Power of choice for Connecticut Energy Customers

News flash for Connecticut Light & Power customers – you can buy electricity from another supplier and save money. And don’t feel any pangs of disloyalty; CL&P President and Chief Operating Officer Jeffrey Butler told us he is more than happy to see customers go elsewhere for their electricity.

Mr. Butler recognizes that CL&P does not make money selling electricity; it gets its revenues from providing the power grid to distribute electricity. With the exception of municipal utilities such as Groton, Norwich and Jewett City, the CL&P distribution charge is part of every electric bill, no matter who is selling the power.

When Connecticut partially deregulated the industry in 1998, the General Assembly recognized that some consumers would not choose a power company. These non-choosers get their power from the default supplier – CL&P. It passes on the cost of acquiring the electricity directly to consumers, without a profit margin.

For the first decade of deregulation, few suppliers were able to beat this pass-through price, meaning little competition. In the last year or so, however, that has changed. Visitors to www.ctenergyinfo.com will find 16 suppliers who can beat the CL&P price and provide green or greener energy. For the average home, estimated savings run from $3.02 to $18.35 per month.

While most customers still default to CL&P, the market is changing, with 16 percent now opting for an alternative supplier. While it took too long, the arrival of competition is a good development. Unfortunately, even the best prices in Connecticut are high by national standards, putting the state at a competitive disadvantage in attracting industry.

CL&P plans to seek a rate increase for 2011 on that distribution end of the bill. Mr. Butler said the company needs the cash infusion to maintain the grid. We await the details, but fear adding to electric bills could short-circuit economic recovery.

Consumers can’t control that, only state regulators can. But consumers can, and should, choose who they buy power from.

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