In his proposed $43.8 billion, two-year budget, Gov. Dannel Malloy wants to extend the tax on power generation in Connecticut that was set to sunset on June 30.
The tax charges power plants $2.50 for every megawatt of electricity they produce and has resulted in about $35 million annually in state revenue since it went into effect in 2011.
Power generators in the state – particularly Dominion, which operates the nuclear Millstone Power Station in Waterford that generates the majority of Connecticut’s electricity – opposed the tax initially because they said it would be based onto electric customers throughout New England.
“Restarting the clock on this electricity tax characterizes Connecticut as not open for business and one that may single out any industry for an arbitrary and punitive tax,” said Dan Dolan, executive director for the New England Power Generators Association. “The proposal harms consumers by adding approximately $70 million to the cost of electricity, at the very time when consumers in the state pay some of the highest electricity costs in the United States.”
