The Data
The CT rate gap is real, verified, and significant.
That last number is the most important one on this page. Suppliers don’t always beat standard service. Timing, structure, and independent oversight are what determine which side of that ledger your business lands on.
The Structural Reasons
Four factors drive Connecticut’s persistently high energy costs.
Natural gas pipeline constraints
More than 50% of New England’s electricity is generated from natural gas. Connecticut’s pipeline infrastructure into the region is constrained, which means that during cold weather events, natural gas supply tightens sharply and prices spike — sometimes dramatically. Those spikes pass directly through to electricity prices for anyone on an unhedged contract. (ISO-NE 2024 Annual Markets Report)
Eversource vs. Competitive Supplier: Why the Gap Exists
By Connecticut law, Eversource and UI can only purchase electricity twice per year through a competitive auction process. They cannot buy forward, hedge, or time the market. Competitive suppliers face no such restriction — they can purchase forward and lock in rates before the market moves. That structural difference is the procurement opportunity — and the answer to whether you should switch from Eversource standard service is almost always: yes, if your usage is above 50,000 kWh/year and your contract timing is right. (PURA regulatory framework)
Aggressive renewable mandates
Connecticut has set ambitious renewable portfolio standards that require utilities to source an increasing percentage of electricity from renewable sources. The compliance costs associated with these mandates are passed through to all ratepayers regardless of which supplier they use. (CT DEEP / PURA)
Small market size
New England is a relatively small electricity market compared to PJM or ERCOT. Less generation competition and limited transmission interconnection with neighboring regions means less pricing pressure on generation costs overall.
CT Energy Deregulation Explained
Your electricity bill has two parts. Only one is shoppable.
Connecticut deregulated its electricity market in 2000, separating the supply and delivery components of your utility bill.
Delivery — not shoppable
The poles, wires, transformers, and infrastructure that physically bring electricity to your facility — managed exclusively by Eversource or United Illuminating. This portion is fixed, regulated, and non-negotiable. It represents approximately 50% of your total electricity bill.
Supply — fully shoppable
The actual generation of electricity. You can choose any PURA-licensed supplier operating in your utility territory. Every savings opportunity in electricity procurement operates on this half of your costs.
This distinction matters when evaluating savings claims. Any percentage savings figure must be calculated against your total bill — not just the supply portion — to be meaningful and accurate. We always quote savings against total spend.
Where the Savings Come From
The gap between standard service and a well-timed competitive contract is material — and verifiable.
In January 2023, Eversource’s standard service rate reached 24.17¢/kWh. The average competitive commercial supplier rate at the same time was 13.78¢/kWh — a 43% differential. (CT OCC / PowerSetter data)
That gap closed significantly through 2024 as wholesale prices normalized. As of H2 2026, Eversource’s standard service sits at 11.577¢/kWh against an average competitive rate of 10.3¢/kWh — still a differential of roughly 11% on the supply portion of your bill. (PURA H2 2026 / PowerSetter July 2025)
For a Connecticut business spending $1 million per year on electricity, the shoppable supply portion is approximately $500,000. An 11% improvement on that figure is $55,000 in annual savings — before non-commodity optimization or manufacturer tax exemptions are applied.
The savings are real. The data is public. The question is whether your current arrangement is capturing them.
Data Sources
All market data referenced on this page is drawn from publicly available regulatory filings and verified third-party market data:
- CT Office of Consumer Counsel — Electric Supplier Market Fact Sheet, December 2022–November 2023 (Released March 2024)
- U.S. Energy Information Administration — 2024 Electric Sales, Revenue & Price Tables
- Eversource Energy / United Illuminating — PURA Rate Filings H2 2026
- PowerSetter — CT Commercial & Industrial Market Data, July 2025
- ISO-NE — 2024 Annual Electricity Markets Report
- Connecticut DEEP / PURA — Renewable Portfolio Standard Documentation
Strategic Energy Advisors provides independent energy procurement advisory services. We are seeking status as a PURA-registered aggregator. Clients make all final contract decisions independently.