A temporary tax on power generation in Connecticut is adding 46 cents to the monthly bill of Westfield Gas & Electric residential customers.
WG&E General Manager Daniel Howard said the tax was imposed originally with a two-year sunset clause that would expire on July 1, 2013, but may be allowed to continue because of the revenue it is generating for Connecticut.
“There is a strong possibility that his will not go away in 2013.”
The tax has a direct effect on one of the WG&E’s generation assets, the Millstone 3 nuclear plant,” Howard said.
The enactment of the new $2.50 per megawatt nuclear generation tax is expected to have an annual impact of $1.17 million on the Massachusetts Municipal Wholesale Electric Company (MMWEC) Millstone 3 participants, which includes the Westfield Gas & Electric Department.
“Because WG&E owns a portion of the Millstone project, our electric customers pay a portion of the Connecticut tax,” Howard said. “Actual costs resulting from this tax from July 1, 2001 through April 30, 2012 were $210,238. Factoring in an additional $50,079 estimated impact during the upcoming months of May and June, result in a first year estimated cost of $260,317 to Westfield.
“This annual burden equates to approximately .00069 cents per kilowatt-hour for all customers and a monthly bill impact of approximately .46 cents for each residential customers,” Howard said.
Commercial customers will pay based upon their consumption, typically higher than residential electric consumption.
Howard said the MMWEC, which represents municipal utilities, is attempting, without success, to have the tax revoked and that the department has requested State Senator Michael Knapik and Rep. Donald Humason to intercede on behalf of the department and local residents with legislative efforts to eliminate the Connecticut tax on Massachusetts electrical customers.
“They were asked to contact Attorney General Martha Coakley and to ask her to expeditiously intervene on our behalf to defeat any Connecticut tax plan that would impact Massachusetts residents,” Howard said. “The Attorney General’s office has been adverse to initiating legal action against the State of Connecticut over the tax.”
“Although WG&E (officials) believe that any repeal prior to July 1, 2013 or the likelihood that the tax will cease at that time is slim, MMWEC continues to seek legislative and administrative options to create an exemption for the tax and will keep abreast of all developments,” he said.
