Electric rates going up again:

September 13, 2006

Blumenthal & Jarjura join DeStefano in Waterbury to protest hikes

Where is the energy plan Gov. Rell promised 2 months ago?

New Haven: John DeStefano - Democratic nominee for governor - joined Waterbury Mayor Michael Jarjura and Attorney General Richard Blumenthal at a news conference today on the steps of Waterbury City Hall to protest what is expected to be another electric rate hike for Connecticut families. Connecticut Light & Power (CL&P) submitted a filing today with the Department of Public Utility Control (DPUC) with the bids which will set the electricity rate effective January 1st.

It is not known yet how much rates will increase, but electric rates for CL&P customers have soared by more than 70 percent since 2000. CL&P's average electric rate on April 1, 2006, was higher than the average electric rate in every state in the continental United States. CL&P's base rates rose by 17 percent in January and another 5 percent in April. The DPUC will have to approve any new contracts and rate changes.

This looming increase comes on the heals of what is estimated to be a 50% rate increase filed by Connecticut?s other utility, United Illuminating, two weeks ago.

"Connecticut is mired in an energy crisis - it already has the highest rates in the nation, squeezing families and costing us jobs. While electric rates are soaring, Gov. Rell has not shown the leadership or a plan to reduce costs. As Governor, I would work with the legislature to lower rates for consumer and families by imposing a windfall profits tax, making Connecticut a national leader in conservation and putting in place a series of detailed measure to lower our energy costs," DeStefano said.

"Year after year Connecticut's families and businesses are forced to pay some of the highest electric rates in the nation," said DeStefano. "Sky rocketing prices are costing us jobs and hurting our quality of life - it doesn't have to be this way. With real leadership from the Governor's office, Connecticut can do better."

"This increase will be terrible for families and for businesses," said Jarjura, "and we need leadership that will address this problem. John DeStefano has a plan to lower soaring energy prices. That is just one reason why I stand here with John endorsing him, endorsing his vision for our great state. John DeStefano has the vision and the understanding to lead our state forward."

In May DeStefano announced a detailed energy proposal which would lower rates for Connecticut families and businesses, and put the state on a path to become a national leader in energy conservation. "As Governor, I would immediately return $300 million to Connecticut's families and $40 million to businesses by imposing a windfall profits tax on electric generators."

A windfall profits tax on electric generators could be expected to generate $450 million annually, which would be used to lower electric rates by as much as 8 percent. Of the $450 million in savings (based on a 50 percent tax on profit margins in excess of 20 percent), John DeStefano would:

- Use $300 million to lower electric bills by 2007.

- Use $40 million of the money for energy credits to help businesses lower their costs.

- Put $10 million into the Low Income Home Energy Assistance Program.

- Add $100 million to the Connecticut Clean Energy Fund, the Connecticut Energy Efficiency Fund, and other appropriate state energy development and efficiency programs. It's estimated by GDS Associates that Connecticut could save $1.8 billion by aggressively implementing conservation and energy efficiency measures. It's also estimated that this investment would help create more than 75,000 new clean energy jobs by 2015.

By contrast, Gov. Rell has shown no leadership in addressing Connecticut's energy crisis. Her proposal to cut the tax on utility consumption by 25-percent would, according to members of the House Energy Committee, reduce rates for families by less than one percent.

On July 17th Gov. Rell issued a news release identifying "concepts for which the Governor is putting together proposals..." Legislative leaders are still waiting for those proposals. Gov. Rell also promised that, "...she would have recommendations for new energy initiatives within two weeks." Connecticut's families and businesses are still waiting for those initiatives that will help solve our state's energy crisis."