The "Summer Saver Rewards Program" was part of the energy bill passed by lawmakers and signed by Gov. M. Jodi Rell recently.
Ratepayers will receive a credit on their November bill equal to 10 percent, 15 percent or 20 percent of the generation portion of their bill, if they cut their usage by certain amounts during the summer months. The generation portion is typically two-thirds of the overall bill.
Customers will earn the credit by reducing their electric use between July 1 and Sept. 30. A reduction of at least 10 percent will earn a 10 percent credit. A reduction of at least 15 percent would earn the 15 percent credit. A reduction of 20 percent or more would earn the maximum credit of 20 percent.
"We think it will put people in the mood to increase their energy conservation," said Anthony Palermino, a department of Public Utility Control commissioner.
The program is designed in part to improve the overall reliability of the electric system, which is stressed by high summer demand.
The program is financed by ratepayers. Energy regulators estimate the typical customer will pay less than $1 per month to fund it.