
Electric Utility Billing
A basic introduction to electric utility billing, how you can impact your costs, and avoid misinformation.

Distribution, Transmission, and Generation
Let’s break down the parts of your electric utility bill and what they mean:
Generation (Supply)
This is the only part of your electric utility bill where you have control over price. In Fairfield, United Illuminating charges a “standard offer service” rate for supply. You have the option of choosing your own supplier. There are a few municipalities in Connecticut that work independently and do not allow choice in supply.
Compare current supply rates at EnergizeCT:
Distribution (Delivery)
This is the part of your electric utility bill related to the electricity reaching your house. It is provided by your utility. Your utility facilitates the metering connected to your building and the flow of electricity into it. You can’t change your utility. In Fairfield, we are serviced by United Illuminating. It’s a controlled monopoly. Furthermore, the explanation of this in detail goes beyond the scope of this page.
Transmission
Ever see those giant towers with power lines stretching across the entire state? These are transmission lines. Transmission is the movement of electricity from the point of generation across long distances.
Other Fees
Overall, there’s a reason for the Public Benefits charges, as you’ll see below.

Generation (Supply)
Frequently asked questions about generation:
Can I choose a supplier for free?
Yes! Most contracts need no sign-up fee and are disclosed on the EnergizeCT Supplier Rate Finder.
How often can I change suppliers?
Generally, every 60 days or 2 billing cycles. It can take up to 2 billing cycles for your new supply contract to take effect. Furthermore, plan on switching at least 2 months before your existing contract expires if you have one.
How does generation/supply differ from distribution from my utility?
Your electric utility facilitates the delivery of the electricity directly into your home. You can choose who generates your electricity in Connecticut.
Are there any cancellation fees?
There is no penalty or cancellation fee for residential customers in Connecticut. You must keep a supplier for at least 60 days or 2 billing cycles.
What happens if my supply contract ends and I do not sign up for a new one?
If your contract expires and you do not have a new contract to replace it, you’ll often get billed a “market-based rate.” This will be done by the existing supplier. However, this is a variable rate based on market conditions and could be higher than what you would pay with a fixed contract. Plan ahead, don’t sign up for a new contract too late!

Distribution (Delivery)
Frequently asked questions about distribution from your electric utility:
How does distribution differ from generation?
Your electricity is distributed by your local electric utility. Fairfield is served by United Illuminating (UI).
Can I change my utility?
You can’t change your utility. Even if you have solar panels, you must still connect to the utility grid with your local utility.
Why is my usage higher in some months of the year and lower in others?
Electricity often follows a bell curve when it comes to electricity consumption with a traditional setup with higher consumption in the Summer than in the shoulder months such as April-May or October-November. If you use electricity for heat in the Winter, you will have a less obvious curve (or none).
Your usage is typically higher in Summer months due to higher outside air temperatures requiring your HVAC system to run more often. It runs less often during milder times of years, so your usage could be lower during those months. This is normal.
Can I pay a flat rate every month regardless of my consumption?
Many utilities offer what is called “Budget Billing.” They take the utility rates billed in the past year, multiply it by your consumption in the past year, factor in a “risk multiplier” with the expectation that rates will increase over the next 12 months and weather may cause higher usage, and then divide that total by 12 months to get your fixed price. This may be higher or lower than what you would typically pay in a given month. Utilities do not often true-up budget billing if you pay more than you would have without it.
I know how to control the price of my supply with a 3rd party option, but how do I keep costs down for distribution?
Unlike supply, you can’t control the distribution rates from your utility. What you can do is look at the rate schedule you are on. Most households are on the “Residential (R)” or “Residential Time-of-Use (RT)” plan with United Illuminating in Fairfield. You can tell which plan you are on by looking at the charges on your bill and determining if some of your usage is billed at a different rate than the rest.
Time-of-use plans are useful for those who shift behaviors and reduce consumption during the day. For example, instead of doing laundry mid-day, do it later in the evening or night around 9:00 pm. Electricity is cheaper at later times because there is less stress on the grid, so the utility will charge you a lower rate if you use electricity at this time.
If you already show these behaviors and are already on a time-of-use plan, there is not much more you can to do impact cost without installing energy saving measures like:
- Solar panels
- Heat Pump HVAC system
- LED lighting
- Insulation
- Triple-pane windows
- Smart Wi-Fi controlled thermostat(s)
- Newer energy efficient appliances (ovens, refrigerators, TVs, computers, etc.)

Transmission
Frequently asked questions about transmission:
Can I do anything about the cost of transmission on my utility bill?
No. These costs can only be impacted by investments into the transmission lines that criss-cross New England.
Am I billed for transmission from my supplier or the utility?
Depending on the state and utility, this answer varies. In Connecticut, the transmission costs typically come from the utility. The customer does not have a choice.
How can I reduce the cost of transmission if I cannot do anything about the rates the utility bills me?
As with distribution and generation, the easiest way to save money on your electricity is to not use as much electricity. Most rates are kilowatt hour (kWh)-based, so reducing your kilowatt hour consumption will reduce the impact of each charge on your bill.
Other Fees
Frequently asked questions about other fees:
What are the charges related to “Public Benefits?”
The Public Benefits charges are state-mandated line items that fund energy efficiency programs, renewable energy initiatives, low-income programs, and more.
While this feels like an unrelated electricity expense, the funds for these programs are specifically allocated to cover investments made by the state, utilities, and municipalities for the greater benefit of customers. The number of charges and their rates will vary depending on the specific programs that need funding.
Why can’t these miscellaneous charges be billed or passed on to the customer in other ways?
Sustainable Fairfield does not have a clear answer on this at the present time. These charges do impact the electric utilities and their customers, which is why they appear on the electricity bill.
United Illuminating and Eversource reveal the names of each program and their specific purposes. Many utilities in other states bill a generic “Energy Charge” which includes every type of cost without disclosing what justifies the rate cost.
How is the Public Benefits section of my bill such a huge portion of my overall cost?
Nearly all of the charges on your electric bill are kilowatt hour-based. The lower your consumption, the lower all charges will be. The Public Benefits section of your bill is variable. The number of charges and their rates will be lower in some months, and higher in others.
Yes, a small portion of the Public Benefits charges goes to non-payers, which was particularly high during the COVID-19 pandemic. Yes, most of the cost goes towards the Millstone Power Station contract that had funds due during the pandemic, but were deferred to prevent harsh conditions for paying bills while many people were out of work and the burden of the cost has to be paid eventually. It will end and is not a perpetual expense.
Questions?
After all that, what questions do you have? Email sustainablefairfieldct@gmail.com with your questions. We’ll do our best to answer them and potentially share them on the website if requested.
Learn more about energy and built environment in Fairfield.
