High Electricity Rates in Connecticut
REPRODUCED WITH PERMISSION FROM THE NEWS-TIMES
Energy forum tries to make sense of high electric rates
By John Pirro
THE NEWS-TIMES
REDDING -- There was only one real topic of disagreement when 60 people came to the Mark Twain Library Sunday to ask a panel of experts why their electric bills are so high.
That was whether residents of Alaska or Hawaii are the only people in the country who pay more for their power every month than do customers in Connecticut.
There was no dispute about Connecticut's ranking as the second-most expensive state when it comes to the cost of electricity, but there are also a variety of reasons why electric bills here have skyrocketed in recent months, panel members said.
"It's a hot topic," said Democratic Town Chairwoman Karen Dolan, citing the 7.7 percent rate hike in January, coming on the heels of a 22 percent increase just a few months earlier. "Only Alaska is higher."
"It's not an enviable position," acknowledged Chris Swan, director of municipal relations for Northeast Utilities and one of four industry and state government officials who attended the forum.
"It's a complex situation and you can't just point to one thing," Swan said, adding that he believed utility customers in Hawaii, not Alaska, paid more than people in Connecticut.
Also in attendance at the forum, sponsored by the Redding Democratic Town Committee, were State Sen. Robert Duff, D-Norwalk, Attorney General Richard Blumenthal and Ed Carey, representative of the energy consulting firm Good Energy.
A key reason for the increase, speakers said, was the decision by the General Assembly to deregulate electricity in 1998, but to cap rates for several years afterward, limiting the number of energy suppliers willing to enter the state market.
But even if deregulation had never taken place, said Duff, a member of the Energy and Public Utilities Committee, Connecticut electric customers would still be paying more for their power today than people in most other states.
At the time deregulation was approved, Connecticut residents were paying the third-highest rates in the nation, he said.
Because Northeast Utilities and United Illuminating no longer generate power, just transmit it to customers, they can't be blamed for its cost, Swan said. "We are not producers, we just go out into the marketplace and line up suppliers," he said.
Blumenthal said Connecticut and the nation need an energy policy, starting with a state agency that would re-regulate electricity and permit NU and UI to resume generating power. He also noted that he has filed suit against the Federal Energy Regulatory Commission, which is planning to give away millions of dollars to power generators in the hopes that it would encourage them to invest in new generating plants.
Blumenthal said such subsidies should be made contingent on the construction of new facilities.
Carey said businesses should shop among suppliers for the cheapest source of power.
"Buying all your energy from a utility is like depending on just Social Security for your retirement," he said.
Swan also called on the audience to take steps to conserve electricity, calling conservation "the best investment."
Energy forum tries to make sense of high electric rates
By John Pirro
THE NEWS-TIMES
REDDING -- There was only one real topic of disagreement when 60 people came to the Mark Twain Library Sunday to ask a panel of experts why their electric bills are so high.
That was whether residents of Alaska or Hawaii are the only people in the country who pay more for their power every month than do customers in Connecticut.
There was no dispute about Connecticut's ranking as the second-most expensive state when it comes to the cost of electricity, but there are also a variety of reasons why electric bills here have skyrocketed in recent months, panel members said.
"It's a hot topic," said Democratic Town Chairwoman Karen Dolan, citing the 7.7 percent rate hike in January, coming on the heels of a 22 percent increase just a few months earlier. "Only Alaska is higher."
"It's not an enviable position," acknowledged Chris Swan, director of municipal relations for Northeast Utilities and one of four industry and state government officials who attended the forum.
"It's a complex situation and you can't just point to one thing," Swan said, adding that he believed utility customers in Hawaii, not Alaska, paid more than people in Connecticut.
Also in attendance at the forum, sponsored by the Redding Democratic Town Committee, were State Sen. Robert Duff, D-Norwalk, Attorney General Richard Blumenthal and Ed Carey, representative of the energy consulting firm Good Energy.
A key reason for the increase, speakers said, was the decision by the General Assembly to deregulate electricity in 1998, but to cap rates for several years afterward, limiting the number of energy suppliers willing to enter the state market.
But even if deregulation had never taken place, said Duff, a member of the Energy and Public Utilities Committee, Connecticut electric customers would still be paying more for their power today than people in most other states.
At the time deregulation was approved, Connecticut residents were paying the third-highest rates in the nation, he said.
Because Northeast Utilities and United Illuminating no longer generate power, just transmit it to customers, they can't be blamed for its cost, Swan said. "We are not producers, we just go out into the marketplace and line up suppliers," he said.
Blumenthal said Connecticut and the nation need an energy policy, starting with a state agency that would re-regulate electricity and permit NU and UI to resume generating power. He also noted that he has filed suit against the Federal Energy Regulatory Commission, which is planning to give away millions of dollars to power generators in the hopes that it would encourage them to invest in new generating plants.
Blumenthal said such subsidies should be made contingent on the construction of new facilities.
Carey said businesses should shop among suppliers for the cheapest source of power.
"Buying all your energy from a utility is like depending on just Social Security for your retirement," he said.
Swan also called on the audience to take steps to conserve electricity, calling conservation "the best investment."
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