U.S. Rep. Chris Murphy’s campaign manager in an email today said his man is ready, willing and able to participate in at least six if not more debates with his opponents for the Democratic U.S. Senate nomination.
Kenny Curran contacted me in response to claims made yesterday by Marc Bradley, who’s running state Rep. William Tong’s Senate campaign, that, while agreeing to a March 3 primary debate, Murphy’s dragging his heels on scheduling other dates.
Here’s what Curran wrote, with a couple clarifications from me in parentheses:
Hey Brian,
Just wanted to check in re: Marc’s comments on debates. We have the quiet corner event on (February) 23rd (it’s advertised as a forum) and the Norwich one on the 3rd and Marc knows, because I have told him, that between now and August 14th (primary day) Team Murphy expects and looks forward to doing more than the six suggested. Let me know if you have any questions or need any more info on this.
Still, PURA has pledged to respect NU’s and NSTAR’s timeline and issue a decision prior to April 16. Today the authority announced a schedule that is supposed to conclude April 2:
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PURA Establishes Docket and Sets Schedule for
Review of Proposed Merger of NU and NSTAR
Final decision expected April 2
In response to an application from Northeast Utilities (NU) for approval of a merger with NSTAR, the Connecticut Public Utilities Regulatory Authority (PURA) today established a docket and set a schedule for its review of this proposed transaction.
The review of the merger will be conducted under Docket Number 12-01-07, and all documents related to this matter will be available under that docket number on PURA’s website, www.ct.gov/pura
The schedule set by PURA includes a series of hearing in February and calls for a final decision on April 2.
In its January 18 decision, PURA concluded that it has the regulatory jurisdiction to review and approve of the proposed merger between NU and NSTAR. PURA ruled that “it must review and approve, with necessary or appropriate terms and conditions, or disapprove the proposed merger.”
The final decision also contained an order stating that, “NU shall not consummate the proposed merger unless and until the Authority (PURA) has issued a final decision approving the merger.”
NU filed an application January 19 seeking PURA approval of its merger.
Under the schedule set by PURA, it will immediately begin issuing interrogatories – requests for additional documents and information – from NU concerning the proposed merger.
The schedule also calls for:
· Hearings February 14 through February 21 and additional hearings February 27-28.
· A hearing for public comment only, February 22.
· Draft decision issued, March 26
· Filing of “exceptions” to the draft decision, March 29.
· Oral arguments before PURA on the draft decision, March 30.
Moody’s Investors Service has downgraded the State of Connecticut’s general obligation bond rating to Aa3 from Aa2, affecting approximately $14.6 billion in outstanding general obligation bonds. Concurrently, Moody’s has downgraded the state’s general fund obligations to A1 from Aa3, bonds supported by a Special Capital Reserve Fund (SCRF) make-up provision to Aa3 from Aa2, and the University of Connecticut General Obligation Bonds (State Debt Service Commitment) to Aa3 from Aa2. The outlook is stable, revised from negative.
Ben Barnes, Governor Dannel Malloy’s budget czar, issued the following statement criticizing Moody’s over its decision:
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Moody’s is wrong in its analysis of the state’s finances, and wrong to change Connecticut’s credit rating. Connecticut has done all the right things to shore up our finances, and Moody’s has responded with a downgrade intended to satisfy their internal corporate need to deflect attention from their historic lack of credibility.
Connecticut has always paid its debt, and remains an attractive issuer of public debt. Investors appreciate Connecticut’s strong income levels, conservative debt management practices, and fiscally conservative leadership.
Moody’s lowered the rating for Connecticut below where it has been since April 2010 even though Connecticut’s fiscal health has significantly improved during that period. Recall that in 2010 Connecticut faced looming multi-billion deficits into the future, had pension funding ratios in the low 40s, had spent the entire rainy day fund, and was in the middle of a series of budgetary gimmicks which Governor Malloy has spent his first year in office undoing.
Today, we have a structurally balance budget, have converted to GAAP, have fully funded our current pension obligations and seen their funding ratio rise, have negotiated significant pension benefit concessions from organized labor, have negotiated significant employee contributions to retiree health benefits, and have begun to add jobs to the state economy.
