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February 12, 2007

Immediate Action Needed on Energy Rate Relief
By State Senator Dan Debicella

I would like to start by thanking the editors of the Stratford Bard (Shelton Weekly) for offering me this space every other week. My goal is to keep you informed of many of the critical legislative issues we are working on at the State Capitol and ensure that you know how they are impacting your life in Stratford (Shelton).

It’s no secret that energy rates in Stratford (Shelton) and across the State are escalating to all time highs. In fact, with these recent hikes, Connecticut taxpayers now have the highest electricity rates in the continental United States. Working families are being hit hard by these unfair rate increases from United Illuminating and it is the responsibility of the legislature to act immediately to help solve the problem.

However, providing relief for families and small businesses is going to take an extended effort on the part of the General Assembly. We need to act quickly, but at the same time we also need to develop an extended plan to ensure rate relief down the line.

That’s why my energy proposal consists of short, medium, and long-term solutions to establish an affordable and, as importantly, sustainable energy policy for state residents.

In the short term, we need to immediately eliminate the sales tax on electricity and natural gas. I have already introduced legislation that would suspend the Public Service Company (PCS) tax on gas and electric bills and use $100 million of our state surplus to cover the costs. While this 6% tax cute will not totally offset the increase from UI, it will mitigate it significantly. Any real relief we can provide for working families and small businesses at this point is certainly worth it.

Our goal in the medium term should be to fix electricity deregulation. In my view, the root cause of this price increase lies in a structural problem in electricity generation. Deregulation was supposed to bring more electricity supply and competition to Connecticut, but it has failed miserably. You need to look no further than your most recent electric bill to know that. Our demand for electricity keeps increasing, but, unfortunately, our supply does not. We need to start looking at changing the deregulation laws to promote more electricity generation and competition to bring down prices in Connecticut

Finally, in the long term, Connecticut needs to move towards exploring alternative sources of energy that are both sustainable and environmentally friendly. That is the best way to increase our power supply for current and future generations of Connecticut residents.

Right now, there is no definitive answer on exactly which alternative fuel or fuels might provide Connecticut with the most value. Because of this, I believe we need to invest state efforts into exploring economically feasible options such as fuel cells, biodiesel, and water power. This session I have proposed legislation that specifically encourages research on many of these alternative fuels, including biodiesel.

There is not one simple solution to Connecticut’s energy crisis, but it is certainly solvable. But it’s going to take dedication from the members of the General Assembly in the short, medium, and long term to get it done. I believe that my proposals address the most critical problems with the current system and I will continue to work with my legislative colleagues throughout this session to see that the appropriate changes are made.

I value your feedback so please do not hesitate to contact me with any questions or comments you may have on this proposal or if there is anything I can do for you or your family. I can be reached by phone toll-free at (800) 842-1421 or by e-mail at dan.debicella@cga.ct.gov.