Democratic Rift Stalls Energy Reform: Press Conferences Reveal Conflict Over Changes Needed To Stabilize Electric Rates
By Mark Peters, The Hartford Courant, Conn.
May 25–Continuing disagreement among Democratic legislators over energy policy dissolved into a public spat Thursday that threatened passage of reforms meant to address the state’s electric rates, among the highest in the country.
The central dispute is between the chairmen of the legislature’s energy committee — state Sen. John Fonfara, D-Hartford, and state Rep. Steve Fontana, D-North Haven — who have tried for weeks to negotiate a final version of an energy reform bill.
House Speaker James A. Amann, D-Milford, said he is frustrated by the deadlock and expects top legislative leaders to step in next week. The legislature is scheduled to adjourn June 6.
“What I don’t understand is why, in two years, that these two individual chairmen cannot find some common ground with each other,” Amann said.
The deadlock, which many in the Capitol attribute to a personality conflict between Fontana and Fonfara, mystifies him and Senate President Pro Tem Donald E. Williams Jr., D-Brooklyn, Amann said.
“I don’t understand it. Don doesn’t understand it,” Amann said.
Connecticut legislators deregulated the electric generation system nine years ago in hopes of lowering prices. Utility companies, such as Connecticut Light & Power, sold their power plants and now only distribute electricity. Power is now produced by private generation companies and sold on a wholesale market to the utilities and to energy supply companies.
Rates have climbed rapidly in recent years, causing legislators to respond by proposing changes in the market, including more state regulation. But Democrats, who have majorities in the House and Senate, haven’t agreed on how to proceed.
The deadlocked negotiations spilled into the open Thursday, starting with a morning press conference held by Fonfara and Williams.
The senators detailed a bill they said would stabilize and perhaps lower rates by getting new power plants built, promoting more efficient use of electricity, and encouraging households to choose among suppliers to help find savings. They said the bill is similar in many ways to what Fontana and House members are proposing, causing them to question why there is a divide between the two groups.
“For the most part, the differences have been removed, and some of the issues people are pointing at even today simply aren’t true,” Williams said. “They’re going to realize, ‘What is this fight about?’ Why can’t we just move forward with an energy bill?”
But Fontana held a press conference two hours later at which he stressed that differences remain. Fontana said he hadn’t received a copy of the most recent Senate bill and couldn’t point to specifics. He said he is concerned about who will build new power plants in the state; how millions of dollars collected from ratepayers are spent to promote efficiency; and how middlemen who profit from buying and selling energy contracts can be removed from the system.
He and Rep. Vickie Nardello, D-Prospect, vice chairwoman of the energy committee, said new plants need to be built under a regulated system to control electric rates and prevent the runaway profits the current market promotes. They said their bill has been in development for more than a year and has gone through legislative reviews to ensure that consumers are protected.
“There are entrenched positions that are somewhat apart,” said Fontana, who has the support of several consumer advocates, including the AARP. “What I have been about is trying to explore alternatives, explore routes to a solution.”
Dozens of lobbyists for utility companies, power plant owners and retail electric suppliers are closely watching the debate. Annual electric sales in the state amount to billions of dollars, and there is fierce competition among companies for favorable provisions.
No votes on an energy bill are likely until after the Memorial Day weekend. Neither the House nor the Senate is scheduled to meet today.
Contact Mark Peters at mrpeters@courant.com.
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Copyright (c) 2007, The Hartford Courant, Conn.
Distributed by McClatchy-Tribune Information Services.
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