AARP Connecticut to Testify at Energy & Technology Hearing February 7

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AARP Connecticut will testify to members of the Connecticut Energy and Technology Committee on Tuesday, Feb. 7, on reasons the state legislature should not pass S.B 106, a bill providing special deals or subsidies to Dominion Resources for the Millstone Nuclear Power Station.

Virginia-based Dominion Resources, operator of the Millstone Nuclear Power Station in Connecticut, says the plant is unprofitable and is seeking legislation to compensate for the losses. They claim the request is not for a ratepayer subsidy, but rather allow them to compete for state power contracts with Eversource and United Illuminating

The use of the phrase “competes for a state contract” is misleading. Dominion currently competes against other generators throughout all of New England to serve consumers across multiple states, including Connecticut. Connecticut is in a regional electric market (known as ISO New England). ISO New England selects the most economical power plants to serve New England.

AARP is not opposed to nuclear power or any other form of generation. The opposition stems from AARP’s concern that SB 106 will increase electric rates for residents. With among the highest electricity rates in the country, Connecticut cannot afford to adopt a special deal or subsidy that will further increase the rates, especially without a full vetting of impact on ratepayers.

The legislation, as presented in public statements, would reclassify the power generated by the plant as renewable fuel, allowing Dominion to undercut the cost of other renewable fuels and receive a significantly higher price for their power, therefore raising overall rates. A special deal that subsidizes profits, without any financial disclosures to prove it is necessary, puts all of the risk on the Connecticut ratepayers.

The market rules that Dominion and other power generators operate under in Connecticut and throughout New England are the same rules that they asked for when the state deregulated electricity nearly 20 years ago.

Now that the power rates might slightly improve for the ratepayers, Dominion wants to operate by the rules from the 1990s. They want ratepayers to subsidize additional profits for them without having to disclose any verification of the losses for this request to the Public Utilities Regulatory Authority (PURA).

Essentially, Dominion wants special treatment: long-term generation contracts for their power at subsidized prices. Any subsidy or long-term contract should be tied to Millstone disclosing their financial losses to the public.

A recent AARP survey showed that 87 percent of voters over the age of 45 feel Dominion should provide their customers and state legislators with financial reports that show a loss in profit before any subsidies are approved. Additionally, more than three quarters of respondents (78%) feel funding for any approved subsidy should be spread across all of the New England states Millstone serves and not just Connecticut.

The Millstone plant has evidently cleared the three-year capacity auction, which would mean it is indeed economically viable. The plant cannot close during this three-year period. Beyond that, in order to shutter, it would need approval from ISO New England and FERC. Alternatively, they could order it to stay open. The plant is also eligible for new pay-for-performance capacity payment enhancements.

The rules that generators operated under before Connecticut deregulated should continue to apply. Dominion wants the parts of regulation that benefit them, but not the rules that benefit ratepayers, a public inspection of the books.