SB 23, which first passed the State Senate on May 5, incorporates the recommendations of last year’s Two Storm Panel to invest in critical infrastructure and hold utility companies accountable for their performance during emergencies. The bill is now before the Governor for his signature.

“There’s hardly a person or business across the state that didn’t feel the impact of the two storms last year,” said House Speaker Christopher G. Donovan (D-Meriden). “We understand what worked and what didn’t in terms of how we prepared and how we responded. We created higher standards for utility companies and better communication for state and local officials to respond to major storms. Connecticut will be better protected from power outages for the next, inevitable punch from Mother Nature.”

“This legislation adds a level of accountability on utilities that did not exist before. We are improving the planning process before a storm, we are requiring a review of performance after a storm, we are requiring that standards are developed that hold utilities accountable for their performance during a storm.” said Rep. Vickie Nardello (D-Prospect), House Chair, Energy & Technology Committee. “Creating industry specific standards for acceptable performance to ensure service reliability will go a long way to protect the public’s health and safety by minimizing future power outages.”

“This is a ‘lesson learned’ bill and a ‘plan ahead’ bill as well,” said Rep. Lonnie Reed (D-Branford), Vice Chair of the Energy & Technology Committee, whose shoreline district was hit hard by TS Irene. Rep. Reed continued, “The bill includes better oversight and tough fines to address the problems we experienced—prolonged power outages and other utility failures; but the bill also directs us to explore promising new technologies such as micro-grids, that may better prepare us for those challenges we have yet to encounter.”

In summary, the bill creates:

Performance Standards for Utilities
Senate Bill 23 will require the Public Utilities Regulatory Authority (PURA) to study and then establish minimum performance standards for emergency preparation and response for each electric and gas company in Connecticut.

Following that, all electric and gas utilities will be required submit a plan to PURA on implementation of these standards. PURA will also study and establish separate performance standards for telecommunications utilities, including telephone and cable television companies.

Penalties for Noncompliance with Performance Standards
Noncompliance could result in penalties of up to 2.5 percent of an electric or gas company’s annual distribution revenue, approximately $25 million in the case of Connecticut Light & Power. The penalties would be assessed as a credit on customer bills, and would not be recoverable by the utilities through increased rates. In the event of service outages to more than ten percent of a company’s customers for over 24 hours, that company would be required to provide customers a credit.

Microgrids
The legislation would establish a $15 million micro-grid and loan pilot program to support local distributed electricity generation at hospitals, police and fire stations, prisons, water treatment plants and other critical locations. Funds will be allocated evenly among small, medium, and large towns.

Undergrounding Wires
Senate Bill 23 would also take steps to facilitate the undergrounding of power and telecommunications lines. In addition to the performance standards described above, the bill would require the Department of Transportation (DOT) to notify PURA of any pending road work projects over five miles in length or located a commercial area.

Backup Generators for Cell Phone Towers
The bill will require all telecommunications companies to report to PURA and the Department of Emergency Services & Public Protection (DESPP) annually concerning their ability to provide backup power to any Connecticut based towers or antennas.

Clearing Roads for Emergency Vehicles
In the aftermath of last year’s storms, fallen trees, limbs, and downed wire blocked passage on many roads across the state became life-threatening when police, fire, and ambulance vehicles could not reach people in need of assistance. The Department of Energy & Environmental Protection, in conjunction with the utilities, DOT, DESPP, and municipalities, develop procedures to for road-clearing for public safety personnel.

Food Spoilage Program
PURA must also study and create a mechanism through which electric distribution companies would reimburse residential customers for spoilage of food or refrigerated medicine after long power outages.

“Connecticut must support its small businesses,” Governor Malloy said. “They are the foundations of local economies, helping to improve the quality of life for thousands of Connecticut residents. State investments through programs like this not only help the businesses on Main Street grow, they also aid in the state’s economic recovery.”

The Cheshire Fitness Zone is a complete physical, occupational, and speech therapy center designed specifically to meet the needs of children and adolescents of all ages and abilities. The fitness zone has a full array of exercise equipment biomechanically designed to fit children. The company was awarded a matching grant of $100,000 and a loan of $250,000, which will go toward the purchase of property so it can build a larger facility. Fourteen jobs will be created and nine retained as part of the $1,500,000 project.

“The ability to assist children with special health care needs and create jobs in the process is a win for the children, the town of Cheshire and Connecticut,” State Representative Vickie Nardello said.

In total, EXP will provide $100 million to help the state’s small businesses hire more employees and fund capital investments. The program, administered by the Department of Economic and Community Development (DECD), offers loans and matching grants to Connecticut companies with fewer than 50 employees.

