Gov. Dannel P. Malloy has unveiled a $5.2 billion comprehensive energy strategy for Connecticut residents and businesses, aimed at lowering energy costs, creating jobs and protecting the environment.
The cost of the plan would be paid by roughly $3 billion in private capital funding and about $2.2 billion in customer and energy company financing and bond funding.
The Department of Energy and Environmental Protection (DEEP) developed the plan, which includes an analysis of the state”™s current energy use, challenges and opportunities about meeting future energy needs and recommendations for cheaper, cleaner and more reliable energy systems for the state.
There are two major elements to the plan, which is expected to create at least 10,000 new jobs. The first involves making natural gas a more affordable option for more than 250,000 residents and 75 percent of businesses within seven years. The second requires a review of Connecticut”™s existing renewable energy options and raising the state”™s current goal of having 20 percent renewable power by 2020.
“Our environmental, energy and economic challenges are all related ”“ and tackling them together offers the best chance to lower the cost of electricity and heat for our families and seniors,” Malloy said in a speech announcing the plan. “(It”™s) the best chance to lower the cost of power and make our businesses and industries more competitive so (they) can create the jobs that our residents need.”
Malloy announced the plan Oct. 5 at a Connecticut Business and Industry Association energy conference in Cromwell.
About 31 percent of Connecticut households use natural gas for heat, whereas 53 percent of households do nationwide, Malloy said. Forty-seven percent of households use natural gas in Massachusetts and 72 percent use it in New Jersey.
“We will achieve dramatic environmental and public health gains through greater reliance on a cleaner fuel such as natural gas and reduced energy demands through efficiency measures,” stated Daniel Esty, DEEP commissioner. “These steps will significantly reduce the level of pollution put into our air and help us all breathe easier.”
Natural gas can cost nearly half the price of oil and with new reserves available, an investment in the infrastructure to pipe gas to homes and businesses would eventually be recovered through the savings it would provide, Malloy said.
Malloy estimated creating an underground pipe system to homes would cost about $815 million, financed through distribution charges on customer”™s bills, which would still be lower than oil energy bills.
To create “anchor” pipelines for schools, businesses and hospitals, the expansion is estimated to cost $1.4 billion. Malloy said he was especially interested in community input about the best ways businesses would be able to finance this aspect.
“Think about it. If I tell you that you can save money by converting to natural gas but it will cost $7,000 or $8,000 to connect and get your new furnace and appliances, you might decide to pass,” he said. “But, if I tell you there are minimal out-of-pocket expenses and that you can finance all this over time for a monthly cost that is less than your current bill, you are likely to make the move.”
There will be a two-month long period of public feedback hosted through series of technical meetings and public hearings. A public hearing will be hosted Nov. 14 at the Bridgeport City Hall at 6 p.m. A copy of the plan is available at ct.gov/energystrategy.
