Connecticut House Bill HB05965

Connecticut 2011 Regular Session

• Introduced: 1/24/11
• Refer: 1/24/11

Caption

An Act Repealing Electric Transition Surcharges And Preventing Related Rate Increases.

Impact

Should HB 05965 be enacted, it would directly affect the regulations applied by the Department of Public Utility Control (DPUC). The bill prohibits the DPUC from approving any rate increase for electric distribution companies that would typically follow the expiration of the transition surcharges. By doing so, it would prevent potential hikes in electricity costs that might burden consumers, thereby fostering a more stable pricing environment in the state's energy market.

Summary

House Bill 05965 proposes to repeal existing electric transition surcharges applied to energy customers in the state. The bill aims to amend title 16 of the general statutes, which governs the securitization of certain energy charges, specifically eliminating the charge that was intended to recover stranded costs associated with past energy generation investments. The initiative is championed by Rep. O'Brien and is aimed at providing financial relief to consumers by preventing unnecessary rate increases in the electricity sector.

Contention

While the bill is designed to protect consumers from increased rates, it may spark controversy regarding the financial implications for electric utilities. Some stakeholders argue that repealing these surcharges could destabilize the funding mechanisms that support energy reliability and infrastructure investment. Therefore, while the bill promotes consumer protection, it also raises questions about the sustainability of utility revenues and the long-term impact on energy services.