Advocacy groups criticize state's power purchase plan, Hartford Courant, 01.21.09 Press

Advocacy Groups Criticize State's Power Purchase Plan

By LYNN DOAN
January 21, 2009
The state's first long-term plan to buy electricity at the lowest cost to consumers is being criticized by energy and environmental groups, who say regulators eliminated hundreds of millions of dollars that could have been used to promote conservation and reduce peak demand.

The state Department of Public Utility Control has tentatively approved a 295-page "integrated resource plan" that the state's two electric utilities and the state's energy advisory board drafted. But the agency rejected a provision that called for as much as $218 million more in ratepayer money to be spent each year on efficiency programs.

Environmental groups said Tuesday that money could save electric customers at least $1 billion during the next 10 years. Daniel Sosland, executive director of Environment Northeast, a regional environmental advocacy and research organization with offices in Connecticut, said the DPUC's decision was "bewildering."

"It's kind of surprising that Connecticut would choose not to pursue the least-cost resource, and that is energy efficiency," he said. "Connecticut deserves better than this."

The DPUC's decision, issued Friday, came days after legislators decided to spare the state's clean energy and energy efficiency funds from massive cuts that Gov. M. Jodi Rell proposed.

The power plan offers a guide to buying electricity for Connecticut residents and businesses while also enumerating ways to reduce demand, lower use during peak hours and account for the state's environmental goals. Energy and environmental groups had supported tripling the funding for programs designed to reduce residential and business power demand during times of peak use.

But regulators rejected the increased spending "due to current economic conditions," high electricity rates and projected state budget shortfalls. Regulators also took issue with what they described as the utilities' "limited effort" to plan properly for programs that would benefit from the increased money.

"There is little in the way of program modifications or new proposals," DPUC commissioners said in their draft decision.