Lawmaker pushes energy reform bill that promises immediate rate relief

HARTFORD, CT (WFSB) - A new bill aimed at lowering electric rates in Connecticut stirred up political controversy at the capitol.

Senate Bill 1560, which was introduced by Democratic State Sen. John Fonfara and had support from Republicans, outlined a plan to overhaul energy rate structures.

Fonfara detailed it during a news conference on Wednesday morning.

He claimed the bill could reduce residential electricity rates by 20 percent immediately, with the potential for further savings in the future.

“This legislative session began and continues to identify the cost of electricity in Connecticut as the issue of greatest concern to the residents and businesses of this state,” Fonfara said. “The bill before the finance committee recognizes the concerns by providing an immediate 20 percent reduction on their bill.”

One way to do that would be to remove the public benefits charge from bills.

Instead of having ratepayers foot that part of the bills, the state could created a “green bond.” Basically, the state would bond or borrow that money.

Another way would create a special authority called the Connecticut Electric Procurement Authority that would change the way the state buys its power. The authority would buy power based on price, not peak. Currently, it’s based on peak.

“There are ways to certainly reduce people’s electric bills. This piece of legislation does that. We look forward to that bi-partisan conversation that is so needed to try to address the concerns of our business community and our residents and the impact high electric costs have had on the state of Connecticut,” said Rep. Vinnie Candelora, (R), Minority Leader.

“The bills are too damn high,” said Rep. Joe Polletta, a Republican who represents Watertown. “People that have small businesses, people that are living on fixed incomes, single parents trying to raise a family cannot afford these bills every month: $300, $400, $500. Something needs to change. This bill seeks to lower rates 40 percent in the next two years. That’s why I’m here today. I want to see bills reduced 40 percent in the next two years.”

The bill was big and complicated. Many have been trying to understand how it would work.

Some lawmakers said they were skeptical.

Others were critical and said it wouldn’t work, including the commissioner of DEEP.

They said while it sounds good, it strips power from DEEP and the Public Utilities Regulatory Authority. That’s something critics argue utility companies want to see happen.

“We support the goals of this bill. We have heard from our customers and your constituents of the increased burden of the public benefits charges,” said Doug Horton, Eversource.

Other critics say it would discourage solar by reducing incentives and penalize those who use electricity at peak times.

The chair of energy committee says this shouldn’t be rushed.

“My assumption is this bill get referred to energy for a full vetting to see if these are good ideas or not,” said Senator Norm Needleman, (D), Energy Committee Chair.

It is not a requirement for this to go before the energy committee, but many feel it should.

Governor Lamont says he appreciates the bi-partisan effort to lower electric rates, but has concerns about creating an authority that operates outside mechanisms designed to protect ratepayers.

Fonfara has been a vocal critic of rising utility rates.

As he led a charge on energy reform, questions mounted over his alleged involvement in a political deal with Gov. Ned Lamont.

Republican lawmakers, including State Sen. Stephen Harding, accused the governor of making a backroom agreement with Fonfara to secure support for the reappointment of Marissa Gillett as chair of PURA.

In return, they claimed, Fonfara may have been promised a high-paying position on PURA’s board.

Republicans called for more transparency.