Electric reform

"After months of work, the Legislature's Energy and Technology Committee couldn't figure out how to deal with rising electricity rates and opted Tuesday to send four bills to the floor for further crafting." That's how the CT Post (by Rob Varnon) described the "action" to be taken by the legislature on "electricity reform."

This is no real surprise to me. Despite unending calls for reform, there's a chasm of difference between the competing interests in the legislature... and no, not between Rs and Ds... but within the Democratic caucus... and it's very pronounced within Speaker Amann's own House caucus.

In December, Jim Amann wrote in his own press release "Neither the Governor nor Attorney General offered a long term solution. Their call to simply delay electric rate hikes scheduled for January would only cost ratepayers more in the long run while not addressing the underlying problem.

Our Attorney General’s answer is to impose a ‘windfall profits’ tax on energy producers. While sounding attractive in the short term, this approach could have a disastrous impact on our costs and energy supply in the future. Maybe that is why no other state has gone this route?

Trying to pass a law to lower energy costs is a very complex and potentially risky issue. It is critical that we get it right. This crisis didn’t emerge overnight, and we can’t get out of it overnight either.

It is going to take a thoughtful, deliberative approach to develop the sound energy policy that is needed. Knee jerk political posturing only gives residents unrealistic expectations of immediate relief."

Supporting AG Dick Blumenthal (and opposing Speaker Amann) is the Vice Chair of the Energy & Technology Committee, State Rep. Vickie Nardello. She believes that implementing an excess profits tax "is the only thing you could do immediately to help consumers." (WRA, Dec 7, 2006)

Personally, I don't think another tax is the way to address our skyhigh electric costs. (Besides, I think the electric generators who would pay the lion's share of this tax are the nuclear generators, as they're the most profitable because they don't have to pay fuel costs... often natural gas or oil. And I'm pretty sure that many of their costs (disposal of nuclear waste) are borne by the federal government.)

My strong hope is that everyone can come together and compromise on a comprehensive reform which will positively address the high cost of electricity, as well as address our addiction to oil. (Remember... as I just mentioned, a significant amount of America's electricity is produced using oil.)

Tim White