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  • Writer's pictureAngelo Aguiar

Understanding PURA's Electric Rates and the Benefits of Solar Energy in Connecticut


At Terra Energy Consultants, we understand that energy efficiency is more than just about saving money—it's about contributing to a more sustainable future. That's why we aim to provide homeowners in Connecticut with the most up-to-date and relevant information about their energy options. In this article, we’ll explore how the Public Utilities Regulatory Authority (PURA) determines electric rates and the recent rate increases. We'll also delve into the net metering and the renewable energy credit program in Connecticut, and how these benefit solar energy users.




How PURA Determines Electric Rates in Connecticut


PURA is responsible for regulating the rates and services of Connecticut's investor-owned electricity, natural gas, water and telecommunication companies and is the franchising authority for the state’s cable television companies. The process to determine electric rates is comprehensive and multifaceted.


First, PURA reviews the costs associated with delivering electricity, which includes the price of power generation, transmission, and distribution. This also factors in the costs of maintaining infrastructure, administrative costs, and any state-mandated fees or charges.


Next, PURA considers the energy needs of Connecticut's residents to ensure reliable service. This includes evaluating peak demand periods and considering future energy needs to maintain a reliable grid.



Finally, PURA holds public hearings, allowing stakeholders, including the public, to voice their opinions. Based on these inputs, PURA determines the most reasonable rate that allows utility companies to cover their costs while providing affordable service to customers.



The Rise in Electric Rates


Recently, Connecticut homeowners have experienced a significant increase in electric rates. This can be attributed to a few factors.

Firstly, there has been an increase in the cost of natural gas, which fuels many power plants across the country. Secondly, the demand for electricity has surged, partly due to more people staying home during the pandemic, thus needing more power. Lastly, the cost of maintaining and upgrading the electrical grid infrastructure has also increased. All these factors contribute to the recent hikes in electricity rates.



Net Metering and Renewable Energy Credit Program in Connecticut


Fortunately, Connecticut has programs that can help offset these increased costs, particularly for solar energy users. One such program is net metering. Net metering allows homeowners who generate their own electricity through solar panels to feed any surplus power back into the grid. The homeowners are then credited for this surplus energy, effectively reducing their electricity bill.


Another significant program is the Renewable Energy Credit (REC) program. RECs are generated when a solar power system produces electricity. Homeowners can sell these credits to utility companies, providing an additional income stream and further offsetting the cost of their solar energy system.



The Benefits of Solar Energy

Choosing solar energy not only reduces electricity bills but also contributes to a more sustainable environment. Solar power is a clean, renewable source of energy that reduces reliance on fossil fuels, thus reducing greenhouse gas emissions. Furthermore, with programs like net metering and the REC program, solar power can be an economically wise choice for homeowners in Connecticut.


At Terra Energy Consultants, we are committed to helping you navigate these programs and make the most of your solar energy system. Contact us today to learn more about how you can benefit from solar energy.



Keywords: PURA, Electric Rates, Connecticut, Net Metering, Renewable Energy Credit Program, Solar Energy, Terra Energy Consultants.

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