HARTFORD – The Connecticut Bond Commission on Friday, Aug. 1, approved using $155 million in general obligation bond proceeds to reduce ratepayers’ electric utility bills. The reduction will take effect in the middle of this month.
Specifically, the funds will move the burden for paying for two elements of the public benefits charge (PBC) from the ratepayer to the taxpayer.
“The billion dollars in general obligation bonds includes taking $155 million out of the public benefits charge and move that over to bonding,” Gov. Ned Lamont said. (We will) “pay that over a longer period of time, reduce your electric bills by a little bit. Hopefully, that makes a difference as part of the bipartisan bill we passed.”
Bond proceeds will be used to pay for $125 million for hardship protection measures within the system benefits charge and pay for $30 million to pay for any state electric vehicle program.
Lamont’s office points out that the customer savings that would be achieved by this state bond funding comes in addition to the 25% reduction in public benefits charges that the Public Utilities Regulatory Authority approved this past May, as well as the 13% reduction in supply rates for Eversource customers and 14% reduction in supply rates for United Illuminating customers that went into effect on July 1.
When asked by state Rep. Joe Polletta, the Ranking Member of the Finance Revenue and Bonding Committee, how much savings ratepayers will see on their monthly bill, Claire Coleman, the state consumer counsel, said about $5-$10.
“I helped with some of the legislative discussions about this part of the bill and I am actively participating with the proceedings with the Public Utilities Regulatory Authority, which are ongoing right now,” Coleman said. “We have a draft decision from PURA anticipating the Bond Commission will approve this funding, which will become final in mid-August.”
“For the first two (bond commission agenda) items, we anticipate about $5-$10 in savings on electric bills,” she added. “That is a conservative estimate. It depends on the type of customer you are – residential or commercial – and the utility provider you have. Some will go above that, about $12-$13 a month.”
State Republican leadership called the Democrat-led solution to the high electric bills “a temporary fix.’
Sen. Ryan Fazio and Sen. Stephen Harding issued the following statement regarding today’s State Bond Commission vote to approve $155 million in bonding in order to reduce the Public Benefits Charge on electric bills.
“Today, the State Bonding Commission approved approximately $150 million in borrowing to fund a portion of the public benefits charge on electric bills,” said state Sen. Ryan Fazio and Sen. Stephen Harding.
“While it may sound like relief, the reality is this simply shifts a fraction of the $1 billion per year burden from ratepayers to taxpayers.
They reminded the public that Senate Republicans had put forward what they call real, lasting solutions to address Connecticut’s electric rate and affordability crisis, including the full elimination of the Public Benefits Charge.
“With the 3rd highest electric rates in the nation, residents deserve more than a temporary fix,” they added. “They deserve true affordability and long-term economic opportunity.”
Norwalk projects funding
The State Bond Commission on Friday also approved $24.67 million in state aid for two major Norwalk projects. The includes $22 million renovation at CT State Community College Norwalk, and a $2.5 million investment in the Norwalk Maritime Aquarium’s “An Aquarium Without Walls” strategic plan, which aims to deepen the community’s connection with Long Island Sound.