For more information on EXP or to apply for the program, visit the Small Business Express Program website or contact Michelle Lugo at DECD at 860-270-8052 or Michelle.Lugo@ct.gov.

“This is an agreement that is good for Connecticut and good for ratepayers. Our decision to review the merger resulted in key benefits to Connecticut ratepayers. The interests of the people of our state have been protected in several important areas.

“First, ratepayers not only see the benefit of a rate freeze, but also will see a credit on their accounts.

“Second, the agreement helps Connecticut further our goals regarding energy efficiency and ratepayers are not burdened with the investment costs associated with the company’s sizable commitment.

“Third, the utility maintains a strong presence in the state, with corporate headquarters remaining in Hartford and staffing levels  maintained through a program of apprenticeship that will help train new line staff.

“Fourth, the company will also share storm costs between shareholders and ratepayers.

“Fifth, the company has agreed to important investments in storm preparation and response that will help guard against the failures that occurred last fall.

“Lastly, we are confident that appropriate oversight provisions exist in the agreement. We commend Governor Malloy, Attorney General Jepsen and Consumer Counsel Katz for their hard work in bringing about an historic agreement for the people of Connecticut.”

“This report is a first step in identifying some of the shortcomings to restoring power. A full, independent performance review that looks at the issues more in depth is needed. We must make changes to the utility system to reduce the number of outages and number of people and businesses affected,” said Representative Vickie Nardello (D-Prospect).

To download a copy of the Donovan and Nardello letter to PURA, go to: www.housedems.ct.gov/Donovan/pubs/HDO_Letter_to_PURA_11-21-11.pdf.

To download a copy of the Witt report, go to: www.wittassociates.com.

PURA letter

The Democratic leaders said initiatives would include requesting financial compensation for customers, directing the state Public Utilities Regulatory Authority (PURA) to expand the current storm docket to establish performance standards for utilities with fines for non-compliance, and in addition request an in-depth, independent audit of all utility companies’ storm performance.

They said they would direct the legislature’s Energy and Technology Committee to hold hearings to begin to develop draft legislation for consideration by the General Assembly.

On Tuesday morning, Senator Williams met with a legislative liaison from CL&P and asked that CL&P create a “Family and Business Hardship Account” that would offer some form of rebate on future electric bills to any of the estimated 830,000 CL&P residential and business customers who went without power for more than 48 hours following October’s snowstorm.

Earlier today, CL&P offered $10 million for such a fund, a figure Senator Williams characterized as “inadequate.” He said a much fairer figure would be a $50 credit for each affected customer, which would cost CL&P $41.5 million, or about 10.7 percent of CL&P’s $388 million in earnings in 2010. CL&P serves a total of 1.2 million customers in 149 Connecticut cities and towns.

“I understand the storm was not CL&P’s fault, but CL&P has admitted that their response could have been better,” Sen. Williams said. “Homeowners and businesses lost an untold fortune in spoiled food and missed business, as well as covering the cost of hotel stays, take-out meals, flooded basements and a myriad of other, unnecessary daily expenses. CL&P needs to do right by its customers and work out a fair and just compensation plan that can be applied to future electric bills.”

“We must be prepared for the next storm emergency. It is clear that our utilities, and CL&P specifically, are not prepared at the present time,” Speaker Donovan said. “When health and safety are threatened, and when business is disrupted to the extent it has been, we need answers. There are actions we can take legislatively that can make our public utilities more accountable to their customers, and if they fail to do so, there should be consequences.”

To that end, over the next several weeks the Energy Committee will accept and review legislative proposals from Democrats, Republicans, the Malloy Administration, Attorney General George Jepsen and others which, in the near term, could ameliorate the impact of future storms, both in terms of personal expense and public safety.

Last week, Speaker Donovan and Rep. Nardello said they would introduce legislation that would direct PURA to create standards of acceptable performance for utility companies. Failure to meet those standards would result in significant penalties for the utilities, with fines paid by shareholders, not customers, and refunded to the customers.

Additional proposals have been offered that would:

• Require gasoline stations and housing complexes for the elderly have generators.
• Provide for a one-time personal income tax credit in the amount of state hotel occupancy taxes paid by Connecticut residents as a result of hotel stays during the snowstorm or Tropical Storm Irene power outages.
• Expand Connecticut’s price-gouging bill to cover the cost of lodging and the sale of power generators.
• Require utilities to train and maintain emergency “stand-by crews’’ made up of first responder personnel, retired utility workers as well as local responders such as firefighters.
• Require Mutual Aid agreements to specify strict timelines with other utilities and states.
• Increase the use of fuel cells in Connecticut to provide more electricity that is “off the grid.’’

The Energy and Technology Committee will also evaluate solutions generated by the Executive Branch forwarded by Governor Malloy and Attorney General Jepsen, as well as the results of an in-depth audit of CL&P.

