Monday, August 26, 1996

Attorney General Richard Blumenthal, joined by a coalition of public, environmental and business groups, today recommended a plan to completely restructure the electric industry and give consumers unprecedented choices in choosing the company that provides them with electricity.

"It is time to turn off monopoly and switch on competition," Blumenthal said. "Competition in other products and services like telecommunications -- benefits consumers through lower prices and better service. The coalition believes that electric customers in Connecticut deserve that choice too. Very simply, the monopoly era in electricity should end."

Blumenthal and the coalition unveiled "The Connecticut Choice Plan for Electric Industry Restructuring," which calls for:

• Giving customers the right to choose their electric service as of July 1, 1998.
• Allowing all power generators -- including out of state electric producers -- to use existing transmission lines to deliver electricity to consumers, resulting in the choice of several electric providers.
• Spin off or sale of utility company generating facilities within five years if they remain in the transmission and distribution business.
• Increased reliability for electric generating capacity through more power resources.
• A consumer education plan as part of the transition from monopoly and significant consumer protection and antitrust oversight.

Blumenthal said the restructuring, paralleling efforts in other states, is particularly necessary in Connecticut, where the state's two electric companies Connecticut Light & Power and United Illuminating -- charge customers among the highest rates in the country.

"Competition not only will mean better prices and choices for residential customers, but improve Connecticut's economy," Blumenthal said. "For too long, Connecticut's excessive electric rates have put businesses at a disadvantage with competitors where prices are lower. Indeed, neighboring states in the Northeast are well on their way to electric competition. "

"As in other areas, we will continue to be vigilant to ensure that consumers are not short-changed by unscrupulous business practices," Blumenthal said. "Consumer protection -- and education -- will continue to be a top priority so that competition delivers the promise of lower prices and better service."

"The present monopolistic providers simply charge too much their rates exceeding the national average by about 30 percent for both commercial and residential rates and 63 percent for industrial rates," Blumenthal said.

The coalition's report is being submitted today to a committee of the Task Force on Electric Industry Restructuring, which was set up in 1995 by the Connecticut General Assembly and is expected to report to the General Assembly before the 1997 legislative session.

The coalition includes the Attorney General's Office, the Office of Consumer Counsel, the Conservation Law Foundation, Connecticut Industrial Energy Consumers, Connecticut Resources Recovery Authority, the Connecticut Cogeneration Coalition and Enron Capital & Trade Resources.