Re-Regulation Bills Will Impede Electricity Choice, Reduce Savings for Connecticut Residents and Businesses

HARTFORD, Conn., March 15 /PRNewswire/ -- On Tuesday, March 16, the Retail Energy Supply Association (RESA), a leading association of retail energy suppliers committed to the advocacy of competitive energy markets, and its member companies will file detailed comments and testify in opposition to three bills before the Connecticut General Assembly designed to restrict choice and undermine the substantial progress made since the state's electricity restructuring efforts took off in earnest in January 2007.

Specifically, RESA and its member companies will speak in opposition to House Bills 5505, 5507 and 5508.

"Collectively, these proposals strive to remove customer choice for residents and businesses of this state," said RESA President Jay Kooper. "Specifically, H.B. 5505 will stifle competition by creating a state power authority, shifting electricity procurement to a state-run managed portfolio structure, and imposing new restrictions on shopping and choosing a competitive supplier for all customer classes.  Meanwhile, H.B. 5507 contains language that will eliminate customer choice from future educational campaigns.

"Additionally, despite the fact that ISO-New England does not foresee the need for new generation resources through 2018, H.B. 5505 and 5508 propose that a new state agency (the Connecticut Electric Authority in H.B. 5505 and the Division of Electricity Policy and Procurement in H.B. 5508) would "own and operate electric power plants," said Kooper, noting that the authority would be expensive to run and would require a full-time staff.  "Make no mistake, the costs for all of these proposals, the risks of which can total into the billions of dollars, will be borne by Connecticut taxpayers and ratepayers at a time of deep economic recession when they can least afford these costs.

"Furthermore, passage of H.B. 5505 will result in lost economic development and investment in Connecticut in the form of capital, jobs and innovation through the eradication of customer choice that will drive businesses out of Connecticut and leave remaining businesses with fewer options and higher electricity prices not subject to the downward pressures that competition provides," Kooper added.

According to the State of Connecticut Department of Public Utility, as of January 31, 2010, 301,557 customers representing 49 percent of the total statewide electric load, 90.7 percent of the entire large commercial and industrial electric load, 67 percent of the small commercial electric load and 19 percent of the entire residential electric load is served by a competitive electric supplier.

"As currently proposed, this legislation eviscerates the competitive choice model that by all objective measures is effectively working well in terms of providing customers with a variety of energy choices and options, significant savings and innovative products and services that Connecticut's electric distribution companies could not produce under the regulated regime," maintained Kooper.  "It replaces it with a regulated regime that will restrict choice for customers of all sizes, including medium- and large-sized businesses customers.

"In the months to come, we look forward to working with Connecticut's policymakers and stakeholders to make sure that all Connecticut customers, regardless of their size and classification, continue to have access to the array of benefits offered by the existing competitive electricity market," he concluded. "The people and businesses of Connecticut who we all serve deserve no less."

Residential, commercial and industrial customers can let their elected officials know they support energy choice and that energy competition is working for them in Connecticut by visiting www.competitionworksct.com.

About RESA

Headquartered in Harrisburg, PA, the Retail Energy Supply Association is a broad and diverse group of retail energy suppliers who share the common vision that competitive retail energy markets deliver a more efficient, customer-oriented outcome than regulated utility structure. Its members include: ConEd Solutions; Constellation NewEnergy, Inc.; Direct Energy Services, LLC; Exelon Energy Company; GDF SUEZ Energy Resources NA, Inc.; Gexa Energy; Green Mountain Energy Company; Hess Corporation; Integrys Energy Services, Inc.; Just Energy; Liberty Power; PPL EnergyPlus; and, Sempra Energy Solutions LLC. For more information, call (717) 566-5405, or visit www.RESAUSA.org.

SOURCE Retail Energy Supply Association