Gov. Rell moves to protect ratepayers from potential cost of global warming regs

(July 11, 2008) In response to concerns raised by CBIA and others regarding the impact new global warming regulations could have on energy costs, Gov. Rell has ordered provisions to protect electricity ratepayers if the program proves more costly than the Department of Environmental Protection (DEP) and environmental advocates have predicted.

Last month, the DEP proposed regulations to the legislature’s Regulations Review Committee that will tax electric generators based on the amount of carbon dioxide (CO2) they emit. The DEP and environmental advocates estimated a cost ofe $2-$5 per ton of CO2 emitted and claimed the effect on consumers would be minimal. Others, however, warn that the cost could be much higher, resulting in increases of 5%-10% or more in customers’ electricity bills.

CBIA urged the DEP to include price protections if the cost of implementing the regulations turned out to be greater than expected. After the DEP chose not to include safeguards, CBIA urged the legislature’s Regulations Review Committee (which must approve all state regulations) to reject the proposed standards — which it did at its June meeting.

Lawmakers on the committee recognized that they could not know how much the fee might be, but that business and residential ratepayers in Connecticut ultimately would pay for it.

With Gov. Rell’s directive, the program will now include ratepayer protections. If the regulations result in cost increases of greater than $5 per ton, those additional dollars will be used for rebates to electricity consumers in the state.

The committee will meet again on July 22 to reconsider the DEP’s proposed regulations.

CBIA applauds the Regulations Review Committee and the governor for taking important actions to protect Connecticut’s electricity ratepayers.

For more information, contact CBIA’s Eric Brown at 980-244-1926 or eric.brown@cbia.com.