Connecticut lawmakers revive special session on power bill measure

Jun. 12--The Hartford Courant, Conn. Knight Ridder/Tribune Business News

The Energy Independence bill is the state legislature's Frankenstein.

It expired with the session at midnight Wednesday, a victim of inaction by senators upset by last-minute House tinkering with the energy conservation and generation proposal.

Now it's alive again -- jolted back to existence for the special session. It is the only non-budgetary proposal on the four-item agenda of issues that lawmakers consider too crucial to let die.

"There was a problem ... in the House and that's why it never got passed," Senate Minority Leader Louis DeLuca said Friday.

The original bill encouraging conservation and power generation sought to deal with inadequate electricity supplies and a looming $300 million federal penalty for that shortfall, he said.

But a section to let public utilities back into generating power on a small scale prompted a successful House push late June 8 to unplug that language from the bill. In 1998, with deregulation, the major utility companies sold off their generating facilities and began buying power for resale from independent generators inside and outside Connecticut.

Its opponents said the power-generation clause guaranteed Northeast Utilities and United Illuminating up to an $18 million profit.

So the bill was left to expire with the regular session. Minutes later, it was on the call of the special session later this month. It comes back for discussion in its original form, with no amendments.

"There is so much of importance in this bill and the opponents focused just on one tiny aspect," Sen. John Fonfara, D-Hartford, the energy committee co-chairman, said Friday. "We literally had no time Wednesday night to talk to people about it. There was no time for a counter-voice."

"Public utilities are easy, faceless, nameless targets," Fonfara continued. "But if we do nothing to address the new [federal] fees coming in 2006, it's going to cost the public." The bill, he said, "is critical to the economy of the state."

An estimated $300 million or more in new electricity charges will be imposed on the utilities on Jan. 1, 2006, when a federal pricing plan called "locational installed capacity," or "LICAP," goes into effect. The financial incentives in the plan are designed to encourage construction of power plant reserve capacity in places where it is needed most, such as southwestern Connecticut.

But having the bill back again, without any of the changes voted by the House, angers those who backed the amendment striking out the power generation clause.

"We just feel this [re-introduction of the amendment-free bill] will energize the House," Rep. Vicki Nardello, D-Prospect, said Wednesday. Nardello led the House charge. "It illustrates the power of the lobbyists. We defeated this in a fair vote, and now it's back again on our agenda."

"This like nothing else talks to the need for election reform," Rep. Diana Urban, R-North Stonington, said Wednesday. She said she thinks political tactics supplanted the voice of the electorate with the wishes of the utilities.

On Friday, Connecticut Light & Power President Raymond Necci said state law has for several years permitted public utilities to be paid fees to reimburse them for the cost of buying hundreds of millions of dollars worth of electricity to meet Connecticut's demand.

The language objected to by the House would extend an existing arrangement and would have trimmed the reimbursement, tying it to the utilities' purchase of lowest-cost power.

As for the public utilities' return to generation, Necci said, the 250 megawatts allowed under the bill would be small compared with the state's 7,000 megawatts peak appetite.

Connecticut business officials want something to be done to head off the estimated $300 million in new federal electricity fees.

Joseph McGee, vice president for public policy at the Business Council of Fairfield County, said the Connecticut legislature needs to make passage of the energy bill a priority.

"They should get it done. If the only fight is over the issue of the utilities and how you get them back in the generation business and be competitive, that should be worked out," he said.

State Consumer Counsel Mary Healey, who represents ratepayers on utility issues, said she supports the basic features of the bill that will reduce the LICAP charges.

But the procurement fee had nothing to do with that purpose, and she was glad to see it taken out.

 

By Bill Leukhardt and Stacy Wong

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