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July/August 2008 — Vol. 86, No. 6

State’s renewable-energy mandate for utilities raises cost concerns

 

A state law enacted last year requires Connecticut Light & Power and United Illuminating to purchase more electricity generated with the use of clean energy sources in the next decade. The mandated level of renewably generated electricity — which will gradually increase to 20% by 2020 — will be very expensive to meet and will ultimately raise costs for Connecticut ratepayers.

In-state power producers cannot supply that much renewably generated electricity because Connecticut doesn’t have enough of the renewable resources that qualify as “clean, renewable” energy under state law. (Nuclear energy, which Connecticut does have, does not qualify.) As a result, the utilities will have to import renewably generated electricity, which will raise costs.

If the utilities do not meet the mandates, they will have to pay a penalty, further driving up costs. With energy and other costs already skyrocketing, that will hurt Connecticut’s economy.

CBIA will be working with state policy makers to address these concerns.

 

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