Connecticut House Bill HB05699

Connecticut 2011 Regular Session

• Introduced: 1/21/11
• Refer: 1/21/11

Caption

An Act Providing Relief To Electricity Customers.

Impact

Under this bill, an excess profits tax will be imposed on electricity utility generators whose earnings exceed twenty percent on equity. The structure of this tax is such that any profits above this threshold will be taxed at fifty percent. The revenues generated from this excess profits tax are intended to be redirected into the relief fund established by the bill, thereby providing a mechanism for compensating consumers adversely affected by escalating electricity prices. This legislative move could significantly alter the financial landscape of electricity provision in the state, potentially encouraging utility providers to moderate their pricing strategies.

Summary

House Bill 05699, introduced by Representative Fleischmann, is an act aimed at providing relief to electricity customers in the state. The bill proposes to amend existing statutes to establish a specific account within the General Fund, from which refunds on electric utility bills will be provided to ratepayers. This initiative is particularly focused on addressing the financial burdens faced by consumers due to rising electricity costs and aims to deliver immediate financial relief to households affected by high utility rates.

Contention

Notable points of contention surrounding HB 05699 may arise from stakeholders in the energy sector, including utility companies and consumer advocacy groups. Utility providers could argue that the imposition of a high tax rate on excess profits could disincentivize investment and innovation within the industry, possibly leading to long-term consequences such as reduced reliability or increased operational costs. Conversely, consumer advocacy groups may push for the bill, highlighting the urgent need for cost containment in light of consumer financial strain. This divergence of interests is likely to fuel debate around the bill's implications for both consumer protection and industry sustainability.