In an effort to lower energy costs in Connecticut, Sen. Paul Honig, D-Harwinton, has proposed legislation to authorize the state to utilize tax-exempt municipal bonding to finance energy infrastructure improvements.
The proposal, Senate Bill 1040, would provide relief to ratepayers by reducing interest rates on borrowing for projects to modernize the energy grid. Currently, utility companies like Eversource and United Illuminating finance infrastructure improvements by borrowing from the corporate bond market, where those companies receive a guaranteed return on their investments.
“For too long, Connecticut ratepayers have shouldered the burden of financing energy projects at inflated interest rates that benefit corporate utility monopolies,” Senator Honig said. “Families wouldn’t choose a high-interest loan when lower-cost financing is available, and our state shouldn’t either. By leveraging municipal bonding, we can significantly reduce the cost of critical energy infrastructure upgrades and deliver real relief to ratepayers while modernizing our grid. Although no single proposal will slash energy prices overnight, I believe it’s time to prioritize Connecticut residents over corporate profits and I hope this legislation will be part of the conversation.”
Senate Bill 1040 was introduced by Senator Honig and referred to the legislature’s Planning and Development Committee. The bill would allow municipalities to issue bonds for energy grid modernization projects.
FOR IMMEDIATE RELEASE
Contact: Hugh McQuaid | Hugh.McQuaid@cga.ct.gov