New utility rates go into effect on November 1, 2021

In September 2020, the NPU Board of Commissioners approved new rates for the four services we provide our customers for revenues in 2020, 2021, and 2022. Through a very thorough, ‘cost-of-service’ analysis, the NPU Board set rates based on the actual costs of providing safe and reliable utility service to our customers every day.

The modest increases to our revenues put in place for this three-year year period will support maintaining the reliability, safety, and exceptional customer service that NPU has demonstrated – and our community has come to expect. And by approving three years of rates at one time, we can offer our customers – particularly our business customers – far more certainty than we have in the past.


  • 2020    no revenue increase
  • 2021    1.5% revenue increase, the first increase for NPU customers since 2018
  • 2022    1.5% revenue increase

Natural gas:

  • 2020    no revenue increase
  • 2021    2.3% revenue increase
  • 2022    2.3% revenue increase


  • 2020    no revenue increase
  • 2021    no revenue increase
  • 2022    no revenue increase


  • 2020    6% revenue increase
  • 2021    6% revenue increase
  • 2022    6% revenue increase

Increase to PGA for November 1, 2021

Over the past several months, natural gas prices have gone up dramatically in the United States and around the world, resulting in an increase in the price of energy for NPU, investor-owned utilities in Connecticut and across the United States.

These increased costs are tied to a number of factors:

  • Natural gas plants shut down during the pandemic
  • Natural gas plants are hesitant to re-start until there is more economic certainty in the United States
  • Limited pipeline capacity in the United States, particularly in Northeast
  • Pipeline projects slow to get started – or defeated by opponents/public pressure

After careful review and consideration, the NPU strategy is to increase our Purchased Gas Adjustment charge to account for these increased costs and are entirely beyond our control and must be passed on to our customers. This increase reflects the actual cost of natural gas and these funds do not stay at NPU.

The increase we are proposing is approximately 6% for NPU natural gas customers; however, we will still be very competitive with investor-owned natural gas companies in the region, who are also likely to raise their PGA in the coming weeks.

The increased cost of electricity for November 1, 2021

These global economic factors are having a similar impact on the production of electricity in the Northeast as many power plants are fueled by natural gas. The cost of electricity procured by NPU has increased by 13% over the past year as of September 2021; however, NPU’s strategy for managing these costs has mitigated a great deal of the potential impact on our customers.

Overall Impact on Customers:

With these changes, NPU electric rates remain more than 6% lower than investor-owned utilities (IOUs) in CT; our rates will be even lower by comparison when IOUs increase PGA and PPA in the weeks ahead.

NPU natural gas rates are in line with IOUs.

A four-service NPU residential customer will see a 6.9% increase in their monthly bills (+/-$23 per month, or about 75 cents a day) as of November 1, 2021. These increases are based on the following factors:

  • 9% increase in base rates as approved by NPU Board in 2020
  • 4% increase due to higher natural gas/energy costs

The overall energy markets are very volatile and should prices decrease in the months ahead, NPU would be able to reduce either or both of the PGA and PPA and the monthly bill for most customers would be reduced.

For perspective, other energy prices have also been volatile. The price of gasoline has risen even more dramatically:

  • $3.41 per gallon today
  • $2.35 per gallon in 2020 (45% less)
  • $2.00 per gallon in 2019 (70% less)
  • $2.85 per gallon in 2018 (20% less)