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December 2005 — Vol. 83, No. 10

FROM THE PRESIDENT

State, businesses, consumers
all must act to combat high energy costs

Kenneth O. Decko

CBIA President and CEO

 

A healthy, growing economy needs affordable energy to power it. But energy costs here are nearly the highest in the nation. Being at the end of the country’s energy pipeline puts us at a disadvantage. But so does having an outdated infrastructure that can’t keep up with rising demand.

While businesses and consumers alike can certainly do more to use energy efficiently, their actions alone won’t solve the problem. The state government must work to reduce energy costs and ensure reliable supplies of energy.

CBIA recommends a comprehensive approach that includes building new naturalgas pipelines, electricity transmission lines and power plants; increasing the state’s liquefied-natural-gas import capability; and encouraging energy efficiency. Some of the steps the state should take are —

  • Improve transmission and generation capacity by continuing to upgrade the electricity transmission system; developing more electric generation and natural-gas capacity, including for liquefied natural gas; and streamlining the siting process to expedite the approval of essential infrastructure improvements.
  • Support the development of competitive markets for natural gas and electricity, and oppose the federally mandated two-zone LICAP electricity pricing plan.
  • Encourage the use of conservation, load management and alternative technologies, such as fuel cells and other renewables that reduce demand on the region’s power grid, especially in southwestern and south-central Connecticut. And the state should not divert money from the ratepayer-funded Clean Energy and Energy Efficiency funds for other purposes.

Meanwhile, CBIA has been working to help members understand and adapt to changes in the energy marketplace, through programs such as our recent “What’s the Deal” program and Boiler Technology Seminar. We are also refining our government affairs recommendations on energy and other business competitiveness issues for the 2006 General Assembly session, which starts Feb. 8. You will hear more about these in the coming weeks.