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REPEAL THIS TAX
Gov. Dannel Malloy is on target to kill a tax that affects every household and business in Connecticut.
Electrical rates in Connecticut are 83 percent higher than the average of all other states and are the highest in the continental United States. More significantly, our rates are 25 percent higher than the average of our other New England states. The cost of power is an impediment to businesses to locate and expand in Connecticut. It is, in fact, a hidden tax on all businesses and households.
Wilton commercial establishments pay $21 million a year for electricity and households pay $19 million a year. If Connecticut rates were just equal to the average of our sister states, the savings to Wilton residents would be $4.75 million a year and $5 million for our commercial ratepayers.
Why are rates so high?
Connecticut deregulated electrical generation in 1998 by Public Act 98-28 with the intent of creating a competitive energy market. It failed, and the seriously flawed utility energy procurement policies and rules set by the public act have led to the situation today. Vermont did not deregulate, and it has the lowest rates in New England. All of the other New England states deregulated, and their rates are also lower than Connecticut.
Malloy cannot by fiat lower Connecticut electrical rates. But to date, according to the Office of Legislative Research, no analysis has ever been undertaken to determine why Connecticut rates are so high and what can be done about them!
That is not surprising because Connecticut is the only state in the U.S. without an Energy Department! The state does not have a comprehensive energy policy or a single state entity with overall responsibility for energy policy. The legislature tried to remedy that last year, but Gov. M. Jodi Rell vetoed the bill after strong utility opposition.
Malloy has proposed the formation of a single Department of Energy and Environmental Protection and has nominated Daniel Esty, an expert in energy and environmental policy, to be the commissioner. This department would eliminate or consolidate many departments and bureaucracies that own a piece of energy policy and for the first time create a state department with overall responsibility for energy policy.
Malloys stated goals are to lower the cost of energy and to provide help and assistance for business and households to lower their consumption of energy through conservation. This should not be a partisan issue, but it was last year and a less comprehensive approach was strongly lobbied against by the utilities (surprise!) and killed.
I urge our state legislators to actively support Malloys proposal. I call on our residents to let your voice be heard in support of the governors forward-looking and comprehensive approach to eliminate this not so hidden tax on all of us.
Bruce Hampson 47 Lambert Common
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