Connecticut has some of the highest energy costs in the country. Aging infrastructure, reliance on natural gas, and the state’s location on the network of power plant pipelines are among the reasons.
Another factor?
Lackluster federal regulation, according to U.S. Senator Richard Blumenthal (D-CT). He wants stronger oversight from the Federal Energy Regulatory Commission (FERC).
FERC is responsible for regulating energy transmission and sale.
“The work by the federal authorities has been anemic,” Blumenthal said outside of Union Station in New Haven on Monday morning. “FERC, the primary federal authority, has been anemic in its scrutiny and oversight.”
Specifically, he wants more oversight into transmission improvement projects.
The upgrades, called asset condition projects, can cost hundreds of millions of dollars. Ratepayers often bear the burden, and not only for the projects in their state; because the grid is shared across state lines, the costs are, too.
“They are construction projects on transmission lines, and often the costs are exaggerated,” Blumenthal said. “The work is expanded beyond what is necessary because the return on investment for the utility companies is higher for them.”
He cited one such project currently under scrutiny in New Hampshire. Advocates — including Connecticut Consumer Counsel Claire Coleman — have said the project is unnecessary and will raise costs for CT residents.
“Eversource has proceeded with plans to replace about 50 miles of transmission, despite the fact that only 10% of the transmission poles and lines need replacing, and we think that's excessive and tone deaf,” Coleman said.
Eversource said the upgrades are needed to replace “rapidly degrading infrastructure” that serves 30,000 people in the North Country.
Blumenthal has introduced a bill that would prohibit the commission from approving upgrade projects that would raise consumer prices more than 5%.
