Toll Free: 888.922.3782    tdd: 860.827.2837

    Home > Electric Choice

Electric Choice

Understanding Electric Restructuring

For decades, just two companies, Connecticut Light & Power (CL&P) and United Illuminating (UI), were making and selling electricity in Connecticut. Today, while CL&P and UI continue to deliver the electricity, you now have the ability to choose the company that sell you your electricity, your electric supplier.
The most significant change for you is that you can choose your own electric supplier. Other than that, you will notice very little change. Your power will be as reliable as ever. You will continue to receive one bill--from either CL&P or UI. And you will continue to call CL&P or UI if you have a billing question or an outage.

Only Generation is Open to Competition

There have always been three components involved in getting electricity to your home or business:
Generation - The production of electricity
Transmission - The high-voltage towers and lines
Distribution - The poles and wires that carry the electricity into your home or business

The generation portion is the only part affected by Connecticut's restructuring law. Instead of being owned by "the electric company," power generation is owned by independent, competitive companies. These companies may sell the power either wholesale (to electric companies or retail suppliers) or retail (directly to you). Power continues to come to you through poles and wires owned by the two "distribution companies," Connecticut Light & Power (CL&P) and United Illuminating (UI).

Background of the Act

In the 1990s, the Connecticut Legislature decided that companies should be allowed to sell electricity and compete in the open market. As a result, in 1998, the Legislature passed a law that opened the electric generation market to retail competition, effective Jan. 1, 2000. The same legislation created Standard Offer service from January 1, 2000 through December 31, 2003. The Standard Offer period applied only to residential consumers and small businesses. Large businesses and industrial customers were continuing to receive power based on earlier contracts with CL&P and UI.

On January 1, 2000, customers were automatically placed on Standard Offer with its built-in rate reduction of 10% (10% below the 1996 rates which were the same rates in 1999). Standard Offer was created by the Legislature to ensure that consumers received savings while electric competition was developing. During the Standard Offer period, unless consumers had already chosen a different supplier, they were continuing to receive their electricity from companies that either CL&P or UI contracted with to provide electricity to their customers. By law, CL&P and UI each had wholesale power contracts at a fixed price, and total customer bills were required to be at least 10 percent less than they were (for equal usage) under rates that were in effect on Dec. 31, 1996, the same rates that were in effect on Dec. 31, 1999.

The positive was that Standard Offer provided protection, via a price cap, for the consumer (10% below the 1996/1999 rates). The negative was that the cost, for the electric supplier, to purchase power in the wholesale market was close to, or higher, than the standard offer rate. CT's competitive electric market was slow to develop for many reasons: pricing (the standard offer rate), resistance to change and change to a 100+ year monopoly. As a result, parts of the Electric Restructuring bill (Public Act 98-28) needed to be modified.

The Revised Electric Restructuring bill (Public Act 03-135) was signed into law on June 27, 2003 and created the Transitional Standard Offer (TSO) Period (2004-2006). The Transitional Standard Offer period replaced the Standard Offer period (2000-2003) and was in effect from January 1, 2004 through December 31, 2004. In order to encourage more electric suppliers to do business within the state, the TSO removed the 10% rate reduction. The TSO was designed to ensure stable rates, encourage the development of renewable energy and continue an orderly transition to a competitive marketplace beginning in 2007.

Effective January 1, 2004 and beyond, the law required that two line item charges for congestion costs, bypassable (or energy-related) and non-bypassable (or reliability-related) costs, be added to customer bills. These costs are federally-mandated and may vary over time.

On Jan. 1, 2005 there was an extension of the Transitional Standard Offer period to reflect the electric rate increase of 10.3 %. The contributing factors of this increase were: the price of crude oil, the price of natural gas and the federally mandated congestion costs (FMCC's).

Today, more than ever before, Connecticut's residents are concerned about the availability of energy to light, heat and cool and their homes and businesses. As energy demand continues to grow, the future of electric power is a top concern.

As a result, the Department of Public Utility Control (DPUC) established an alternative to Transitional Standard Offer (TSO) that offers Connecticut's electric consumers a clean energy choice. This alternative, CT Clean Energy Options, provides an environmentally friendly alternative to traditionally generated electricity.

On March 3, 2005, The Department of Public Utility Control (DPUC) announced the names of the winning bidders for the "CT Clean Energy Options" program. The program began on April 1, 2005.

The following links will connect you to postings from the state of Connecticut that are related to the Electric Restructuring Legislative Act. Please check back for updated information as it becomes available.

