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    Editorials
    Friday, May 10, 2024

    Push bills critical to region toward approval

    Two bills of major importance to the region won the approval of the Appropriations Committee, thanks in no small measure to support from members of the local legislative delegation. Both bills now move forward to the full House and Senate.

    However, the bills diverge when it comes to their long-term prospects.

    Senate Bill 957, which provides the best chance to mitigate the impact of the $950 million MGM Springfield Casino scheduled to open in that Massachusetts city next year, sailed through Appropriations 33-13. The bill would allow the Mashantucket Pequot Tribe, operators of Foxwoods Resort Casino, and the Mohegan Tribe, operators of Mohegan Sun, to jointly open a commercial casino in East Windsor.

    Conversely, a bill intended to assure the sustainability of the Millstone Power Station nuclear plant in Waterford, faced a struggle. The measure calls for adjusting the way Millstone owner Dominion Resources enters into contracts for the sale of electricity produced by the reactors.

    The energy pricing bill has been the subject of an attack ad campaign by the natural gas power industry, which for obvious reasons does not want to see the nuclear plants provided an improved competitive position. The criticism of the bill has eroded support. It squeaked out of Appropriations on a 23-21 vote.

    It is in the region’s best interest for local lawmakers to continue steering these bills to final approval, with the Millstone legislation providing the greatest challenge.

    The gaming industry has become a significant part of Connecticut’s economy. If the state does nothing, the expectation is that the MGM casino will lure away many casino-goers in the greater Hartford area who now travel to Foxwoods and Mohegan Sun. The proposed Mashantucket-Mohegan casino would keep some of those patrons and their entertainment dollars in Connecticut.

    Whether MGM opens alone, or both it and a third Connecticut casino open, new competition will mean the loss of gaming jobs at the two local tribal casinos as some patrons are siphoned away. But if the legislature allows a third tribal casino in East Windsor, it would benefit the tribal enterprises, better positioning them to make the investments necessary to continue diversifying entertainment offerings beyond gambling at their local resorts.

    The unusual arrangement would invite litigation. But it is worth noting that MGM, which has the most to gain from blocking an East Windsor tribal-run commercial casino, cannot claim Connecticut denied it the chance to compete for opening a casino in that area. Its deal with Massachusetts prohibits it.

    The Senate co-chairs on Appropriations are both local lawmakers, Sen. Cathy Osten, D-Sprague, and Sen. Paul Formica, R-East Lyme. Also on the powerful committee, and helping generate Republican support for the third casino legislation, is freshman Sen. Heather Somers, R-Groton.

    Local House members voting in favor were Reps. Mike France, R-Ledyard; Kathleen McCarty, R-Waterford; and Kevin Ryan, D-Montville.

    Osten expressed confidence the votes are there for legislative approval.

    Support from the same local lawmakers proved critical in keeping the Millstone legislation alive. They must now convince their fellow legislators about the importance of the nuclear plants that provide 55 percent of Connecticut’s power and 15 percent of New England’s, a base load necessary to afford a bridge to a future with more renewable power.

    The bill would allow Millstone to sell 950 megawatts a year directly to power distributors Eversource and United Illuminating, roughly half the electricity Millstone's Waterford station generates. Pricing in the five-year contract would result from a state-run bid process. It would partially protect the nuclear station from market volatility. Millstone cannot ramp up or down its power production based on the daily changes in energy demand.

    Criticism of the bill has focused on two arguments.

    The first is that Dominion has not demonstrated that its nuclear operation at Millstone is in dire fiscal straits. It’s not. But the trend is not good for the nuclear industry in this regard. By some estimates, as much as 15 percent of the 99 U.S. nuclear reactors may be shut down in a decade or less, unable to compete with cheaper natural gas-fired generation. Connecticut should not wait until Millstone faces a crisis.

    The second argument points to higher rates. But the bill requires the Department of Energy and Environmental Protection, the Office of Consumer Counsel, and the attorney general to confirm that contracts for Millstone energy are in the best interest of ratepayers.

    Millstone is a major employer, taxpayer and power provider. Local lawmakers should continue their fight to approve this reasonable legislation.

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