With electrical rates set to double on Jan. 1, Gov. Ned Lamont on Monday announced a plan developed with Connecticut officials and utility companies to help customers struggling with record high electrical costs.

The plan includes establishing a bill credit that will return long-term power contract earnings to customers, giving Eversource ratepayers a bill credit of about $10 per month.

It would also establish a discount for low-income hardship customers during 2023, Lamont announced in a press conference alongside DEEP Commissioner Katie Dykes, Consumer Counsel Claire Coleman and Social Services Commissioner Deidre Gifford.

Over the holiday weekend, Eversource agreed to allocate $10 million for Operation Fuel, a fund to help low- and lower-moderate-income customers who need help paying energy bills, Lamont said. United Illuminating pledged to provide at least $3 million, the governor added.

And the legislature and Lamont agreed to put another $30 million into the Low Income Energy Assistance program, which gets most of its money from the federal government and served 92,000 Connecticut households last winter. All earned less than $76,000 for a family of four.

The new funding would increase the LIHEAP budget by almost 30% over last year.

“This $30 million will give DSS the flexibility to adjust benefits as they are most needed as we go through this winter,” Gifford said. “We are anticipating higher enrollment in LIHEAP. Applications are up 17% over this time last year, and we anticipate people who enroll in the program will use more of the benefits than they have in the past.”

“Those are ways we can provide almost immediate support for people who apply for that,” Lamont said, encouraging eligible families to apply for aid as soon as possible.

Much of the aid is directed toward low-income and lower-moderate-income families, but Lamont said his administration is working to expand that. A family of four is eligible for Operation Fuel’s utility assistance grants, for instance, only if its income is below $95,000.

“We’re going to try to get that raised to 100% of the median (state income), which would be about $125,000,” Lamont said.

“The desire is to really get at those customers who are on the margins, who might no qualify for LIHEAP but given the supply prices, the food prices, all the other inflationary pressures, they’re going to have a hard time paying all their bills,” Coleman said. “We want to make sure those lower-middle-income people who are struggling have funds that are accessible.”

For the LIHEAP program, Gifford said the new funding would enable it to provide emergency grants to families that have already gone through their maximum $2,000 aid.

The announcement comes on the same day as a special legislative session during which Lamont and legislators hope to extend the 25-cent gas tax cut along with free bus rides. His administration wants buses to remain free until May 1, and wants to phase back the 25-cent cut in monthly 5-cent increments beginning Jan. 1.

Connecticut began waiving bus fares April 1, and Lamont said that’s helped riders.

“It made life a little more livable for people, especially given the high price of gasoline. We’ve seen some uptick in the number of people using our buses, which is a very good thing,” Lamont said.

During the session, legislators plan to allocate an additional $30 million in funding for the state energy assistance program for low-income households. The money would come from American Rescue Plan Act funding to supplement $98.5 million of federal Low-Income Household Energy Assistance. Though costs are higher this year, federal aid has dropped as pandemic aid expired.

Attorney General William Tong, who has been involved in rate negotiations with Eversource and UI over the past week, said he did not join the press conference today “absent a significant commitment from the two utilities” to offer customer relief.

“Today’s filing will provide modest relief to Connecticut families crushed by the unaffordable spike in winter energy costs. It is an important first step and the discussions we have had over the past week have been sincere. That being said, I have asked Eversource and United Illuminating to do more,” Tong said in a release, noting that the modest relief offered in the deal is paid for “by and large by the very same taxpayers and ratepayers already crushed by this crisis.

“Specifically, I have asked them to contribute a percentage of shareholder earnings commensurate with the percentage increase their customers will pay this winter to keep their lights and heat on. To date, they have refused,” Tong said. “We need to take a hard look at who is profiting and who is harmed as we search for long term reform.”

The supply rate, which must be approved by Connecticut’s Public Utilities Regulatory Authority, would double from 12.05 cents per kilowatt-hour to 24.2 cents per kilowatt-hour, meaning an increase of $85 per month for the average customer. The utility companies do not profit off the supply rates, but are, Tong said, still making sizable profits through distribution rates. Eversource reported net income of $540 million for the past year, while UI reported $59 million, Tong said.

Officials urged those who might be eligible to apply for assistance early. The Connecticut Energy Assistance Program also provides help to both renters and homeowners who are income-eligible. An online application is available at ct.gov/heatinghelp/apply. Operation Fuel Assistance provides emergency energy and utility assistance to households in need and can be reached at 860-243-2345 or operationfuel.org/gethelp.

“For folks who need help this winter, you need to request assistance,” Dykes said. “Those resources are there for you. If you’re concerned about the ability to pay, take actions now to find out how to tap into those resources,” she said.

Eversource is hosting webinars on Dec. 1 and 8 at noon to inform residents of options. Advance registration at Eversource.com/Billhelp or by calling 800-286-2828 is required.