Competitive Resources, Inc.

628B South Colony Road

Wallingford, CT 06492

 

 

 

Hon. Marc Ryan                                                                                                  April 30, 2003 Secretary, Office of Policy and Management

450 Capitol Avenue

Hartford, CT 06106

 

Dear Secretary Ryan.

 

On April 3rd, at Public Hearings before the State Finance Committee, a number of individuals (including myself) spoke about the negative impact the citizens of our State would be subjected to if the monies from the current Conservation and Load Management (CL&M) Fund were channeled into the General Fund.  Since my comments are a matter of public record, I won’t bore you with the specific details I presented.

 

It has been brought to my attention that you appeared before the Finance, Revenue and Bonding Committee of the General Assembly on April 4, 2003 and made several statements related to the funds.  As it was relayed to me, you indicated that transferring the funds for a two-year period would cause no harm here in Connecticut.  Having been directly involved in the energy conservation industry in this State for over 15 years, I would like to point out a few misconceptions related to your comments.

 

Since the late 1980’s, a solid infrastructure has been developed in support of Connecticut’s proactive stance on energy efficiency in the residential, commercial, industrial, and institutional sectors.  The energy savings, peak load reductions, reduced air emissions, and certainly, the dollars saved have been tremendous for our citizens.  More importantly, because the programs implemented were subjected to stringent cost-effectiveness tests, they have been operated in such a way as to be deemed “profitable”.

 

On the surface, suspending the current programs and channeling the dollars into the General Fund may appear to be a wise move given the State’s current budget crisis.  However, if you examine the underlying costs of such a move, the wisdom of this option quickly disappears.  For example, we are a small firm with 12 employees in our Wallingford office.  If the CL&M Fund is suspended, there will be 12 individuals who will be without jobs.  Instead of productive taxpayers, the State will see the unemployment roles rise.  In addition, the energy conservation expertise that we’ve help develop over the past few years will simply disappear.   Multiply our situation by the many other firms here in Connecticut and you’d be looking at hundreds of individuals in the same position.

 

In the meantime, the energy and environmental benefits that we’ve seen as a result of the CL&M Fund would disappear.  A two-year suspension of the savings we enjoy as a result of our current efforts would be lost forever.  I can also assure you that none of the experts here in the State would be able to wait two years for the industry to rebound and we’d effectively have to start at square one again.

 

I’ve tried to keep my thoughts brief and to the point since I’m sure you heard from many other interested parties on this subject.  I’d simply ask that you reconsider your position on this issue after weighing the pros and cons a bit more carefully.

 

Thanks for taking the time to hear my thoughts on the subject.  

 

Sincerely,

 

Doug Cahill

 

Douglas R. Cahill

Vice President

 

 

 

Cc:       Sen. Kevin Sullivan                   Rep. Moira Lyons

            Sen. Martin Looney                  Rep. James Amann

            Sen. Louis DeLuca                   Rep. Robert Ward                               

            Sen. Eileen Daily                      Rep. Andrea Stillman

            Sen. William Nickerson            Rep. Richard Belden                                                                
            Sen. Melodie Peters                 Rep. Terry Backer

   Sen. Toni Harp                         Rep. William Dyson

   Sen. Donald Williams               Rep. Patricia Widlitz

            Undersecretary John Mengacci