At 10 a.m., Gov. Lamont will be joined by Mayor Martin and DOT
officials for a press conference to make an announcement on the upcoming
replacement of a bridge on I-95 in Stamford. The press conference will take
place outside of the O&G Industries trailer in between the I-95 Exit 9
northbound on and off ramps; Corner of East Main Street and Seaside Avenue,
Stamford.
Toni Boucher: Tolls — What is the big deal, Connecticut?
Toni Boucher
Some observers wonder why people in Connecticut are making such a fuss over proposals to install tolls. After all, most of us pass through tolls regularly. They are part of everyday life in surrounding states, so what is the big deal? Why are protests popping up all over? The opposition had become so contentious that one state representative suggests that towns protesting tolls should be denied state transportation aid.
This is unfortunate when an honest open dialogue is needed on what could become one of the most costly tax increases for residents coming on the heels of the historic increases in 2015 and 2011. Those increases give Connecticut the dubious distinction of having the highest combined federal, state and local tax burden in the nation. The state is losing people and jobs as a direct result.
Connecticut’s economy is an eco-system. Everything is connected. Legislators should be asking how tolls and taxes taken as a whole will impact the state’s reputation as a business and taxpayer friendly place. Any increases to the cost of living should be closely scrutinized, especially since Connecticut is one of the only states that has not recovered from the great recession of 2008, and GDP growth of 0.4 percent is the weakest in the Northeast.
Tolls are commonplace. However, what is not commonplace is the sheer volume of Connecticut taxes that other states don’t have:
High income tax that does not allow deductibles
High car property taxes 8 percent gross petroleum gas added to a high gas excise tax Real-estate conveyance tax Gift and estate taxes Social security and pension taxes Luxury sales tax High licensure fees Highest property tax in the country Hundreds of services taxes Other factors that should be considered: Connecticut is a small state and tolls would appear on every major route. Connecticut could become the most tolled state in the nation. Plans call for tolls on both cars and trucks spread across 53 to 80 gantries; revenues would approximate $800 million. Thirty-percent of drivers without EZPass avoid paying a toll. As a result of this, and DOT’s high administrative costs (Connecticut spent more than $83,000 per mile in administrative costs compared to $10,000 per mile nationally), show revenue estimates based on toll prices of up to four times the highest rate in the country. Studies find 60-to-75 percent of toll revenues would come from Connecticut drivers. This would hurt state businesses and workers whose jobs require daily travel.
Congestion toll pricing increases during peak travel periods, but a typical worker cannot dictate their schedule. Congestion pricing is regressive as it penalizes those who least can afford it. A toll could become a $240 monthly pay cut per month.
Connecticut receives approximately $528.6 million from the federal government to make up for lack of tolls. Those funds could be lost if tolls move forward.
Higher truck tolls equal higher prices that will be passed along to consumers in the form of higher priced goods and services.
One bill would allow the DOT to construct tolls almost immediately without the approval of the General Assembly if no vote is taken within 15 days of convening the legislature. Another bill creates a Transportation Authority that would decide toll placement and rates — also without a vote taken. This would absolve legislators from taking responsibility from enacting tolls or raising prices drastically like the $46 congestion pricing for a 10-mile one-way trip on I-66 in Virginia. These decisions should not circumvent those who are answerable to the public.
Transportation improvements are needed, but tolls are not the solution. “Prioritize Progress” is an alternative funding plan that utilizes current state resources to provide $65 billion for infrastructure projects over 30 years. It requires that all bonding, beyond the state’s core needs such as school construction, must go to transportation infrastructure. It guarantees a steady flow of funding and operates within the state’s bond cap without burdening people with tolls or taxes.
Call it what you will — a toll is tax and a big deal for Connecticut!
Despite New DOT Commissioner’s Concerns, Transportation Votes To Draft Authority Bill
Christine Stewart
HARTFORD, CT — The Transportation Committee voted Friday to draft legislation that creates an authority to oversee Connecticut’s infrastructure projects.