Public Act 98-28 - An Act Concerning Electric Restructuring
Passed April 1998

Public Act 03-135 - An Act Concerning Revisions To The Electric Restructuring Legislation 
Passed June 2003

Bill No. 7501 - An Act Concerning Energy Independence
Passed June 2005

Choosing an Electric Supplier

You can choose an electric supplier based on what is most important to you. Some things you might consider are price, additional services offered or whether the power is made from clean, or renewable, energy sources. Before an electric supplier can begin supplying energy to you, they must give you written information on the price of the electricity that they are selling, terms and conditions of service, fuel source mix and air emissions and a notice describing the customer's right to cancel service.

The law prohibits an electric supplier from advertising or disclosing the price for electricity in a way that leads you to believe that the generation services portion of the bill will be the total charge for the delivery of electricity to you.

You may also choose to have an aggregator supply your electricity. An aggregator brings consumers together to form a buying group. Examples of organizations that may become aggregators include civic organizations, cities and towns, business associations and private or non-profit organizations. The aggregator does the research, selects an electric supplier and identifies price, contract terms and any services wanted by the buying group's members. This saves the members time and effort. You may join a buying group for the potential savings, for convenience, for the additional services offered or to buy energy made from clean, or renewable, sources.

By negotiating for energy in bulk, an aggregator may be able to get lower energy prices for the group's members. Aggregation is also a way to combine business consumers to create a group load profile that is more appealing to electric suppliers. However, you may want to check to see if you can get a better price on your own.

As a business, you may want to send out requests for proposals (RFP's) to seek offers from electric suppliers, instead of waiting for suppliers to approach you. RFP's can be developed to address the specific energy usage and service needs of your business. You can then compare the offers to negotiate a contract that is best for your business.

Electric suppliers and aggregators must be licensed and/or registered by the DPUC before they can provide energy to Connecticut consumers. The DPUC keeps an updated list of all licensed electric suppliers and registered aggregators, or you can call the toll-free Watt's New Answer Center at 1-888-922-3782.

When you are shopping for an electric supplier, start by getting the electric supplier's name, a contact person and a phone number. By law, each supplier is required to provide consumers with answers to the following questions:

  • Are you licensed by the DPUC?
  • What is your price (generation services charge) per kilowatt hour (kWh) for electricity?
  • Is your price fixed or does it vary?
  • If your price varies, does it vary by usage, by time of day (month), both or other?
  • What is the length of your contract?
  • Is there a start-up fee?
  • Do you have any built-in monthly customer service fees or other fees, price increases or decreases?
  • Is there a fee for switching to another supplier before the contract ends?
  • Are there any other fees or penalties?
  • What renewable fuel sources do you use (and percentages)?
  • What are the other energy sources you use (and percentages)?
  • What are your reported air emissions levels?
  • What would be the estimated savings for the generation services charge compared to my current bill? (Have a copy of your bill on hand)
  • Do you offer any additional services?
  • Do you offer any incentives or bonuses?
  • Whom can I call with questions about my contract?

Suppliers & Aggregators

While CL&P and UI will continue to distribute (deliver) electricity, independent companies (known as electric suppliers or aggregators) now provide electric generation services to Connecticut residents and businesses.  View the list of Licensed Suppliers and Aggregators

For Businesses

As a business, you may want to send out requests for proposals (RFP's) to seek offers from electric suppliers, instead of waiting for suppliers to approach you. RFP's can be developed to address the specific energy usage and service needs of your business. You can then compare the offers to negotiate a contract that is best for your business.

In a competitive electric market, you should become familiar with your company's energy usage through an appropriate metering system. Your company's load profile shows the quantity of energy used at specific time intervals over a 24-hour period. Knowing your load profile can help you match your energy usage with the best rates. Without this information, a supplier may estimate your energy usage by using the load profile of your customer class, which may not be accurate for your business.

There are many additional services that may be offered as part of your energy contract. These may include energy monitoring and management to control costs, back-up power, energy efficiency services, equipment acquisitions or internet access. You should evaluate which services are valuable and cost-effective for your company. Some electric suppliers may be more flexible regarding their rates and services.

You should consider a different metering option for your business, if the money you will save is greater than the investment in the new equipment. Your electric distribution company can review the options available and help identify which one is best for your business. For example, if you can be flexible with your energy usage, you may want to get a "smart meter" that determines your usage at specific intervals. You can then shift some of your energy usage to match a supplier's lowest cost time of day, for energy.

Many incentive programs are available through CL&P and UI that may benefit your company. These programs are funded by the Conservation and Load Management charge on ratepayers' electric bills. Since you help pay for these programs, it is in your best interest to take advantage of them.

