After leaning toward Keno, it looks like the Finance, Revenue, and Bonding Committee is poised to vote Tuesday on a proposal to securitize $1.3 billion in revenue from charges on consumers’ electric bills.
After saying they were leaning toward securitizing Keno Monday, the Office of Fiscal Analysis released a fiscal note saying the state will issue 10-year special tax obligations to securitize revenue from charges on consumers’ electric bills.
The fees, which are also called stranded costs, were set to expire in December 2010 for Connecticut Light and Power customers and in 2013 for United Illuminating customers, but consumers will be asked to continue paying the costs so that the state can pay off the bonds. About 56 percent of the annual revenue generated by these fees will go toward the annual $180 million debt payment the state will incur in an effort to pay off the $1.3 billion it plans on securitizing.
The Finance Committee is expected to convene at 12:30 p.m. Tuesday to take up the proposal.
