Dive Brief:
- Some competitive retail suppliers in Connecticut are charging their customers more than double the prices of incumbent utilities, state officials are warning.
- The Connecticut attorney general and consumer counsel contend that contracts with variable pricing arrangements are the problem. Some customers are being charged almost 25 cents/kWh compared with 9.2 cents/kWh for Connecticut Light & Power and 9 cents/kWh for United Illuminating Co.
- Power suppliers say the price spikes reflect an increase in wholesale prices in the Northeast. The Public Utilities Regulatory Authority has started to investigate the issue.
Dive Insight:
In the Northeast's deregulated markets, state utility commissions oversee the many companies that sell power to homeowners and businesses. But some of the suppliers are small companies that cannot handle sudden changes in the market. Several suppliers defaulted in New Hampshire last year. There may be another shakeout caused by the recent price volatility in the Northeast.