Hartford, CT – To help Connecticut families and businesses cope with skyrocketing utility rates, Senate Republicans today proposed suspending the Public Service Company (PSC) Tax on gas and electric bills through June 2007.  The full Senate Republican Caucus will introduce legislation January 3 aimed at saving ratepayers an estimated $100 million on 2007 utility bills. 

“Suspending the PSC tax will provide immediate, needed relief to Connecticut families and businesses while the General Assembly works toward a sensible long-term solution to rising energy rates,” said Senate Republican Leader Louis C. DeLuca (R-Woodbury).  “There are a number of variables contributing to skyrocketing utility rates that are beyond our control.  The PSC tax is one variable the legislature can control.”

Connecticut will have the highest electricity rates in the continental U.S. when rate increase for Connecticut Light & Power and United Illuminating go into effect next month. 

Suspending the PSC tax will save ratepayers approximately $100 million over the 6-month period between January 1, 2007 and July 1, 2007.  Residential customers account for 48% of the tax, while businesses and other non-residential customers pay about 52% of the tax.    

“Left alone, Connecticut’s failed energy policy will have a crippling effect on our economy.  It will drive away businesses and make it even more difficult for working families to make ends meet,” said Senate Republican Leader Pro-Tempore John McKinney (R-Fairfield).  “This legislature needs to do everything in its power to provide short-term rate relief while we work to achieve long-term rate stability.  Working toward a sustainable long-term energy policy is a legislative priority for the Senate Republican Caucus.” 
 
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