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AG Kilmartin Urges Connecticut to Drop "Power Plant Tax"

As a result of the tax assessed on all major power plants in the State of Connecticut that took effect in Connecticut in 2011, a study by ISO New England has found that all New England electricity ratepayers, not just residents in Connecticut, would pay approximately $58 million more to purchase electricity because of the tax, with 75 percent of the high energy costs borne by ratepayers outside Connecticut, including Rhode Island ratepayers.

In response to the study, Attorney General Peter F. Kilmartin, joined by Massachusetts Attorney General Martha Coakley, sent a letter to Connecticut legislative leaders urging they abandon the tax.

In the letter, Attorneys General Kilmartin and Coakley write, "New England's relatively high electricity costs are an economic drag of each of our states and New England as a whole… As our commercial and industrial ratepayers attempt to compete with other businesses across the country and the world, high electricity costs hurt their ability to keep jobs and bring new jobs to the region. Meanwhile, our residential ratepayers are still feeling the effects of the recession and higher electricity costs make it harder for them to afford other basic needs."

The generator tax is set to expire this year, although CT Governor Daniel P. Malloy included a re-authorization of the tax in the FY 2014-15 budget.

Attorney General Kilmartin added, "Connecticut is not alone in facing budget challenges, but this tax is inappropriately and unfairly raising the rates of Rhode Island families and businesses in order to benefit Connecticut's coffers."

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