Hartford manufacturing client complaining their electric bills doubled even though they locked in competitive supply. Problem is Eversource delivery charges went from $0.045/kWh to $0.078/kWh in one year. Rate class 34 on delivery tariff. Supply rate is locked but delivery is variable. Any recourse?
Connecticut - Eversource delivery charges skyrocketing
James - welcome to Connecticut deregulation. The delivery rates are set by the Public Utilities Regulatory Authority and adjust every 6 months. No way around it. This is why I always warn clients that competitive supply only locks in part of their bill.
Marcus is right. Same issue in South Dakota with Xcel Energy delivery rates. The competitive suppliers sell the illusion of rate protection but conveniently forget to mention the delivery portion can fluctuate wildly. Always quote total estimated cost including delivery escalation.
This is exactly why Pennsylvania is a better deregulated market. PECO delivery rates are more stable year-over-year. Connecticut's regulatory structure allows too much volatility on the distribution side.
Nick - I wouldn't call Pennsylvania better. Just different. Duquesne Light has had some nasty delivery rate spikes too. The key is setting client expectations that only 60-70% of their bill is actually hedged with competitive supply.
Client ended up terminating their competitive supply contract and going back to Eversource standard offer. Even with a $2,000 termination fee, they'll save money over the remaining contract term. Sometimes retreat is the best strategy.