by Len Fasano
Minority Leader Pro Tempore (R- North Haven)
Connecticut State Senate
The price of a gallon of gasoline was nearly $5.00
just a few short months ago. It has come down in recent
weeks, but is spiking again thanks to Hurricane Ike.
As gas prices in Connecticut today hover just below
$4/gallon, I sense some complacency among legislators
and consumers alike. There seems to be a false sense
of security that, because gas prices have come down
from their all-time highs, we’ve weathered the
storm and are ready to move on to the next “issue
of the day” – the crumbling housing market,
Wall Street’s woes, or the daily bouts of name
calling between presidential campaigns.
Not so fast. The record costs of gas, electricity and
home heating oil still pose a formidable challenge to
working families, small businesses and seniors –
and the problem is not going away. Connecticut needs
to address its energy problems and there is no time
like the present to begin working on a plan.
Gasoline
There are several factors contributing to the high price
of gasoline that are beyond the legislature’s
control, but that does not mean the state can not take
action to lower the price consumers pay at the pump.
As I’ve said before, Connecticut has the second
highest gas prices in the nation and the highest in
the region by far. That’s because our state gas
taxes are higher than all of our neighboring states.
The State of Connecticut is currently taxing consumers
at a clip of nearly 50 cents/gallon. That means the
state is profiting more from your fuel purchase than
the gas stations, credit card companies and federal
government combined!
It’s outrageous. Gas taxes in Rhode Island and
Massachusetts are substantially lower than what we pay
in Connecticut. There is no reason our state can’t
be every bit as competitive. It is past time the state
of Connecticut cut and cap its gas taxes.
We also need to remain vigilant against price gouging.
Fourteen gas stations settled with the Attorney General’s
Office for a total of $84,267 in fines for price gouging
after Hurricane Katrina in 2006. In the wake of Hurricane
Ike, Governor Rell has demanded to look at the books
of Cumberland Farms stations because their prices have
gone up as much as $.40/gallon. The gas stations claim
they are raising prices in accordance with the increases
they had to pay at the wholesale level, but the verdict
is still out. I applaud Governor Rell and the Attorney
General for playing a leadership role in helping to
protect gas consumers. If you see signs of potential
gas gouging at a station near you, please call the Department
of Consumer Protection Hotline at 800-842-2649.
Electricity
As the price of gas has gone up, so too have electric
rates. In January, CL&P requested and was granted
a rate increase of 4.7%, primarily to cover the increased
costs of buying electricity from generators due to skyrocketing
oil and natural gas prices. United Illuminating was
denied a requested rate increase earlier this year,
but has since filed a new notice of intent with the
Department of Public Utilities to increase its electricity
distribution rate. If approved, the average residential
customer’s bill will increase approximately $6/month.
If the price of oil was partly to blame for the initial
rate increases, shouldn’t we soon see a commensurate
decrease in rates, now that the price of oil has come
down? The General Assembly’s Energy Committee
must watch this dynamic closely and Connecticut consumers
must hold their elected officials feet to the fire to
make sure they are performing proper oversight.
Home Heating Fuel
In August, the General Assembly passed a $44 million
energy relief package that significantly expands home
heating assistance programs and energy conservation
tax breaks for low and middle-income families and small
businesses. Under the new law, a family of four whose
bank accounts and annual incomes total less than $94,000
may qualify to receive a one time benefit of up to $400
for heating their homes this winter. Families of four
with incomes and bank accounts totaling less than $31,800
could receive a basic benefit of $885 under the Connecticut
Energy Assistance Program (CEAP) and may qualify for
additional help in an emergency. This legislation will
help thousands of Connecticut families weather the cold
winter season, but there is still more work to be done.
Recently the federal government released the remaining
$7 million in Low Income Home Energy Assistance Program
(LIHEAP) funding left in the FY08 account, but Congress
has so far failed to increase LIHEAP funding levels
for FY09. There are several good bipartisan bills in
both the House and Senate, including Congressman Christopher
Shays’ (R-Bridgeport) Warm Winter and Cool Summer
Act, which would increase LIHEAP by at least $2.5 billion
this year. But election year politics are getting in
the way. If action isn’t taken soon, Connecticut
families who depend on state and federal heating assistance
will find themselves faced with unimaginable decisions.
We cannot allow this to happen.
For more information and application materials for
the multitude of state and federal energy assistance
programs and tax incentives available to Connecticut
residents and businesses, please visit www.senaterepublicans.ct.gov/energy.
Senator Leonard Fasano represents the 34th Senatorial
District, which includes the communities of East Haven,
North Haven and Wallingford.
For further information, Senator Fasano’s
press contact is Brett Cody, who can be reached at 860-240-8806,
or via e-mail at Brett.Cody@cga.ct.gov.
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