Understanding the Public Benefits Charge on Your Connecticut Utility Bill

If you’re a Connecticut resident, you may have noticed a “public benefits” charge on your Eversource or United Illuminating (UI) electricity bill. This charge has been a topic of heated debate recently, with many customers expressing concern over rising costs. Let’s break down what this charge is, what it covers, and why it’s been increasing.

What is the Public Benefits Charge?

The public benefits charge is a fee on your electricity bill that funds various programs and initiatives. It’s not a new charge, but recent increases have brought it into the spotlight.

What Does it Cover?

The public benefits charge funds several areas:

1. Green Energy Programs: This includes incentives for electric vehicles (EVs) and solar energy.
2. Energy Efficiency Programs: Initiatives to help reduce overall energy consumption.
3. Assistance to Low-Income Customers: Financial aid to help needy customers with their energy bills.
4. Low-Emissions Energy Production: Costs for buying energy from low-emissions producers, including the Millstone nuclear plant.

Why Has it Increased?

The recent spike in the public benefits charge is primarily due to two factors:

1. Millstone Contract: Up to 80% of the $800 million increase in the public benefits account this year is attributed to a contract signed several years ago that ensures lucrative rates for the Millstone nuclear energy plant.
2. COVID-19 Moratorium Extension: The extension of a COVID-era shutoff moratorium to protect low-income residents has contributed to the increase.

The Debate

The increase in this charge has sparked significant controversy:

• Some customers argue it’s unfair to make them pay for others’ unpaid bills or for green energy initiatives they may not directly benefit from.
• Others defend the charge as necessary for supporting important social and environmental programs.
• There’s ongoing discussion about whether the charge should be optional or if there are better ways to fund these initiatives.

What’s Being Done?

1. A petition on Change.org calling for the repeal of the public benefits fee has gathered over 61,000 signatures.
2. Some state lawmakers are demanding changes to bring down costs for residents.
3. Cash, PPA, lease and loan programs for solar are not required to pay the public benefits charges. 
4. Governor Ned Lamont has stated he’s open to considering practical solutions to drive down energy costs.

What Can You Do?

1. Stay informed about changes to your electricity rates. The next rate adjustment will be announced around November 15, 2024, effective January 1, 2025.
2. Contact us as SAVKAT for a comparison quote on going solar, and how paying a fixed monthly solar bill can save you 10’s of thousands over the next couple of decades.  
3. Compare rates between your current plan and other licensed third-party electric suppliers at www.energizect.com.
4. Consider energy-saving measures to reduce your overall electricity consumption.

Remember, while the public benefits charge is currently a mandatory part of your bill, the debate surrounding it is ongoing. Keep an eye on local news for any potential changes to this policy in the future.