Candidates for governor take aim at Eversource. The utility says it's 'an easy target'
Republican Ryan Fazio urged state regulators to reject Eversource's 11% rate hike on Thursday. His two opponents are also targeting the utility giant as frustration grows about high electric bills.
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The top three candidates for governor are taking aim at a common enemy – Connecticut’s biggest utility.
On Thursday, Republican Ryan Fazio joined the chorus slamming Eversource for seeking an 11% electric rate increase.
The company shot back, accusing politicians of making it an “easy target” while ignoring the real reasons for high electric bills.
RATE INCREASE?
Connecticut has some of the nation’s most expensive electricity.
“We have completely redone our HVAC system; we’ve completely gone to LED,” said Dawn Maiorano, who owns a funeral home in Waterbury. “And I’m telling you right now, the rates have still gone up.”
They could go up even more. Eversource plans to ask state regulators for a $503 million rate increase. The average residential customer would pay about $25 more a month.
“We’ve reached a point where current rates can no longer support the investments needed to maintain and improve such a massive, capital-intensive system,” said Eversource spokesperson Tricia Modifica. “We want to continue investing in the electric grid to provide customers the safe, reliable service they expect and deserve now and into the future.”
Surrounded by Maiorano and other small business owners, Fazio urged the state Public Utilities Regulatory Authority to reject the increase.
“Electric rates have risen faster than other parts of the country to the point where we have the second-highest electric bills in the country,” he said.
Fazio blamed Democratic Gov. Ned Lamont, who is seeking a rare third term.
“The record of this governor is clear. He is not holding our utilities accountable,” Fazio said. “There’s no excuse after eight years on the job for your state having the second-highest electric bills in the entire country.”
LAMONT: FAZIO IS “GRANDSTANDING”
Lamont insisted he is holding utilities accountable.
“Governors don’t reject rate increases; let’s start with the facts. But I do appoint a really tough-minded PURA board – that’s the regulatory board – that holds Eversource accountable,” he said. “They’re going to go over their rate request very carefully, make sure every dime goes to reliability on the grid.”
Lamont’s longtime PURA chair aggressively rejected rate hikes, but Marissa Gillett resigned amid pressure from GOP lawmakers and lawsuits from Eversource and United Illuminating.
“All Fazio has proposed is grandstanding against regulators with zero-follow through,” Lamont campaign spokesperson Rob Blanchard said. “Gov. Lamont has actually done the work of assembling an independent utility watchdog that holds companies accountable, demands transparency and puts ratepayers first.”
FAZIO’S PLAN
Meantime, Fazio wants to eliminate the Public Benefits portion of your bill, which funds energy efficiency programs, renewable energy and customer hardship programs.
“All these subsidies for private energy corporations, which constitute most of the hidden taxes in our bills, are not on the up-and-up and should be ended or phased out,” he said.
But those “benefit” programs actually pay for themselves, according to a longtime consumer advocate.
“When we invest in energy efficiency and clean energy, at peak times, when it costs the most for us to procure energy, that drives down costs for everybody,” said Tom Swan, with Connecticut Citizen Action Group.
Fazio said Thursday that he would consider shifting energy efficiency programs to the state budget, while phasing-out others.
PUBLIC TAKEOVER?
Josh Elliot said none of that will fix the problem.
The progressive Democrat is challenging Lamont in a primary next month. He said customers will keep paying too much unless there’s a public takeover of the power grid.
“A municipality through eminent domain can take over a grid for public use,” Elliott said on June 10.
Elliott proposed using state borrowing to help local cities and towns purchase the electric infrastructure.
“By bringing it on board and having low bonding rates, it’s actually going to be, over time, significantly less expensive,” he said. “We’re paying through the nose already to ensure that the Eversource CEO gets paid $18 million a year.”
EVERSOURCE: “WE’RE AN EASY TARGET”
Eversource said the candidates are making the company a scapegoat.
“This is an election year and we’re an easy target for politicians, however, our customers deserve better,” Modifica said.
Eversource blames "energy supply constraints and the unregulated supply market that continue to drive half of the customer electric bill, and which we don’t control.”
Connecticut's over-reliance on natural gas makes bringing down the wholesale cost of electricity extremely difficult. The state is adding offshore wind and is exploring expanded nuclear, wind and hydropower, but those solutions could take many years.
“Since our last rate review nearly a decade ago, we’ve dealt with significant inflationary pressures just like every other sector of the economy and have seen costs for critical equipment and infrastructure skyrocket,” Modifica said. “In the last 20 years alone, wire and cable costs have soared by 411%, transformers have increased by 265%, and utility poles have jumped by 123%.”
Whoever wins in November, Maiorano wants relief so she doesn’t have to raise prices for customers.
“We've dealt with the same people for four generations, so we kind of eat it. We eat those increases,” she said.
