Connecticut Senate To Vote On Bill Banning Variable Electric Contracts

HARTFORD, Conn. (CBSNewYork/AP) -- The Senate is expected to pass legislation banning variable-rate electric contracts for residential customers.

A coalition of Democratic and Republican senators announced Wednesday they have reached a compromise on the bill, which is being backed by AARP Connecticut. A vote was expected later in the day.

Listen to Connecticut Senate To Vote On Bill Banning Variable Electric Contracts

"People were complaining about how their rates skyrocketed and they had trouble paying them," State Sen. Paul Doyle told WCBS 880's Fran Schneidau. "We looked into them, and this would ban that practice of allowing people to issue variable rates."

Senate President Martin Looney said senior citizens in Connecticut have been particularly vulnerable to these contracts with electric suppliers that he said have "extracted unconscionably high profits.'' He said consumers are lured by cheap teaser rates, which skyrocket after the introductory period ends.

Not all private electric companies offer variable rate contracts. Some have urged lawmakers not to limit consumer's choices by passing this legislation.

Rep Lonnie Reed said riding the electricity market "is a very difficult challenge, even for savvy knowledgeable experts.''

Doyle said the ban would apply to consumers only, Connecticut businesses can still opt for variable-rate suppliers if they so choose, Schneidau reported.

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