Gov. Ned Lamont has announced a new plan to help customers amid historically high electric prices.
The State of Connecticut is trying to help residents mitigate the high cost of energy as the weather gets colder.
Gov. Ned Lamont released new information on Monday about the gas tax and energy and electric prices.
Gas Tax Holiday Continues Through 2022
Lamont said an agreement has been reached with the legislature to continue the $.25 gas tax holiday until January 1, 2023. After that, it will slowly go down $.05 per month until it is back to normal on May 1, 2023.
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Fares on CT Transit will also continue to be free through March 30, 2023. There has been an uptick in the number of people using the buses, according to Lamont.
The free services include CT Transit local buses, CT Transit express and CT Fastrak services. ADA Paratransit is also included.
Prior to Monday, the free bus fares were set to expire on December 1, 2022.
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Eversource and United Illuminating Rates
Lamont's announcements on Monday come after two of the state's utility companies, Eversource and United Illuminating, announced plans to increase rates. He said Monday that he spent some of the Thanksgiving weekend speaking with the two companies.
Eversource, which serves nearly 1.3 million customers in the state, asked the state Public Utilities Regulatory Authority to approve an increase that the company said could increase the electric bill for an average customer by nearly 50 percent, or $85 per month, on the supply portion of the bill.
Eversource said, if approved, the increased rates would be in effect from Jan. 1, 2023, through June 30, 2023.
United Illuminating is also planning a rate increase.
After the companies announced plans to increase rates, Lamont said he'd be calling the General Assembly into a special session to adopt legislation focused on helping residents, including ensuring the state's energy assistance program has enough funding to guarantee support is available for electricity and heating oil costs.
Energy and Electric Prices
Lamont said the state previously made a deal with Millstone Power Station. The rate is locked in at 4.999 cents per kilowatt hour and over $90 million in credits have been accrued.
According to state officials, Lamont plans to frontload the money that was saved and in turn, customers will save about 10 percent on their energy bills each month. The 10 percent works out to be about $8 or $9 a month, he said.
Nearly 52,000 households have already applied for the Connecticut Energy Assistance Program this season. Benefits are available for households with incomes up to 60 percent of the state median income, which is about $75,465 for a family of four.
In addition, an additional $30 million will be put toward the Low Income Energy Assistance Program, also known as LIHEAP. Lamont said LIHEAP will provide significant savings to rate payers who make up to $75,000. Eligible families typically receive benefits from $100 to $600 in benefits. More information about LIHEAP can be found here or you can call 211.
Operation Fuel is also an option for families who may need assistance. The not for profit program serves households whose income does not exceed 75 percent of the State Median Income Guidelines. The program says it includes, but is not limited to the elderly, disabled, working families or individuals facing financial crisis.
There are multiple types of assistance including:
- Year-round energy assistance
- a one-time grant per household per year for deliverable fuel oil, natural gas, electricity, kerosene, wood, propane, pellets and other energy sources
- Homeless intervention and prevention
- a one-time grant per household for gas and utilities to stabilize families in crisis
- Water assistance
- customers of the Metropolitan District (MDC), Aquarion or Connecticut Water can apply for help.
Eversource is expected to contribute $10 million to Operation Fuel, which will more than double the amount of money there. It would be for energy assistance to customers in need including moderate and middle-income customers who are struggling to pay their bills.
United Illuminating plans to contribute a minimum of $3 million for direct assistance for electricity and heating costs.
State officials remind residents that energy audits are available. Once a home is more energy efficient, it can help save additional money.
Lawmakers convene Monday for the special session.
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