“It is time to reassess Connecticut’s weather related predictive capability, storm preparation, and ability to expeditiously restore power and utility service,” said Rep. Nardello. “We need a detailed review and independent assessment to set reasonable standards of service and improve the communication between individual customers, state and local officials and utility company managers with the authority to influence crews on the ground in conducting and reporting on restoration efforts.”

“The storms over the last two months have taught us that our utilities and oversight agencies must be better prepared for major outages. In the near term, we should undertake initiatives such as a tree trimming blitz in key high load areas and critical customer locations, such as nursing homes, gas stations, town facilities and schools. We should also aim to replace bare electric wire in these areas with covered wire, which can reduce power outages by a third to a half. Other near term measures could include training of non-utility contractors to assess outages, freeing all utility linemen to begin repair work immediately,” said Sen. Fonfara. “Over the long term, we can promote distributed generation and energy survival packages though the PACE program, at no additional cost to ratepayers, to keep furnaces, water pumps, refrigerators and minimal lighting going during an outage.”

The Energy Committee co-chairs will recommend in a letter that PURA establish performance benchmarks and order an independent audit by a firm with experience in electric company management. PURA will then issue a findings report to the General Assembly, which at a minimum, include recommendations on:

• Setting minimum staffing levels for power restoration crews and reciprocal contracts with independent and out of state crews.
• Developing communication protocols with state and local officials and emergency operation center commanders and geographical mapping technology to provide restoration status to state and local officials and the public.
• Establishing procedures where PURA directly monitors the effectiveness of coordination and emergency related protocols.
• Assessing Connecticut’s tree trimming policy and require utilities to submit to towns a list of all trees impeding lines on public and private property.
• Holding utility companies and executives accountable by tying compensation, penalties, customer rebates and reimbursement for food losses after long outages to performance metrics.

House Speaker Christopher G. Donovan (D-Meriden) and State Rep. Vickie O. Nardello (D-Bethany, Cheshire, Prospect), House chair of the Energy and Technology Committee, said utility performance in response to Tropical Storm Irene and last weekend’s snowstorm – both of which left hundreds of thousands of state residents without power for days – made it clear that legislation is necessary.

“Our recent experiences strongly suggest that we need to have certain, reasonable expectations of power restoration,” Speaker Donovan said. “What is reasonable needs to be discussed and agreed upon, but clearly the public’s suffering and threats to their health and safety following these storms is not reasonable.”

“Certainly we understand that the two storms we have experienced are have been unusual in their destructiveness,” said Rep. Nardello. “However, the intensity and duration of our outages have been increasing over time. We must have certain expectations of our utility companies, and they have to have an accountability that is measurable. We think it is prudent to direct PURA to develop standards that can properly address those concerns.”

Speaker Donovan and Rep. Nardello said that Massachusetts enacted similar legislation in 2009 in the wake of utility response to an ice storm in central Massachusetts. They also pointed out that national standards and benchmarks exist. The legislators said the Massachusetts law would be studied as Connecticut’s legislation is drawn up, including how the issue of cost recovery is addressed, as would the recommendations of the House of Representatives following last month’s hearings on the response to Tropical Storm Irene. They said they expect legislation to be ready for consideration by the General Assembly in the 2012 session that begins in February.

In 2009, Massachusetts Governor Deval Patrick signed into law An Act Relative to Public Utility Companies, providing that utility companies file a report with the state Department of Public Utilities (DPU) annually comparing their performance with “service quality standards” of the Department of Public Utilities and “any applicable national standards as may be adopted by the department.” The bill authorizes the DPU to levy penalties against the utilities if they fail to meet the service quality standards. Penalties in Massachusetts can be as much as 2.5 percent of the utility’s transmission and distribution service revenues for the previous calendar year.

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Four committees of the General Assembly – Energy & Technology, Public Safety, Labor and Public Employees, and Planning & Development – will hear from representatives of utility companies, workers, communications firms and municipalities, as well as from members of the general public.

“There’s hardly a person or business across the state that didn’t feel the impact of Irene,” House Speaker Christopher G. Donovan (D-Meriden) said. “We need to understand what worked and what didn’t in terms of how we prepared and how we responded. I expect these hearings will be productive and forward looking and will serve us well for the next, inevitable punch from Mother Nature.”

"Hurricane Irene put Connecticut to the test," said Senate President Donald E. Williams, Jr. (D-Brooklyn). "Now it's time to evaluate our readiness and response. The informational hearings will help us get the answers that families expect and deserve. I'm also pleased that there will be time reserved for members of the public to share their experiences. And for those who cannot attend, we hope they'll contact us through Twitter or Facebook."

