At halfway mark:

Energy

(April 4, 2008) Major energy legislation from the Energy and Technology Committee last year is beginning to pave the way for better state energy planning and greater conservation.

Because of that energy policy — and since legislators and regulators still have to implement many important parts of it — conventional wisdom said this year’s legislative session would be quiet on the energy front.

Lawmakers should focus on implementing the creative and sound policies they approved last year because they will give Connecticut consumers real help in reducing their energy costs. This legislation is also beginning to pave the way for better state energy planning and greater conservation.

Unfortunately, the Energy and Technology Committee decided to revisit certain controversial proposals in this year’s session. Specifically, the committee approved two measures of concern.

One imposes a windfall profits tax on coal or nuclear power plants in the state that do not enter into direct contracts with electric distribution companies. This creates a disturbing precedent in which the state would arbitrarily target and tax the profits of a private company.

What’s more, the proposal will likely increase energy costs by discouraging power companies from siting new electric-generation plants in the state.

Another proposal creates a quasi-state agency to meet the electricity needs of retail customers — and add another layer of bureaucracy into the state’s energy field despite the fact that regulated electric distribution companies are already better meeting consumers’ needs.

For more information about energy issues, please contact CBIA’s Kevin Hennessy at 860-244-1979 or Kevin.Hennessy@cbia.com.