Connecticut Energy Bill Veto Discouraging For Solar

Many Connecticut solar installers predicted that growth in the industry was hinging on the approval of the state’s pending energy bill.   After a long and tedious approval process in the House and Senate ending earlier this month, the bill finally reached the governor’s office.

The bill would have encouraged support for energy efficiency and alternative power sources, including fuel cells, solar energy and wind energy.  There were many specific provisions related to solar.  In fact, Environment Connecticut predicted that these alone would create 300 MW of solar deployed statewide.  The bill also called for an overhaul of the Department of Public Utility Control which would bring together all of the state offices dealing with energy policy under one administration renamed the Connecticut Energy and Technology Authority.  It’s most controversial mandate was a 15 percent reduction in the state’s electric utility rates by 2012.   Right now, Connecticut has the second highest electricity rates in the country after Hawaii and this change would put consumers at the same rates as neighboring states.

Governor M. Jodi Rell  chose to veto this bill because she thought it “is not in the best interests of the ratepayers or taxpayers of our state.”  She also thought the bill was introduced so late in the session that it “was disrespectful to those who honestly desired to read and deliberate the bill’s provisions” and expressed “deep concerns that the measure would raise utility rates for consumers – not reduce them, as bill sponsors claim.”

Many advocates of the bill are appalled at Governor Rell’s comments.  “It’s an absolute canard,” says Charles Rothenberger, an attorney for the Connecticut Fund for the Environment, about Rell’s assertions that the bill would increase electric rates.  Christopher Phelps, director of Environment Connecticut, said that Rell had supported these energy provisions in the past and it was surprising and discouraging to learn that she will not support them now.  Phelps said he believes the governor had made her decision based on the opinions of state’s utility companies, who lobbied fervently against bill in the Legislature.  “Those were the forces who sold the state on deregulation,” Phelps said. “And they were the forces that supported the veto.”

Large solar installers are now debating if they can afford to still do business in the state.  Five years ago, Connecticut had some of the country’s best incentives of any state for residential and commercial installations.  Currently, there are no additional incentives for commercial projects and very little funding left for residential systems.  This puts the state in an unfortunate situation because it is ideal to utilize solar energy with high electricity rates, a good amount of sun, and an environmentally aware population. It also makes it impossible to reach Connecticut’s renewable portfolio standard (RPS) of  27% of energy generated by renewables by 2020, and consumers will still have sky high electric bills.  Proponents of the bill will try to push the same legislation next year when Governor Rell is no longer in office, but hopefully it won’t be too late for the solar industry in Connecticut.  It has endured too many starts and stops to really get off the ground.