Eversource and United Illuminating are cutting their rates and customers could begin to see a drop in their electric bills as of July 1.
The Public Utilities Regulatory Authority approved plans from the two utility companies on Friday.
Eversource’s rates will drop from 12.42 cents per kilowatt-hour to 8.25 cents, which would equate to saving around $31 per month for an average residential customer who uses 700 kilowatt hours per month, according to a news release from the power company.
The new rate is in effect from July 1 through Dec. 31.
"The historically high prices we’ve been paying to electricity generators have made this a very difficult winter for most customers in the region," said Penni Conner, senior vice president and chief customer officer at Eversource. "With prices now falling back to levels even better than a year ago at this time, we’re thrilled to pass along the savings to our customers at the time of year when air conditioner use will be at its peak."
All Eversource customers have the option to buy their power from other retail suppliers or go with the company’s Standard Service rate and the new rate will affect around 801,000 or 64 percent of Eversource’s 1.25 million Connecticut customers.
As of July 1, UI's residential generation rate will decrease from 13.3108 cents per kilowatt hour to 9.1241 cents per kilowatt hour. The generation rate is around 50 percent of the monthly electric bill for most residential users, according to PURA.
UI officials said in a press release that the reduction "reflects the decrease in the price of electricity generation in the wholesale market."