NEW YORK, March 17 (Reuters) - An association of retail energy suppliers this week opposed three bills before the Connecticut legislature that attempt to reduce the state's high power prices, the Retail Energy Supply Association said in a release.
RESA said House Bills 5505, 5507 and 5508 would stifle competition by creating a state power authority, shifting electric procurement to a state-managed portfolio and imposing new restrictions on choosing competitive suppliers.
The bills implement recommendations of a rate relief panel put together by Speaker of the House Christopher Donovan.
Connecticut has the second highest power rates in the United States. Only Hawaii has higher prices.
In testimony Tuesday, Donovan told the state House Energy and Technology Committee that electricity prices in Connecticut were stifling the state's economy.
"We can no longer afford to ignore this problem ... Connecticut's high electricity rates are discouraging growth," Donovan said.
The average residential consumer in Connecticut pays about 16.5 cents per kilowatt hour, versus the U.S. average of 9.1 cents, according to federal data.
But Jay Kooper, President of RESA, warned that the costs for new government-run organizations, among other things, could "total into the billions of dollars."
Competitive suppliers serve more than 300,000 Connecticut customers, representing 49 percent of the state's electric load. Almost 91 percent of large commercial and industrial, 67 percent of the small commercial and 19 percent of residential customers buy power from competitive suppliers, according to the state utility regulator.
"Passage (of the bills) will result in lost economic development and investment ... in the form of capital, jobs and innovation through the eradication of customer choice that will drive businesses out ... and leave remaining businesses with fewer options and higher electricity prices not subject to the downward pressure that competition provides," Kooper said.
RESA is based in Harrisburg, Pennsylvania. Its members include Consolidated Edison Inc's ConEd Solutions, Constellation Energy Group Inc's Constellation NewEnergy Inc, Centrica Plc's Direct Energy Services LLC, Exelon Corp and GDF SUEZ, among others.
(Reporting by Scott DiSavino; Editing by Walter Bagley)
((scott.disavino@thomsonreuters.com; +1 646 223 6072; Reuters Messaging: scott.disavino.reuters.com@reuters.net)) Keywords: UTILITIES CONNECTICUT/SUPPLIERS
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