Lawsuit Against State Utility Regulators to be Heard on Monday in Superior Court
"The DPUC is not a taxing authority," Markley said "What we’re dealing with now is a tax to bridge the gap in the current state budget. It has nothing to do with the electric companies any more."
The CTA was a charge to help the state’s dominant power providers, The United Illuminating Co. and Connecticut Light & Power, recover so-called "stranded cost" when they were forced under the deregulation law to sell off their power plants under the state’s deregulation law.
The CTA is scheduled to end when those stranded costs are paid off. That was supposed to happen this year for CL&P and in 2013 for UI.
But because the state lawmakers voted to borrow against the money collected through the CTA, "we’re now in the position of having to pay over a number of years for money that has essentially already been spent," Markley said.
"It’s a very poor precedent," Markley said. "I want clarity and transparency in government."
Joining Markley in court on Monday will be Paula Panzarella, who is representing the New Haven-based group, Fight the Hike. Panzarella has filed a motion to join as a plaintiff in Markley’s lawsuit.
"Electric rates in Connecticut are the highest in the continental United States," Panzarella said. "Customers were to get a modicum of relief when the CTA expired. Instead, the legislature renamed the charge Economic Revenue Recovery Bonds (ERRB) and decided to use the fee to cover borrowing."