Lamont: Let’s make Connecticut more affordable

HARTFORD –  The costs of healthcare, education, home ownership, and energy are too high for Connecticut residents. That’s why Gov. Ned Lamont wants to make it make more affordable to live in the nutmeg state.

In his annual State of the State address in the state Capitol Hall of the House of Representatives, the Democratic governor focused on his administration’s achievements over the past year while also acknowledging more has to be done.

“As always, our north stars are affordability and opportunity, holding down costs of energy and healthcare and education, allowing you to keep more of what you earn and providing you the tools to let you earn more, buy a home, start a business,” he said.

“We have significantly increased the minimum wage – and no that was not a job killer, we have more private sector jobs than ever before. We made it easier to start a family with one of the nation’s most robust paid family and medical leave programs, and yes, it is solvent.”

Republican state Sen. Tony Hwang of Fairfield, who is a ranking member on the Aging, Insurance and Real Estate, and Transportation committees, applauded the governor for focusing on making Connecticut more affordable and creating opportunities for state residents. But he also honed in on the achievements of the fiscal guardrails that were put in place that have helped the state pay down its debt in a timely manner and keeping it solvent.

“I share those goals (of Gov. Lamont),” Hwang said. “We are in a strong economic position due to the implementation of the state’s fiscal guardrails which have injected discipline into government spending. We must continue to keep our state’s finances in good order to ensure that the State of Connecticut maintains this positive economic path. This means solidifying our commitment to keeping these fiscal guardrails in place.”

However, Lamont didn’t mention the fiscal guardrails – legislation put in place in 2017 to create a spending cap and limit bond issuance – at all in his speech.

State Senate Pro Tempore Martin Looney, who represents New Haven and Hamden, made it a point to recognize that a lot of the legislature’s accomplishments have been due to bipartisanship. And that Democrats should remember that as they move forward on issues such as high energy costs.

“While this chamber now boasts a historically strong Democratic majority, let us not forget that our most enduring achievements have always come from working together,” Looney said. “Bipartisanship is not a relic of the past but a guiding principle for our future. To my Republican colleagues, your perspectives and good faith contributions to sustaining state government as effective, accountable, and sufficiently empowered are always welcome.”

Energy costs will most likely be a top priority, based on the simple fact that a large amount of Lamont’s speech was dedicated to it.

During the one of the hottest summers on record, state Republicans and some Democrats pushed the governor to hold a special session to address the high electric bills. Bills increased suddenly because payment for a power purchase agreement for the nuclear power Millstone plant kicked in starting in July while a regular rate increase went into effect for United Illuminating and Eversource customers. At the same time, ratepayers could see how much the public benefit charge – which includes a temporary payment for the Millstone deal – cost in addition to other costs covered by that charge. The PBC also funds renewable energy, energy efficiency, low-income assistance, and low-emissions energy production programs.

“Two years ago from this same dais, I asked the Energy and Technology Committee to work with us to evaluate how to best make electricity more affordable, by increasing supply and reducing demand,” Lamont said. “These high prices impact all of us – working families, seniors on a fixed income, small businesses and large manufacturers,” Lamont said. “Everyone was mad as hell looking at their bills following the hottest July in recorded history – so was I.

“Every business thinking about expanding in Connecticut or moving here asks about – no, not incentives – but the reliability and affordability of our electricity, as everything we do gets more energy intensive.”

As an allusion to the Republican’s call for a special session on energy and the high electric bills, the governor pointed out that shifting costs from ratepayers to taxpayers or increasing the size of the Public Utilities Regulatory Authority (PURA) “won’t make a dime’s worth of difference.

“What can make a difference, however, is increasing supply, especially low-carbon supply, starting with our investment in Revolution Wind, which is under construction right now, more commercial solar from Maine … and don’t forget hydro from Canada.”

State Sen. Ryan Fazio, the Republican ranking member on Energy and Technology Committee and Finance committees, hopes the legislature will push for lower electricity costs by legislative action. Even if you exclude the Millstone plant costs from the PBC, consumers are paying $400 a year in extra costs on their electricity bills, according to the Fazio, who represents Greenwich, Stamford and New Canaan.

“I think the governor was correct to focus on affordability generally,” Fazio said. “The cost of electricity is too damn high in the state. Not only does policy contribute to high energy rates, but to other bills as well. I believe there will be an energy bill coming out of the legislature this year. I hope it is substantial and bends the cost curve down.”

While the governor believes the key to lowering energy costs is raising supply while lowering demand, he did acknowledge that ingenuity and innovation could be a key as well. During his speech, he took time to praise a Shelton company for the work it has done with businesses in the state.

“I want to give a shout-out to Budderfly, a Connecticut company which is reducing electric bills for companies in Connecticut and beyond through better insulation, heat pumps, solar arrays – all with no upfront cost to the customer,” he said.