House Republican Press Release

April 10, 2008

Press Office: 860-240-8700

Bill to help towns and cities save on electrical costs moves forward

The state House of Representatives has unanimously approved legislation that could help towns and cities buy electricity at the lowest available cost. It now goes to the state Senate for final legislative approval.

The legislation, House Bill 5326, bill expands the types of customers to whom electric companies must provide “standard service” to include municipal and school district customers.

State Rep. Kevin M. DelGobbo supported measure. He said, “To the extent that we can, this legislation will help municipalities save money on utility costs. It also helps to reduce pressures on the local property tax.”

Under current law, companies must provide standard service to customers who have not chosen a competitive supplier, unless their maximum demand is 500 kilowatts or more or they have a demand meter. The companies must provide “last resort service” to customers who have not chosen a supplier whose demand is above this amount or who have a demand meter. There are several differences in how power is procured for these two services and how they are priced.

The bill requires the companies to put municipalities and school districts on standard service, regardless of their demand. But, it bars a municipality or school district from being on standard service if it was previously served by a competitive supplier unless it agrees to stay on standard service for at least six months.