What Connecticut Businesses Should Know About Variable Peak Pricing

A new pricing option puts greater emphasis on when your business uses electricity

Energy pricing is becoming increasingly complex, and Connecticut businesses have more factors to consider when evaluating their electricity supply strategy.

One option available to eligible Eversource customers is Variable Peak Pricing (VPP), a pricing structure that changes the cost of electricity based on when it is used. For businesses with flexible operations or the ability to shift electricity consumption, understanding how VPP works could be an important part of managing energy costs.

But VPP isn't automatically the right choice for every business. The potential value depends on a facility's individual energy usage, operating schedule and ability to respond to changing prices.

What is Variable Peak Pricing?

Under Eversource's Variable Peak Pricing Rider, eligible customers on qualifying time-of-use rates purchase generation service at different prices during on-peak and off-peak periods.

Unlike a traditional fixed monthly on-peak generation charge, the VPP on-peak price varies by day based on energy market conditions. Eversource posts the following day's on-peak price in advance. The off-peak VPP price is established monthly.

VPP is available to customers receiving generation service directly from Eversource under eligible time-of-day rates. Customers must also have the appropriate interval metering to participate.

What are the current VPP prices?

As of September 10, 2026, Eversource's posted VPP generation prices for eligible Connecticut customers include:

These are generation service prices, not the total cost of electricity. Other components of a customer's electric bill, including delivery and applicable public policy charges, remain separate.

Eversource's posted VPP prices can change over time, so businesses considering the option should evaluate the pricing in the context of their actual usage and available alternatives.

Why does your energy usage matter?

The biggest consideration with VPP is simple: When does your business use electricity?

For example, a facility that consumes a significant amount of electricity during on-peak hours could have greater exposure to higher VPP prices. A business with more flexibility to shift consumption into off-peak periods may have a different cost profile.

This makes understanding your load profile particularly important.

Businesses should consider:

• What percentage of electricity is used during on-peak hours?
• When do major equipment and HVAC systems operate?
• Can production schedules be adjusted?
• Can EV charging or other flexible loads be shifted?
• Does the facility have battery storage or onsite generation?
• How much of the facility's electricity use is truly flexible?

The answers can help determine whether a variable pricing structure deserves further consideration.

VPP isn't simply about finding a lower rate

It's tempting to compare an on-peak or off-peak rate to another electricity price and assume the lower number represents savings.

But energy costs aren't that simple. A lower rate does not necessarily produce a lower energy bill.

The impact of a pricing structure depends on how that price interacts with a customer's actual consumption. A business using most of its electricity during higher-priced periods could have a very different outcome than a facility that operates primarily during lower-priced periods.

That's why businesses should look beyond the advertised rate and evaluate the total cost based on their own historical usage.

What businesses should evaluate before choosing VPP

1. Analyze your historical usage

Review interval data to understand exactly when your facility consumes electricity. Looking at monthly totals alone doesn't provide enough information to evaluate a time-sensitive pricing structure.

2. Model the potential cost

Historical usage can be analyzed against historical VPP pricing to estimate how the business might have performed under the program. This can provide a much more meaningful comparison than looking at today's rates alone.

3. Compare other supply options

VPP is one strategy among several. Businesses should compare it against competitive third-party supply options and other procurement strategies before making a decision.

4. Identify opportunities to shift load

Some businesses may be able to reduce exposure to higher-priced periods by shifting flexible electricity usage. Potential opportunities can include:

• HVAC operation
• EV charging
• Manufacturing processes
• Refrigeration
• Water pumping
• Battery charging
• Other controllable equipment

5. Consider onsite energy resources

Businesses with solar, battery storage, onsite generation or demand response capabilities may have additional tools available to manage when they purchase electricity from the grid.

The combination of procurement + energy efficiency + load management + onsite resources can create a much more comprehensive energy strategy than focusing on the supply rate alone.

Where Titan Energy can help

For Connecticut businesses, the question isn't simply "What is the lowest electricity rate?"

It's: "What energy strategy makes the most sense for our facility?"

Titan Energy can help businesses evaluate their energy usage, understand their load profile and compare available procurement strategies.

Our team can help customers:

• Analyze historical interval energy usage
• Evaluate the potential impact of Variable Peak Pricing
• Compare VPP with competitive supply options
• Identify opportunities to shift or reduce energy usage
• Evaluate demand response opportunities
• Explore energy efficiency improvements
• Assess the potential role of solar, battery storage and onsite generation
• Develop a long-term energy strategy based on the customer's specific needs

As energy markets evolve, businesses don't have to navigate increasingly complex pricing structures on their own.

Make your energy strategy work for your business

Variable Peak Pricing may be a good fit for some businesses, while a different procurement or energy management strategy may make more sense for others.

The best way to know is to look at the numbers based on your facility's actual energy usage.

Want to understand your options? Connect with Titan Energy for a no-cost energy assessment.

**VPP pricing is subject to change. Eligibility, metering requirements and applicable charges vary by customer and rate class. Businesses should review current Eversource tariffs and their individual circumstances before enrolling.**