Connecticut customers could be caught in the middle of a trade war by tariffs on Canadian electricity at a time when many consumers are already struggling to pay their electric bills.
U.S. Sen. Richard Blumenthal is trying to block 10% tariffs that have been put on hold temporarily by President Donald J. Trump as the fierce debate on tariffs rocks the stock market, driving equity prices down sharply on all the major indexes.
“Connecticut is about to be hit by a tsunami of skyrocketing prices as a result of the absolutely horrendous tariffs that Donald Trump is imposing on Canadian imports,” Blumenthal told reporters Monday outside the state Capitol in Hartford. “It is paid by consumers. Donald Trump says it’s paid by the exporters in Canada. No, it’s paid by consumers because it is added to the price of electricity coming into this country. We’re saying, ‘No, Mr. President, Connecticut electricity consumers want to avoid that additional cost.’ ”
No legal cases have been filed for a temporary restraining order because the tariffs have not yet been imposed, Blumenthal said.
The issue is important because hydro-electric power from Canada constitutes about 11% of New England’s power supply, officials said. The average kilowatt per hour price is 28 cents in Connecticut, compared to about 16 cents nationally.
Based on the level of the tariffs, gasoline prices could increase by 20 to 30 cents per gallon, Blumenthal said.
Since New England is more dependent on Canadian electricity than other parts of the country, Connecticut customers could be disproportionately impacted.
“This tariff is going to hit blue states in New England, but it will hit Republicans and Democrats as well” in their homes, Blumenthal said.
With multiple complications in the deregulated electricity world, officials say it is unclear exactly how the tariffs would be regulated and overseen by the nonprofit ISO New England, the independent system operator that oversees the wholesale market, and the Federal Energy Regulatory Commission, known as FERC.
“It’s not clear how ISO New England would impose a tariff because it’s never been done before,” Blumenthal said. “How do you collect a tariff on electricity? Nobody knows.”
Separately, multiple news reports said Monday that the government of Ontario had imposed a 25% tariff on the northern states of New York, Minnesota and Michigan in the ongoing trade ward. The surcharge would reach 1.5 million residential and business customers in the three states.
Ongoing clash
The potential price war is set against a backdrop of falling stock market prices and an ongoing battle at the state Capitol over electricity prices.
Senate Republican leader Stephen Harding of Brookfield said the quickest way to lower prices is to remove the “public benefits” charges from customers’ electric bills and instead make them part of the $26 billion annual state budget. Both Gov. Ned Lamont and Democrats have balked at that idea.
“While the concern over tariffs is bipartisan, the only solutions to lowering electricity costs here at the state Capitol are coming from Republicans,” Harding said. “Republicans want to get rid of the hidden ‘public benefits’ tax on our bills. Republicans have repeatedly offered detailed plans. Democrats who control the state Capitol do nothing about it. They won’t even try, but we hope Sen. Blumenthal will support our effort.”
Legislators are still battling over the future of the Public Utilities Regulatory Authority, known as PURA, and its embattled chairman, Marissa Paslick Gillett. While Gillett has been approved at the committee level for another term as chairman, she still needs approval from the full State House of Representatives and Senate. Gillett’s approval was part of a package deal to expand PURA to five members, up from the current three, and add former state Rep. Holly Cheeseman of East Lyme and state Sen. John Fonfara of Hartford to the newly expanded five-member board. Their nominations are still pending.
Connecticut consumer counsel Claire E. Coleman agreed with Blumenthal, saying the tariffs need to be postponed and blocked.
“We are working very hard in this state to bring energy costs down … we know one thing for certain, and this will not help bring costs down,” Coleman told reporters. “There are a lot of questions about the implementation of this. We are hoping that the rule of law will prevail and that electricity will not get the same tariff as goods and services and commodities. … Consumers should not bear the brunt of these tariffs, and that’s what will happen if they’re imposed.”
Original article can be found at the Hartford Courant.
