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Republicans propose plan to eliminate public benefits charge on electricity bills

Republicans in the state legislature have proposed a plan to reduce energy costs, in an effort to provide relief to consumers as Connecticut faces the second-highest electricity costs in the country after Hawaii.

“Democrats own this problem,” said Senate Minority Leader Stephen Harding. “They’ve been in control for many, many years, and the rates have exponentially gone up. Once and for all, we believe we can undertake this effort to get these legislative proposals passed.”

Harding bristled at a bill proposed by Democrats, the Ratepayers First Act, which consists of just a 20-word statement of purpose: “That the general statutes be amended to provide for improved service and reduced costs for electricity ratepayers in the state.”

“Their alternative to our proposal was literally a bill about nothing,” Harding said, referring to Democrats. “At least steal one of our ideas, we have a list here…”

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Republicans in the state Senate and House of Representatives proposed a joint plan that includes six key points:

  • Remove the public benefits charge from electricity bills;
  • Prohibit agreements that buy electricity at 150% above the wholesale price;
  • Redefine “Class I renewable energy source” to include any electricity generated from a hydropower or nuclear power generating facility;
  • Separate the Public Utilities Regulatory Authority (PURA) from the state Department of Energy and Environmental Protection;
  • Eliminate any incentive program that increases electricity demand, including any electric vehicle rebate program;
  • Study ways to increase the supply of natural gas.

The public benefits charge on customers’ electricity bills skyrocketed in July.

Sen. Ryan Fazio, ranking Senate Republican on the Energy and Technology Committee, blamed state policies and leaders for the high rates of electricity, invoking Shakespeare’s famous line from Julius Caesar: “The fault, dear Brutus, is not in the stars, but within ourselves.”

“The only thing these high bills have not been blamed on is the people in charge of our state,” Fazio said.

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The public benefits charge includes funds for a long-term power purchase agreement with Waterford’s Millstone Power Station, the state’s only nuclear power plant, which was approved by the legislature in 2017. 

Fazio said the state needs to cap agreements to buy electricity at 2.5 times the wholesale price.

He also said the state should classify nuclear and hydropower – along with solar, wind and fuel cells – as Class I renewable energy sources, which are low-emission renewable energy technologies incentivized by the state.

As of October 2024, most of the state’s electricity (66%) came from natural gas-fired power plants, with about 30% coming from nuclear sources, according to the state’s energy profile from the U.S. Energy Information Administration.

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Gov. Ned Lamont recently embraced natural gas and nuclear power, despite state initiatives that prioritize carbon-free energy. Compared to other fossil fuels, natural gas is considered a relatively low emission fuel, though it does produce greenhouse gases. 

The Republican proposal also includes policy changes.

Rep. Tracy Marra, ranking representative on the Energy and Technology Committee, said PURA’s role “should not have anything to do with policy,” and that PURA should be an independent regulatory agency.

Also, she said states need to eliminate programs that increase demand for electricity, while also increasing the supply of natural gas.
 

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