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News Published: Mar 14, 2008 - 10:42:44 PM


Energy price spikes call for crisis response

By Governor Rell's office


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Governor M. Jodi Rell today announced she has written the leadership of Congress, asking them to consider the spike in energy prices as a crisis worthy of the same treatment legislators gave to the recent economic stimulus package.

“The people of Connecticut and other states are suffering,” Governor Rell said. “The U.S. dollar is trading at all-time lows against major currencies. Crude oil is trading at record highs, closing last night at over $110 a barrel after reaching the $111-a-barrel mark during the day

“The pressure from this economic vise is excruciating,” the Governor said. “Families and businesses are struggling, here in my state and across the nation. As you surely know, some two-thirds of American states face budget shortfalls, and although Connecticut is fortunately not among them – yet – what little cushion we have is steadily eroding as revenue projections slip and energy prices spiral ever upward.

“Congress must act,” Governor Rell said. “Recently both the Senate and the House of Representatives moved with alacrity to pass an economic stimulus package intended to forestall or moderate any recession. Similar action is urgently needed to deal with the current energy crisis.”

In the letter – which was sent to Senate Majority Leader Harry Reid (D-Nev.), Speaker of the House Nancy Pelosi (D-Calif.), Senate Minority Leader Mitch McConnell (R-Ky.), House Minority Leader John Boehner (R-Ohio) and the members of the Connecticut Congressional delegation – Governor Rell urged Congress to consider a range of ideas to provide relief to hard-pressed homeowners and businesses.

“I believe it is worth considering drawing on the nation’s Strategic Petroleum Reserve to add some stability to current energy prices,” Governor Rell said. “Congress should also consider a second, energy-related stimulus package, perhaps in the form of energy rebates to individuals and businesses, or to states, to help offset the effects of rising prices. A temporary adjustment of federal energy taxes would also provide uniform relief across the country.”

Noting that Congress is about to depart Washington for its annual springtime in-district working period, the Governor urged lawmakers to solicit ideas in their hometowns as well.

“Next week you will have many opportunities to see first-hand just how difficult the conditions have become for your constituents,” Governor Rell said. “It is very much still wintertime in Connecticut – homes and businesses must pay for heat and light. The state must pay for fuel in state police cars and heat in hospitals, prisons and veterans’ homes. I can only imagine how much more energy prices will have risen by the time you return to Washington on March 28.”

Governor Rell also called on Congress to join her and Governors from other states in urging the Bush Administration to release additional money for the federal Low Income Home Energy Assistance Program (LIHEAP), which is the primary funding source for state-level programs such as the Connecticut Energy Assistance Program (CEAP).

Even with the recent release of $3.3 million in additional LIHEAP funding, the Connecticut Department of Social Services (DSS) is projecting a $7.4 million shortfall for CEAP – money the state will have to make up unless additional federal aid is forthcoming.

The energy price crisis is obviously not an issue any one state can solve, Governor Rell told the Congressional leaders.

“Nor can action be delayed any longer,” the Governor said. “Unfortunately, as the complaints of consumers have grown louder, Congress has grown quieter. It is my sincere hope that you will return to our nation’s capital believing – as I do – that the time has come for urgent, effective action.”




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