I had the same question and I took the advice of Deep Throat – I followed the money. If you see who is make most of the money in our now deregulated energy market, it is the hedge funds based out of Greenwich that just happened to make big donations to Gov. Roland’s & Rell’s election campaigns.
The hedge funds are purchasing the electricity from the generators and reselling to UI. We know that Millstone power plant sells their electricity for around $0.07 per KwH we are paying UI $0.125 or $0.13 per KwH. UI is buying for a bit less (around 10% under what we pay) so who is making all of the money in the spread? The hedge funds, they are also the ones who managed to manipulate the way the law was written up in Hartford so that UI is unable to make long term buys – like New Haven can & did for better rates. The problem with this all is that UI just passes the high rates on to the end user – you and me. Once again who benefits from this? The hedge funds that now have a lock on the electricity generated in the State because the generators signed long term contracts with them.
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