Friendly Tax Website

HARTFORD, CT) – Governor Ned Lamont today announced the launch of the Connecticut Department of Revenue Services (DRS) multi-year IT modernization initiative that will improve the customer’s experience and deliver additional, user-friendly features such as mobile device-friendly design, secure web messaging, and advanced tax filing reminders.

 

The launch is highlighted by the new, online tax filing and payment portal called DRS myconneCT. Certain taxes filed by businesses are included in the initial phase, and the program will include  all state tax filings made with DRS in future phases.

 

Information about the portal will be included in business.ct.gov, the one-stop-shop for businesses launched in July, and is part of the broader efforts of the Lamont administration to streamline and modernize government services.

 

“This new portal is just one piece of our larger efforts to make sure that businesses spend less time talking to us at the state – and more time growing their business,” Governor Lamont said. “This work has continued even during the COVID-19 pandemic because we are committed to ensuring that businesses have what they need to be successful in Connecticut in all climates. We know that our commitment to continuing this work no matter what will help us come out of the pandemic even stronger – and I am excited to see this program grow.”

 

“The DRS modernization aligns with the administration’s vision of state government services that are available online, secure, and customer-focused,” Acting Revenue Services Commissioner John Biello said. “Following months of preparation, the professionals here at DRS are well-positioned to continue to deliver world-class customer service using our new and improved tax administration system. This exciting initiative will elevate how DRS conducts business, and how taxpayers interact with the agency.”

 

“Everyone deserves the same modern, convenient online experience they get when shopping or banking when they are dealing with state government,” Chief Operating Officer Josh Geballe said. “Our goal with business.ct.gov

, including these capabilities from DRS, is to ensure businesses, consumers, and residents spend less time talking to us and trying to figure out what they need to do, and more time with their families, building their business, and enjoying our state.”

 

Beginning today, taxpayers can create their myconneCT username and can use myconneCT to file state returns, make payments, and view their filing histories, among other self-service options, for the following business state tax types administered by DRS:

 

·       Sales and Use/Business Use

·       Withholding

·       Room Occupancy (B&B Occupancy)

·       Prepaid Wireless E 9-1-1 Fee

·       Admissions and Dues

·       Tourism Surcharge

·       Rental Surcharge

·       Dry Cleaning Surcharge

 

Other state tax types, such as individual income tax, will be included in future additions to myconneCT. More information about myconneCT can be found on the DRS website

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Election Security

WASHINGTON, DC, U.S. Senator Richard Blumenthal (D-CT) applauded the House of Representatives’ passage of legislation he introduced in the Senate to improve election security. The Defending the Integrity of Voting Systems Act would make it a federal crime to hack any voting systems used in a federal election and now awaits President Trump’s signature.

“As foreign adversaries seek to undermine our democracy, our election systems are in dire need of strong safeguards. Our adversaries have shown a willingness and capability to hack the infrastructure that powers our democracy, however, our laws and enforcement lag far behind this dire threat. This bill provides the Department of Justice with powerful tools to vigorously prosecute and stop malicious hackers. I am grateful to my colleagues in the House for recognizing the urgency of improving election security and approving this bill by voice vote,” said Blumenthal. “This bill must now quickly become law so every vote counts. Nearly a month out from our 2020 elections, there’s no time to waste.”

 

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ITT Debt Relief

Hartford, CT) — Attorney General William Tong has secured an agreement to obtain $292,874 in debt relief for former ITT Tech students in Connecticut as part of a settlement with 48 attorneys general and the federal Consumer Financial Protection Bureau.

Nationally, the settlement will result in debt relief of about $330 million for former students of the failed for-profit college. The agreement affects about 43,000 loans.

The settlement is with PEAKS Trust, a private loan program run by ITT and affiliated with Deutsche Bank entities. ITT filed bankruptcy in 2016 amid investigations by state attorneys general and following action by the U.S. Department of Education to restrict ITT’s access to federal student aid.

“This settlement holds PEAKS Trust accountable for its predatory lending practices and the damage it has done to students across the nation. Thirty-nine Connecticut students enrolled in ITT Tech to seek an education, but were instead given debt and empty promises,” Attorney General Tong said. “Students’ hopes and dreams were preyed upon and this settlement should serve as a strong reminder that such lending practices will not be tolerated.”

