A coalition of state lawmakers, business and labor representatives and local officials announced their opposition Wednesday to a proposed tax on electric generators that targets the Millstone nuclear power plants in Waterford, The Associated Press reports.
Sen. Andrea Stillman and Rep. Betsy Ritter, both Waterford Democrats, said the tax is punitive and anti-business.
Stillman noted that Gov. Dannel P. Malloy had declared Connecticut “open for business” in his inaugural address earlier this year. “This bill flies in the face of that declaration,” she said.
Ritter said the tax, which would apply to generators of electricity to provide relief for ratepayers, finance alternative energy and raise $340 million in revenue — including $332 million from Millstone nuclear plants — “punitively targets certain large companies and creates a difficult and negative environment” for businesses operating in Connecticut.
Sen. John Fonfara and Rep. Vickie Nardello, who head the legislature’s Energy and Technology Committee that approved the tax last month, did not immediately return calls seeking a response.
Waterford First Selectman Dan Steward, a Republican, said the tax is a “huge concern” to the town because Dominion Generation, which operates the Millstone plants, pays $22 million in taxes, or 30 percent of the town’s tax base.
“This is not a business-friendly rule,” he said.
Steward also criticized the tax plan for targeting the nuclear plants, which are not sources of carbon emissions.
David A. Christian, chief executive officer of Dominion Generation, said the tax would lead to higher electric rates or the plant would be shut because it is uneconomical to operate.
“We believe the tax is onerous and disparate in its impact,” he said.
Supporters have disputed Dominion’s threat to raise rates, saying the tax is structured in a way that it cannot be passed on to consumers.
Keith Brothers, president of the Norwich-New London Building and Construction Trade Council, said southeastern Connecticut has already been hit hard by the recession and weak recovery. The proposed tax could lead to a loss of as many as 1,500 Millstone and building trade jobs, he said.
“Shame on Connecticut if we allow this to happen,” he said.
The opposition announced Wednesday came just two days after a Massachusetts electric company said that the proposed tax would impose a cost on consumers in Massachusetts. The Massachusetts Municipal Wholesale Electric Company said that because it owns 4.8 percent of Millstone Unit 3, the proposed tax would cost the Massachusetts company and customers $9.3 million a year.
