Iso Standards Opinions

May 07, 2021  
[Construction]

Among the lower 48 states, Connecticut is No. 1 in electricity prices. Pictured here are Connecticut Light & Power line workers. ISO said a concern about paying twice has been lessened partly because several hundred megawatts of renewable energy procured by the states — solar and wind power — have received credit through 2021. And it could grow when large-scale offshore wind power is bought. The projects have not yet been built and consumers are not paying twice, ISO said. Environmental policies established by states also are responsible for higher costs. “Where we are seeing a major shift is the drive for decarbonization,” said Dan Dolan president of the New England Power Generators Association. “It’s seen as appropriate public policy goals because we’re looking to decarbonize.” Doug Horton, vice president of distribution rates and regulatory requirements at Eversource, said public policy in New England recognizes the “importance of those reducing greenhouse gas emissions and prioritizing that, acknowledging there’s a cost to do not doing anything.” “It just may not be that same priority elsewhere in the country,” he said. Another factor cited in higher electricity prices in Connecticut is a 10-year contract with the Millstone Power Station in Waterford required by state law. The General Assembly and Gov. Ned Lamont approved the deal in 2019 after Millstone’s owner, Dominion Energy Inc., lobbied to compete with wind and solar energy for state power procurement. Nuclear plants also struggled to compete with natural gas. Rep. David Arconti, House chairman of the legislature’s energy and technology committee, criticized the deal that leaves Connecticut to solely bear the cost of the deal. This March 18, 2003, file photo shows the Millstone nuclear power plant in Waterford. (Steve Miller / AP) “No one else in New England has to support that contract,” he said. “It should be a regional solution.” Connecticut environmental officials said the state “reluctantly entered into a 10-year contract” backed by Connecticut ratepayers to prevent Millstone from shutting before the end of its operating licenses in 2035 and 2045. “No regional ISO-NE mechanism” was available to keep Millstone operating and it “was imminently at-risk of retirement,” the state said. ISO said Dominion did not submit an application to retire the plant and the ISO was not directly involved in negotiations between Dominion and the state. Arconti, a Danbury Democrat, said new policies by the state Public Utilities Regulatory Authority will lead to rate approvals based on performance rather than the utilities’ cost to provide service, he said. Catch up on the day’s top headlines sent directly to your inbox weekdays at 3 p.m You are now following this newsletter. See all newsletters.

https://www.courant.com/business/hc-biz-connecticut-electricity-prices-20210412-oghfpvjrg5brdndpybkea66tiy-story.html

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