“What will this bill actually do?” Sen. Henri Martin, R-Bristol, asked.
Sen. Carlo Leone, D-Stamford, said the bill is a concept bill to keep the idea alive.The bill as currently called for would have the General Assembly “create a Connecticut Transportation Authority, which would oversee and prioritize transportation projects.”
Leone said, “This will give us an opportunity to address any concerns.”
Many worry it’s a baby step toward establishing tolls.
“It’s no secret that this is one of the biggest issues in our state,” Rep. Laura Devlin, R-Fairfield, said.
The committee voted by voice to draft the bill as a committee bill.
The bill has not been drafted yet so it’s unclear exactly what an authority would look like, however, toll opponents are concerned it would move the creation of a tolling structure away from an elected General Assembly to an unelected group of individuals.
In past years, lawmakers have sought to pass legislation that would study tolls while creating an authority with the power to implement tolls and set toll rates, removing the power from the General Assembly.
Joe Sculley, president of the Motor Transport Association of Connecticut, said Monday that if these transportation authorities are so great then how come none of them have any money?
He also asked why the state of Connecticut would want to “abdicate” all of its control to an unelected board that’s going to establish tolls on almost every highway in the state?
“This is worse than just tolls,” Sculley said. “If people want tolls then put up a tolls bill and just vote for it. Don’t try to go through this quasi-government body.”Department of Transportation Commissioner Joseph Giulietti testified Wednesday against the creation of an authority to oversee tolls.
He said if the General Assembly wants to create an authority to oversee tolls, it’s essentially “adding a layer of management, a layer of costs.”
He said unless there was a reason to create an authority, then he doesn’t recommended it. Gov. Ned Lamont also was not wedded to the idea and said it’s something that could be negotiated.
Giulietti said he would be reluctant to create a body that doesn’t have a direct connection with the legislature and the Office of Policy and Management.
Dominion pushing for sweeter deal to keep Millstone open
Benjamin Kail
Waterford — When an industry analyst on a February conference call asked if Millstone Power Station still faced closure, Dominion Energy President and CEO Thomas Farrell replied that executives were "not here to do any saber-rattling."
But this past week, after warning for years that high operational costs and competition from cheap natural gas threatened Millstone's future, Dominion pressed utility companies and state leaders for a sweeter deal to keep the nuclear plant operational. If the parties can't find common ground by March 15, Millstone, which generates 2,100 megawatts, employs 1,500 workers and is Waterford's largest taxpayer, could notify the regional grid operator that it intends to shutter in four years.
Officials with Dominion say they sat down face-to-face with utilities for the first time this past week, less than two weeks before power generators must notify ISO New England if they want to retire. The talks come more than two months after regulators told utilities to negotiate cheaper prices for a 10-year agreement with Millstone announced by former Gov. Dannel Malloy in December. Pricing has not yet been released to the public.
Despite the state's push for lower prices out of Dominion, the Virginia company in December welcomed news of the agreement, which came after years of lobbying and fierce pushes from lawmakers to let nuclear power facilities compete with higher-priced solar, wind and hydropower in the state's zero-carbon auction.
But by the February conference call, Farrell was telling analysts the first three years of the contract would amount to the New England wholesale power price, "not an acceptable result for the company." Executives banked on working with Gov. Ned Lamont's office, DEEP and utilities to forge a more palatable deal, with the goal, Farrell said, of providing "long-term financial assurance required for Millstone's continued operation."
Still, negotiations didn't advance in February, with Dominion faulting utilities. The parties had conducted only "short meetings" over the phone, according to spokesman Ken Holt, who said Dominion had been "ready and willing to meet face-to-face" with Eversource and United Illuminating for a month.
The utilities declined to comment on how Dominion characterized the talks.
"The negotiations continue," Eversource spokesman Mitch Gross said Tuesday.
