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    Wednesday, May 08, 2024

    In wake of Kentucky Derby trips, committee combining bills on CMEEC

    The General Assembly's Energy and Technology Committee will combine aspects of four proposed bills involving the Connecticut Municipal Electric Energy Cooperative to call for greater transparency and compliance with public documents laws, but stopping short of abolishing the energy cooperative, said state Sen. Paul Formica, R-East Lyme.

    Formica, co-chairman of the Energy and Technology Committee, said the committee on Thursday voted to approve two proposed Senate bills, Nos. 4 and 413, that call for CMEEC and all municipally owned utilities in the state to release financial and governing information in accordance with the state Freedom of Information Act.

    The committee also agreed to “enhance” the language of Senate Bill No. 4 to include elements of two other proposed bills that were designed to abolish the energy cooperative and allow the six municipal utilities that own the cooperative, and other municipal utilities, to form purchasing agencies for buying wholesale power.

    “I think it's somewhere in the middle of those two (bills),” Formica said. “Where (Bill No. 4) was 'make sure you're a little more transparent' and (Bill No. 79) was 'close the door.'”

    The various bills were proposed in the wake of strong public criticism of CMEEC and its member utilities over lavish trips the cooperative has hosted for the past four years for dozens of staff, board members, family members, municipal leaders and guests to the Kentucky Derby. The trips cost CMEEC more than $1 million collectively, including $342,330 for 44 attendees in 2016. The bills were discussed during a more than five-hour public hearing hosted by the Energy and Technology Committee on Feb. 21.

    “There were some calls for drastic committee action,” Formica said of Thursday's committee discussion of the bills. “There were comments of concern on how we got to this point. Certainly, there were mistakes made and that's unfortunate. We'll have to tighten up the statutory process, but it does depend on people's behavior.”

    Formica said the new bill the committee will draft won't be done in time for the committee's next public hearing on Tuesday, and the earliest it could be ready for a public hearing would be March 14.

    State Sen. Heather Somers, R-Groton, had proposed the bill that called for repealing the state statute that created CMEEC, and also the bill that would allow municipal utilities to create purchasing agencies to buy wholesale electricity. During the Feb. 21 public hearing, she said she would be willing to work with the Energy and Technology Committee on language that would retain CMEEC but impose stricter controls on the organization.

    "I am grateful both Democrats and Republican can agree to strong necessary reforms to protect our ratepayers," Somers said about the committee's vote on Bill No. 4. "This legislation will open the books, allow ratepayers to be informed on decisions and restore trust in an organization that continues avoiding accountability. I will continue to work with the committee to make sure this legislation will prevent future abuses of the public trust."

    State utility regulators do not oversee either municipal utilities or CMEEC, which is owned by six municipal utilities, including Norwich Public Utilities, Jewett City Department of Public Utilities and Groton Utilities, which also owns member Bozrah Light & Power.

    Formica was a co-introducer of Bill No. 4, along with state Sen. Cathy Osten, D-Sprague, state Rep. Kevin Ryan, D-Montville, and state Rep. Emmett Riley, D-Norwich. That bill calls for CMEEC to follow state FOI laws and post meeting agendas, minutes and financial reports, and to provide that information to its member municipalities. CMEEC also would be required to hold board meetings in Connecticut.

    Bill No. 413 also was submitted by Somers and would require municipal utility companies to allow the public to examine the companies' books and financial records.

    "We hope any bill moving forward will balance public awareness and transparency with protecting certain proprietary information that facilitates lower rates for our residential and commercial customers," NPU spokesman Chris Riley said of the pending bills.

    c.bessette@theday.com

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