Conn. electric customers paid $1.8B more than they should have over 10 years; NH even more, study concludes
Synapse Energy Economics study says Connecticut residential standard service customers of Eversource Energy and The United Illuminating Co. paid $1.8B more than expected from 2016-2025, about $11 per month. It cites a 31% median retail price premium, 13 cents vs 10 cents per kWh. Massachusetts premium was $2.7B, New Hampshire $2.5B.
How this was made
The 30-second read
Why it matters
The article quantifies a supply-cost “premium” for standard-service customers and discusses proposed procurement-process changes, but it does not announce regulatory action or a new rate decision.
Market read
Quantified above-market supply premiums for Connecticut standard-service customers could increase scrutiny of utility procurement practices, but there is no immediate policy decision reported.
What to watch
Any actual financial impact depends on whether Connecticut regulators change procurement design, contract terms, or rate treatment; the article reports no such decision.
Background
Synapse Energy Economics analyzed Connecticut standard-service supply procurement costs from 2016-2025 and compares customer-paid supply costs to estimated market costs.
Ticker impact
The study says Eversource standard-service customers in Connecticut paid a $1.8B total premium over 2016-2025, implying policy and cost-pressure risk for ES.
Near-term impact is likely limited, but any follow-on policy action to reduce supply premiums could pressure future standard-service economics.
The piece is a think-tank study with no announced regulatory decision, but it highlights a specific cost mechanism tied to Eversource’s standard service procurement.
The study attributes Connecticut standard-service premiums to The United Illuminating Co., which is part of Northeast Utilities under LNT, creating potential scrutiny of supply procurement costs.
Stock reaction is unlikely without a concrete regulatory filing or rate/procurement change, but longer-dated risk is higher scrutiny.
The article provides quantified premium estimates but does not report a new order, settlement, or rate case outcome.
Market effects
Highlights regulatory and procurement-structure risk for regulated utilities offering standard service, potentially affecting how investors price supply-cost pass-through and procurement governance.
Focuses on New England utility procurement programs, which could influence expectations for Connecticut and neighboring-state utility rate proceedings.
Limited, as the findings are localized to New England standard-service procurement rules.
Counterpoint
The Consumer Counsel argues the hindsight premium does not equal money customers would have saved without assuming market risk, so the study may overstate actionable overcharges.
Key entities
- think_tankSynapse Energy Economics
Conducted the study estimating above-market supply premiums for Connecticut standard-service customers.
- utilityEversource Energy
One of the distribution companies serving Connecticut standard-service customers referenced in the study.
- utilityThe United Illuminating Co.
The other Connecticut distribution company referenced in the study’s premium estimates.
- regulatorConnecticut Consumer Counsel
Provided a written statement questioning the study’s hindsight framing and emphasizing market-risk assumptions.
