Harmful energy proposals
lose steam

(May 9, 2008) Because the state still has to implement key aspects of the major energy legislation approved last year, lawmakers avoided adopting any significant proposals.

However, two harmful energy bills made it to the end of the session. Though ultimately not approved, they would have increased energy costs in Connecticut and compromised reliability.

One imposed a windfall profits tax on coal and nuclear power plants that do not enter into direct contracts with electric distribution companies. It’s a troubling proposal that also has been raised in previous years; if adopted, it would create a dangerous precedent for the state to tax private companies’ profits.

What’s more, the bill would likely have increased energy costs because it would have discouraged the siting of new electric generation power plants.

Another proposal created a quasi-state agency to procure and meet the electricity needs of retail customers. It could not guarantee reduced rates, but would have added another layer of bureaucracy into state government — and costs would be passed on to taxpayers.

CBIA’s energy continue to focus on reducing the cost of energy in Connecticut while retaining and improving reliability. To that end, our recommendations to facilitate existing projects that will upgrade transmission and distribution lines and to expand cost-effective energy efficiency and conservation programs.

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