Last year Gov. M. Jodi Rell vetoed a 90-page energy bill that passed in the waning days of the legislative session without the normal sequence of public hearing and comment.
That bill is back – and as Senate Bill 1, highlighting its importance to Senate Democrats, who control the chamber.
“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 Williams, D-Brooklyn, in a statement.
The bill is expected to go through the standard review process this year and has the potential to change before it reaches the governor’s desk. This time around Gov. Dannel Malloy, a fellow Democrat, will have the final say on the bill.
Last year the bill was created by combining provisions from several other pieces of legislation that had public hearings, but the resulting patchwork did not go through that process.
The bill would create the Connecticut Energy and Technology Authority, which would include the existing Department of Public Utility Control and a new division that would promote renewable energy and minimize electricity costs, among other responsibilities.
The bill charges CETA with creating a plan with options to reduce electricity prices by 15 percent by July 1, 2012. However, the bill does not specify how CETA will lower rates. It does leave open the possibility of state-financed power plants.
“This bill seeks to lower energy bills by establishing a lower cost option for seniors and low income families,” said Rep. Vickie Nardello, D-Cheshire, co-chairman of the energy and technology committee. “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 Sen. John Fonfara, D-Hartford, co-chairman of the energy and technology committee.
Meanwhile, the legislation allows new regulatory costs – which are passed on to electric ratepayers through their utility bills – to rise to 1 percent of retail electric sales by 2015, functioning as a 1 percent tax on electricity.
The new division would include several bureaus. One bureau will oversee electricity purchasing and could take that power away from private utilities and do it on behalf of the state.
The legislation would also adopt a number of energy-efficiency standards for products ranging from pool heaters to traffic lights – some of them straight out of California’s regulatory code.
Sen. Kevin Witkos, R-Canton, the ranking member on the energy and technology committee, said he is “adamantly opposed” to the more rigorous requirements for appliances because of the added costs to consumers.
“I think it could make some products unavailable to people,” he explained.
The bill would also:
- Create low-income electricity rates discounted by 10 percent
- Begin a review of state buildings to identify the best ones for solar generation
- Start a fuel cell pilot program for state buildings
- Make incentives for a “permanent Connecticut-based solar workforce”
Witkos also strongly opposed the proposal to explore leaving ISO New England, the nonprofit that oversees electricity transmission for the New England states. He called the proposal “absurd” and said it could cost the state billions of dollars.
An outside consultant told the Rell administration it would cost between $1.75 million and $2.5 million just to determine the costs and benefits of leaving ISO New England.
The bill also would require the generation of 4.35 million megawatt hours of solar electricity in Connecticut over the next 15 to 20 years. Visit www.RaisingHale.com Monday for more on the costs of the solar provisions in the bill.