PEAKS was formed after the 2008 financial crisis when private sources of lending available to for-profit colleges dried up. ITT developed a plan with PEAKS to offer students temporary credit to cover the gap in tuition between federal student aid and the full cost of the education.

According to the Assurance of Voluntary Compliance  filed Tuesday, ITT and PEAKS knew or should have known that the students would not be able to repay the temporary credit when it became due nine months later. Many students complained that they thought the temporary credit was like a federal loan and would not be due until six months after they graduated.

When the temporary credit became due, ITT pressured and coerced students into accepting loans from PEAKS, which for many students carried high interest rates, far above rates for federal loans. Pressure tactics used by ITT included pulling students out of class and threatening to expel them if they did not accept the loan terms. Many of the ITT students were from low-income backgrounds and were left with the choice of enrolling in the PEAKS loans or dropping out and losing any benefit of the credits they had earned, because ITT’s credits would not transfer to most schools.

The default rate on the PEAKS loans is projected to exceed 80%, due to both the high cost of the loans as well as the lack of success ITT graduates had getting jobs that earned enough to make repayment feasible.  The defaulted loans continue to affect students’ credit ratings and are usually not dischargeable in bankruptcy.

Under the settlement, PEAKS has agreed that it will forgo collection of the outstanding loans and cease doing business. PEAKS will send notices to borrowers about the cancelled debt and ensure that automatic payments are cancelled.  The settlement also requires the PEAKS to supply credit reporting agencies with information to update credit information for affected borrowers.

Students will need to do nothing to receive the debt relief. The notices will explain their rights under the settlement.  Students may direct questions to PEAKS at customerservice@peaksloans.com or 866-747-0273or the Consumer Financial Protection Bureau at (855) 411-2372.

In June 2019, Attorney General Tong was part of a https://portal.ct.gov/AG/Press-Releases/2019-Press-Releases/AG-TONG-JOINS-STATES-IN-ANNOUNCING-$168-MILLION-IN-DEBT-RELIEF-FORMER-ITT-TECH-STUDENTS$186 million settlement that resulted in debt relief for 18,664 former ITT students. That agreement was with Student CU Connect CUSO, LLC, which also offered loans to finance students’ tuition at ITT Tech.

 

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CT Paid Leave Website

HARTFORD, CT) – Governor Ned Lamont, in partnership with the Connecticut Paid Leave Authority,  announced the launch of a new website – CTPaidLeave.org – with the goal of supporting all Connecticut residents to understand their roles, rights, and responsibilities based on the Paid Family and Medical Leave Act (PFMLA). The site is built to provide information for all employers, employees, and healthcare providers to better navigate this new, comprehensive program, administered by the Connecticut Paid Leave Authority.

 

The Connecticut Paid Leave program is set to begin on January 1, 2021, making the new website a vital tool for all impacted employees, employers, sole proprietors and self-employed individuals to understand their roles and responsibilities. Paid Leave program benefits become accessible to qualified employees beginning on January 1, 2022.

 

The new website serves as more than just an informational guide to the new PFMLA legislation, but also provides many of the tools needed by employers, employees, third-party administrators and healthcare professionals to begin preparing for and implementing the changes necessitated by this new program.

 

Some of these tools include:

 

·       Downloadable fact sheets, video guides and timelines specific to employer, employee, and sole proprietor/self-employed individuals’ needs.

·       An estimator tool to help employees anticipate payroll deductions. (The program is funded through payroll deductions)

·       Resources for sole proprietors and self-employed individuals interested in opting in to the program.

·       Resources for employers interested in applying for an exemption from the program.

·       Resources specific to all business types on how to register with the CT Paid Leave Authority.

·       Frequently Asked Questions that are updated periodically to include the most common inquiries as this new program is rolled out.

 

The website has launched as a result of the efforts of many people and organizations advocating for the support of the paid family and medical leave in Connecticut. In particular, the co-chairs of the Labor and Public Employees Committee, State Senator Julie Kushner and State Representative Robyn Porter, were instrumental in making Connecticut Paid Leave program a reality.

