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virtualchoirboy t1_iyd6bo9 wrote

Reply to comment by john46ct in Stop Eversource - Governor Lamont and Lawmakers need to make sure that PURA and Consumer Council start doing their jobs by john46ct

First, let me be clear... I hate Eversource just as much as anyone else here. That being said, I also think people need to understand what drives the prices they pay.

So let me put my initial point another way - if the cost of fuel for the generation plants is more than Eversource can recoup in generation rate charges, state law allows them to increase the rate so that they're not losing money on generating electricity. It's fairly straight forward and is what this latest rate increase is all about.

A large portion of the generation plants use natural gas. At the start of the year, gas prices were around $15-$16 per thousand cubic feet. In August, that price had risen to $31-$32.

Instead of trying to block a rate increase to cover the cost of generating the electricity we are using, we should be looking at either pushing for public ownership of the utilities or capping the profit that can be made with anything in excess of that amount going back to the consumers.

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littlerob904 t1_iydyehc wrote

Just to add a little clarification here. When the energy markets were deregulated, Eversource (then Northeast Utilities as a delivery company) was separated from any generation assets they owned. The generation rate paid on your eversource bill is a direct result of Eversource going out on the wholesale market and "buying" power from generators and then passing the cost on to the users. Eversource delivers you the electricity, they don't generate it. They do this through negotiating different contracts with different supply companies. This winter the massive increase in natural gas and fossil fuel prices is what's driving the increase in electricity generation. It pretty much happens every winter, although its happening on a much larger scale now.

If we want to solve this as a state, we badly need shift away from our huge reliance on natural gas which is somewhere around 55% of our current supply. The ONLY way to do this in a cost effective manner is to bring more nuclear online in CT. Less gas going to electricity generation will also have the dual effect of lowering home heating costs for gas users.

More renewables can help in the long run, and should be a bigger part of the diversification as well, but you can't solve this problem without nuclear.

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john46ct OP t1_iyd7s21 wrote

Much agreed - look at wallingford

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hard-time-on-planet t1_iydsswv wrote

Wallingford does have a better reputation for having lower delivery charges but I would expect when they announce 2023 generation rates there's will be higher too.

Old article but relevant quote:

https://www.nbcconnecticut.com/news/local/wallingford-provides-power-and-savings-for-residents/2311562/

> The town operated its own power plant at one time.

> Today, it buys electricity on the market. So, Hendershot said it does share some of the same cost concerns as Eversource

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