Senate Leadership
October 14, 2008
Williams, CL&P and Yankee Gas Work Together to Help Struggling Businesses Retain Energy and Jobs
Coalition announces agreement to help new businesses with start-up costs
Senator Williams speaks at a press conference to address the costs of energy for new, small businesses in Connecticut. Left to right: Connecticut Light & Power President and COO Raymond P. Necci; Senator Gary LeBeau; Senator Williams; Joe Kotler of DiBacco Family Distributors; Donna Wertenbach, President and CEO of Connecticut Community and Economic Development Fund. (October 14, 2008)
Hartford: Saying Connecticut’s businesses need help surviving the current economic crisis, Senate President Donald E. Williams, Jr. (D-Brooklyn) joined Raymond P. Necci, president and chief operating officer of Connecticut Light & Power (CL&P) and Yankee Gas; Senator Gary LeBeau (D-East Hartford), the Senate chairman of the Commerce Committee; and Donna Wertenbach, president and CEO of the Community Economic Development Fund, at a news conference to address a growing concern in Connecticut — the cost of energy for new businesses.
New business owners currently pay a security deposit equal to three months of their utility bills. This can amount to thousands of dollars for a new business struggling to keep its doors open.
After learning of this practice, Senator Williams contacted Mr. Necci and he agreed to review CL&P’s and Yankee Gas’ policy and help new businesses keep the power on. CL&P serves approximately 1.2 million customers in 149 towns and cities in Connecticut.
“In today’s economic environment, it is important that we continue to demonstrate the necessary flexibility and leadership to help new businesses in our state,” said Necci. “CL&P and Yankee Gas are pleased to be among the first to join with Senator Williams and the legislative leadership, and we look forward to continuing to partner with elected officials, economic development groups and Connecticut’s businesses to help address the economic challenges facing our state.”
Senator Williams also plans on reaching out to executives at The United Illuminating Company (UI) and other utilities in the state to ask them to review their policies.
“The recent surge in energy costs, combined with the credit crunch, forms a one-two punch that many businesses cannot afford,” said Senator Williams. “I thank CL&P and Yankee Gas for recognizing the crisis facing our economy — especially our small businesses — and their willingness to look at ways to help these entrepreneurs in these challenging times.”
The three-month deposit was approved the Department of Public Utility Control in 2004 and is permissible in state statute. Senator Williams says current economic conditions require a suspension of this practice.
“The credit crunch, coupled with health care and rising energy costs, are pushing many small businesses to the brink,” said Senator LeBeau. “We cannot expect all of these businesses to be able to pay thousands of dollars for a security deposit, especially at a time when credit may be drying up. Let’s be clear: if these businesses fail — then we will all suffer. We need to do whatever we can to offer these businesses a lifeline, and this is a good start.”
“The security deposit can put a serious burden on small businesses that are already laden down by tightening of credit, high gas prices, a crumbling economy, and a major shift in consumer mindset and spending habits,” said Werternbach.
According to statistics filed with the Secretary of the State’s office, the number of business starts in Connecticut has been decreasing each month for most of 2008. At the same time, Connecticut’s unemployment rate reached 6.5 percent in August, the highest it has been since 1993. Many economists predict the local job market will mirror the national economy, which lost 159,000 jobs last month.
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