The Public Utilities Regulatory Authority approved rate increases Monday for Connecticut Light & Power and United Illuminating customers as of January 2015.
For CL&P residential customers, power generation rates will increase from 9.990 cents a kilowatt-hour to 12.629 cents per kilowatt-hour, according to a news release from the regulatory authority.
UI's residential rates will go up from 8.6657 cents per kilowatt-hour to 13.3108 cents a kilowatt-hour. Those new rates are effective Jan. 1, 2015.
A spokesperson for CL&P said earlier this month that the proposed rate will result in an average monthly increase of about $18.47 for customers using 700 kilowatt hours per month.
Both CL&P and UI proposed rate changes are "based on competitive auctions held earlier this year to procure sufficient power to meet forecast load," according to a news release from the regulatory authority, which approved the new rates on Monday.
The generation rate roughly makes up half of residential customers' monthly electric bills.
Other charges, including the delivery cost, transmission and "distribution and public benefit" fees will be adjusted for 2015 as well, according to the news release. The Federal Energy Regulatory Commission sets the delivery costs.
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"The current spike of electricity is not only affecting Connecticut, but all of New England, since more than half of the region's electricity is now produced using natural gas," Northeast Utilities wrote in a news release Monday. "Although natural gas remains an abundant and inexpensive fuel, regional pipeline limitations and the growing dependency on gas to produce electricity are pushing prices higher."
CL&P is required by law to change standard service rates for residential customers and small businesses twice per year, in January and July, according to parent company Northeast Utilities.
More information on energy options are available at www.energizect.com or by calling 1-877-WISE-USE (1-877-947-3873).