Senate and House Democrats have set up Facebook and Twitter accounts at www.facebook.com/pages/After-Irene-CT/262762473747233 and http://twitter.com/#!/AfterIreneCT to accept public comments and suggestions about experiences with the storm and the state’s readiness for and response to it.

“We have a responsibility to better understand what went right and what went wrong after Irene and why. We must examine what needs to be done to be better prepared for future events that undoubtedly will happen,” said Senator John Fonfara (D-Hartford), Senate Chair of the Energy & Technology Committee.

“People who had to wait for a week or more need some satisfaction in knowing why it took so long for their power to be restored. The delay went far beyond mere inconvenience; many people need electricity to pump well water to their homes and for other health requirements,” said House Chairwoman of the Energy & Technology Committee Vickie Nardello (D-Prospect, Bethany, Cheshire). “We need to determine what was done right and what we need to do better, whether it is communication or manpower. These hearings are not just for appearances. We will develop specific steps to improve how well we are prepared.”

On September 19th, the informational hearing will begin at 9:30 a.m. with representatives of CL&P, UI and municipal utilities, followed by municipal representatives and officials from telephone, cable and wireless utility companies. The hearing will conclude at 4:30 p.m.

On September 26th, members of the public will have the opportunity to appear before the committees beginning at 9:00 a.m., followed by union representatives and the electric utility companies. Members of the public will have an additional chance for comment before the hearing closes in early afternoon.

The Energy & Technology, Public Safety, Labor and Public Employees, and Planning & Development committees will hold an informational hearing in the coming weeks to address the following issues:

• Preparation and response by the utility companies, including United Illuminating and Connecticut Light & Power
• Performance of telephone and telecommunications companies
• Communication between utilities and municipal leaders
• Effectiveness of municipal reverse 9-1-1 systems and other communication methods

“Irene was one of the most powerful storms to ever hit Connecticut,” said Senate President Donald E. Williams, Jr., “and many Connecticut residents, public workers, and companies stepped up to make a real difference. We also know that tens of thousands of families and businesses were left in the dark for many days – and now they’re looking for answers. It’s time to understand what happened and how Connecticut can be better positioned to deal with the next emergency.”

“Connecticut has an opportunity to learn from this storm, identify what was done effectively and what needs to be improved,” said Senate Majority Leader Martin Looney (D-New Haven / Hamden). “My constituents want to know why it took so long to get the power back on in certain areas. Probing questions need to be asked and I’m confident the legislative hearing is the appropriate venue to get answers.” 

“I am pleased that almost all Connecticut residents now have their power restored,” said House Speaker Christopher G. Donovan (D-Meriden). “Too many, however, suffered without power for too long. That posed more than just inconvenience for them – it jeopardized their health, safety and livelihoods. We are hearing from folks across the state that we can do better than this, and we’re looking to explore ways that we can be better prepared next time. That’s why it is appropriate at this time to convene legislative hearings.”

House Majority Leader Brendan Sharkey (D-Hamden) said, “In meeting with Homeland Security Secretary Janet Napolitano yesterday, she confirmed to me that Connecticut had the highest percentage of homes without power of all states affected by Hurricane Irene.  With such a heavy burden, to me the question remains whether our local utilities are working together to bring the necessary resources to bear throughout the state, not just within their own coverage areas.”

Comments from committee chairs are included below:

House Chairwoman of the Energy and Technology Committee Rep. Vicki Nardello (D-Prospect) said, “If you got your power back within a couple days you probably were very happy with the restoration effort, but for those who had to wait close to a week or more we need to understand what happened and why. Many people who had to wait the longest also depend on electricity to run their well water pumps and that can become a health issue very quickly. We are fortunate these record outages weren’t the result of a winter storm and the time is now to figure out what can be done better.”

“This hearing will help us to determine what went well and what went wrong in the aftermath of Irene. We will examine how to avoid or address outages more quickly after future disasters, and how to provide better information to electric customers left waiting in the dark," said Senator John Fonfara (D-Hartford), Senate Chair of the Energy & Technology Committee.

“We should consider the hearing an opportunity to examine what was done right by our state during Hurricane Irene  and what we can do better,” Rep. Stephen Dargan (D-West Haven), House Chair, Public Safety and Security Committee,  said. “Testimony from local officials and local emergency responders will be very helpful for future planning.”

“First responders were called upon to mobilize and deliver public safety services without interruption hour after hour for days at a time, and this hearing will provide a welcome opportunity to assess that response," Senator Joan V. Hartley (D-Waterbury), Senate Chair of the legislature's Public Safety and Security Committee, said. "In terms of law enforcement, fire and rescue operations, and emergency medical response Irene presented an extraordinary sequence of events and now offers the chance to prepare for the future.”

