November 28, 2006

REP. DILLON SAYS MOVING COSTS MUST
NOT BE SHOULDERED BY UI CUSTOMERS
Files legislation to protect ratepayers

Representative Patricia Dillon (D-New Haven) today is filing legislation to prohibit the Department of Public Utility Control (DPUC) from allowing the cost of corporate relocation to be counted when reviewing proposed rate hikes by utilities. Rep. Dillon targeted the legislation to The United Illuminating Co.’s (UI) decision to move its headquarters out of New Haven.

“A rate hike to pay for UI’s move would add insult to injury,” Rep. Dillon said. “The hole UI will create in New Haven’s grand list means the citizens of New Haven face a property tax increase. When UI leaves, small businesses and homeowners will have to make up the difference in our property taxes. It is unjust to require us to further subsidize their departure from New Haven in our electric rates.”

UI customers are already facing a proposed 38% rate increase for 2007. DPUC is expected to rule on the rate hike in early December.

Rep. Dillon said, “UI is a monopoly with an income guaranteed through state action. When a public utility like UI packs up and moves, the costs should be absorbed by shareholders, not ratepayers. This is consumer-friendly legislation and simple fairness.”

UI is currently located at 157 Church Street in New Haven.

Representative Dillon was first elected to the General Assembly in 1984. She is an Assistant Majority Leader and serves on the Higher Education and Judiciary committees.