UI Standard Service Customers’ Supply Rates to Decrease by 13 Percent Beginning in July
Pending regulatory approval, company’s supply rate filing estimates average residential customer using the Standard Service rate will see average $13.19 monthly bill decrease from July-December 2025
Persistently high Public Benefits Charge continues to inhibit deep savings for customers
ORANGE, Conn. — May 19, 2025 — Today, United Illuminating (UI), a subsidiary of Avangrid, Inc., announced that following its regulatory filing with the Public Utilities Regulatory Authority (PURA), standard service supply rates in the second half of 2025 (July 1-December 31) are expected to drop by 13.1 percent, with residential customers specifically expected to see a slightly higher 13.9 percent decrease in supply rates. Accordingly, UI’s average residential customer using 700 kilowatt-hours of electricity can expect to see an electric bill reduction of approximately $13.19 per month. These calculations were filed today with PURA, which oversees the procurement of electricity on behalf of customers using the company’s Standard Service rate, who make up approximately 82% of UI’s customer base. By Connecticut law, UI does not own power plants or generate electricity; instead, UI procures power on behalf of Standard Service customers and passes the cost on one-for-one at no mark-up or profit to the company.
“Electric distribution companies like UI do not control or profit from supply rates, but with energy costs top of mind for so many of our customers and other stakeholders, we are pleased that customers will soon see some measure of savings in their supply rates, which make up nearly half of the typical UI bill,” said Frank Reynolds, President and CEO of UI. “We remind customers that while supply rates are going down, usage often increases during the hot summer months, primarily due to the use of air conditioning, which can diminish the savings they feel. Thus, as summer approaches, we encourage customers to be mindful of tips and tricks to manage their usage – such as turning up the thermostat when it’s not needed and weatherizing their home or business – to take full advantage of the supply rate decreases they will see beginning in the July billing cycle.”
Pending regulatory approval, from July 1 to December 31, 2025, UI anticipates that supply rates for residential customers using its standard service rate will drop from 13.57 cents per kWh to 11.68 cents per kWh, a 13.9 percent drop in supply rates that accordingly drives a 5.24 percent drop in residential customers’ overall monthly bills. For the average residential customer using 700 kilowatt-hours (kWh) of electricity per month, this equates to savings of approximately $13.19 per month.
Customers continue to be impacted by high Public Benefits Charges, which pay for the costs of energy-related policy programs passed by legislators and implemented by PURA. Example programs include subsidies and incentives for renewable energy projects, energy efficiency programs, and other sustainability programs as well as assistance programs that reduce energy bills for residents who can provide financial hardship. The Public Benefits Charge has been included on Connecticut energy bills since 1999, though prior to UI’s bill redesign in February 2024, it was included in the section of the bill then called Distribution. A 257% increase in the Public Benefits Charge in summer 2024 has not reverted to previous levels, in part because policymakers continue to create and implement new programs paid for by the Public Benefits Charge.
The base kilowatt-hour supply rate during the second half of the year (July-December) is virtually always lower than the first half of the year (January-June) because there is less demand for natural gas during the warmer months, and natural gas comprises between 50-60 percent of the fuel source for energy generation in Connecticut. However, customers’ usage of electricity tends to increase in the summer months due primarily to the use of air conditioning, which can drive bills higher.
UI and the state of Connecticut offer many opportunities for customers to manage their energy usage and costs. Customers can also take advantage of energy efficiency programs to maximize the efficiency of their homes and businesses with an audit through EnergizeCT. Customers can visit https://energizect.com/explore-solutions/energy-evaluations for more information and to sign up. The EnergizeCT rate board is also available for customers to explore offerings from alternate energy suppliers, which may offer lower rates than UI’s standard service offering. Because Connecticut law prohibits alternate suppliers in Connecticut from charging termination fees, customers may switch suppliers as often as they like, though it may take up to two billing cycles for changes to take effect. Customers may visit the EnergizeCT Rate Board at https://energizect.com/rate-board/choosing-a-supplier.
Media Contact:
Jonathan Breed
Jonathan.Breed@avangrid.com
(207) 458-3510