NPU’s Community Assistance Rate (CAR)

NORWICH – As part of the three-year rate track that was approved by the NPU Board of Commissioners in September, we have developed NPU’s Community Assistance Rate (CAR) that will provide a discounted electric rate for eligible customers in Norwich beginning on November 1, 2023.

Norwich households with incomes below 60% of the State of Connecticut’s Median Household Income by family size would be eligible for this new electric rate. We believe that approximately 20% of the households in Norwich would be eligible, based on participation in various heating assistance programs.

As an example, below are the 60% State of CT Median Household Income qualifications as of September 2022 published by State Department of Social Services:

Family Size    60% State Median
1                     $39,761
2                     $51,996
3                     $64,230
4                     $76,465
5                     $88,699
6                     $100,933
7                     $103,227
8                     $105,521

NPU will work with the Thames Valley Council for Community Action (TVCCA) to confirm income information for applicants; this process will take place as part of the annual application process for energy assistance each year.

Effective November 1, 2023, qualified customers would be given a 10% discount on the electric portion of their bill each month. For a low-income customer with a monthly electric bill of $200, this would represent a savings of $20 per month and $240 per year.

NPU would also extend an additional 10% discounts to customers who are enrolled in AutoPay each month, which could result in an additional savings of $240 per year.

This discount would be capped at 1,000 kWh per month, which we hope will encourage a more efficient use of electricity. Customers who do not remain current on their bills would not be eligible for the additional 10% discount rate.

We estimate that this program would result in approximately $1 million in forgone revenue for NPU; however, this is an attempt to provide a measure of relief for individuals and families who are experiencing financial difficulties. We also believe that the program will help NPU reduce the number of past-due accounts.