Connecticut Could Become First State To Ban Variable-Rate Utility Contracts

HARTFORD, Conn. (CBSNewYork) -- Connecticut is on track to become the first state in the nation to ban variable-rate utility contracts.

As WCBS 880 Connecticut Bureau Chief Fran Schneidau reported, consumers are often tempted to opt for variable rates with electric companies, hoping to lower their bills.

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But state Sen. Paul Doyle, D-Wethersfield, is a strong opponent. He chairs the Energy and Technology Committee, which is poised to vote to ban the option because, he says, the downside is considerable.

"There's really no upside for consumers because the variable rates go up and down," Doyle said. "It's kind of like a variable rate on the mortgage. I think they give you a teaser -- low rates -- and then they ultimately go up much higher, and I think they harm the consumers down the road.

"Some people say let the buyer beware, but I just think all in all it's not a beneficial choice for a consumer. So I would like to support the banning of it and taking away the option so the consumers won't be taken advantage of."