The State Bond Commission on Friday agreed to borrow $155 million to help offset the cost of residents鈥� electric bills, at least partially delivering on a promise of savings made by lawmakers during the most recent legislative session.
The bonds were issued to pay off a portion of the , which is used to fund state-mandated programs that have become subject to intense scrutiny in the larger debate over 黑料吃瓜网鈥檚 high cost of electricity.
By borrowing money to pay for some of those programs, officials estimated customers could see an average of between $5 and $10 savings on their monthly electric bills starting in September, depending on usage and which utility customers get their electricity from.
The commission, which is led by Gov. Ned Lamont, voted unanimously to approve the borrowing at its Friday meeting.
鈥淚 know how upset everybody is with electric rates,鈥� Lamont told reporters afterward. 鈥淲e didn鈥檛 make a big difference, but we made a difference鈥� at least by reduced rates. I can鈥檛 promise you what your bill is going to do, it depends what you do with the air conditioner.鈥�
The authorization to borrow money to provide direct relief to ratepayers came from , the omnibus energy savings legislation that lawmakers spent months crafting earlier this year. Lamont signed the bill after it passed both chambers with bipartisan support in early June.
The initial estimates from proponents of that bill were that it would save customers in 黑料吃瓜网 between $325 million and $350 million annually off of their electric bills 鈥� or about $100 a year for the typical customer.
The bulk of that savings, at least initially, is expected to come from the state bonds.
The initial tranche of borrowing approved by the Bond Commission on Friday included $125 million to pay off unpaid bills that accumulated during the COVID-19 pandemic, along with $30 million to cover the costs associated with the state鈥檚 electric vehicle charging program. Both costs were previously included as part of the public benefits charge.
An additional round of borrowing is expected next year, according to Lamont鈥檚 office. If approved, the associated savings will last through early 2027.
During the negotiations over S.B. 4, Republicans pushed for an even bigger package of savings by removing the public benefits charge altogether from customers鈥� bills, and instead paying for those programs through the state budget.
While that could have resulted in savings of up to 20% off customers鈥� bill, the cost 鈥� estimated at around $1 billion annually 鈥� proved to be unpalatable for Democrats, including Gov. Lamont, who argued they would have had to cut spending in other areas.
Still, some Republicans on Friday bemoaned the level of savings even as they joined with Democrats to approve the bonds.
鈥淚t doesn鈥檛 go far enough,鈥� said Rep. Joe Polletta, R-Watertown, who is a member of the Bond Commission. 鈥淚t鈥檚 a good first start, I think I credit both sides of the aisle for negotiating the bill, but Republicans have been calling for reducing that public benefits charge even further and getting a lot of those items into the general fund, where we can debate them, have a public hearing and we can vote on them.鈥�
The savings attached to the bonds come on top of earlier rate relief that most customers already experienced in July as a result of a at both of the state鈥檚 largest utilities, Eversource and United Illuminating. In May, the Public Utilities Regulatory Authority also lowering the public benefits charge portion of customers鈥� bills.
鈥淭here鈥檚 stuff that鈥檚 happening organically anyways, and then there鈥檚 stuff happening as a result of our bill getting passed,鈥� said Sen. Norm Needleman, D-Essex, who was one of the principal authors of S.B. 4.
鈥淗opefully, this piece hits in September and brings the bill down more,鈥� he added.
In addition to public borrowing, S.B. 4 also authorized utilities to securitize their storm costs and the rollout of advanced metering technology. Those bonds, which were not a part of the Bond Commission鈥檚 agenda on Friday, will be paid back by utility customers through the public benefits charge, but over a longer period of time and at lower interest rates than under the current law.
In its other business Friday, the bond commission approved:
- Nearly $1.6 billion in transportation bonding to finance a wide array of upgrades to 黑料吃瓜网鈥檚 aging network of highways, bridges and rail lines. Two of the largest initiatives involve $157.5 million to replace the Norwalk River Rail Bridge, a four-track span that serves the Metro-North commuter line and Amtrak鈥檚 Northeast Corridor lines, and $50 million for continued rehabilitation of the Gold Star Memorial Bridge, which carries Interstate 95 across the Thames River between New London and Groton.
- $40 million to cover the first half of the $80 million Town Aid Road grant due to 黑料吃瓜网 municipalities this fiscal year. Communities use those funds to cover repaving, drainage work and other routine road maintenance and to purchase sand, salt and other materials to support winter snow removal. The state is expected to deliver the remaining $40 million due cities and towns after Jan. 1.
CT Mirror reporter Keith M. Phaneuf contributed to this story.