"UI and Eversource were directed by the Department of Energy and Environmental Protection to negotiate in the best interest of Connecticut ratepayers," said Ed Crowder, spokesman for UI. "We are proceeding as directed. We have nothing to gain or lose in this process, and we take our obligation to Connecticut ratepayers seriously."
Holt noted Dominion is "fully engaged with Connecticut's utilities and the Lamont administration to finalize" a deal before March 15.
"There is no question that Millstone is vital to Connecticut's economy, and the region as a whole, to control energy costs, achieve ambitious carbon reduction goals, and provide employment to over 1,500 women and men," Holt said.
As for the state, DEEP spokesman Chris Collibee said the agency was "working closely with the utilities and Millstone to come to a fair and equitable solution that protects ratepayers, while ensuring Connecticut meets its carbon reduction targets."
A message left with a spokesperson for Lamont's office was not immediately returned.
Nicholas Neeley, spokesman for the Public Utilities Regulatory Authority, which must approve any contracts between Millstone and utilities, declined to comment on negotiations, other than to say, "We're not going to get involved at any point until, and if, they file something with us."
'Almost home-free'
Waterford last year re-established a Long Range Fiscal Planning Committee partly to consider ways to eventually replace Millstone's 35 percent portion of the town's tax base, almost $30 million. First Selectman Dan Steward said this past week that he hoped utilities "get to the table and sign a deal."
"The legislature worked on this for so long," he said. "It should have been resolved before this. It's important to Waterford. It's important to the state."
Sen. Paul Formica, R-East Lyme, one of several local lawmakers pushing to support Millstone the last few years, said he was hopeful and expected a timely resolution.
"Preserving our power baseload is priority number one to establish a bridge to renewable energy," Formica said, highlighting the growing opportunity for offshore wind power and renewables to eventually replace retiring sources of electricity.
Rep. Kathleen McCarty said she was frustrated that negotiations were not completed.
"I thought we were almost home-free and this was resolved," she said, arguing that keeping Millstone open is in the best interests of ratepayers, workers and the state. "Now here we are in a holdup with the contracts."
Dominion last year turned over to regulators confidential financial data in an attempt to prove Millstone was at risk of early retirement.
When DEEP in December approved Millstone's 10-year proposal in the zero-carbon auction, it split the deal in two. In the last seven years of the agreement, DEEP said Millstone would receive better prices, with contracts valuing the plant's environmental, economic and fuel security benefits. DEEP directed utilities to negotiate the price in those seven years "downwards to better reflect a reasonable rate of return. Dominion has sought a rate of return that is not in the best interests of ratepayers."
In the first three years of the agreement — a period when the state believes Millstone is not at risk of closing because it's already committed to providing electricity to the regional grid — DEEP said Millstone would receive compensation based on energy-only pricing.
Farrell said the overall agreement as it stands isn't good enough to keep the plant running, telling analysts "we must have pricing that recognizes (Millstone's) energy security, environmental and economic benefits."
Holt noted that last March, before state regulators selected Millstone's 10-year deal, Dominion chose to compete in ISO New England's forward capacity auction, which secures future electricity for the grid, instead of initiating retirement.
"We participated in the auction last year without a clear path forward and aren't willing to do that again at this point," Holt said.
Regulators have said Millstone would remain profitable for years, but they also forecast stark economic and environmental impacts if the nuclear plant were to shutter prematurely.
ISO New England spokesman Matthew Kakley said the grid operator is not part of any negotiations.
When a power generator wants to close, ISO New England studies the impact to power system reliability and "can seek to retain a resource we determine is needed for either fuel or transmission security," Kakley said. But "we ultimately cannot prevent a resource from retiring if they wish to do so," he added.
Millstone Unit 2's operating license with the U.S. Nuclear Regulatory Commission expires in 2035. Unit 3's expires in 2045. Unit 1 was decommissioned in 1998.