“It is important that we assess what went right and what went wrong with the restoration efforts by the utility companies so everyone is better prepared when the next storm strikes,” said Rep. Linda Gentile (D-Ansonia and Derby), House Chair of the Legislature’s Planning & Development Committee.

“Obviously the utility issue commanded most of the attention, since people were going without power for days on end," said Senator Cassano, who is Senate Chairman of the Planning and Development Committee. "But there were clearly other issues, such as caring for people with disabilities or who are on oxygen or bedridden. That was extremely taxing to municipalities, and a better way has to be found to identify and care for these people during a natural disaster.”

“All aspects of our state’s response to the storm need to be examined,” Rep. Zeke Zalaski (D-Southington), House Chair of the Labor and Public Employees Committee, said. “Our citizens need to know more about CL&P’s less than stellar response since they have already warned us about raising our rates.”

"In every facet of the response to Irene in every corner of Connecticut manpower issues came into play," Senator Edith G. Prague (D-Columbia), Senate Chair of the legislature's Labor and Public Employees Committee, said. "Going forward we have to ensure there will be adequate response capabilities in public safety personnel and for utilities restoration and infrastructure repair, just to name a few.”

“Connecticut would be the only state in the nation without consumer services regarding utilities,” said State Rep. Vickie Nardello, House Chairwoman of the Energy and Technology Committee. “We were never made aware of this units closing during agency merger discussions”

The Consumer Services Unit responsibilities include:

• Fielding consumer complaints about utilities.
• Providing information and assistance to customers, both residential and commercial.
• Resolving complaints in a timely manner.
• Service cutoff prevention

Approximately 45,000 calls to 1-800-382-4586 are fielded annually by the New Britain based unit with callers speaking directly to a live representative within a minute. The unit also puts out a public report indicating which utility companies attract the most customer complaints. Since utilities pay the salaries of the 14 employees through a ratepayer surcharge, state savings is minimal.

The layoffs are unrelated to the pending union concession deal.

“We are taking responsibility for Connecticut’s energy future with this legislation,” said Representative Nardello, House chair of the legislature’s Energy & Technology Committee. “We are clearly moving to cleaner energy, energy efficiency and renewable energy, and have successfully balanced our energy needs in a way that recognizes the impact on rate payers. We have included goals for lowering rates in all aspects of our planning process.”

In its major components, the legislation:

• Creates the Department of Energy and Environmental Protection (DEEP)
• Creates the Clean Energy Finance & Investment Authority to leverage private capital for clean energy projects
• Improves electricity contracting and procurement procedures to lower rates
• Orders a study of electric market rules and their effect on higher rates
• Supports zero-emission and low-emission technologies
• Establishes a one-stop-shop to proactively reach out to businesses and consult with them on available programs and reducing their energy costs

“This marks a major step toward a cleaner, more efficient, and more affordable energy future for Connecticut’s families and businesses. It will help to create jobs and businesses in clean energy and energy efficiency industries, putting Connecticut at the forefront of innovation and development,” said House Speaker Christopher G. Donovan.

“This legislation will build Connecticut’s energy future by lowering energy costs and opening up job and business opportunities across a wide spectrum of energy industries. With this bill, Connecticut becomes a national leader in energy policy, embracing clean energy as the path to success in the 21st century economy,” said Senator Williams.

“This bill will create a full-time, dedicated energy department led by a nationally recognized expert on energy and environmental matters. It will enable us to fulfill our commitment to reduce energy costs and deliver on the promise of clean, safe and reliable energy,” said Senator John Fonfara (D-Hartford), Co-chair, Energy & Technology Committee.

"Passing this bill allows Connecticut to lead the nation by growing a truly green economy and by achieving a cleaner, greener, more affordable energy future for the people and businesses of our state," said Rep. Lonnie Reed, Vice-chair of the Energy and Technology Committee. "It is a bold, thoughtful and collaborative accomplishment that includes innovative ideas from the Malloy administration and from knowledgeable legislators on both sides of the aisle."

“The process of creating this bill was long, arduous and complicated," said Rep. Laura Hoydick (R-Stratford), Energy & Technology Committee ranking member. “That's what happens when so many people representing so many points of view and constituents and areas of expertise work to create legislation that affects our entire state. I applaud the administration, legislative leaders and staff who worked tenaciously and tirelessly resulting in a very good outcome for the residents and businesses of our state. The focus is on the lowering of electric rates, making renewable energy and conservation programs accessible to all. I'm happy we have a department that will manage the environment and energy needs of the state because though the legislature can set direction, we need the administration to effect those changes.”

The broad aim of Senate Bill 1243 is to lower Connecticut’s energy costs and electric rates (amongst the highest in the nation), while moving the state toward clean and efficient energy. The bill seeks to help create the industries, jobs and businesses necessary to facilitate this kind of transformation in Connecticut, and then export those products, technologies and services elsewhere in the world.