Moody’s Investor Service decision today to lower their rating of Connecticut’s General Obligation debt from Aa2 (negative) to Aa3 (stable) is unfortunate. It reflects their continued reaction to their central involvement in the financial scandals that led to the deepest recession since the Great Depression. Coming on the eve of our budget release, without an imminent bond sale, suggests that the move is motivated by factors other than Connecticut’s creditworthiness.
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Before he was governor Malloy was quick to criticize former Republican Governor M. Jodi Rell and the General Assembly over changes in bond ratings (here and here).
UPDATE: Senate Minority Leader John McKinney, R-Fairfield issued a statement calling Barnes’ criticism “flippant, if not slanderous.”
“Moody’s downgrade is a fair and honest failing grade for the Malloy administration and Democrat legislators who have not made the necessary fiscal reforms Republicans have advocated. It is also a rebuke of the failed concession package the Governor agreed to with state employee unions, which will not yield the savings claimed by the administration and only further tie the state’s hands until 2022. Finally, it is a failing grade for the Democratically-controlled legislators who have refused all efforts to reign in the size and cost of government, address our long-term liabilities, and reform the lavish and unsustainable pension and healthcare benefits we provide our state employees,”said Senator McKinney.
“Secretary Barnes’ flippant, if not slanderous, dismissal of the Moody’s downgrade and the facts that led to it are equally troubling. Secretary Barnes should immediately back up his unsubstantiated claims or retract them. Otherwise, see this rating for what it is: a stinging indictment of the Governor’s failure to address real pension reform and clear evidence that the state has not done enough to stem the flow of red ink and secure its economic future.”
Yesterday Connecticut’s Public Utilities Regulatory Authority (PURA) reversed a June 2011 decision and concluded it has the ability to review Hartford-based Northeast Utilities’ proposed union with Massachusetts’ NSTAR.
As we reported today, although PURA has promised to get the job done prior to the companies’ self-imposed merger deadline of April 16, Massachusetts has been grappling with the project since November 2010.
Clearly eager to get things moving, NU didn’t waste any time submitting the application required for PURA to actually begin its analysis.
Here’s the company’s press statement on today’s submission:
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HARTFORD, Connecticut, January 19, 2012 – Northeast Utilities (NYSE: NU) and NSTAR (NYSE: NST) today submitted an application for approval of their merger to Connecticut’s Public Utilities Regulatory Authority (PURA), as directed in the Authority’s recent reversal of its prior decision on jurisdiction.
The companies state in today’s filing demonstrates that the transaction is clearly in the public interest and should be approved. Specifically, the filing provides that NU will continue to possess the financial, technological and managerial suitability to control its operating companies in the state (Connecticut Light & Power and Yankee Gas Services Company). The merger will augment CL&P and Yankee’s existing capabilities and resources and will have no negative impact on their ability to provide safe, adequate and reliable service to their customers or on PURA’s ability to regulate them.
“Although we disagree with PURA’s reversal of its prior rulings on jurisdiction, we are confident the Authority will see the benefits that will come to Connecticut through the combination of our businesses,” said Gregory B. Butler, NU’s senior vice president and general counsel. “We appreciate the Authority’s mindfulness of the milestones needed for the successful completion of the merger and its dedication of resources to complete the review within that time schedule.”
The merger will result in one of the nation’s largest utilities located in New England, a financially solid company that will have access to greater resources for storm restoration, infrastructure improvements and continued safe and reliable electric and gas service to CL&P and Yankee customers. NU’s improved purchasing power and economies of scale are expected to result in net savings of as much as $784 million throughout the combined company over the first 10 years.
The merger also awaits regulatory approval from the Massachusetts Department of Public Utilities, which has completed its hearings. The merger has been approved by the shareholders of both companies, and has met all other federal and state regulatory conditions for the closing of the transaction.
Linda McMahon, who is seeking the GOP nomination for U.S. Senate, in a statement said, “Clearly in campaign mode, the President has decided to reject the Keystone XL Pipeline and the 20,000 desperately needed jobs it would create. Today, the President is caving to the most extreme of his political base and ignoring the facts.”
