Bill to isolate Connecticut from region's energy market, make consumers pay more, dies in committee

(April 11, 2006) The legislature's Judiciary Committee has rejected a bill that would have isolated Connecticut from the New England electricity marketplace and driven up costs for energy consumers in the state.

Even though Connecticut has some of the highest energy costs in the country, some lawmakers were considering SB-353, which required the state to develop a plan to withdraw Connecticut from the regional electricity market overseen by ISO New England. That would have resulted in severe energy price increases for state consumers and reduce Connecticut’s energy reliability.

The Judiciary Committee rejected the bill by a vote of 21-11 (with 9 absent).

CBIA applauds the members of the committee who appropriately saw that the bill would not have helped, but hurt, the state's energy position.

For example, Connecticut consumers are now scheduled to pay approximately 27% of the $1.5 billion in project costs for the state’s critical transmission upgrades — with the other New England states set to pay the balance. 

But if legislators had pulled Connecticut away from ISO New England, consumers in the state would have had to pay all of the transmission cost — and potentially hundreds of millions extra for adequate back-up generation and operational costs.

The other New England states are already frustrated with having to foot the bill for most of Connecticut’s transmission project costs. They have watched the costs steadily rise as lawmakers here have caused many delays and modifications. 

Connecticut’s energy infrastructure badly needs upgrades. Last year, the Federal Energy Regulatory Commission (FERC) called a special meeting in Connecticut to move the state’s transmission projects forward.

Connecticut should be careful not to derail the important progress made on its energy infrastructure, nor further inflate energy prices, by taking away the clear economic benefits gained from being part of a regional energy system.

For more information, contact CBIA’s Rob Earley at 860-244-1900 or earleyr@cbia.com.