Alternative Energy Suppliers Rally Against New Energy Bill

Alternative energy suppliers in Connecticut have urged Governor Rell not to sign a controversial energy bill passed by the legislature. The bill would put much tighter restrictions on the ways electricity can be sold in the state. WNPR’s Harriet Jones reports.

Since deregulation more than ten years ago, Connecticut’s retail electricity market has seen only a modest increase in competition – the scene is still dominated by the two legacy utilities, Connecticut Light & Power and United Illuminating. But some private suppliers are now gaining a toehold in the state, and they’re disturbed by provisions in the energy bill passed last week by the legislature. It outlaws some marketing practices, and it also seeks to impose price caps on electricity as a way to lower rates. Mike Perna of New York-based supplier ConEd Solutions says other states have tried this tactic unsuccessfully:

"In Maryland, they put some artificial price controls and held them for as long as I guess was possible, and then when the price controls came off, of course electricity prices had risen considerably in those ensuing years, and right out of the box, residential customers were faced with something like a 70% price increase as a result of those artificial price caps."

There’s also been opposition to the bill from regulators. The measure would create a new state agency, the Connecticut Energy and Technology Authority, which would assume the powers of the current Department of Public Utility Control. The chairman of the DPUC has said the plan will hamper the process of regulation. Governor Rell has not yet said whether she will veto the bill.

For WNPR, I'm Harriet Jones.