Lamont Pressed on Energy
September 19, 2024
GOP wants decision on pending offshore wind contract
BY PAUL HUGHES
REPUBLICAN-AMERICAN
HARTFORD — The delay in awarding a high-profile state contract for offshore wind power is generating more campaign debate over the high cost of electricity in Connecticut and what can be done to lower it.
Gov. Ned Lamont indicated Wednesday his administration could be months away from making its decision after recently receiving four bids for the contract to provide up to 2,000 megawatts of new offshore wind generation. He also raised the possibility that the contract could be rebid.
“Let’s just take a breath everybody. Let’s see what the price looks like going forward, and maybe it is this deal or the next deal. We’ll find out,” Lamont told reporters.
There is no pausing campaigns for General Assembly, and Republicans will be continuing to use the issue of electricity costs to campaign against Democratic candidates.
GOP legislators and candidates already are questioning how much more the offshore wind contract might cost ratepayers, and 11 of the 12 Senate Republicans signed a letter sent Sept. 13 pressing Lamont to publicly release its details and pricing before any agreement is executed.
“Right now, they’re negotiating the contract,” Lamont said. “So, I think it is premature to release all that, but I’m pretty darn sure once the contract is finalized those details will come out, including the price. It is a negotiation.”
MANY IN CONNECTICUT are upset over public benefit charges added to electric bills to fund state and federal government programs and mandates, and Republicans are trying to capitalize politically on the public outrage.
Public benefit charges came under unparalleled scrutiny following a big jump in Eversource Energy bills in July due to increases in these charges and electricity usage amid a blazing hot and humid month. Eversource is the largest power distribution company serving Connecticut with nearly 1.4 million customers in 149 of the state’s 169 cities and towns.
More than three-quarters of the increase in public benefit charges resulted from a state mandate that Eversource and United Illuminating purchase 50% of the output from the Millstone nuclear power plant in Waterford. The power distribution companies negotiated a 10year contract in 2019 to pay 5 cents per kilowatt hour.
House and Senate Republicans have been demanding a special legislative session to cap the costs of future power procurement contracts such as the offshore wind contract under negotiation, and take other actions to provide short- and longterm relief for ratepayer.
Lamont and Democratic leaders have rebuffed GOP calls for a special session. Democratic legislators have been trying to counter the Republican attacks on public benefit charges by pointing out that in 2017 Republicans led the bipartisan effort in the most closely divided legislature in decades to approve the Millstone mandate and it passed with a majority of Republican votes.
CONNECTICUT, MASSACHUSETTS and Rhode Island joined in a historic agreement in 2023 to procure future wind energy projects together rather than separately.
Lamont and his administration made a big splash in announcing the first such multistate procurement agreement in the nation, and then issued announcements when the contract was put out to bid last October, and again when four project developers submitted responses in March.
But Connecticut did not join Massachusetts and Rhode Island when the two states announced the selection of three offshore wind projects Sept. 6.
The state Department of Energy and Environmental Protection issued a short statement that state officials were evaluating the submitted bids and would make an announcement at a future date.
The delay invited speculation that politics was behind the decision because Lamont and the Democrats did not want to give Repubicans any more campaign fodder on electricity costs.
Lamont reiterated statements Wednesday that he made last week regarding his concerns the wind power contract could compound existing high electric rates, and the state already is essentially subsidizing the Millstone Nuclear Power Station.
“I do care about affordability as I look around this state,” he said.
Lamont said several times the state could get a better deal if the Federal Reserve cuts its benchmark interest rate.
“This particular program, we’re taking a look at it,” he said. “I think you’re going to find the feds are about to reduce interest rates probably a lot over the next six months. That should greatly change the dynamics of the deal. So, I’m going to take a look at that.”
A few hours later, the Fed announced it reduced its key rate to between 4.75% and 5%, the first rate cut in more than four years.