 

In addition to advocacy in the Connecticut state legislature, this new program was met with support from the private sector — including business owners, labor groups, employees, and healthcare providers.

 

“No one should have to choose between caring for their family when they need it most, and paying their bills,” Governor Lamont said. “This program was put together thoughtfully to ensure that working families in our state don’t have to make that tough choice. Now more than ever, it’s important that we make these tools available – if we’ve learned anything from the COVID-19 pandemic, it’s the importance of planning ahead. This website is an incredible tool that will help employers and employees alike effectively prepare for this new program. I want to thank the Connecticut Paid Leave Authority, the legislature, organized labor, and advocacy organizations for their work and support of this effort.”

 

“Never has it been more clear the importance of having resources available to Connecticut working families as they balance their workplace responsibilities with their personal and family health needs,” Connecticut Paid Leave CEO Andrea Barton Reeves said. “The launching of this comprehensive new website is a significant step forward in our goal to help employers, employees and healthcare providers access these resources, and to provide a gateway to vital information for everyone to better understand their rights, roles and responsibilities in this new program.”

 

“The Connecticut Paid Leave Authority has been focused on making sure that this program is administered effectively and efficiently, and that everyone has what they need to prepare for the changes it will bring,” Connecticut Chief Operating Officer and Administrative Services Commissioner Josh Geballe said. “Even while the state is combating a global pandemic, we have moved forward developing resources for employers and employees that will help answer their questions and enable them to spend more time building their business, and with their family – and less time searching for information.”

 

“The launch of this comprehensive website marks a critical step as Connecticut enacts one of the strongest paid leave programs in the country,” Connecticut Women’s Education and Legal Fund (CWEALF) Policy Director Madeline Granato said. “CWEALF is proud to continue to lead the campaign for paid family leave here in Connecticut and work alongside the Connecticut Paid Leave Authority to ensure that all workers in our state receive critical information and resources about Connecticut’s new and upcoming paid leave program.”

 

Governor Lamont signed

the Paid Family Medical Leave Act into law on June 25, 2019. It offers Connecticut workers the opportunity to take time to attend to personal and family health needs without worrying about lost income. The formation of the Connecticut Paid Leave Authority was a result of last year’s legislation, and provides Connecticut’s workforce access to paid leave benefits, as well as helpful tools and resources to help employers administer this new program. The authority is a quasi-public agency led by CEO Andrea Barton Reeves.

 

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Wear Your Mask Act In ALL Federal Buildings

#WASHINGTON, DC] – Amid the ongoing COVID-19 pandemic, U.S. Senators Richard Blumenthal (D-CT), Tom Carper (D-DE), Sherrod Brown (D-OH), and Mazie K. Hirono (D-HI) introduced the Wear Your Mask Act today, requiring that all people in federal buildings and facilities across the country – including post offices, Social Security offices, and the U.S. Capitol – wear a face mask any time they are within six feet of another person.

 

“Mask wearing should be considered a moral and health mandate— our single best method to combat the coronavirus,” said Blumenthal. “Backed by both common sense and science, our measure would impose this public health imperative in all federal buildings. Even with a vaccine, mask wearing will be a vital tool in conquering COVID-19, along with physical distancing and similar public health steps. This measure makes masks more available as well as mandatory, setting a model for all buildings.”

 

“When it comes to finding solutions for tough problems, I often say that we should find out what works and do more of that,” said Carper. “The challenges our country faces today with COVID-19 are daunting, but the science is clear, and we know what works in our battle against this deadly virus. Health experts around the world have made it abundantly clear: wearing a mask reduces transmission of the coronavirus. At a time when the American people are looking to the federal government to set a good example and be guided by science and facts, I’m proud to join my colleagues in introducing the Wear Your Mask Act to do just that. Together, and with health experts leading the way, we can protect each other and make it through this pandemic a stronger and more resilient nation.”

“Workers in these buildings are risking their lives during this public health emergency to keep the federal government functioning, and this common sense legislation would make going to work safer for them,” said Brown. “But it’s no substitute for the comprehensive workplace safety requirements the Trump Administration should have issued and enforced months ago that would require employers to protect workers, including those who work in federal buildings, from COVID-19.”

