New Haven Independent

Frank Panzarella is one of the founders and leaders of Fight the Hike, which opposes rate increases from both Connecticut Light & Power and UI. Most of their members are from New Haven, which is serviced by UI.

The bill addresses the problem of “peaking plants” — those that go on-line only for the few hours or days in summer of peak demand, but which must be kept ready to fire up, thus pushing costs up considerably. The energy bill was passed in both houses by huge majorities, and Gov. Jodi Rell has said she’ll sign it.

The bill also increases efficiency standards and includes more incentives to conserve energy. But Panzarella (pictured with his wife, Paula, at a rally at the capitol last Wednesday) said, “What’s missing is immediate rate relief and re-regulation,” the two key changes his group had fought for. “The little things that might give some help here are undercut by the overall structure — like giving with a teaspoon and taking it away with a shovel. They tweaked the current system but the structure hasn’t changed.”

By July, UI’s customers will see a 50 percent increase in their bills. UI spokeswoman Anita Steeves said the legislation provides no immediate benefit for ratepayers, and she didn’t expect any. She said UI had sought several changes in the bill: the ability to n negotiate directly with suppliers and have longer-term contracts, up to 15 years; full restoration of the conservation management funds; and the ability to get into peaking generation if need be. She said she hasn’t had time to thoroughly review the legislation, but will be going through it “with a fine-tooth comb to see how it benefits our customers.”

Panzarella praised Rep. Vicky Nardello for standing up for ratepayers, and Energy Committee Co-chair Steve Fontana “for having the courage to vote against his own bill. He called it a farce because the legislature wouldn’t pass amendments to give some rate relief.”

Meanwhile, UI may be planning to move its headquarters out of the city in 2012, and state Rep. Pat Dillon of New Haven is proposing legislation that would try to keep some leverage over the company and keep it in New Haven, or else require it to pay the city compensatory costs.

Panzarella said the company’s potential move is “indicative of how they’ve been responding to the city as a whole, with their rate hikes.”

He said the group is “taking the summer off,” but will regroup in the fall and continue to fight for rate relief and re-regulation.