Malloy Sides With Millstone; At Least On The Really Big One

Finally, some good news for Dominion, owner of Millstone Power Station.

Gov. Dannel Malloy told The Hartford Courant’s editorial board Monday that , the one that would increase taxes on Millstone by $335 million, will not be approved.

"I don't see that there is the political desire to tax one purveyor of energy by $300-plus million,'' Malloy told the Courant. "I think in the coming days, when the appropriate committees act, you're going to see something much closer to the tax that I've proposed than the tax that has been proposed by the energy folks [on the committee].''

The tax was approved in the state’s energy committee and was not created by Malloy. The governor instead favors an across-the-board tax on all energy providers that raises taxes $32 million annually on Millstone.

First Selectman Dan Steward and Dominion officials greeted the news with cautious optimism. Yes, it was nice to hear, but politicians can always change their minds, and even the governor can’t stop every bill from being passed, they said.

“We are encouraged the governor does not support SB 1176,” Dominion spokesman Ken Holt said. “But we will continue to fight it.”

Dominion will continue to lobby against the bill, because the governor “is just one piece,” Holt said. The bill, if passed, “will send a terrible signal to businesses in the state,” and will force the nuclear power plant to , Holt said.

Steward agreed.

“It sounds like good news, yes,” said the first selectman, a former Millstone employee. “That said, you can’t let down your guard.”

Malloy still plans to install his tax on generators of electricity. The $32 million hit to Millstone is a 100 percent increase on what the company pays currently in state and local taxes.

The tax will merely increase the cost of electricity in Connecticut, Holt said.

“We have expressed our concerns,” Holt said in an earlier interview. “Any tax that is put on Dominion will go on to the consumers.”