An informational forum this week about how Connecticut consumers can get relief from high electric rates provided a likely preview of some of the market-based ideas that will be part of a Senate energy bill expected next week.

Hosted by Senate Energy and Technology Committee Chair John Fonfara (D-Hartford), the forum focused on innovative ways to contain the high cost of electricity. Legislative leaders and representatives from the energy industry participated in the forum.

Speakers commented that innovation taking place in today’s energy marketplaces is translating into reduced costs and greater efficiencies for energy consumers in other states. The speakers also said that similar near-term benefits for Connecticut consumers could be realized if state policy leaders encourage energy markets to offer products and services that can help drive down today’s high energy costs.

Joining Sen. Fonfara at the forum was a bipartisan group that included Senate President Pro Tem Donald Williams (D-Brooklyn), House Deputy Minority Leader Bill Hamzy (R-Terryville), the committee’s ranking House member Sean Williams (R-Watertown), and Rep. Kevin Del Gobbo (R-Naugatuck).

Sen. Williams credited Sen. Fonfara for his leadership on the energy issue and for organizing a forum where short-term solutions that could bring down costs and help our economy could be reviewed.

Rep. Williams further noted that cultivating market-based ideas as policy solutions would allow new industries to flourish in Connecticut — and keep expansive and expensive state government from growing even more.

The Energy and Technology Committee is also working on HB-7098, a wide-ranging bill that expands conservation programs created through the Energy Independence Act of 2005 to businesses that upgrade their distributed generation resources. It also streamlines the permitting process for those programs, restores ratepayer-funded energy programs, and avoids imposing any new energy taxes on natural gas and oil.

In addition, the bill proposes some utility-owned generation as a way to lower state energy costs.
But HB-7098 also creates exit fees that could discourage businesses from exploring the alternative energy solutions made possible by the Energy Independence Act.

Government’s role
As new energy technology and service industries evolve in Connecticut, said one speaker at the forum, it would be better to ultimately put state consumers in the position to pick the technologies, services and electricity-purchasing strategies that work best, not state regulators.

State government can, however, encourage greater development of electric generation and transmission capacity. Policy-makers can facilitate the siting of new generation and transmission facilities and avoid unnecessary delays that hurt consumers and the overall economy.

For example, Connecticut ratepayers are being hit with approximately $500 million per year in federal charges because of our deficient energy infrastructure.

A recent study found that Connecticut’s energy costs are fifth-highest in the United States. High costs are adversely affecting the state’s economy. Nearly 80% of CBIA members say the availability of affordable energy in Connecticut is either poor or fair, and 44% say high energy costs are hurting their ability to add jobs or expand operations.

Connecticut needs a long-range energy policy that can ensure more affordable, sufficient and reliable power in the state, as well as an energy infrastructure that can support the reliable generation and transmission of energy here.

CBIA looks forward to working with its members and the Energy and Technology Committee on meeting the economic and energy challenges facing Connecticut.