 

“The science is clear: wearing masks saves lives,” said Hirono. “Requiring masks inside federal buildings will reduce transmission of the coronavirus. I urge the Senate to swiftly consider this legislation to protect federal workers, visitors, and others.”

 

The legislation would also require masks to be provided to all employees, visitors, and others inside the federal buildings who do not have one. The bill would be in effect until the National Institute of Allergy and Infectious Diseases determines this requirement is no longer needed to prevent the transmission of COVID-19. The House introduced its version of the Wear Your Mask Act in July, led by U.S. Congresswoman Sylvia Garcia (D-TX).

“In the Houston region and across the country, we have seen the devastating impact COVID-19 has had on our communities and one of the few tools we currently have available to reduce the spread of the virus is to wear a face mask,” said Garcia. “That’s why I introduced the Wear Your Mask Act in the House, and feel honored that Senators Blumenthal, Carper, Brown, and Hirono are leading the Senate version. As we continue fighting this virus, we must all take simple common-sense actions that will prioritize the safety and well-being of federal workers and the general public that visit federal government buildings. And for us, it should start by making sure that anyone who needs a face mask, but does not have one upon entering any federal building, will have access to a face mask for their safety and the safety of others.”

The legislation was endorsed by the American Federation of Government Employees (AFGE).

“The CDC recommends that everyone above the age of 2 wear face masks in public settings to reduce the spread of COVID-19,” said American Federation of Government Employees National President Everett Kelley. “As the largest union representing federal and D.C. government workers, AFGE applauds Senator Blumenthal’s legislation, a companion to a House bill introduced by Rep. Garcia, that would require employees and visitors in any federally owned, leased, or operated buildings and facilities to wear masks until the threat of transmission has ended.”

 

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SENATORS DEMAND BIG PHARMA ALLOW LOW-INCOME PATIENTS TO ACCESS LIFESAVING, DISCOUNTED 340B DRUGS AND CARE

WASHINGTON, DC] – U.S. Senator Richard Blumenthal (D-CT) led a group of 22 senators, including U.S. Senator Chris Murphy (D-CT), in demanding that pharmaceutical manufacturers stop withholding medications discounted under the 340B Drug Pricing Program from qualified providers that use contract pharmacies – locking out low-income patients from accessing lifesaving drugs and care.

In a letter to the drug industry trade group Pharmaceutical Research and Manufacturers of America (PhRMA), the senators pointed to multiple retaliatory, burdensome, and likely unlawful efforts by its member drug companies to prevent 340B-covered providers from receiving discounted drugs, including denials to providers using contract pharmacies and excessive claims data requests.

“By improperly limiting access to 340B drugs, manufacturers will sever a lifeline to treatment for those who are overwhelmingly underserved, low-income, and vulnerable,” the senators wrote in the letter to PhRMA President and CEO Stephen Ubl. “It is troubling that during a time of deep uncertainty involving access to health care, many of your member companies are taking retaliatory actions against FQHCs and other nonprofit health care providers that utilize legally permissible channels, such as contract pharmacies, to dispense 340B drugs. This coercive behavior is ultimately most harmful to patients and should be reversed.”

The 340B Drug Pricing Program requires drug manufacturers who receive reimbursements through Medicaid to provide discounted drugs to eligible public and nonprofit health care organizations, including Federally Qualified Health Centers (FQHCs), hospitals, Ryan White HIV/AIDS clinics, and other safety net providers. Those providers in turn use 340B savings to provide discounted drugs to patients, especially those who are low-income or uninsured, and expand access to essential patient care. Covered 340B providers are allowed to contract with pharmacies (known as “contract pharmacies”) to dispense 340B drugs.

 

The senators also called on drug manufacturers to stop the practice of requiring 340B providers to submit claims data – and threatening to deny 340B pricing for drugs dispensed through contract pharmacies if providers did not provide the requested data – pointing out that this excessive and burdensome data request is not tied to federal 340B compliance obligations: “[t]hese onerous requirements from the pharmaceutical industry’s 340B Program manufacturers are egregious oversteps that will limit the ability of 340B covered entities to provide affordable care, and ultimately, harm patients.”

