Structure of the Connecticut Electricity Market

The State Legislature in Connecticut passed an Electric Restructuring Act (03-135) in 2003 that made changes to a competitive industry. With this law, all customers had a choice when it came to electricity providers. This law also established a three-year TSO, or Transitional Standard Offer. The rate of the TSO varied according to customer class and the areas serviced by distribution company.

At that point, TSO rates for United Illuminating and Connecticut Light & Power were approved by the Connecticut Department of Public Utility Control. Beginning in 2007 utilities started being provided to SS (standard service) residential customers, as well as small and medium sized business customers not receiving electricity from competing suppliers, with larger customers receiving utilities from LRS (Last resort service.) Below are some important details:

  • Rates are made up of two components; a variable component related to congestion and other costs, and a fixed energy component.
  • The Dept. of Public Utility Control implemented a process used to determine basic supply costs


In order to change electricity providers, the facility of the company you currently use must be located in one or both of the following utilities service territories:

  • United Illuminating Company
  • Connecticut Light & Power

If you desire to switch electricity service for your business in order to find a cheaper CT electric rate, you must first complete a Data Authorization Form (DAF). This form gives your chosen competitive Connecticut electricity supplier permission to gather data about your historical electricity usage from your current utility. The reason this information is needed is so that your power consumption patterns can be determined, and a proposal can be developed that suits your business needs.

Next, it is necessary that you sign a retail Electricity Supply Agreement. This form states the exact product, your price for electric service and the length of the agreement. After signing the agreement, you will find that enrolling is very basic and easy.

Customers should also be aware that electricity providers are available that allow you to obtain electric service without paying a substantial deposit. A good credit rating is normally required to sign up with no deposit electricity providers. In some situations we can help low income and bad credit customers in waiving their deposit amounts by working with the local Connecticut government authorities. You may call us at 1-800-971-4020 for more information.

Leave a Comment