Lisa Wilson-Foley, running for a seat representing the 5th Congressional District, issued the following: ”The Obama Administration’s decision to reject the pipeline project and the 20,000 well-paying jobs that come with it is another example of putting Washington politics before the American people. This is a President that is willing to spend $850 billion dollars of tax payer money on a failed stimulus package that created zero jobs, but refuses to approve a project that will put people back to work right now.”
And the National Republican Congressional Committee saw an opportunity to use the Keystone matter to criticize U.S. Rep. Jim Himes, D-Greenwich. NRCC Communications Director Paul Lindsay in an email wrote, “If Jim Himes continues to march in lock-step with the Obama Administration, it could cost American middle-class families thousands of jobs just so Democrats can appease some wealthy anti-energy donors.”
So to begin with this isn’t exactly an issue that will have voters marching on the White House.
Now let’s talk about Connecticut and how Obama’s decision will play here.
Time also concluded the decision was a victory for the Not In My Backyard (NIMBY) crowd.
“It was concern over the local environmental impact of the pipeline in Nebraska and the upper Midwest that really galvanized opposition, rather than the larger issue of climate change,” wrote the magazine.
Connecticut knows a thing or two about combating major energy projects that will impact the local environment. It wasn’t that long ago lawmakers from both parties engaged in a successful battle to prevent construction of the Broadwater liquified natural gas terminal in Long Island Sound.
Certainly some local voters will agree with McMahon, Wilson-Foley and the NRCC. But given the state’s own environmentally-conscious history, support of Keystone isn’t going to help them make the inroads they need to win a general election in NIMBY Connecticut.
March 3 is the agreed upon date that U.S. Rep. Chris Murphy, ex-Secretary of the State Susan Bysiewicz and state Rep. William Tong, D-Stamford will have their first debate.
The three are vying for the Democratic Party nomination to run for the U.S. Senate seat being vacated by “independent Democrat” Joseph Lieberman of Stamford.
Tong, as the lesser known of the three candidates, has been pushing for these public events with his opponents because he needs the exposure. His campaign issued an email today urging this mark the start of a series of at least six primary debates.
“Only the first has been settled,” Marc Bradley, Tong’s manager, wrote me in an email. ”Tong camp and Bysiewicz camp have agreed to the full series of debates. Still waiting for Team Murphy… ”
Now let’s get the two Republican Senate contenders – losing 2010 GOP candidate Linda McMahon and ousted veteran U.S. Rep. Chris Shays – to agree to some primary matches.
The Connecticut Business and Industry Association is troubled by today’s decision by the Public Utilities Regulatory Authority to involve itself in a merger between Hartford’s Northeast Utilities and Massachusetts’-based NSTAR.
PURA last June decided it did not have any authority to review the union.
Critics late last year used NU subsidary Connecticut Light & Power’s flawed response to August’s Tropical Storm Irene and the October nor’easter to renew efforts to convince PURA to reverse course.
“It is a concern when a state agency changes its decision without any substantive change in what the business plan is. There has been no substantive change in this merger … Businesses want a sense of certainty in operating in Connecticut,” Brennan said. “If there is a review it needs to be done in a timely, expeditious, fair and reasonable way.”
A poli sci whiz from Columbia University Friday brought an end to the partisan drama surrounding the design of Connecticut’s five congressional districts.
Basically, the legislature’s Republican minority wanted to shake things up. But Democrats who, understandably given their party affiliation, would like to continue living in a blue state, wanted to pretty much maintain the status quo.
Fight, fight, fight. Fight, fight, fight. No compromise.
The court is expected to give its blessing to the map in the coming days/weeks.
In a fittingly mundane end to a story that only held the attention of die hard politicos and people with the title “special master”, three Democratic legislative leaders Friday took three hours from the time the news broke to issue the following victory statement to an eager press:
“The special master’s proposed map appears to address the minimal changes that the recent court order required,” said Senate President Donald Williams, D-Brooklyn, Senate Majority Leader Martin Looney, D-New Haven, and House Majority Leader Brendan Sharkey, D-Hamden.
