July 3, 2015

A Review of the Federally Mandated Congestion Charge (FMCC) Component of Electricity Bills

OLR Report 2015-R-0105 describes the federally mandated congestion charge (FMCC) component of electricity bills. It also explains how funds collected through this charge are spent.

Residential electricity customers pay FMCCs in both the distribution and generation portions of their bills. For the average residential Eversource customer using 700 kwh per month, the FMCC is approximately 2% of the bill.

By law, FMCCs are collected on electricity bills to cover certain costs the Federal Regulatory Authority (FERC) approves and various costs the Public Utility Regulatory Authority (PURA) approves (CGS § 16-1(35)).

The report describes many of the components of FMCCs and the proportion of funds allocated to each component based on the publicly available information in the electric companies’ filings in the most recent PURA docket currently under review. FMCCs include (1) nonbypassable charges – charges that customers must pay regardless of retail energy supplier and (2) bypassable charges – charges that customers may avoid by selecting a retail energy supplier rather than receiving service through the electric companies’ standard service rates.

For more information, click here to read the full report.