House Republican Press Release

April 11, 2006

Press Office: 860-240-8700

Scribner: Democrats Deny Electric Rate Cut

Partisan Maneuver Blocks Cost Cut 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.

The rate cut was offered as part of an amendment to another bill concerning electric distribution companies.  Representative David Scribner (R-Brookfield) noted that rather than go on the record opposing the amendment, the Democrat majority used a parliamentary procedure to shelve the entire bill.

“Electric consumers could have saved around $60 million annually if this amendment passed,” said Scribner.  “Instead, legislative Democrats weren’t interested in even discussing it.”

Scribner 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.

“Electric rates are astronomical for both private consumers and business consumers,” said Scribner.  “With costs higher now than they have ever been, and a $600 million budget surplus, it’s disgraceful that Democrats refuse to give any money back to the people who earn it.”

Scribner noted that the high costs of utilities are making it harder for residents to make ends meet, and are hurting businesses across Connecticut.  “I have heard a lot of talk from legislative Democrats this session about how jobs and the economy are their big priorities,” added Scribner.  “If that were so, they would offer some relief in an area that truly is choking off economic production.  These high rates have an enormous impact on Connecticut’s economic viability.”

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