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Rally Targets Cost of Electricity
September 14, 2006
| 09/14/2006 | |
Rally targets cost of electricity
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Steve Higgins
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Register Business Editor
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-BRANFORD - A retired social worker hopes to light a fire under state legislators by holding a rally protesting impending increases in electric rates.
Marie Notarino, 67, of Branford, is inviting area residents and business owners to attend the rally at 4:30 p.m. Friday on the Branford Town Green.
"The utility companies are entitled to an increase based on increases in the price of crude oil, but they want outlandish, outrageous price increases," said Notarino, who claims rates could triple next year. "All we can do is hope the word gets out."
Notarino said she is simply a concerned citizen and not part of any political group. She has enlisted friends and family members to place flyers advertising the rally in mailboxes and at businesses throughout the area over the past few days.
"I've never done anything like this before," she said. "There are no politics involved here."
Attorney General Richard Blumenthal, who has been fighting the impending increases for months, said Wednesday he plans to attend the rally. Several other local politicians have been invited as well.
New Haven Mayor John DeStefano, who is running for governor, joined Waterbury Mayor Michael Jarjura at a news conference Thursday at Waterbury City Hall to protest the expected increases.
"Connecticut is mired in an energy crisis - it already has the highest rates in the nation, squeezing families and costing us jobs," said DeStefano, who has proposed imposing a windfall tax on generating companies.
Republican Gov. M. Jodi Rell proposed creating a new state energy department last year, but the idea was rejected by Democratic lawmakers.
While Blumenthal said he does not expect rates to triple, they are set to "rise substantially." He praised Notarino for organizing the rally.
"I admire her initiative and public spirit," he said. "This issue is critical to consumers. The price of energy is rising dramatically at a time when our economy and consumers can least afford it."
A state-mandated cap on electric rates will expire Jan. 1, and Connecticut's two major electric companies - United Illuminating Co. in New Haven and Connecticut Light & Power Co. in Berlin ? have been receiving bids from suppliers in recent weeks. The utilities will not earn revenue from the rate increases, as the charges are passed on to the energy suppliers.
The state Department of Public Utility Control has the power to reject any bids from energy suppliers it deems above fair market rates.
The two companies are expected to announce 2007 rates in October.
The cap was imposed in 1997 after the state deregulated the electric utility industry by separating distribution and generation. UI and CL&P were forced to sell their generating plants and become distribution companies.
The cap was designed to ease the transition to a deregulated market and encourage the entry of competing energy suppliers. Since the cap was imposed, the market price of electric power has doubled.
Analysts have said UI could raise its rates as much as 50 percent, while CL&P's rates are set to rise about 40 percent.
Notarino wants Connecticut residents to push legislators to call a special session to discuss rising energy costs. She said depending on the price of crude oil, weather and other factors, energy prices could double or even triple next year.
"The electric companies have a right to reasonable rates, to still make a profit," Notarino said. "But the industry has to be re-regulated."
Blumenthal has proposed taxing windfall profits of energy companies and creating a new Connecticut energy authority to oversee the industry and finance new generation.
UI serves 320,000 customers in the New Haven and Bridgeport regions, while CL&P has more than 1 million customers statewide.
Steve Higgins can be reached at or 789-5752.
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