The bill, having passed both the House and Senate now goes to the Governor who is expected to sign the bill.

Read a fact sheet on Senate Bill 1243.

The Connecticut Siting Council Thursday rejected a wind-farm developer's proposal to construct two, 492-foot industrial turbines in Prospect, citing the density of the homes in the area and the turbines' height.

The plan by BNE Energy Inc., of West Hartford, was the first large-scale commercial wind energy project to come before the council.

The council voted 6-2 to deny the plan. A ninth council member recused himself.

"Based on the record in this proceeding we find the visual effects associated with the construction of the proposed 3.2 megawatt wind farm to be in conflict with the policies of the state and are therefore sufficient reason to deny the proposal," council members wrote.

The council's chairman, Robert Stein, voted to approve the project, as did Ken Braffman, who sat in as a representative of Kevin DelGobbo, chairman of the Public Utilities Control Authority.

BNE's chairman, Paul Corey, and president, Gregory Zupkus, declined to say Thursday whether they would appeal.

"BNE is extremely disappointed that the siting council would reject the first commercial wind project in the state, going against state policy for renewable energy because some people might see the wind turbines.

We think that's simply wrong," Corey said.

While opponents of the project welcomed Thursday's decision as a victory, they said the state needs regulations governing the creation of wind farm siting guidelines.

Rep. Vickie Nardello, D-Prospect, and Rep. John Rigby, R-Colebrook, sponsors of a proposed bill requiring the state to develop wind farm regulations, joined Save Prospect Corp. and FairWindCT, a Colebrook citizens group, at the Legislative Office Building in Hartford Thursday to applaud the decision and show support for the bill, which is expected to be voted on by lawmakers next week.

"The siting council's decision confirms the belief that wind projects need to be developed carefully — if not we could serve as the poster child against wind projects," said Nardello, co-chair of the energy and technology committee. Nardello said she expects the measure to pass based on conversations with fellow lawmakers.

Tim Reilly, president of Save Prospect, said his group was ecstatic over the council's decision, but he said wind farm guidelines are still needed and would ensure a smoother, less contentious process. "Several of the siting council members made it clear today that had there been regulations their job would have been easier," Reilly said.

Colin Tait, the council's vice chairman, recused himself from voting, after a request by BNE. On Wednesday, Tait had recused himself from participating in deliberation on a separate proposal to put an industrial wind farm in Colebrook, saying he is a member of the Colebrook Land Conservancy.

A decision on BNE's proposal to construct six industrial wind turbines in Colebrook is pending. The siting council is scheduled to vote on the proposal in early June, and plans to take a straw poll at its next meeting on May 24.

"We'll have to see what the results for Colebrook are — certainly if it follows the result in Prospect it will kill the wind industry entirely in Connecticut," Corey said.

If the council rejects the proposal, "It will not only spell the end of wind farms, but all renewable energy projects in Connecticut," Zupkus added.

Rep. Nardello and Sen. Fonfara offer new electric generation tax proposal.

The Energy Co-Chairs were joined at the press conference by Rep. Cathy Abercrombie (D-Merdien), Rep. Brian Becker (D-West Hartford), Rep. Jim Crawford (D-Westbrook), Rep. Matt Lesser (D-Durham), Rep. Jonathan Steinberg (D-Westport), Rep. Bruce "Zeke” Zalaski (D-Southington), and representatives from the state Office of Consumer Council, the Connecticut AARP, Connecticut Citizen Action Group (CCAG), Better Choices Connecticut, Fight the Hike and SEIU.

“Our primary goal in offering a generation tax proposal was to insure that the tax would be constructed in a manner that does not allow it to be passed on to ratepayers. By taxing generators who have low costs, and minimizing taxes on the natural gas generators who set the price of electricity, we enable ratepayers to be held harmless,” said Rep. Nardello.

“The goal of our proposed generation tax is that it be borne by generators, not electric ratepayers, who have already suffered enough. This new approach accomplishes that objective,” said Senator Fonfara.

The Energy Co-Chairs offer their new proposal as an alternative to a tax they first proposed in Senate Bill 1176, An Act Concerning Electric Rate Relief. They also offer it as an alternative to a flat generation tax of $0.0025 per kilowatt hour (kWh) across all fuel sources of electric generation.

“The flat generation tax as now included in the budget would result in less revenue than projected and less income tax revenue, cause dirtier plants to be running, and produce higher electric prices for Connecticut and all of New England,” said Senator Fonfara.

