The CT Commercial Energy Cost Benchmark
What Connecticut businesses in your industry actually pay for electricity — and what they should be paying. All figures sourced from PURA, the CT Office of Consumer Counsel, and ISO New England public filings.
Why Connecticut Rates Are Uniquely High
Connecticut runs on ISO New England’s wholesale grid, where natural gas drives roughly 58% of in-state generation (EIA, 2024). New England’s pipeline constraints mean gas prices spike sharply every winter, pushing ISO-NE’s 2024 average wholesale cost to $52.25/MWh — 28% above the U.S. average of $40.60/MWh. Those costs flow directly into what you pay on your Eversource or UI bill.
On top of that, standard service rates reset every January and July, with swings of 20–30% common between cycles. The Jan 2026 reset raised Eversource’s rate from 9.748¢ to 12.64¢ — a 30% single-cycle increase — while commercial customers on locked competitive contracts paid nothing extra.
2026 Rate Comparison by Account Type
Supply-only rates. Does not include transmission, distribution, or public benefits charges.
| Account Type | Eversource SSO¹ | UI SSO¹ | Best Competitive² | Potential Saving |
|---|---|---|---|---|
| Small Commercial (Rate 30/35) | 11.577¢ | 11.95¢ | 8.29–9.50¢ | Up to 34% |
| Medium Commercial / Industrial | 11.577¢ | 11.95¢ | 8.29–9.80¢ | Up to 34% |
| Large Industrial (Demand > 200kW) | 11.577¢ | 11.95¢ | 7.80–9.20¢ | Up to 38% |
| Manufacturing (with CERT-115 + GET) | 11.577¢ | 11.95¢ | 6.85–8.10¢ | Up to 46%³ |
¹ CT OCC Consumer Advisory, Jul. 2026 · ² EnergizeCT Rate Board, current offers as of publication · ³ Includes 14.85% CERT-115 + GET exemption on qualifying load (CBIA; CT DRS)
The Hidden Costs Most CT Businesses Miss
Commission-based energy brokers embed a hidden margin of 1.0–2.0¢/kWh into supply rates. On a $500K annual energy spend, that is $15,000–$30,000/year in invisible advisory fees — paid whether or not the advice is good.
Source: Energy broker commission structures are documented in PURA supplier registration filings and retail energy contract disclosures.
Qualifying CT manufacturers (SIC 2000–3999, 75%+ production load) are eligible for a 6.35% Sales Tax exemption (CERT-115) and a separate 8.5% Gross Earnings Tax credit — totaling 14.85%. CBIA Energy Connections recovered $136,000 in back credits for one manufacturer who had missed the GET for two years.
Source: CBIA Energy Connections; CT DRS Conn. Gen. Stat. §12-412(3) & §12-412(16); CERT-115
What a $500K Annual Spend Looks Like Under Each Scenario
| Scenario | All-In Supply Rate | Annual Cost | vs. SSO Baseline | vs. Prior Tier |
|---|---|---|---|---|
| Eversource Standard Service (SSO) No action taken. Rate resets every Jan & July — 30% single-cycle increases are common. |
11.577¢/kWh | $500,000 | Baseline | — |
| Competitive Supplier via Traditional Broker Whether you find a supplier yourself or use a commission broker, the quoted rate includes a hidden broker margin of ~1.5¢/kWh baked into the supply price. You see a better number than SSO — but you’re still carrying the broker’s cut invisibly. |
9.00¢/kWh (~7.50¢ wholesale + ~1.50¢ broker margin) |
$356,000 | Save $144,000 | — |
| SEA Procures on Your Behalf — Success Fee Model SEA accepts zero supplier commissions. We procure at the actual wholesale rate and charge a success fee based only on demonstrated savings vs. your prior broker rate. If we cannot beat your existing broker rate, our fee is $0. |
~7.50¢/kWh wholesale + SEA success fee on savings Net effective: ~8.00¢/kWh |
~$317,000 | Save $183,000 | Save ~$39,000 vs. broker rate |
| SEA + Tax Compliance Review In addition to procurement, SEA audits your account for unclaimed statutory exemptions. Manufacturers, food processors, commercial printers, and nonprofit healthcare facilities are the primary qualifying categories — and most have never properly filed. Brokers never raise this because recovering it pays them nothing. Not sure if you qualify? Ask SEA — the review is included at no cost. |
Varies by account ~6.85¢/kWh net for qualifying manufacturers |
~$271,000+ (illustrative — qualifying accounts) |
Up to $229,000+ | Up to $46,000+ via tax recovery |
Illustrative example based on $500K annual spend (≈3.96M kWh/yr). Wholesale rate based on EnergizeCT Rate Board current offers. Broker margin of 1.5¢/kWh sourced from PURA supplier registration filings. SEA success fee is illustrative — actual fee terms vary by account. Tax savings require load study and qualification verification. Not a guarantee of results.