The senators highlighted that the Health Resources and Services Administration (HRSA), which oversees the 340B Program, has agreed that the steps taken by drug manufacturers put patient access to discounted drugs at risk. HRSA has recently stated: “Manufacturers that refuse to honor contract pharmacy orders may be significantly limiting access to 340B discounted drugs for many underserved and vulnerable populations. Many of these populations may reside in geographically isolated areas and rely on contract pharmacies as a critical point of access for obtaining their prescriptions.”

 

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At Home Learning Tools Arriving Ahead Of Schedule

#HARTFORD, CT– Governor Ned Lamont announced today that nearly 25 percent of the 81,000 devices purchased through his administration’s Everybody Learns initiative is scheduled to arrive earlier than anticipated, with some districts seeing deliveries this week. Taken together with the 60,000 Dell laptops provided by the Partnership for Connecticut, the State of Connecticut has now provided more than 141,000 devices targeted primarily to high-need districts and their students.

 

The state has also made substantial progress on its delivery of 60,000 at-home internet connections in the way of personal hotspots and broadband service. All of the 12,744 personal hotspots that were ordered have been delivered, and fulfillment of broadband service is underway for approximately 40,000 students.

 

“From the beginning of this pandemic, we knew that our state had an obligation to tens of thousands of school children around Connecticut to make sure they had the tools necessary to further their educations, as we didn’t know how long this public health emergency would last,” Governor Lamont said. “Now, our students are in a position where they have the tools necessary to participate and engage with this technology, and we can keep as many students as possible connected throughout this school year.”

 

“While remote learning can take many forms, the predominant approach going forward is trending toward technology-based, online options that require a device and internet connection,” Connecticut Education Commissioner Miguel Cardona said. “We are prioritizing access to needed technology and connectivity to narrow gaps in opportunities and outcomes between students with means and those without. Educational equity will be our continued focus as we work together to support districts and educators with effectively employing remote learning methods that meet the needs of every student. We are grateful to all of our partners, vendors, and service providers in this effort for their cooperation and commitment to working with us to connect our most vulnerable students and get these critical learning devices into their hands.”

 

In July, the Lamont administration launched the Everybody Learns initiative to empower children and families across the state to more effectively learn from home by purchasing 61,000 Chromebooks and 20,000 Windows laptops; providing 12 months of access to at-home internet for 60,000 households; and creating public hotspots free to the public at 250 community sites across the state. A total of $43.5 million was made available for the program and is a combination of Connecticut’s allocation of Coronavirus Relief Funds, the Governor’s Emergency Education Relief Fund, and the Elementary and Secondary School Emergency Relief Fund.

 

Following its receipt of federal CARES Act funding for PK-12, the state began coordinating with providers, internet companies, and school districts to ensure students receive the computers and internet coverage they need to participate in high-quality, at-home learning whether hybrid or fully remote. The number of students identified as needing access to laptops and at-home internet is based on survey information that was submitted to the State Department of Education and the Connecticut Commission for Educational Technology.

 

The more than 81,000 devices ordered include:

 

·       20,474 Windows laptops, which will be delivered beginning this week and continuing over the next several weeks; and

·       61,628 Chromebooks, which are expected to be delivered beginning in October.

 

These devices are in addition to the 60,000 laptops that were already distributed in May through the Partnership for Connecticut.

 

The state purchased at-home internet access through several broadband internet companies, including Altice USA/Optimum, Atlantic Broadband, Comcast, and Cox. Personal cellular hotspots will come from Kajeet, which specializes in K-12 connectivity solutions. The state is providing orientation sessions to district leaders on connecting students to cable broadband partners, and is working with those carriers to prioritize connections to students and schools in greatest need.

 

The 60,000 at-home internet connections purchased in the form of wired broadband or personal hotspots include:

 

·       12,774 Kajeet hotspots, 100 percent of which have been shipped to districts; and

·       Cable broadband for 40,000 students, the delivery of which is already underway, with installation beginning in the next two weeks.

 

The state is in communication with districts about the process by which they will receive their laptops, broadband vouchers, and Kajeet hotspots.