In a statement, Consumer Counsel Mary Healey said, “I am grateful that Legislative leaders are continuing to actively pursue electric rate relief while also seeking to solve the budget crisis. I remain confident that a well-calibrated tax on power plants, which takes into account unique aspects of the regional electric market design, can yield revenues for rate relief and the budget while avoiding a pass-through to ratepayers. Such a tax on power plants might also help to reduce or eliminate the direct tax on electric ratepayers that was passed as a last resort in the 2010 budget negotiations.” The Office of Consumer Counsel (OCC) is the State of Connecticut’s advocate for all utility ratepayers.

The legislator’s proposal would tax electric generation according to each generator’s ability to pay, a reflection of the different costs incurred by generators using different fuels. Under electric market rules (which can only be changed through federal, not state law), all generators are compensated at an equal rate for their electricity, regardless of their different operating costs.

The legislator’s proposal consists of three possible levels of taxation, of which only one would be implemented, and which would raise approximately $72 million, $100 million or $150 million in revenue respectively.

The $72 million level matches and replaces the amount of revenue raised in the flat generation tax included in recent budget proposals. The $100 million and $150 million levels would raise additional revenue to support Connecticut based clean energy, and to further lower electric bills by eliminating the CTA electric bill surcharge, at a savings of $30 per year for the average household.

“Conversations on our proposal are ongoing with the governor’s office and legislative leaders. We are hopeful that our proposal will be adopted in future budget drafts to provide consumers with lower electric bills,” said Rep. Nardello.

All three levels of the proposal are graduated with respect to different fuel sources of electricity generation, including nuclear, coal, oil, and natural gas generation. This measure avoids the tax being passed through to ratepayers.

Level A ($72 million in revenue, approx.)
·Tax of $0.0040 per kWh on nuclear generation, raising $67 million
·Tax of $0.0020 per kWh on coal generation, raising $5.2 million
·Tax of $0.0010 per kWh on oil generation, raising $400,000
·Tax of $0.0005 per kWh on natural gas, raising $5.8 million

Level B ($100 million in revenue, approx.)
·Tax of $0.0052 per kWh on nuclear generation, raising $87.1 million
·Tax of $0.0026 per kWh on coal generation, raising $6.8 million
·Tax of $0.0013 per kWh on oil generation, raising $500,000
·Tax of $0.0006 per kWh on natural gas, raising $7 million

Level C ($150 million in revenue, approx.)
·Tax of $0.0080 per kWh on nuclear generation, raising $134 million
·Tax of $0.0040 per kWh on coal generation, raising $10.4 million
·Tax of $0.0020 per kWh on oil generation, raising $800,000
·Tax of $0.0006 per kWh on natural gas, raising $7 million

Electricity is seen by most of us as a practical necessity. It keeps the lights on in our homes and on our streets. It connects us to the world through television, cellphones and the Internet. It powers our businesses, our hospitals and our children's schools. In short, electricity is a vital part of our economy and our daily lives.

Like other necessities, one might expect that producers of electricity are compensated for their costs, along with a reasonable profit. But this is not how our electric system works.

Instead, electric market rules require that all generators — no matter how efficient and cost-effective — be paid the same as the most inefficient and costly plants. These rules, imposed on our state at the federal level, are a major factor in why Connecticut's electric rates are some of the highest in the country.

As co-chairmen of the General Assembly's Energy and Technology Committee, we have proposed to address this problem with Senate Bill 1176, An Act Concerning Electric Rate Relief.

Gov. Dannel P. Malloy proposed an across-the-board tax on all electric generators as part of his shared-sacrifice budget plan for Connecticut. If imposed, certain generators, in particular natural gas facilities, will be able to pass this tax on to consumers, resulting in increased electric rates.

Our proposal is structured differently. It limits the tax to oil, coal and nuclear generation facilities, which —because of the existing market rules — cannot pass the tax on to consumers. It is aimed at those generators who have, and continue to, benefit most from the distorted electric markets.

The revenue would be used to lower electric bills ($30 per year for the average household), support Connecticut-based clean energy and raise funds needed to balance the state budget — avoiding painful cuts in essential services.

Some have criticized the higher tax that we propose for nuclear generation. The Millstone nuclear plant, owned by Virginia-based Dominion Resources, generates some of the lowest-cost electricity in New England. For this, the owners of Millstone should be rewarded. Yet because of the existing electric market rules, Dominion has benefitted from Millstone in excess of all reasonable levels of compensation, contributing to Connecticut's high electric rates.

Despite this, Dominion claims our proposal would make Millstone insolvent, requiring it to close the plant. The company simultaneously threatens to continue operating the facility but with reduced safety standards. These fear tactics are not only inconsistent, but deeply disingenuous and needlessly traumatizing to their workforce and residents of the surrounding community.

