WALLINGFORD — Electricity rate hikes by the state’s two major utility companies won’t affect town customers, public officials said.
Last month, the state Public Utilities Regulatory Authority announced increased electricity generation rates for Eversource and United Illuminating standard service customers.
The residential generation rate for Eversource is slated to increase from 8.53 to 10.14 cents per kilowatt hour, and UI from 9.05 to 11.22 cents per kilowatt hour.
The Wallingford Electric Division provides electricity for municipal customers and does not have unbundled rates, as Eversource and UI do.
Rick Hendershot, town public utilities director, said Wallingford takes care of its retail customers, and Eversource and UI take care of theirs.
”The two don’t mix,” he said.
The town Public Utilities Commission recalculates the power cost adjustment every six months, in January and July, to reflect current costs.
The cost of wholesale power is affected by "capacity charges" levied by regional grid operator ISO-New England.
Capacity charges are essentially funds paid to power plants for their operational costs. Fluctuations in the cost of wholesale power are represented on electric bills as the power cost adjustment.
The commission opted in July and in January to use reserve funds to offset a potential increase in residential electric bills.