House Republican Press Release

April 13, 2006

Press Office: 860-240-8700

Hetherington Supports Electricity Tax Cut

Partisan Maneuver Stops Proposal to Lower Costs to Power Consumers

HARTFORD – With a 22% increase on ratepayers having been implemented this year, and power consumers continuing to be gouged by rising costs, legislative Democrats today blocked a proposal by House Republicans that would reduce the public utilities gross earning tax on electric and power companies.  The proposal, which would reduce the residential rate from 6.8% to 4.0%, and the commercial rate from 8.5% to 5.0%, was rejected this afternoon on a party-line vote.

“This proposal would have saved ratepayers around $60 million,” said Representative John Hetherington, R-125, New Canaan, Wilton.  “Legislative Democrats didn’t even want to talk about it.”

Hetherington noted that Connecticut residents have been increasingly burdened by the approval of astronomical power rates this year, which began showing up in residents’ power bills over the winter.

“We have a situation where power use costs more to residents and commercial users than ever before,” said Hetherington.  “We also have over a $600 million budget surplus because state government has over-taxed everyone.  Instead of giving some of that money back to the people who earned it, Democrats are going to spend that too, and offer no relief to power consumers.”

Hetherington noted that the high costs of utilities are making it harder for residents to make ends meet, and are hurting businesses across Connecticut.  “The legislative majority keep saying that jobs are a priority and getting the state economically healthy is a priority,” said Hetherington.  “They apparently don’t understand the impact their actions have on residents and businesses.”

The proposal would have reduced the gross earnings tax by 41%.

The rate cut was offered as part of an amendment to another bill concerning electric distribution companies.  Rep. Hetherington noted that rather than go on the record opposing the amendment, the Democrat majority used a parliamentary procedure to shelve the entire bill.