2008 session in review:

Energy missteps avoided

Assembly avoids two controversial proposals

(May 20, 2008) Major energy legislation from last year’s General Assembly is starting to pave the way for better energy planning in the state — and as a result, reduced the need for lawmakers to pass any new, significant proposals this year.

Because state regulators still have to implement critial components of last year’s energy legislation, this year’s session was expected to be quiet on the energy front. In fact, the General Assembly did not approve any energy measures that would affect Connecticut’s ratepayers.

Even so, the legislature’s Energy and Technology Committee approved two controversial proposals that, if acted upon, would have been harmful to Connecticut ratepayers.

New tax proposed
One (HB-5783) would have imposed a profits tax on coal or nuclear power plants in the state that do not enter into direct contracts with electric distribution companies. This would have set up a disturbing precedent, making Connecticut the only state to arbitrarily target and tax the profits of a private-sector business.

What’s more, the proposal would probably have increased energy costs by discouraging power companies from deciding to site new electric-generation plants in the state.

More bureaucracy
Another ill-advised committee proposal (HB-5819), would have created a quasi-state agency to meet the electricity needs of retail customers in the state. And that would have meant adding another layer of bureaucracy onto the state’s energy field despite the fact that regulated electric distribution companies in Connecticut are already better at meeting consumers’ needs.

Because both proposals would likely have led to higher electricity prices in Connecticut, the General Assembly, recognizing the problem, decided not to act on either measure. CBIA urges the Energy and Technology Committee to follow the example of their peers in the General Assembly and not re-introduce these harmful proposals next year.

Instead, lawmakers should continue promoting energy policies that ensure affordable and reliable power for all consumers in the state.

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