Tony Sheridan
We've all read the headlines and seen the reports — facing massive state budget deficits that stretch for years to come, Connecticut is struggling to retain meaningful jobs, young people and businesses, and struggling to attract new investment.
For Connecticut to succeed, our economic wellbeing depends on an affordable and reliable clean energy supply to replace outdated energy sources and to attract and grow a modern economy, an economy that will allow the state to be competitive.
One important step that we can take right now is to support the development of the Killingly Energy Center, a 650-megawatt combined cycle natural gas power plant using high-efficiency and low-emissions technology.
In addition to improving the state's energy infrastructure, the development of the Killingly Energy Center offers many additional benefits.
NTE Energy, the developer of the Killingly Energy Center, is investing $700 million to construct the facility — that's $700 million of private capital in a state that is starved for private investment. Construction will also generate approximately 450 well-paid jobs, as well as 20 permanent, full-time jobs with a total annual payroll of approximately $2 million, again in a region that desires skilled jobs.
Another benefit is greater energy reliability. One of the most important factors businesses look for when deciding to remain in or move to Connecticut is energy reliability. In fact, when the Base Realignment and Closure (BRAC) Commission was looking at closing the New London sub base, this was one of their concerns.
Not only will the Killingly Energy Center provide new and needed economic development, it will also enhance the region's overall electrical system reliability with a cleaner and more affordable source of energy.
Throughout New England, several coal- and oil-generation power plants are either retiring or at risk of retirement. Not only does this threaten the reliability of the region's energy system, but it also provides an opportunity for these older, less efficient and much dirtier plants to be replaced by cleaner-burning natural gas powered plants — thus improving our environment.
The Killingly Energy Center also holds benefits for its host community. Once completed, the facility will be Killingly's largest taxpayer, paying in excess of $110 million to the town over the 20-year agreement, as well as an additional $5 million under the Community Environmental Benefit Agreement that the town will use for needed community projects and scholarships.
The Killingly Energy Center will also fund and construct needed infrastructure improvements benefiting the town and project, including replacing older natural gas pipelines, connecting neighboring water systems and enhancing existing roadways. These infrastructure improvements will help encourage further economic development in Killingly's industrial park.
It is important to note that these economic and infrastructure benefits will be made at no cost to the town and with no taxpayer funds or incentives.
Our future economic wellbeing depends on our willingness to embrace new clean energy sources that incorporate modern technology and provide greater efficiency. The Eastern Connecticut Chamber of Commerce stands with those willing to bring responsible development of cleaner and more reliable energy to our state.
Tony Sheridan is the president and CEO of the Chamber of Commerce of Eastern Connecticut.
Republicans stand united against CT tolls
Ken Dixon
HARTFORD — Minority Republicans staged an anti-toll news conference on Tuesday, promising that any bill to create electronic highway tolling would meet their staunch opposition.
House and Senate Republicans challenged Gov. Ned Lamont’s contention that 40 percent of toll revenue would come from out-of-staters. They noted that out-of-state drivers would also be eligible to purchase Connecticut transponders, under federal law that allows more than 14 percent of Massachusetts transponders to have been purchased by non-state residents.
House Minority Leader Themis Klarides, R-Derby, and Senate Minority Leader Len Fasano, R-North Haven, said that the goal of Lamont and Democrats is to generate a billion dollars in annual revenue. They promised to fight for commuters and working people, while developing strategies to support transportation infrastructure projects.
“These are people who fight for every dime they have,” Klarides said, promoting a previous GOP plan to prioritize transportation infrastructure spending. “I am here to say to the Connecticut taxpayer that we are all, and our team, is behind you. There are other ways to do it and we have those other ways.”
Rep. Laura Devlin, R-Fairfield, ranking member of the legislative Transportation Committee, said that as she travels around the state talking about the issue, residents are beginning to better understand - znd oppose - what would essentially be a road-use tax.
“Don’t get distracted by the number of gantries,” she said. “Any plan we’ve seen includes a revenue target of one billion dollars. The majority of that is a tax on the residents of the state of Connecticut. That’s just the start. Have you ever heard of a toll that goes down in price?”
“The bottom line is that this is a mileage tax,” Fasano said.
Currently, toll-related legislation is vaguely written, but includes a bill that would allow the issue to be approved in the General Assembly without votes in the House and Senate, if there is not a vote within 15 days of passage in committee.
Fasano said that if that bill were to pass that way, tolls could be decided by Speaker of the House Joe Aresimowicz, D-Berlin, and Senate President Pro Tempore Martin M. Looney, D-New Haven.
In response, Looney said Republicans would add to the state’s debt, while tolls would create a new revenue stream.
“Once Connecticut pays off these bills in 20 years the interest will end up having the state pay 150% of the construction costs,” Looney said. “In addition, the Republican plan only pays for minor fixes and repairs and does not fund major projects the state needs like the I-84 viaduct in Hartford, the I-84 mixmaster in Waterbury, movable rail bridges, and other large necessary projects.”
The Transportation Committee’s deadline is March 25, while the Finance Committee, which would review toll revenue, has until May 2. The annual legislative session ends on 12:01 a.m. on June 6. Democrats hold a 90-60 majority, pending at least one remaining special election in the House; and a 22-14 edge in the Senate.
Lamont proposed 53 toll gantries along Interstates-95, 91, and 84, as well as the Merritt and Wilbur Cross.
Maribel La Luz, Lamont’s director of communications, agreed with Looney that the Republican plan is supported by a borrowing scheme that just pushes out the state’s fiscal problems further into the future.
