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CL&P Proposes Reduced Residential Electric Rates Beginning July 1, 2007
Posted By Bob Wold
Director, Technology, SilentSherpa ECPS
Posted 4/24/2007 2:46:13 PM
BERLIN, Connecticut, April 17, 2007 -- Residential and other "Standard Service" customers of The Connecticut Light and Power Company (CL&P) could see their utility bills go down during the second half of 2007. In a filing made today to the Connecticut Department of Public Utility Control (DPUC), CL&P asked that the DPUC approve the results of power procurements for the remainder of this year for its nearly 1.2 million customers who have not chosen an alternative supplier of electricity. Standard Service is for residential customers, as well as streetlight and commercial and industrial customers who have a peak demand of less than 500 kilowatts of electricity per month.

CL&P's filing shows that Standard Service customer's rates overall would be reduced by approximately 4.5 percent. The impact for typical "Rate 1" residential customers using 700 kilowatt hours a month would be slightly better, with a decrease of approximately 5.5 percent or $7.60 per month. The rates would take effect July 1 and run through December 31, 2007.

"We were able to take advantage of lower energy prices as well as a reduction in the federally mandated congestion charges," said Raymond P. Necci, president and chief operating officer, CL&P. "We were pleased that this bid process resulted in positive results for our residential customers."

While residential customers could see a drop in rates, "Supplier of Last Resort" (SOLR) customers would see a slight increase, with CL&P estimating it to be approximately 1.4 percent over the same time period due to increased costs from suppliers. SOLR is for customers who have a demand of over 500 kilowatts and who have not chosen an alternative supplier. State law requires CL&P to procure SOLR service differently than it does for Standard Service.

The DPUC is expected to announce its decision in early May.

As part of electric restructuring, CL&P does not own generation and must secure the electricity it delivers from competitive suppliers. Less than one-quarter of a CL&P customer's bill is associated with the delivery of electricity to customers. The majority of a customer's bill pays for the electricity supply that CL&P must purchase from third parties.