Energy

(April 11, 2008) Connecticut's energy costs are among the highest in the United States. Affordable and reliable energy is vital to the long-term health of the state's economy. Expanding energy capacity and the ability to deliver it will help keep Connecticut businesses productive and competitive in today's global marketplace.
While lawmakers should focus on implementing the creative and sound policies they approved last year to address those challenges, they instead are focusing on two proposals that would actually weaken Connecticut's energy industry and prospects for lower costs and better reliability.

Imposes new tax
HB-5783 imposes a windfall profits tax on coal or nuclear power plants that do not enter into bilateral contracts with electric distribution companies. This proposal will increase energy costs by discouraging electricity generators from locating in Connecticut. If this is enacted, Connecticut will be the only state that imposes a tax on private energy companies' profits.

Adds bureaucracy
HB-5819 needlessly creates a quasi-state agency, the "Connecticut Energy Authority," to procure the electricity needs of retail customers. These duties are better accomplished by the electric distribution companies that are regulated by the Department of Public Utility Control (DPUC). The state does not need the additional costs or administrative burdens that adding another state agency will bring.