United Illuminating makes a Power Deal.

On October 24th, 2008 United Illuminating has made a 700 Million Dollar "power deal" with Energy Inc. This money is to be used to build power plants in Connecticut during "Peak Hours." This deal has been sent to energy regulators in Hartford's Department of Utility Control. Should Utility Control approve this plan, UI will be back in the energy generation business as early as 2009. The proposal is expected to arrive at DPUC some time next year.

This is a significant event because in the past, UI had been looking to get back into the energy generation business with little success. UI has given up its rights to generate electric back in 1999 when they saw fit to outsource all contracts in the hope of better market prices for consumers in our state. This turned out to be a failure as electric costs have spiked.

There has been much controversy in the past with in-state generation, especially with coal burning plants that have been dubbed the "Sooty Six" because of their emissions and smokestack debris that settles in local communities. These "Sooty Six" have contributed to poor air quality in CT adding to our state's other unrelated air quality issues such as ozone pollution in Fairfield County. Many people were relieved to know that in 1999 dirty carbon polluters left our state and we are now able to "breathe easier" because of it.

According to the UI press release on yahoo finance, these plants, "could be built on NRG sites in Middletown, Milford, South Norwalk or Uncasville. They would supply between 400 and 700 megawatts of power" only during peak periods to meet additional demand. This project is expected to follow the upgrade of the CT power grid of which was also blamed for high energy rates. UI alleges that CT is strained during peak energy of hot and cold periods in winter and summer, and is citing the CT law requiring them to deliver the "juice."

Rep. Steve Fontana, co-chairman of the Connecticut General Assembly's Energy and Technology Committee, said the legislation was a compromise. It was Mr. Fontanas intent to return CT to the Generation business but he could not convince the Legislature to agree with him.

Personally, my feelings are distrustful toward UI, this is because UI was already found guilty of installing faulty meters that overcharged their customers, and offered little relief to businesses. Richard Blumenthal, fearing a repeat of a Enron like fiasco, also sought to keep the power brokers in check by proposing a "Windfall Profits Tax" unfortunately Speaker Jim Amann sided with UI and opposed the windfall profits tax. This was a measure that in my opinion betrayed consumers, and protected the Energy giant UI. Ultimately the Bloomenthal proposal was killed before it ever had a chance to prove itself. Now UI suddenly has 700 Million dollars to buy a new plant. To shed light on the significance of this figure, that equates to $2,300.00 for every one of UI's customers. Yet UI continues to claim they cannot lower our electric rates rates; not even for the poor and old.

Since the large rate hikes took place, many business's have actually cited the excessive cost of electric as a reason to leave our state, or just close down. Currently CT has among the highest electric rates in America and business's suffer because of it. This aside there is no mention of how these plants will produce energy.

The big question is, are they CO2 emitting smog factories, nuclear nightmares, or another compelling reason to park a massive LNG barge out in the Long Island Sound? These questions must be asked and answered. Connecticut has done everything possible to get our electric rates down and yet they still remain unconscionably high.

Gov. M. Jodi Rell was shocked when she discovered that Connecticut Light & Power followed Ui and has requested yet another rate increase for one million electricity customers. This new proposal demands a 4.6 percent rate hike beginning on January 1, 2008. So far electric rates have recklessly risen 90 percent over the last seven years. This increase outpaces inflation, the CPI, and worker wage increases.

For now I recommend that everyone tune in to UI's conference call on November 2nd, or contact their HQ to find out what the consequences and environmental hazards this new found generation is going to impose. Also, and most importantly, now that CT's taxpayers did everything in their power to build the grid correctly, when are we going to see our rates reduced? I will report again on this issue as more news develops.

This short video is to remind us again of the consumer cry for help.