Connecticut’s commercial electricity market is unique because businesses can shop for their power supply. Although electric delivery is still handled by your local utility, the supply portion of your bill has been deregulated since the late 1990s. This page explains how the system works, who the major utilities are, what makes up your electric bill, and how your company can save money by comparing suppliers.
Understanding Connecticut’s Deregulated Electricity Market
Connecticut opened its electricity market to competition in the late 1990s through the Energy Choice program. Under this system, your local utility still maintains and operates the poles and wires that deliver power to your facility, but you can choose from a variety of licensed suppliers for the generation portion of your bill. By separating supply and delivery charges, the state allows companies to shop around for the lowest per‑kilowatt‑hour rate and lock in long‑term fixed prices.
- Supply charge – the cost of generating your electricity, which is deregulated and can be supplied by competitive suppliers.
- Transmission – charges that cover high‑voltage transmission lines moving power from generation plants to substations.
- Distribution – fees for delivering electricity to your business through local poles, wires and equipment maintained by your utility.
- Public benefits and fees – state‑mandated programs such as energy efficiency, renewable energy and low‑income assistance; these charges are not negotiable.
Utilities Serving Connecticut Businesses
Connecticut has two investor‑owned utilities that deliver electricity and maintain the distribution network: Eversource and United Illuminating (UI). Even if you switch suppliers, these companies still read your meter, send your bill and restore power when there are outages. The primary difference between them is their service territory and the standard service generation rate they offer if you choose not to select a third‑party supplier.
- Eversource – Connecticut’s largest utility serves most of the state, including Hartford, Stamford and many northern and eastern towns. Its standard service generation rate for January 2025 is about 11.19 cents per kilowatt‑hour.
- United Illuminating (UI) – Serves cities in the southwest such as Bridgeport and New Haven. UI’s standard generation rate for January 2025 is about 13.57 cents per kilowatt‑hour.
How to Reduce Commercial Electricity Costs
Because the supply portion of your electric bill is deregulated, taking time to research your options can lead to meaningful savings. Here are some strategies to lower your commercial electricity costs:
- Analyze your usage – review your company’s hourly and seasonal demand patterns to estimate the amount of fixed or variable power you need before soliciting quotes.
- Compare multiple offers – use EnergizeCT.com or other comparison sites to review per‑kWh rates, contract terms and renewable options from different suppliers.
- Choose a fixed‑rate plan – locking in a single per‑kWh price for the term of the contract protects your budget against market volatility; contract lengths typically range from 6 to 36 months.
- Look for additional services – some suppliers offer demand response, energy‑efficiency programs or renewable energy certificates that can further reduce costs.
By understanding Connecticut’s deregulated market and comparing offers, businesses can secure low per‑kWh rates and gain more control over their energy budgets. EnergizeCT.com provides supplier comparisons and educational resources to help you make an informed decision.