9.12.17: Statement on Connecticut Republicans’ Budget Proposal: “Millstone Proposal Would be Laughable if the Outcome Wasn’t so Catastrophic”

For Immediate Release: September 12, 2017

 

STATEMENT ON CONNECTICUT REPUBLICANS' BUDGET PROPOSAL: "MILLSTONE PROPOSAL WOULD BE LAUGHABLE IF THE OUTCOME WASN'T SO CATASTROPHIC."

Hartford, CT -- Matt Fossen, spokesman for the Stop the Millstone Payout coalition, released the following statement today after the Connecticut Senate and House Republicans unveiled a budget proposal which includes a special $50 million “procurement fee” in exchange for a lucrative long-term contract for the owner of the Millstone Nuclear Plant (Virginia-based, Fortune 500 firm Dominion Energy) to alleviate the state’s budget crisis:

“Let’s get this straight – Millstone is willing to offer the state $50 million in exchange for a long-term contract that will increase their profit margin and somehow Connecticut’s already overburdened ratepayers are going to save money? Such a proposal would be laughable if the outcome wasn’t so catastrophic for ratepayers.

“The state has already launched an inquiry into Millstone’s financial situation, and it’s very troubling that some lawmakers don’t want to give investigators enough time to see if Millstone actually needs the money. We must allow the state’s energy experts to get to the bottom of things before awarding money to anyone – especially since Connecticut already has the highest electric rates in the continental U.S., while all available evidence shows a special deal for Millstone spells increased rates for consumers. This proposal creates a precedent where already profitable companies can buy favors from the state, and everyone else – consumers and every other business in Connecticut – will suffer.”

According to a recent study by Energyzt, a special deal for Millstone would cost ratepayers $330 million per year, translating to a 15% to 20% increase in supply costs (an extra $90 annually on utility bills). The same data shows that the plant has earned an estimated $3 billion in profits since 2001, made $150 million in after-tax income last year, and is slated to make $400 million in such income over the next five years.

A study by MIT furthermore found that Millstone will be the most profitable nuclear plant in the United States through 2019, while a New England States Committee on Electricity report showed that “Under every hypothetical scenario,” New England’s nuclear units, including Millstone, will remain profitable through 2030.

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