UI rate hike sparks possibility of CT political power battle
Southwestern Connecticut United Illuminating (UI) customers will dig deeper into their pockets after regulators approved a 50 percent rate increase Tuesday.
The Department of Public Utility Control signed off on the energy company?s hike, which will go into effect over a year starting in January. UI says power providers are charging the company more money, forcing the utility to pass on costs to consumers.
State Senator John McKinney (R-Fairfield) wants to suspend the Public Service Company Tax that?s built into utility bills. Republicans say a projected $500 million state surplus would absorb the $100 million the state would lose as a result of the suspension. McKinney says he hopes Democrats will sign the plan, which will be introduced January 3, 2007, to provide immediate relief to customers. The Democrat-controlled Energy and Technology Committee will hold a public hearing on the matter Wednesday.