Connecticut's electric deregulation system has been a disaster for home electricity customers in Connecticut. It has pushed our electric rates to the highest in the nation and it has been widely discredited nationwide.
Today's New Britain Herald reported on legislation that I voted to approve last week in the state House of Representatives that would roll back the failed electric deregulation system for residential customers:
The reason deregulation was approved by legislators before I was elected was because the people of our state were told, incorrectly, that electric rates would go down because deregulating the electric market would allow people to choose who generates their electricity. The idea is that the old electric utility companies - for New Britain and Newington, CL&P - would continue maintain the power lines taking electricity to our homes, but each household would be allowed to choose which company makes the power they, individually, would use.
So you and your neighbor could be buying electricity from different companies, even though it would come through the same wires. If that sounds like it does not make much sense, you are correct. The system was designed to make it look like there was a real market in which you can choose the best price for electricity like you choose the best price for a dozen eggs but, in truth, it is complicated mess that allows companies that own power plants and Wall Street traders to make great profits at customers' expense.
That is why, it seems from the moment it became law, the promise of lower electric rates disappeared. By the time I took office, even the advocates for keeping electric deregulation had to confess that deregulation was never going to lower electric rates. In fact, they actually made the argument that electric rates would have to go up even more than they already had to attract more electric generation companies to the Connecticut electric market. Most people I talk to do not care about choosing which company "makes" their electricity if it costs more to have that "choice". They just want lower electric rates.
That is why have worked to undo the failed electric deregulation system. Two years ago, I thought that we were close to accomplishing just that. But the legislation that would have done it was defeated. In its place, legislation arguably made things worse was approved.
That is why it is so good that, two years later, we won approval the state House of Representatives for rollback of electric deregulation by a 103-39 vote.
I hope that this legislation, combined with another bill that would create an organized and publicly accountable system for providing electricity in our state will become law this year.
In truth, however, both bills face an uncertain fate in the State Senate. Hopefully, the Senate and Governor will approve this important legislation.
Today's New Britain Herald reported on legislation that I voted to approve last week in the state House of Representatives that would roll back the failed electric deregulation system for residential customers:
With the old, "regulated" electric market, utility companies had to keep their prices down based on how much it actually cost them to generate electricity and deliver it to us. The system was never perfect, but compared to the current problems with electric rates, it kept prices lower.“The people I represent want lower electric rates,” [Rep. Peter] Tercyak said. “For over 90 percent of customers, deregulation hasn’t worked. It’s led to the highest electricity rates in the nation.”O’Brien, who has advocated repeal of electric deregulation since first elected in 2002, said the end of deregulation would be a victory for consumers who have watched rates climb over the years.“The people of our state have been waiting a long time for this,” O’Brien said.
The reason deregulation was approved by legislators before I was elected was because the people of our state were told, incorrectly, that electric rates would go down because deregulating the electric market would allow people to choose who generates their electricity. The idea is that the old electric utility companies - for New Britain and Newington, CL&P - would continue maintain the power lines taking electricity to our homes, but each household would be allowed to choose which company makes the power they, individually, would use.
So you and your neighbor could be buying electricity from different companies, even though it would come through the same wires. If that sounds like it does not make much sense, you are correct. The system was designed to make it look like there was a real market in which you can choose the best price for electricity like you choose the best price for a dozen eggs but, in truth, it is complicated mess that allows companies that own power plants and Wall Street traders to make great profits at customers' expense.
That is why, it seems from the moment it became law, the promise of lower electric rates disappeared. By the time I took office, even the advocates for keeping electric deregulation had to confess that deregulation was never going to lower electric rates. In fact, they actually made the argument that electric rates would have to go up even more than they already had to attract more electric generation companies to the Connecticut electric market. Most people I talk to do not care about choosing which company "makes" their electricity if it costs more to have that "choice". They just want lower electric rates.
That is why have worked to undo the failed electric deregulation system. Two years ago, I thought that we were close to accomplishing just that. But the legislation that would have done it was defeated. In its place, legislation arguably made things worse was approved.
That is why it is so good that, two years later, we won approval the state House of Representatives for rollback of electric deregulation by a 103-39 vote.
I hope that this legislation, combined with another bill that would create an organized and publicly accountable system for providing electricity in our state will become law this year.
In truth, however, both bills face an uncertain fate in the State Senate. Hopefully, the Senate and Governor will approve this important legislation.
