CL&P or UI continued to supply the electricity. 

Two factors are driving the increased movement to companies other than CL&P and UI for the generation portion of the electric bill.  First, there is a greater level of awareness that electric choice exists, and that no matter who a consumer chooses CL&P or UI will continue to fully service their home or business and the consumer will continue to just receive one bill each month for electricity.  Making the switch is completely seamless.  Second, there are significant savings available with other electric generation companies.  For example, consumers who select Verde Energy USA  (www.lowcostpower.com) can save over $0.02/KWH on their electricity.  This may not sound like much but many homes in Connecticut use 2,000 or more KWH each month and can save $500 or more each year with Verde.  Many small business customers use many times more electricity and can save well over $1,000 annually.

If you have not yet considered your electric choice you should now….the savings can be substantial and we all could use the extra $$$ in these challenging times.