May 21--Senate Democrats in Hartford have sent constituents mail touting their work on bills to reduce energy costs.

But for the second year in a row, philosophical differences between Senate and House Democrats over deregulation could jeopardize efforts to pass any bills before the session ends June 6. "I think we're certainly at risk of nothing happening because of the gulf between the two chambers over the fundamental question of whether we should have a competitive marketplace in Connecticut," said Joseph Brennan, senior vice president of public po icy for the Connecticut Business Association. Senate President Donald Williams, D-Brooklyn, and House Speaker James Amann, D-Milford, last week reiterated their commitment to passing an energy package in the next three weeks.

"Let me be quite clear," Amann said. "There's no way we can leave this legislative session without an energy bill." Williams said he and Amann "are on the same page." "We're looking for solutions," Williams said. "We want to move this forward." The Democratic majority last session failed to address rising energy prices and the electricity market. Talk of convening a special session later in 2006 didn't pan out. Electricity rates were again on the rise when legislators returned to the Capitol in January, and many lawmakers, including Amann, said they regretted voting for deregulation in 1998. That bill, approved 126-17 in the House and 27-7 in the Senate, requi ed Connecticut Light & Power and United Illuminating to focus on distribution, opening the market to competitors.

Legislators soured on deregulation began this session with proposals to "de-deregulate" and again allow utility-owned generation. Others, such as state Sen. Bob Duff, D-Norwalk, a vice chairman of the Energy and Technology Committee, said it is a step backward. "I think somehow trying to turn back to the old ways is a recipe for disaster," Duff said. "It was tried, and it didn't work, which is why that legislature at the time went the route of deregulation." The competing philosophies centered on state Sen. John Fonfara, D-Hartford, and state Rep. Steve Fontana, D-North Haven, Energy Committee co-chairmen.

Rather than working out a compromise in committee, Fonfara and Fontana produced different bills. "Philosophically, the House bill moves in the direction of, I wouldn't say re-regulation, but more government oversight," said state Rep. Kim Fawcett, D-Westport, a member of the Energy and Technology Committee. "And the Senate bill embraces the philoso hy that the first time around when we deregulated we may have failed because we didn't make the market loose enough and bring enough competition into the market." Neither Fonfara nor Fontana responded to requests for comment. Duff said it's difficult to consider two complicated bills.

"Members are waiting for a bill they can analyze and get their arms around," he said. "It's incumbent upon leadership and those on the energy committee to put together the best package so we can explain it to our caucus members." State Rep. William Tong, D-Stamford, who also sits on the Energy and Technology Committee, agreed. "The rank and file like me aren't there yet. We're still figuring it out," Tong said. "People who have been working on this issue for 20 years are on different sides of the debate. You can imagine the learning curve (for) those of us who have been on th s for a few months." Another energy committee member, state Rep.

Lile Gibbons, R-Greenwich, said deregulation isn't the only issue between Fonfara and Fontana. "There's a personality difference between the two chairmen and they've got to get beyond that," Gibbons said. "Maybe the leaders of the House and Senate have the clout to force them to do it." Williams and Amann said a compromise is needed. It's time to move beyond the question, "Is a regulated world better than a competitive one?" Williams said. "The goal is to get the lowest possible rates for consumers," he said. "If we can achieve that through one, the other or a combination of the two, that's fine with me.

But I'm afraid philosophical purity tests are being applied. If we can move beyond th t, then we'll have a bill." Amann said he would like to see "at least a semi-regulated system that does include utilities but has a level playing field for others to compete." Duff said he and state Rep. Terry Backer, D-Milford, submitted a third option. It would allow municipalities to become buying agents, or aggregators, of electricity for non-commercial residents. "I think it would save consumers money," Duff said. Friday, the legislature's Republican minority, led by state Rep. Lawrence Cafero, R-Norwalk, called on the Democrats to act on areas in which there is agreement, such as planning for future energy needs and improving conservation.

"Unless something drastic happens, we are again headed for failure, and that is not acceptable," Cafero said. But Democrats are hesitant to pass piecemeal legislation. "We have to address the more complicated pieces, and we have to resolve those," Duff said. Lobbyists on both sides of deregulation are optimistic three weeks is enough time to reach an agreement. "I think there would be ways to bring the House and Senate together and move forward," said Chris Kallaher, director of government and regulatory affairs for Direct Energy, a Stamford gas and electric retailer. Direct Energy supports Senate efforts to preserve deregulation.

"It's not as though they're starting from a blank slate," Kallaher said. "And if you look at the concepts and specific provisions, there's a fairly small percentage that I think are keeping the two apart." Tom Swan, executive director of the Connecticut Citizen Action Group, which blames deregulation for higher electric rates, said he sees signs of progress. Last week, he held a news conference to support the House proposal. "There's a lot of money being spent lobbying," Swan said. "It's a complex issue. One or two sentences in a bill can literally mean millions" of dollars. Democrats would not speculate on whether they might have to convene a special session this year to pass an energy bill, but Swan said it can happen and might provide an opportunity for the two sides to focus on the subject without the pressure of passin a budget.

No special session materialized last year, but it was an election year so legislators were more cautious, Swan said. Residents' "outrage" over electric rates will bring legislators back to the table this year, he said.