Financial Mines

News and notes from the business reporters for the Connecticut Media Group.

Archive for January 2nd, 2013

Congress drops storm aid, but raises taxes on areas hit hardest by Sandy

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House Speaker John Boehner called it a day before voting on Sandy relief. AP file photo

Congress voted this week to raise taxes on an estimated 153,000 families living in Connecticut, New York and New Jersey, but failed to grant federal aid to deal with the damages from Superstorm Sandy, which struck these same states.

Just hours after voting to raise taxes on families making $450,000 or more a year, which, according to IRS tax records from 2010, would raise taxes on 88,297 New York families, 42,135 New Jersey families and 23,114 Connecticut families, Republican leadership in the U.S. House adjourned Congress electing not to vote on a relief package for Sandy damage.

Many of the people who will be paying higher taxes as a result of the fiscal cliff compromise, also live in areas that were hardest hit by Sandy.

Connecticut, New Jersey and New York have historically paid more in federal taxes than they’ve received back in federal funds. According to a 2006 study by the Tax Foundation, New Jersey got 55 cents for every dollar it sent to the federal government, the worst rate of return of any state of the nation. Connecticut had the second worst rate, getting back 66 cents while New York did a little better, and had the ninth worst return, getting back 79 cents for every dollar.

Months after Sandy damaged them, homes in Milford continue to be exposed to the elements in December. Staff Photographer Brian Pounds

In that same study, Connecticut ranked first for total federal tax burden, New Jersey was second and New York was fourth.

Needless to say, the decision has outraged a fair number of people of both parties in the region.

Sikorsky’s Maurer to speak at UNH winter graduation

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Mick Maurer, president of Sikorsky Aircraft in Stratford, will will be one of the commencement speakers at the University of New Haven’s winter graduation on Jan. 19.

The Stratford-based subsidiary of United Technologies has become the world’s largest helicopter maker and holds several lucrative U.S. Department of Defense contracts for the Army, Navy and Marines. It is actively seeking an Air Force contract for 112 aircraft to be used for search and rescue.

While Sikorsky is a Connecticut institution, the company has expanded globally in the last decade, opening up joint ventures in Asia, Europe and South America. It has operations in Poland and several other U.S. states as well.

Maurer took the helm of Sikorsky in July of 2012. He is a graduate of the U.S. Naval Academy and has worked at Sikorsky since 2000 in a variety of executive positions.

UNH will bestow an honorary doctorate in engineering upon Maurer, who earned a bachelor’s degree in physics from the Naval Academy, a master’s in electrical engineering from John’s Hopkins and an MBA from Stanford University.

GE joins consortium to buy Iberdrola’s wind biz

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European wind power. AP photo

General Electric said Wednesday it is part of the consortium that is buying 32 operating wind farms in France from the Spanish company Iberdrola.

MEAG — the asset management arm of Munich Re and ERGO — and EDF Energies Nouvelles joined GE Energy Financial Services in the 350 million euro, or about $463 million, deal.

This is not the first time a Connecticut-based company has bought something from Iberdrola. The Spanish company sold Southern Connecticut Gas and Connecticut Natural Gas companies to New Haven-based United Illuminating several years ago.

The portfolio of onshore wind farms, which are spread throughout France and were commissioned in 2006-2012, have a combined capacity of 321.4 megawatts using turbines from a variety of manufacturers. Electricity generated is sold according to long-term contracts under France’s feed-in tariff.

Shares if GE were up 1.53 percent to $21.31, on a day the market surged after news that the U.S. Congress actually prevented income tax increases on people making less than $400,000.

Upon completion of the transaction, subject to regulatory approval, the wind portfolio’s ownership will be: GE Energy Financial Services and MEAG at 40 percent apiece, and EDF Energies Nouvelles at 20 percent. EDF Energies Nouvelles will provide asset management and operation & maintenance services for the wind farms. The consortium envisions re-powering some of the wind farms, which feature 160 turbines, to improve their efficiency and reliability using GE technology.