Dominion, which purchased Millstone 10 years ago, has since paid off the plant many times over and received profits in the hundreds of millions of dollars per year. It is projected that if the full extent of our proposed tax were imposed, Dominion would still realize a very generous $200 million in annual profits from Millstone.

This finding is supported by multiple independent consultants as well as the state Office of Consumer Council. We have asked Dominion repeatedly to open its books or offer any figures in support of its threats. They have yet to do so.

Given what is at stake for Dominion's shareholders, they have mounted an effective campaign of misinformation. But lost among all their commercials and press conferences is the fact that their hundreds of millions in profit over the years have come at an unjustifiable expense to Connecticut ratepayers. This has caused all of our state's businesses to be less competitive and left many households on limited incomes to make choices between their electric bill, food or heat.

Dominion does not earn its incredible profits in a free market like other companies. Instead, it benefits from an artificial system of electric market rules unconcerned with consumer interests. The health of Connecticut's economy demands a greater parity between the costs of electricity producers and their level of compensation. Our proposal would help establish that.

Connecticut's residents and businesses deserve lower electric rates. Electric generators deserve to be compensated fairly. But amid calls for shared sacrifice, we should not tolerate a system that rewards one company excessively at the cost of higher electric rates for everyone.

"Bethany residents will have a nice usable space once the hangar repairs are made," said Representative Nardello. "The hangar is the only remaining historic symbol of the former airport days and I am pleased that part of our local history will be preserved."

"Bethany has shown its commitment to providing quality recreational and community-based activities within the area of the airport. The Board of Selectmen recently committed funds to carry out preliminary surveys and begin the design phase of the project" Senator Crisco wrote in a 1/2/09 letter included with the town's application. "I believe the replacement of the airport hangar would allow the Town of Bethany to expand the recreational opportunities of the area, not only for the Town, but also for the entire region."

"With this confirmation of Bethany's successful grant application, I congratulate the town and its residents with regard to the money, and First Selectwoman Gorski with regard to her leadership and perseverance," Senator Crisco said today. "I'm always so pleased when local leaders, with local support, help us bring state resources to bear for projects like this one."

The airport site is presently used for athletic events and other regional attractions like dog shows and equine events. The proposed facility would provide water, bathrooms and a food preparation area for all who use the facility.

In a letter to the DPUC commissioners, they also requested a delay in any pending decision on the matter. The letter is attached.

“We must ensure that Connecticut ratepayers are treated fairly under this proposed merger, and that as the proposal is reviewed in Massachusetts and elsewhere, our state also has a voice at the table,” said Rep. Nardello.

“The merger of Northeast Utilities and NSTAR would create the largest public utility in New England, with enormous and potentially unexpected consequences for Connecticut ratepayers,” said Senator Fonfara. “Massachusetts has wisely chosen to review this merger, and it would be irresponsible for us not to do the same here in Connecticut.”

“The newly merged Northeast Utilities would move its headquarters from Hartford to Boston, and place the current CEO of NSTAR as its new CEO. Nearly half—44 percent—of the new company’s stock would be held by current NSTAR investors,” said Rep. Nardello.

Northeast Utilities currently owns and operates Connecticut Light & Power and the Yankee Gas Services Company in Connecticut.

The planned legislation will seek to establish policies, programs and procedures to reduce electricity costs, promote renewable energy, and create financing mechanisms for energy efficiency improvements in homes and businesses.

“This bill seeks to lower energy bills by establishing a lower cost option for seniors and low income families,” said Rep. Nardello. “Connecticut must be more in line with our neighboring New England states by offering fair and competitive energy rates.”

“Lowering electric costs and growing an energy based economy will be the focus of our work in the Energy & Technology Committee this year,” said Senator Fonfara. “Connecticut led our country into the industrial revolution with great leaps forward in technology. We can lead again by making efficient technology affordable for all businesses and families in Connecticut. This will reduce energy demand and further lower costs.”

“Lowering electric rates for businesses and families must be one of our top priorities this legislative session - that's why we've made it Senate Bill #1. We look forward to working with our colleagues in the General Assembly and the Malloy Administration to enact a landmark energy bill that will strengthen our economy, grow jobs, and provide real relief to consumers,” said Senate President Donald E. Williams, Jr. (D-Brooklyn).

Goals of the energy reform legislation will include:

• Lowering electric costs for households and businesses of all sizes
• Making existing energy efficient technology immediately affordable through financing mechanisms
• Positioning CT as 21st century leader in green industry and technology
• Increasing our state’s commitment to renewable energy

“Technologies exist today—like highly efficient boilers and solar panels—that will produce immediate energy savings if we can only get them into the hands of families and businesses. This legislation will create financing tools to make these smart long term investments affordable up front, and stimulate economic growth in our green industries,” said Senator Fonfara.