An Expert Advises Seniors—

Deciphering The Electric Bill

By Nancy K. Crevier

Joe Wood of the State of Connecticut Department of Public Utility Control visited the Newtown Senior Center Wednesday, June 15, to clarify the confusion surrounding electric restructuring.

Electric restructuring allows consumers to choose their electric supplier, that is, the company that generates the electricity, and creates a competitive atmosphere that may help to hold costs steady. It also give consumers the choice between using traditional fossil fuel generated energy or energy from renewable sources, such as wind, solar, water, or fuel cells.

It is a confusing issue, at best. Many of those present were unaware that CL&P would soon no longer be generating power for sale, and that they would need to choose a new provider.

Barbara Borst had received a solicitation and application from LEVCO, a Connecticut energy provider that offers both traditional and renewable options.

“You get stuff in the mail. I came to see if what I got was legit,” she said.

Others wondered about the reliability of renewable energy companies, how they would know the source of renewable energy, what would happen if several people in a given area selected different providers, and how their bills would be affected by a change.

In reviewing a sample copy of CL&P’s (Connecticut Light and Power) current bill, Mr Wood pointed out the supplier service charges versus the delivery service charges.

“Only the generation [supplier] portion of the bill is available to be ‘shopped out,’” he explained. “CL&P will still remain the distribution [delivery] company.” Regardless of which of the four licensed residential electric companies a person chooses to go with, CL&P will remain responsible for the hardware upkeep that keeps power flowing to the home and will continue to be the company responding to electrical outages.

Mr Wood also explained the various charge breakdowns on an electrical bill, including the heavy-use Federally Mandated Congestion Charge (FMCC) that southwestern Connecticut towns must shoulder. Until power lines across the 52 towns affected by this charge are updated, the government requires the state to run older power plants 24 hours a day, seven days a week to ensure a continuous supply of energy, should a sudden increase in demand crop up. It is hoped, said Mr Wood, that eventually this charge can be phased out.

He reassured the group that should they select a power company that goes out of business or can no longer provide service for whatever reason, CL&P would pick up the contract, guaranteeing continuation of electrical service with no disruption. Nor, he said, does it matter how many different choices people make. All of the power comes from one grid in Holyoke, Mass.

Connecticut residents must choose a new power generating company as of January 1, 2006, said Mr Wood, or CL&P will make that decision for the individual. What customers will want to decide is whether to go with a traditional fossil fuel service company, or one that uses renewable resources to create power. Clean energy plans that consumers may opt to choose from include Community Energy, Inc, Sterling Planet, and LEVCO.

“What you want to compare,” he suggested, “is the generation service charge [on the bill] when considering charges.”

Right now, most renewable energy companies charge about one cent more per kilowatt hour than CL&P currently charges for traditional service; it is not a large number, but may add up to just enough to discourage those on a fixed income.

What is hoped, said Mr Wood, is that prices will improve as more alternative energy companies are created. “New technology will come into play,” he added, “and prices will come down.”

Changes and decisions do not have to be traumatic, according to Mr Wood, and asked the seniors to consider that unless something is done nationally, the nation’s dependence on foreign fossil fuels will continue to go up and up.

Referring to the upcoming January 1 deadline, he concluded, “This gives us choices.”