Woman’s Club To Host Program

About Utility Restructuring

By Dottie Evans

Need help figuring out what is happening with the utility companies, and what future electric bills might look like after electric restructuring?

The Newtown Woman’s Club (GFWC), Inc, will host a program on the new laws featuring speaker Donna Devino of the Department of Public Utility Control for the State of Connecticut. The topic of Ms Devino’s talk will be “Electrical Restructuring,” and she will explain the current law and answer questions from the audience.

The program takes place on Thursday, October 30, at 1 pm, in the meeting room of the Booth Library at 25 Main Street, and is open to the public.

In 1998, the legislature passed “An Act Concerning Electric Restructuring” that was signed into law and took effect on January 1, 2000.

Subsequent to this action, the Connecticut Light & Power Company and the United Illuminating Company, which are still regulated by the Department of Public Utility Control as electric distribution companies, were required to sell their generating plants and purchase power to serve their existing customers.

Because a price cap was put in place until December 31, 2003, that held prices below the 1996 rates, the cost to purchase power for the electric suppliers has been close to, or higher than, the level of the price cap. As a result, the suppliers claim they are not able to offer competitive offerings to the consumer.

A new restructuring law, effective January 1, 2004, and extending through December 31, 2006, will go into effect that raises the price cap. It is hoped that as a result, ratepayers will experience more stable electric rates. Also, with the higher price cap, a competitive electric retail market may develop so the customer has a greater variety of choices.

The Department of Public Utility Control is looking into alternative offerings that would provide conservation and/or environmental protection rates, as well.