Study to Consider Elimination of Energy Demand Fees for Houses of Worship Passes House

HARTFORD – State Representative Tami Zawistowski (R-61) today applauded passage of legislation that charges the chairperson of the state Public Utilities Regulatory Authority (PURA) to study creating new energy rate classes for certain properties with tax exempt status.

The study, based on a proposal originally introduced and championed by Rep. Zawistowski to exempt churches and houses of worship from energy demand fees, will consider the impact of such new rate classes and report to the General Assembly before February, 2020.

“PURA should consider the impact that these demand fees have on not-for-profit facilities that are treated as commercial entities,” Rep. Zawistowski said. “This is a fairness issue. Houses of worship throughout our state are being charged for gas they do not actually use.”

In Connecticut, demand charges are charged only to commercial entities and are used by energy suppliers to offset the cost of providing energy during peak times when it is generally more expensive to produce and deliver. Energy rates and services in Connecticut are regulated by the state’s PURA. There are only two categories – commercial and residential – recognized by the providers and churches are considered commercial, despite their not-for-profit status.

Demand fees cost Connecticut churches approximately $4 million annually.

During a public hearing on the issue earlier in the legislative session, Rep. Zawistowski joined several members of the faith community to testify in support of the measure.

“Demand Fees are unjust, because they require houses of worship to pay thousands of dollars every year for no actual gas delivery,” testified First Church of Christ Rev. Bridget Fidler. “In 2018 our church paid $6500 in Demand Fees alone.”

She also noted that relief from the demand charge would help free up additional funds to assist those in need. “In 2018, through our missional resources we gave out over $1600 in food and gas cards through my Minister’s Discretionary Fund alone, the church paid almost $1900 in rent and utilities assistance.”

The bill now awaits action in the State Senate. The legislative session ends at midnight on Wednesday, June 5.