Eversource classifies residential customers into different rate classes, designated by codes such as “R2” and “R3.” These classifications reflect varying consumption patterns and service requirements. The “R2” rate generally applies to standard residential customers with typical energy usage. Conversely, the “R3” rate is often associated with customers who have specific electrical equipment or higher energy demands, such as those with electric heating systems or other significant electrical loads. This difference in classification leads to variations in the rate structure, reflecting the utility’s costs to serve these different customer profiles.
The purpose of differentiated rate classes is to ensure fair pricing and allocate costs appropriately. Customers with higher energy demands, impacting the grid more significantly, are assigned rates that reflect those increased costs. This system benefits lower-consumption customers, who are not burdened by the expenses associated with higher-demand users. Historically, utilities have employed tiered rate systems to encourage energy conservation and to reflect the principle that higher consumption often incurs greater costs for infrastructure and energy production.
