Energy Rebates For CT Customers
It’s no secret that CT energy rates were high this summer. Colder than normal temperatures, the polar vortex, and high electricity rates combined for a wallet breaking season. However, relief may be around the corner. CT governor Ned Lamont has signaled a plan to give huge rebates for customers struggling with high CT electricity rates. But how will it work, where will the money come from, and how much could you receive? Let’s dig into the governor’s pitch for CT energy rebates.
What’s In The Lamont Rebate Pitch?
In his State of the State Address, Governor Lamont proposed a one-time rebate to provide short-term relief from high winter heating costs and inflation:
- $200 to single tax filers earning up to $200,000
- $400 for joint filers earning up to $400,000
- $320 for heads of household earning up to $320,000
Current estimates suggest that 2.2 million residents would benefit from the rebate for a total cost of about $500 million.
Why Offer $400 Rebates?
Natural gas pipeline constraints, heating demand, and the volatile natural gas market leads to CT families paying some of the highest energy bills in the country. On top of that, this year has seen one of the worst winters CT has experienced in quite some time. In fact, it’s been so cold, that Governor Lamont had to extend CT’s severe cold weather protocol. But while the rebate won’t solve these issues, the governor argues that it will help CT families while longer-term cost reforms are debated.
Who Pays For CT Energy Rebate?
The rebate would cost the state $500 million and would technically be paid out of CT’s sales tax receipts. In short, the state should have enough money that this would not force deep cuts to the state budget. Because the rebate is from sales taxes, recipients would not have to state their bonus on next year’s taxes.
As result, the governor would spare nearly all recipients from having to share about 22%-to-32% of their bonus with the federal government.
Will CT Rebates Pass?
As you can guess, the plan is likely to face some criticism. Some lawmakers are frustrated that the Governor seems reluctant to ease budget caps that would allow more spending on social services. In fact, last March, the CT Conference of Municipalities launched an ad campaign that attacked Lamont for not doing enough to ease property tax burdens. In November, progressives also criticized Lamont for not responding to the expiration of food stamp benefits until one week after the fact.
So it’s likely that the rebate program may see some debate before it can be put in effect.
What CT Customers Can Do Now
Governor Lamont’s proposal offers hope for some much needed relief after this chilly winter. We don’t know if or when the rebates will pass or what the final amounts might be. But we will keep an eye on the story as it develops.
For now, be sure to shop for the cheapest electricity plans in CT right here at www.ctenergyratings.com. You can also drop by for tips and news that could affect your bills.