REPORT ON BILLS FAVORABLY REPORTED BY COMMITTEE

TITLE OF BILL:

AN ACT CONCERNING ELECTRIC DEREGULATION AND THE GROSS RECEIPTS TAX.

SPONSORS OF BILL:

REASONS FOR BILL:

The cost of electricity in Connecticut at the wholesale level has dramatically increased over the last year due to the high cost of energy and has greatly impacted the cost of generation services. The previous electric deregulation legislation left the Gross Earnings Tax for municipal utilities left on the generation component and has caused them more tax than private generation companies. This bill levels the tax between municipal utilities and private generation companies. It also had municipal utilities contribute to the Renewable Energy Investment Fund but the substitute language changed the requirement to have municipal utilities submit a comprehensive report on their activities with regards to promotion of renewable energy resources at the end of every year.

RESPONSE FROM ADMINISTRATION/AGENCY:

None.

NATURE AND SOURCES OF SUPPORT:

James Sullivan of Norwich Public Utilities supports the bill for making the Gross Earnings Tax more fairly balanced between municipal utilities and private utilities but did not want the municipal utilities contributing to the Renewable Energy Investment Fund due to their extensive activities involving renewable resources (changed in the JFS bill). Similar testimony was made by the Connecticut Municipal Electric Energy Cooperative, Groton Utilities, Town of Wallingford (2) and the Connecticut Clean Energy Fund.

NATURE AND SOURCES OF OPPOSITION:

None