 

The 200 public hotspots will be available at no cost to Connecticut residents. The state has partnered with the Connecticut Education Network to utilize the fiber and infrastructure it already provides to sites in communities across the state and boost signals for the public at large to access the Internet for free.

 

Everybody Learns is complemented by an ongoing initiative of Dalio Education and the Connecticut Conference of Municipalities to ensure students across the state have access to computers and internet connectivity. Dalio Philanthropies was also involved in the Partnership Connecticut’s donation of 60,000 laptops to students from some of the state’s most under-resourced high schools.

 

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Insurance Commissioner Issues Decisions For 2021 Health Insurance Rates

Insurance Commissioner Andrew N. Mais announced the Department has made final decisions on health insurance rate filings for the 2021 coverage year.

Rates for individual plans were held essentially flat, with an average increase of 0.01%, down from the average requested increase of 6.29%. The average increase approved for small group plans is 4.1%, down from the requested average increase of more than 11.28%.

As a result of these decisions, approximately 214,600 Connecticut consumers are projected to save $96 million.

“Working on behalf of consumers, the Department was able to reduce the health insurance rate increase requests thanks to the hard work of our actuaries and professional staff,” Commissioner Mais said. “I will continue to work collaboratively with all stakeholders to find long-term solutions while continuing to promote access and eliminate barriers to coverage here in Connecticut.”

Among the factors contributing to the approved rates is a medical trend, which reflects rising health care costs such as the costs of prescription drugs and the increased demand for medical services. This is projected by the carriers to grow at approximately 8.8 percent per year for 2020 and 2021.

The Department reduced the trend proposed by the carriers to reflect lower utilization of services, including elective procedures, in the first half of this year due to the pandemic and the projected impact of COVID-19 in 2021.

Click here to view the 2021 rate filings information and Rate Chart

 

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AG Urges Protection For Ratepayers

Hartford, CT) – Attorney General William Tong submitted testimony today to the Energy and Technology Committee of the Connecticut State Legislature, urging strong action to protect ratepayers. In written testimony, Attorney General Tong offers support and key suggestions to strengthen ratepayer protections in the bill.

“I commend your leadership during this critical moment for Connecticut ratepayers. This summer, while enduring the current public health and economic crises, Connecticut consumers coalesced in their anger at their Eversource electric bills skyrocketing in July. Then, consumers of both Eversource and United Illuminating were left in the dark for up to one week during the hot days of August after Tropical Storm Isaias thrashed our State. Connecticut ratepayers have a right to be angry and deserve meaningful change. Connecticut families simply cannot afford to pay more for their energy,” Attorney General Tong said.

Key areas of note in his testimony:

Performance-Based Regulation: Attorney General Tong cautioned that Performance-Based Regulation could raise rates without improving utility performance. “The success of PBR depends entirely on how it is designed and implemented. If done well, it could provide meaningful benefits to ratepayers. If done poorly, it can raise rates without improving performance,” he states in his testimony. Standards and metrics must relate directly to the needs of ratepayers, including lower rates, service reliability and service quality, Tong cautioned. They must be clearly defined, with both incentives for exceeding targets and penalties for falling short.

Executive Compensation: Attorney General Tong strongly supports reining in excessive compensation for utility executives. Instead of tying executive compensation limits to other states (where executives may also be overpaid), Attorney General Tong urges the legislature to consider tying compensation to comparable positions in Connecticut. Any incentives given to executives must be tied directly to successful measures taken to benefit ratepayers, such as lower rates, reliability, and better service quality.

Compensating ratepayers for food and prescription loss with shareholder funds: Attorney General Tong strongly supports compensating ratepayers for food and prescription losses. Any funds to do so must come from shareholders, not ratepayers.

 

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Senator Calls For Break Up Of Utility

HARTFORD, CT) – U.S. Senator Richard Blumenthal (D-Conn.) today is submitting testimony in support of LCO 3920, An Act Concerning Emergency Response by Electric Distribution Companies and Revising the Regulation of Other Public Utilities, which is up for a public hearing before the Energy and Technology Committee of the Connecticut General Assembly today at 10:30 A.M.

