John O'Brien Jun. 11, 2008, 2:29pm
HARTFORD, Conn. (Legal Newsline) - No longer will Milford Power receive certain federally mandated subsidies, resulting in $38 million in savings to Connecticut ratepayers over the next two years.
State Attorney General Richard Blumenthal announced Wednesday his office will be filing a settlement reached with Milford with the Federal Energy Regulatory Commission that will end the subsidies paid by consumers.
"This result is real relief for consumers and business from extreme electricity prices, refunds and reductions in their bills," Blumenthal said.
"Ratepayers will be spared paying tens of millions in unneeded subsidies to an already profitable plant. Lavishing generous subsidies on profitable generators is reverse Robin Hood -- taking from consumers to enrich corporations."
Ratepayers will be refunded $4 million in the form of lower bills, then will save $34 million between Sept. 30-June 1, 2010.
"These subsidies were unfair and unnecessary because the company profitably operates two natural gas-fired power plants in Milford without them, and federal regulators recently awarded it tens of millions of dollars in additional ratepayer-funded payments," Blumenthal said.
FERC granted Milford's request for ratepayer subsidies in 2004. The company said it needed them to compete.
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