Conn. lawmakers mull energy reform bill

Hartford, Conn., Mar 08, 2007 -- AP

There is agreement at the state Capitol these days about the need to find ways to conserve electricity, encourage energy efficiency and promote renewable forms of energy such as solar and wind.

But as state lawmakers attempt to craft a compromise bill that addresses skyrocketing electric rates and plans for future energy needs, there's disagreement over whether Connecticut should roll back the 1998 restructuring law and re-regulate part of the electric industry, or else embrace competition.

The last of a series of public hearings on energy reform was held Tuesday. Rep. Stephen Fontana, D-North Haven, co-chairman of the legislature's energy committee, said the panel must now come up with a bloc of reforms it can move to the full House of Representatives and Senate for consideration.

"Clearly we have a lot of different ideas out there," he said. "Our goal is to ultimately bring it all together so we have one package."

This year's legislative session ends June 6. Fontana said he expects the committee's leaders will meet privately with the House speaker and Senate president to hammer out a compromise in the coming weeks.

Many state lawmakers are dismayed by the lackluster results of the 1998 law, which allowed private power companies to enter Connecticut's regulated market. They claim the law, approved by lopsided margins in the legislature, hasn't delivered the promised low prices and competitive electricity market in the state.

At Tuesday's hearing, which stretched into the night, legislators heard from wholesale energy companies that urged Connecticut to do more to promote a competitive retail electricity market and ultimately provide customers with more choices.

"You haven't made it particularly attractive to mass market retailers," Daniel Allegretti, vice president of regulatory affairs for Constellation Energy Commodities Group, told state legislators.

But there's also some support among lawmakers for a competing proposal that allows the state's two public utilities -- Connecticut Light & Power and United Illuminating -- to get back into the power generating business, under state regulation. Proponents claim such a move will lead to more stable rates for consumers. CL&P is a unit of Northeast Utilities; United Illuminating's parent company is UIL Holdings Corp.

Senate President Pro Tem Donald E. Williams Jr., D-Brooklyn, urged his fellow legislators to reach a compromise.

"I don't care if it's deregulation or more re-regulation or some path in the middle," he said. "Whatever offers practical rate relief and stability for our families, our residents and our businesses, that's what I'm in favor of."

Joseph Brennan, senior vice president of public policy for the Connecticut Business and Industry Association, said there is no quick fix for residential and business rate-payers. But he said some short-term solutions could include expansion of conservation and energy efficiency programs. Lawmakers are considering a proposal that would allow electricity customers to pay different rates based on when they use electricity -- such as running a washing machine during non-peak evening hours.

But he said the legislature also needs to focus on long-term planning, such as diversifying Connecticut's fuel source for power generators.

Gov. M. Jodi Rell, a Republican, has called for a new state energy office that would help Connecticut plan for its energy needs. She also wants to replenish state funds that have financed energy conservation programs and renewable energy projects, as well as provide a $200 credit for homeowners who reduce their annual energy consumption.

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