Business Group Cites Impact on Energy Costs Throughout New England in Opposing Reauthorization
BOSTON (May 20, 2013) – The New England Council, the nation’s oldest regional business association representing over 400 companies and organizations throughout the region, is urging the Connecticut legislature to reject a proposed reauthorization of the state’s temporary tax on electric generators. First enacted in July 2011, Connecticut Governor Dan Malloy has proposed extending the $2.50 per megawatt-hour tax for two additional years in his Fiscal Year 2014-2015 budget. In a letter to Connecticut legislative leaders, the Council stressed that this tax negatively impacts both commercial and residential electricity consumers throughout New England, as its costs are passed on to ratepayers in surrounding states.
“One of the biggest challenges for businesses in New England is the high cost of energy,” said New England Council President & CEO James T. Brett. “Connecticut’s generator tax will have an adverse effect on ratepayers not just in Connecticut, but throughout New England. While we appreciate the fiscal challenges that Connecticut faces, a tax that will make it even harder for local companies to grow and compete will do far more harm to our region’s economy in the long run.”
In its letter, the New England Council notes that ISO-New England, the independent administrator of the region’s electric grid, has determined that New England’s ratepayers are likely to pay some $58 million more to purchase electricity because of the Connecticut generator tax. The letter also cites calculations by the Attorneys General of Massachusetts and Rhode Island, who found that 75 percent of the higher energy costs resulting from Connecticut’s generator tax would likely be borne by ratepayers outside Connecticut.
The New England Council, the country’s oldest regional business organization, is an alliance of businesses, academic and health institutions, and public and private organizations throughout New England formed to promote economic growth and a high quality of life in the region. The Council is dedicated to identifying and supporting federal public policies and articulating the voice of its membership regionally and nationally on important issues facing New England. The NEC is also committed to working with public and private sector leaders across the region and in Washington through educational programs and forums for information exchange. For more information, please visit: www.newenglandcouncil.com.
Recently from the Blog
Connecticut Center for Advanced Technology Recruits Entry-Level Team for Pratt & Whitney