“There’s agreement from everyone about two things: our transportation system needs enhancements and upgrades because it’s too congested and inhibits our growth, and Connecticut residents should be the least burdened,” La Luz said. “To address this, the Governor is proposing a user fee on our major highways where at least 40% would be paid by out-of-state commuters. Every other state around us has figured this out, so can Connecticut.”
With no contract in place, Millstone threatens closure
Matt Pilon
The operator of Connecticut's largest power plant, Millstone Power Station, has failed to negotiate a long-term contract with the state's two utilities, and is now threatening to retire the nuclear facility if a deal is not struck by the end of next week.
The development throws a wrinkle in a plan that seemed nearly done back in December, when the Department of Energy and Environmental Protection (DEEP) announced it had selected the nuclear plant for a long-term contract with utilities -- a 10-year deal that was the result of roughly three years of lobbying by plant owner Dominion.
Dominion spokesman Kenneth Holt confirmed Tuesday morning to the Hartford Business Journal, that his company intends to file a retirement notice with grid operator ISO New England if it cannot finalize a contract with Eversource and Avangrid by March 15.
The Boston Globe was the first to report the development.
That date is ISO NE's deadline for generators to notify it if they don't intend to bid in its next auction for future generation commitments, a process known as the forward capacity market (FCM) auction.
Millstone is obligated through the FCM to operate until the end of May 2023, and ISO NE is paying the plant for those pledges. However, if Dominion notifies ISO NE this month that Millstone won't be participating in the next FCM auction -- which takes place less than a year from now -- it could be eligible to retire the plant in about four years, Holt said.
Eversource spokesman Mitch Gross said negotiations are continuing but declined to comment any further comment.
"[United Illuminating] and Eversource were directed by DEEP to negotiate in the best interest of Connecticut ratepayers and to submit contracts, if we are able to reach agreements with Dominion...by March 31," said UI spokesman Edward Crowder. "We are proceeding as directed."
Dominion lobbied Connecticut lawmakers for approximately three years to help prop up Millstone with a long-term contract to sell a portion of its massive electricity output to Eversource and United Illuminating.
The effort was successful last year, as lawmakers authorized DEEP to select a large amount of electricity generated by "zero-carbon" resources, including nuclear and renewables, for utility contracts.
It was the first such state electricity procurement to include nuclear. The state has in the past used the long-term contracts to spur renewables growth.
While DEEP announced its Millstone selection in December, that didn't entirely seal the deal.
The first three years of Millstone's contract are based on the bid price it submitted to the state to sell its energy output, which was not disclosed. But DEEP said it wasn't satisfied with the rate of return Dominion wanted for the final seven years of the deal, calling it "not in the best interest of ratepayers."
DEEP ordered Eversource and UI to negotiate lower pricing for the later years of the contract, something that hasn't yet happened, though Holt confirmed the parties will meet in person later this week in Connecticut.
Editor's note: This story has been updated to include comment from Avangrid's United Illuminating.
Four vacant Main Street buildings coming down in Derby
Michael P. Mayko
DERBY — It’s a story city residents have been hearing for years.
But this time, it’s happening.
Environmental Services of South Windsor is expected to begin demolishing the four remaining vacant buildings on the south side of Main Street as the state pushes ahead with their plan to widen the road to four lanes.
“They are out there putting the fencing around the demolition site,” Carmen DiCenso, the city’s economic development consultant and former Board of Alderman president said Tuesday. “The demolition will start (Wednesday).”
The four buildings located at 128, 130, 134-36 and 140-146 Main all have common walls, said Sarmiento, the city’s building official, who also serves as a zoning enforcement officer and blight enforcement officer.
He said because of that demolition on all four will take place simultaneously.
Plans call for the debris to be separated into two piles—one filled with combustible items and the other brick and cement. When the demolition shuts down for the day—a team of two firefighters will be placed on Firewatch from the time Environmental Services leaves until they start up in the morning.
“Combustibles can’t be left unattended,” said Sarmiento. “There are also safety issues. There could be open pits, open doors...”
During a previous demolition, Sarmiento said power connectors were found in the ground “and that was after we removed all the connections from the building.”
So he said as long as the demolition work continues there will be a Firewatch with two firefighters assigned per shift.
Yale New Haven Hospital projects to add $6M to city coffers
Mary E. O’Leary
NEW HAVEN — Building fees are anticipated to jump almost $6 million in the next fiscal year, to a large extent because of a project or projects associated with Yale New Haven Hospital.
The city this year is expecting to take in $11.9 million in construction fees, but that is forecast to grow to $17.9 million next year because of the hospital, according to the mayor’s budget document.
City and hospital officials generally are tight-lipped about the construction that will add to the city’s anticipated revenue for 2019-20.
The projects, according to state officials, that the hospital generally has been looking to upgrade or add over time include: the St. Raphael’s campus; the East Tower, which is the original Grace New Haven wing; and a parking garage.
The administration Thursday announced its budget proposal for 2019-20, which totals $556.6 million and represents a 1.75 percent increase over this year’s budget with no layoffs.
The tax rate will remain the same at 42.98 mills with spending increasing $9.6 million over the current year’s budget.
Last year the tax rate went up 11 percent. The city has blamed a shortfall in state funds for the bump, but state Senate Pro Tempore Martin Looney Monday said the city had been warned that cuts were coming.
Half of the proposed additional spending next year will go to the two employee pension funds that are some $700 million underfunded.
For next year’s budget, the net taxable grand list as of October 2018, which is the basis for anticipated tax revenue, went down $15.8 million or 0.23 percent.
Harp said this largely is due to Yale University taking buildings in Science Park off the tax rolls as it has converted them to academic use. The mayor said she will have additional discussions with the university over this issue.
The mayor has proposed only adding $750,000 to the schools budget next year, although school officials had spoken of the need for $30 million.