The current Connecticut state budget proposal extends the tax on electricity generators for another year at a lower amount.
The tax is supposed to sunset on June 30, but instead will be extended for one more year at 40 percent of its current amount, said Dan Dolan, president of the New England Power Generators Association.
The budget proposal hasn’t been made public yet, but the reports from Gov. Dannel Malloy’s budget team and the statehouse Democrats says the tax will collect $30 million for one year instead of $70 million.
“We’ve been told that, but we still haven’t seen the language,” Dolan said.
The current tax requires power plants to pay $2.50 into state coffers for every megawatt of electricity generated. The tax first was enacted in 2011 under the promise of sun setting after two years.
Because of Connecticut’s state budget crisis, Malloy originally proposed extended the tax for another two years at its current rate. Democrats in the Capitol took the measure out of the budget, before the two sides started negotiating a compromise.
“We are pretty disappointed it is getting extended, but we recognize it is getting lowered,” Dolan said. “It has been substantially improved.”
