A bill sponsored by State Senator Thomas J. Herlihy, R-Simsbury, that aims to bring about a fairer apportionment of electric utility costs to ratepayers throughout Connecticut was heard today in front of the legislature's Energy and Technology Committee. Sen. Herlihy has been a sharp critic of the Connecticut Department of Utility Control's (DPUC) plan to charge all of Connecticut's electric ratepayers for transmission problems occurring in southwestern Connecticut.

According to Sen. Herlihy, plans to cover costs caused by the electric congestion problem of the region could cost all of Connecticut's 2 million ratepayers up to $308 million this year, which does not include the $1 billion plus dollar cost to upgrade the transmission line. He said that if separate electric rate zones were to be created it would relieve areas of the state, which for years have allowed these intrusive power lines in their communities, from yet another burden. "The problems we are facing right now in terms of reliability are centered in one region of the state, for the entire state to be asked now to foot the bill is simply not justifiable in my opinion," said Sen. Herlihy. "Why hasn't Connecticut done what Massachusetts has done? They have three separate zones with the Boston zone paying more because of the congestion problems in that area."

Sen. Herlihy, who serves as Ranking Member of the Legislature's Energy & Technology Committee, says it's troubling that while the Federal Energy Regulatory Commission (FERC) sees this as local problem, the DPUC sees it as a statewide problem. "I've said many times that FERC does not believe a town in one state should subsidize a town in another state if there's a problem in one town. Yet, if you apply this economic theory within our own state, then people in Torrington and Simsbury and Hartland must wonder why they should have to pay for such problems in Westport," said Sen. Herlihy.

Sen. Herlihy has estimated, based on arguments and analysis provided by FERC, ISO and Connecticut Light & Power, that residents may be subsidizing southwest Connecticut residential ratepayers by as much as $150 per year, small business owners by $500 per year and large towns, cities and industrial ratepayers by as much as $5,000 to $15,000 per year based on their amount of use. Savings from separate electric zones could offset increasing property taxes in every town and city outside southwestern Connecticut.