What Applies to Your Business
Cost reduction levers vary by industry. Every CT commercial account benefits from competitive procurement and broker-free pricing. Additional opportunities depend on your business type.
| Your Business Type | Competitive Procurement | Broker Margin Removed | Tax Exemption Available | Peak Management Savings |
|---|---|---|---|---|
| Manufacturing SIC 2000–3999, 75%+ production load |
✓ | ✓ | Up to 14.85% CERT-115 (6.35%) + GET credit (8.5%) Source: CBIA; CT DRS §12-412 |
✓ |
| Nonprofit Hospital / Nursing Home / Care Facility 501(c)(3) status required |
✓ | ✓ | Full sales tax exemption All purchases exempt under CT Gen. Stat. §12-412(5). Must be filed with both utility and supplier — often missed on supplier contracts. Source: CT DRS; Justia CT Gen. Stat. |
✓ |
| For-Profit Healthcare Hospitals, medical offices, surgical centers |
✓ | ✓ | None specific to energy | High opportunity 24/7 HVAC and equipment loads mean large coincident peak exposure. Curtailment during ISO-NE peak hours can cut capacity charges 10–30%. |
| Commercial Real Estate Office, retail, mixed-use, multitenant |
✓ | ✓ | None specific to energy Note: CT Senate Bill 2 (2026) proposes expanding sales tax exemption to all commercial energy users — not yet law. Source: CBIA, April 2026 |
High opportunity Pre-cooling, lighting controls, and load shifting during summer peak hours directly reduce ISO-NE capacity charges billed the following year. |
| Cold Storage / Food & Beverage Refrigeration-intensive operations |
✓ | ✓ | Possibly Qualifying food processing and cold storage operations (SIC 2000–2099) may be eligible for CERT-115 + GET if 75%+ of load is production-related. Requires a load study. |
✓ |
| Hospitality / Hotels Hotels, conference centers |
✓ | ✓ | None specific to energy | ✓ HVAC and kitchen loads create peak exposure. Demand management during summer peak hours reduces capacity charges. |
| Data Centers Colocation, cloud, enterprise |
✓ | ✓ | None currently in CT Massachusetts passed a data center energy tax exemption in 2024. No equivalent CT law yet. Source: CT OLR Research Report, 2025 |
Highest exposure Continuous high-density load means maximum coincident peak risk. Proactive peak management and contract structure are critical. |
✓ = Available to all CT commercial accounts regardless of industry. Tax exemption eligibility requires verification of specific facility qualifications. Not legal or tax advice — consult your advisor.
See Where Your Bill Stands
Submit your last 12 months of Eversource or UI bills. We’ll tell you exactly what you’re overpaying, what your account qualifies for, and what a competitive rate would save you — in writing, at no cost.
- Connecticut Office of Consumer Counsel. Consumer Alert: Standard Service Rates Effective July 1, 2026. November 18, 2025. portal.ct.gov/occ
- Connecticut Public Utilities Regulatory Authority (PURA). Electric Rate Adjustments. May 2024. portal.ct.gov/pura
- EnergizeCT Rate Board. Current Licensed Third-Party Supplier Rates. energizect.com
- ISO New England. Key Statistics: Wholesale Market Costs. 2024 Annual Markets Report. iso-ne.com
- U.S. Energy Information Administration. Connecticut Electricity Profile 2024. eia.gov
- CBIA Energy Connections. Maximizing Tax Savings for Connecticut Manufacturers. cbia.com
- Connecticut Department of Revenue Services. Exemptions from Sales and Use Taxes; CERT-115. Conn. Gen. Stat. §12-412(3) & §12-412(16). portal.ct.gov/drs
- Gridshopper. Eversource CT Electricity Rates Explained. February 2025. gridshopper.com