Electricity Bills, Sales Tax-Free Week, and more

August 9, 2024


 
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Dear Neighbor,
 
Happy Friday!

I'm sure you've noticed your most recent electric bill with likely shock and serious concern. 

I deeply empathize with the impact these outrageous rates have on people, their families, and businesses. The increased distribution rates coupled with higher usage and the persistently very hot temperatures are deeply impacting people. The high electric rates in CT are the result of many historic factors that are deeply complex and I want to provide you with more information about how we got here.
 
Background
The history of how we got here won't lower your bill but might provide some insight into why it’s difficult to unwind things. 77% of the increase in the public benefits portion of your bill is the result of a 2017 initiative to save Millstone Nuclear power plant, which provides 40% of CT's electricity and nearly 20% of power across the entire New England region. This deal requires Eversource and UI to purchase power from the Millstone and was struck before I was in the legislature. While it was a Republican-led initiative, it had significant bipartisan support.
What this deal means is that when the energy produced by Millstone is cheaper than the market, like it was during the pandemic and after Russia's invasion of Ukraine, CT residents benefited from that savings. However, when the rates at Millstone are higher than the market, as they are right now, the utilities pass through that increase to the ratepayer. 
It is also true that a portion of the public benefits increase is from the Governor’s emergency executive orders to put a moratorium on utility shutoffs for nonpayment from March 2020- September 2021. The moratorium continued for hardship residential consumers until October 2023. From November 2023-May 2024 there was in place annual statutory Winter Protection Program, which prevents electric and gas utilities from disconnecting residential hardship customers where the customer uses electric or gas for heating.
Utilities can phase-in new charges to reduce the monthly cost burden to ratepayers, but they decided to recover all these costs at once. The PURA Chairwoman, Marissa Gillett, lost the vote to spread this increase over two years and the utilities won their request to recoup their expenses over a 10-month period meaning this cost spike will be in place through May 2025.
Taking Action
While we intend to evaluate the public benefits charge during the next legislative session that begins in January 2025, previous action to control electricity costs is just coming online. We passed the Take Back Our Grid Act in 2021, which contained some significant reforms, including strengthening PURA's ability to scrutinize and review rate increases and performance-based regulation. In 2023, PA 23-102 became law, and it is robust pro-consumer legislation that provides predictability and transparency for rate payers and prohibits utility companies from using electric rates to pay for their lobbying, marketing, and travel/lodging for company executives.

At the federal level, the U.S. Department of Energy has also selected the Power Up New England proposal submitted by Connecticut and its neighboring New England states to receive an award of up to $389 million through the second round of the Bipartisan Infrastructure Law’s competitive Grid Innovation Program (GIP). Power Up features significant investments in regional electric infrastructure that will provide the New England region with access to thousands of megawatts of offshore wind, greater resource diversity, and increased reliability while lowering consumer costs and reducing greenhouse gas emissions.

Checking Your Rates
Third-party electricity suppliers can potentially lower costs through reduced rates at EnergizeCT.com. Additionally, the Office of Consumer Counsel offers a guide to understanding the line items on your electricity bill here.

Available Programs
If you are struggling financially, call your power supplier before missing a payment if possible. Programs are available, including financial hardship designations that provide access to a Low-Income Discount Rate and payment arrangements for customers in need; energy assistance through the state Department of Social Services; negotiated flexible payment arrangements for non-financial hardship customers; and energy efficiency programs offered by utilities to evaluate customers' homes and provide rebates and discounts on needed improvements.

If you anticipate needing help with your utility bills, Operation Fuel provides emergency energy and utility assistance to households in Connecticut facing financial crisis. You can learn more at operationfuel.org/gethelp.

If you have any questions, please contact my office.

The rest of this week's eblast includes information on, sales tax-free week, our state's budget reserves, and more. You can click the links below to navigate between sections.
 
Connecticut's Budget Reserves

You may have seen in the news recently that Connecticut is sitting on a $4.1 billion budget reserve - a massive amount that nobody could have predicted would happen so quickly!

The savings come from the "fiscal guardrails" put in place in Connecticut's 2017 budget, meant to save more volatile income and combat decades of budget mismanagement in our state.

As our economy ebbs and flows, this "rainy day fund" will be critical to protecting important pillars of our state including education, social services, and health care in case of a recession.

The guardrails are bringing about the desired outcome and I look forward to our state making another biennial budget from this position of fiscal strength.
 
Informational Meeting on Computerized Traffic Signal System in Fairfield
Next Thursday, August 15 at 6:30pm, I hope you'll join the CT Department of Transportation for a virtual public information meeting concerning the Computerized Traffic Signal System Replacement on Route 1 in Fairfield.

According to the DOT, the replacement of the communications system "will establish reliable fiber optic communication connections between the signalized intersections along U.S. Route 1. This project allows CTDOT to monitor and reduce travel times through advanced traffic signal technology, while also upgrading traffic signal detection using non-intrusive sensors to provide additional detection and visual capabilities."

This meeting gives the public the opportunity to ask questions and make comments, and I hope you'll consider attending. Click here to register.
 
Sales Tax-Free Week
Connecticut's annual Sales Tax-Free Week begins on Sunday, August 18 and runs through Saturday, August 24. It provides a chance to save money, whether it is taking the kids back-to-school shopping or treating yourself or your loved ones.
 
Retailers throughout the state offer additional discounts on clothing and footwear during Sales Tax-Free Week, providing consumers with even more ways to stretch their spending power.

During this tax holiday, most clothing and footwear items priced less than $100 are exempt from Connecticut's 6.35% sales tax. The exemption applies to each eligible item costing less than $100, regardless of how many of those items are sold to a customer in the same transaction. It applies to purchases made in-store, online, mail-order, and over the phone.


 
Click the button below for a list of exempt and taxable items:
Exempt and Taxable Items During Sales Tax-Free Week
Shop smart – and locally whenever possible to support small businesses – to save during Connecticut’s Sales Tax-Free Week!
 
I'm committed to ensuring your voice is heard. Please don't hesitate to call my office at (860) 240-8585 or email me if there's anything I can do for you. Be sure to follow @LeeperForFairfield on Facebook and Instagram to stay up-to-date on everything I'm doing at the Capitol.

Sincerely,

Jennifer Leeper
State Representative
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