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PURA Actualizes Legislative Ban on Variable Rates

Posted on October 1, 2015

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I am pleased to share with you that Public Utilities Regulatory Authority (PURA) announced yesterday that their rules governing variable electric generation service rates for residential customers in Connecticut are about to change to reflect a new law that became effective today.

Public Act 15-90, An Act Concerning Variable Electric Rates, expressly prohibits electric suppliers from entering into a contract for variable rates – rates that change each month – on or after October 1, 2015 and prohibits suppliers from renewing customers into variable rates on or after October 1, 2015.

Connecticut has become the first state in the nation to ban variable electric rates.

Bulb bucksUnder the law and PURA’s ruling, a supplier will need to offer a new customer a rate that cannot go up for at least four months, and then can offer renewal terms, possibly at a new price, that also cannot go up for at least four months. Please note that ccustomers who already had variable rate products prior to October 1, 2015, will remain on variable rates until their contracts come up for renewal or until they choose to switch to the standard offer or another contract with a supplier.

I encourage all residents to check your bills and make sure that you know the generation rate you are being charged, whether that rate is fixed or variable, and whether there is a termination fee associated with switching from that rate. Suppliers are not permitted under law to charge a termination fee for customers on a variable rate.

In addition, starting on January 1, 2016, every supplier will be required to state on the first page of every electric bill whether the generation service rate is “fixed” or “monthly” (meaning rates that can vary each month) and next month’s rate.  If you have electronic billing, Dept. of Consumer Protection Counsel Katz urges you to click on “View Bill” each month so that you will receive all of the new and important information.

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