Electric Competition

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Electric Retail Competition
The Consumer Education Outreach team at the Department of Public Utility Control has been tasked with a statewide educational campaign. Our mission is to supply every electric customer in the State of Connecticut with the proper tools and information that will enable them to make an informed decision regarding the deregulated environment of the electric industry.

Changes
The important part of understanding what has changed is to understand the three parts of the system that are involved. The term generation refers to the actual production of electricity. Transmission of electricity refers to the high voltage towers and lines that transport the electricity from the generating plants to sub-stations. When you hear the term distribution, think of the poles and wires you see on the streets. These take the electricity from the sub-station to your home or business.

The Generation portion of the system is the only part that will be deregulated (open for competition), meaning you will soon be able to choose who generates your electricity. Your one electric bill will be broken down to show all charges, including your "Generation Service Charge". July 1, 2000, customers statewide will be able to choose their electric supplier.

Staying The Same
Transmission and distribution will continue to remain as they are. Your current electric utility company will still be your distributing your electricity, as well as maintain poles, wires, take care of power outages, read your meter, and generate your one electric bill.

Historically, the DPUC has regulated all three parts. Now that the industry has been deregulated, the DPUC will no longer set the rates for the generation of electricity. The competitive marketplace will determine these rates.

Standard Offer
If you do not choose a new electric supplier then you will remain with your present utility, CL&P or UI, for up to four years under what will be known as the Standard Offer.

Components of the Standard Offer
  • Rate reduction of 10% from December 1996 rates
  • Offer will last until January 1, 2004
  • Leave at any time for a new supplier
  • By 2004 you will need to choose a new supplier or power will be arranged for you at market rates
Summary
Please remember that you can stay in the Standard Offer until January 1, 2004, or choose a new electric supplier that has been licensed with the DPUC. Safety, reliability and distribution rates will still be regulated. You will still only receive one electric bill. Consumer rights will remain protected. There will be no interruption of electric service.

If you have any questions or would like your local representative from the DPUC to arrange a presentation to your group please call our toll-free answer center at 888-922-DPUC (3782) or check out our informative website.