Connecticut officials can’t worry just about the price of electricity, one state legislator said, but also need to make sure that reliability remains a top priority.
Citing the recent holiday storm resulting in power outages during an extreme cold snap, state Sen. Norm Needleman, an Essex Democrat who co-chairs the legislature’s Energy and Technology Committee, said officials need to remain focused on reliable energy.
“Everyone will complain about the cost until they don’t have power,” Needleman said. “All I can say is thank God the weather improved and we didn’t have that extended cold snap for a week or ten days.”
Needleman’s comments came at the end of a public hearing on Monday during which members of the Public Utility Regulatory Commission met with their counterparts in Massachusetts and New Hampshire on increased standard service rates by Eversource.
Legislators from Connecticut – specifically members of the state Senate Democratic caucus sent a letter – lobbied PURA to schedule the meeting as United Illuminating and Eversource ratepayers brace themselves for energy bill increases.
The letter states that legislators are looking to get an explanation of how Eversource procures energy, how it forecasts natural gas and other fuel source rates and if it provides adequate protections for residents who take on the burden of increased rates.
Sen. Bob Duff, D-Norwalk, asked in submitted testimony about what strategic planning Eversource does, how it procures energy, and whether it can be improved.
“How do they forecast natural gas and other fuel source rates and are they providing their ratepayers with sufficient protections from increases like we have just seen?” Duff said.
James Shuckerow, director of electric supply for Eversource Energy, said prices are extremely volatile right now due various reasons, including the war in Ukraine which has meant higher oil and natural gas prices globally.
Also with the winter weather, suppliers have to be prepared to serve the demand, whatever that may be, Shuckerow said.
Consumers have the option to go to third-party suppliers, but haven’t always been proactive in addressing the cost, he said, adding that New Hampshire’s prices went up in the summer of 2022.
“To my surprise, through November or so, there has not been a huge amount of customers leaving,” Shuckerow said. “It’s been in the couple tens of thousands range, and we service hundreds of thousands of customers.”
Connecticut has the EnergizeCT rate board – a tool that helps residential and business electric customers compare standard services rates from Eversource and United Illuminating with those from licensed electric suppliers and registered aggregators.
“We will see what happens in Connecticut as these rates become known to customers and they are seeing that in their bills,” Shuckerow said.
Duff asked about what strategic planning Eversource does, how it procures energy, and whether it can be improved.
“How do they forecast natural gas and other fuel source rates and are they providing their ratepayers with sufficient protections from increases like we have just seen?” Duff said.
Eversource representatives participating in the meeting say they work closely with legislators, as well as consumer advocates, and the media to keep the public updated.
“We have had many conversations since prices have skyrocketed with legislative representations in Connecticut; same in Massachusetts,” Shuckerow said. “We are taking a strong role as being leaders, subject matter experts, and sharing our views.”
As far as procurement, Shuckerow said the company only considers bids that are “fair and reasonable” based on market conditions.
PURA Vice Chair John “Jack” Betkoski III said much more work needs to be done in terms of outreach to consumers, who may be reluctant to go to a third-party supplier even with rates going up.
“They are still cautious when switching suppliers,” he said.
Participants, including Consumer Counsel Claire Coleman who said the cheapest energy is the energy that isn’t used, agreed consumers need to be provided guidelines on energy conservation.
“Today’s meeting – bringing together the regulators and consumer advocates from Connecticut, Massachusetts, and New Hampshire, as well as Connecticut lawmakers and Eversource – highlighted the consensus that our dependence on foreign fossil fuels has left residents statewide and throughout New England vulnerable to global market disruptions and high prices,” Coleman said. “The meeting was an important first step in evaluating our current power procurement process and considering best practices from surrounding states, with the ultimate goal of better ensuring a reliable, sustainable grid and affordable electric bills for all Connecticut ratepayers. I was heartened to hear that the Authority views today’s discussion as a kickoff for further analysis, and my office will continue to be an integral part of this effort to address high energy supply costs.”
