House Republican Press Release

December 18, 2006

Press Office: 860-240-8700

Miller Calls for Review of Electric Industry

Legislator Wants Committee to Re-Write “Failed” Deregulation Law

HARTFORD- Claiming that energy deregulation has “failed,” State Representative Larry Miller (R-122) today issued a call for the State Legislature to review the current status of the electric industry, and to form a panel that would review and recommend reforms to deregulation laws concerning the electric industry.

Beginning January 1, 2007, United Illuminating will be instituting a rate increase of 42.7% for commercial customers, and 66.0% for industrial customers.  A 24.7% rate increase for residential customers will begin at the same time.  Further increases throughout the year will nearly double that increase in 2007.

“The current state of our electric industry has made me angry, disgusted, and frustrated,” said Miller.  “Connecticut is one of the most liberal states in the nation, and also one of the least business-friendly.  And now, starting with the New Year, we will add having the highest electric rates in the continental United States to that list of sad distinctions.”

Miller noted that the massive increases in the cost of electricity would have terrible consequences for residents, businesses, and the state’s economy.  “These increases will be the difference between the middle class being able to make ends meet and being unable to.  They will likely be a key consideration for businesses which might have otherwise located in Connecticut deciding to locate elsewhere, and they will almost certainly cause a number of businesses to relocate to another state,” he said.

Miller, who attended an energy summit on December 12^th at the Legislative Office Building, called on the Speaker of the House and the Senate President to form a bi-partisan committee to examine the failures of energy deregulation, and to propose new legislation within thirty days.  He also called on The Governor to bring together heads of seven agencies that make up the energy bureaucracy, including ISO-NE and the Attorney General’s Office,and get them working together.

According to miller, a number of things that must be considered in the solution to the energy crisis include:

• Immediate implementation of new technologies and fast-track new generation methods
• De-centralization of power plants that can reduce electrical costs by millions
• Encouraging and Supporting the Resource Recovery facilities expansion
• Support municipally-owned electric providers
• Allow existing facilities to install 500-750 MW of generation subject to the same rules governing independent generation operators
• Work with the New York State Energy Research and Development Authority (NYSERDA), the East Coast leader in bio-fuel and bio-diesel programs that are years ahead of Connecticut
• Expand the promising use of distributive generation (DG) and Combined Heating and Power (CHP) initiatives instituted by DPUC.  GE and Pratt &Whitney are instituting this technology globally, yet state buildings, for example, have not been listed as potential sites for DG or CHP technologies.  Incentives should be offered to these companies to develop these technologies here.

“Connecticut has to lead by example,” said Miller.  “This is a crisis that will burden our citizens and destroy our economic vitality.  The actions we take over the next year will determine whether we will allow our state to economically grind to a halt while breaking the bank accounts of ratepayers or not.  We have a unique opportunity to become an innovative leader in the world of energy generation technology.  The time to act is now.”