“The legislature has a huge, historic opportunity, which it should meet with bold, historic action. Like you, I have heard unprecedented outrage and frustration as I’ve traveled our state— a galvanizing grassroots demand for reform, now cresting. A public utility like Eversource should be truly public— putting people before profits, downsized and managed to be really responsive, and even owned by the people of Connecticut.

 

“I urge the committee to move quickly to link rates to the performance of the utility.   I also urge the committee to consider breaking up Eversource to establish a Connecticut based utility either publicly owned or investor-owned subject to performance based rates,” wrote Blumenthal in testimony submitted to committee.

Following Tropical Storm Isaias, Blumenthal met with numerous local officials, businesses, and residents to hear how the performance of Eversource impacted them. He also met with Eversource CEO Jim Judge and urged him to resign his position and to provide refunds to customers who lost food and medicines as a result of the power outage.

Blumenthal’s full testimony is below:

I appreciate the opportunity to support the goals of LCO 3920, An Act Concerning Emergency Response by Electric Distribution Companies and Revising the Regulation of Other Public Utilities to hold accountable Eversource and United Illuminating for their performance during storm response and to limit expenses that are charged to ratepayers.

The legislature has a huge, historic opportunity, which it should meet with bold, historic action. Like you, I have heard unprecedented outrage and frustration as I’ve traveled our state— a galvanizing grassroots demand for reform, now cresting. A public utility like Eversource should be truly public— putting people before profits, downsized and managed to be really responsive, and even owned by the people of Connecticut.

I urge the committee to move quickly to link rates to the performance of the utility.   I also urge the committee to consider breaking up Eversource to establish a Connecticut based utility either publicly owned or investor-owned subject to performance based rates.

For too long, Connecticut electricity consumers have overpaid for underperformance.  The guaranteed rate of return for utilities has ensured that utilities have little to no risk of losing money while consumers pay for substandard responses to power outages.

Bold aggressive action at both the state and federal level is necessary.

The delivery of electricity from the power plant to the home or business is practically performed by a monopoly of one or a series of entities.   It has been clear that this is not an area where competing private businesses can easily operate.   As such, for the past hundred years, a company or governmental agency has been designated – at the federal level by the Federal Energy Regulatory Commission (FERC)  or at the state level by the Connecticut General Assembly — as the ‘public utility’ to move electricity over transmission and local distribution lines.

This private or public monopoly needs strict oversight – something that has become much more difficult as we have let these monopolies grow into multi-state, mega-dollar behemoths.

Now is time for a reset at both the federal and state level.

I commend the Energy and Technology Committee for working in a bi-partisan manner to draft LCO 3920.   This bill would link rates to performance, require reimbursement for damages to consumers for delayed storm responses and limit the types of expenses such as appearing at PURA hearings and executive compensation that are charged to ratepayers.

I urge the Committee to consider breaking up Eversource.   The General Assembly established the forebears of Avangrid and Eversource and what the legislature giveth, the legislature can taketh away.

The process would be difficult but not impossible.  For example, the Committee could consider a series of incentives and disincentives for Eversource and Avangrid to spin off their Connecticut utilities — Connecticut Light and Power and United Illuminating — into independent companies or as publicly owned entities.

The Committee should also ensure that if we maintain an investor-owned company as our utility that PURA has the resources and expertise to properly oversee such operations and that similar adequate resources are provided for a consumer counsel office to effectively present the consumers’ interest to PURA, countering the millions of dollars that these utilities bring to bear on the legislature and PURA to advance their own private interests.

I am supporting a similar initiative at FERC where the consumers’ voice does not have a federal agency on its side.

I also support the review required by LCO 3920 of the performance of the wholesale electricity markets currently governed by ISO-New England.  ISO-NE has not worked in Connecticut consumers’ or environmental interests.  ISO-NE is established by FERC and I have repeatedly asked FERC to provide better oversight and regulation of ISO-NE’s decision-making process.  FERC has failed to do so.   Therefore it is long overdue for a thorough analysis of whether ISO-NE is the best option for Connecticut ratepayers.

There is a lot of work to be done at both the federal and state level to make our electric utilities responsive to ratepayers.  I commend the Energy and Technology Committee’s initiative at the state level and hope that Connecticut’s experience can persuade consumer oriented action at the federal oversight level as well, which I will continue to advocate.

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