Some of the programs currently available include:

Rebate Programs
Lighting Rebates
Motor Rebates
HVAC Rebates

Incentive Programs
Energy Audit
Focused Study of specific electrical equipment
Process Reengineering for Increased Manufacturing Efficiency
Request for Proposal
Cost-effective, turnkey, energy saving products and services for small businesses
Tailored HVAC Services
Operation and Maintenance efficiency programs
New Construction and Major Renovations
Energy Conscious Construction Planning Industrial Conservation Loan
Special Programs for one-to-one replacement upgrades

For more information on how these programs might benefit you contact 1-877-602-SAVE or  www.cl-p.com  if CL&P is your distribution company. 1-877-947-3873 or  www.uinet.com  if UI is your distribution company.

Understanding Your Electric Bill

Since January 1, 2000, your bill has shown as separate line items all of the charges that are part of your electric service. These charges include the Generation Service Charge (what you pay for the production of the electricity you use), as well as charges for transmission, distribution and other charges. These charges have always been part of your bill. They have been itemized since restructuring took effect.
Visit your distribution company's web site for help with understanding your bill.

The Connecticut Light and Power Company

The United Illuminating Company

You Continue to Receive Only One Bill...Charges from your electric supplier, as well as the transmission and distribution charges, will be included on one bill that you continue to receive from your electric distribution company, either CL&P or UI.

Use the Generation Service Charge on your electric bill to compare to the prices that electric suppliers may offer. Make sure you compare the generation service charge on a price per kilowatt hour (kWh) basis.

The law prohibits an electric supplier from quoting its price for electricity in a way that leads you to believe that the generation service portion of the bill will be the total charge for the delivery of electricity to you.

Consumer Rights and Protection

Under electric restructuring, the DPUC ensures that your Consumer Rights and Protections are maintained.

If for some reason (other than non-payment) the electric supplier that you choose stops providing you with electric power, your power will remain on. Your electric distribution company will provide back-up power for you.

Before it can begin supplying electricity to you, an electric supplier must give you written information on the total price of the electricity it is selling, terms and conditions of service, fuel source mix and air emissions and a notice describing the customer's right to cancel service.

Costs: The law prohibits an electric supplier from advertising or disclosing the price for electricity in a way that leads you to believe that the generation service portion of the bill will be the total charge for the delivery of electricity to you.

"Slamming": An electric supplier must have your permission to switch your service. It is illegal for an electric supplier to switch your service without your permission. This is called "slamming". If you think you have been "slammed," call the DPUC at 1-800-382-4586.

Changing Suppliers: You may change your electric supplier, free of charge, once every 12 months. If you change your supplier more often, you may have to pay a standard fee. Check your supplier contract for any switching fee or other additional fees or penalties. You have the right to ask a telemarketer to take your name and phone number off their list.

Add your name to a no-call list  You can write to Direct Marketing Association, a service to which marketers voluntarily subscribe. To remove your name from phone lists, write to Direct Marketing Association, Telephone Preference Service, P.O. Box 9014, Farmingdale, NY, 11735-9014. To remove your name from mail lists, write to Direct Marketing Association, Mail Preference Service, P.O. Box 9008, Farmingdale, NY, 11735-9008.

Discrimination: Electric suppliers may not discriminate or refuse service because of your age, race, creed, color, national origin, ancestry, sex, marital status, sexual orientation, lawful source of income, disability, familial status or geographic location in an economically distressed area.

Assistance with Payment: Electric restructuring does not affect the assistance that is provided to you to help pay your bills. You should call your electric distribution company (CL&P or UI) for information about payment plans. If you are a low-income household and need assistance to help pay or reduce your utility bills, call INFOLINE by dialing 211, your local community action agency, or the Department of Social Services at 1-800-842-1132 for information about available programs.

Other Protections: All other consumer protections continue, such as the winter moratorium, hardship protection, right to reasonable payment arrangements, termination rights and the right to dispute a utility bill.

If you believe your rights have been violated by an electric supplier or by your electric distribution company, call the DPUC at 1-800-382-4586.

Reliable Power

Reliability and safety will continue to be regulated by the DPUC. The utility company that you presently have (CL&P or UI) will continue to deliver the electricity to your home or business. This utility, now called your electric distribution company, will continue to be regulated by the DPUC.

On the generation side, much of the power needed to supply the state's energy needs is being generated in Connecticut. Generation plants that used to be owned by CL&P and UI are being operated by new owners, and many additional power plants are under consideration. These newer plants use the latest technologies for greater efficiency and reliability.

Power supply reliability is everyone's top concern. Reliability is enhanced because Connecticut is part of the New England "grid," one of many interconnected electric power grids nationwide. A non-profit Independent System Operator (ISO) that monitors power generation and usage moment-to-moment operates the grid. If a plant goes down or usage increases in one area, the ISO can reroute power from another area to ensure that the power stays on.