Murphy Calls Possible Candlewood Lake Sale ‘Outrageous', Asks Congressional Committee to Examine Effects of Short Term Ownership

Press Release

Today, Congressman Chris Murphy (CT-5) wrote to the Chairman of the House Energy and Commerce Committee John Dingell (MI-15) about the potential turnover in ownership of Candlewood Lake, along with Lakes Lillinonah and Zoar, just two years after the entities were sold to a hedge fund owned company, FirstLight Power Resources.

"It's outrageous that FirstLight can turn around and sell Candlewood Lake just two years after it bought the property. This isn't a used car - this is a natural resource vital to thousands of residents and utility customers. There are more than 400 homes surrounding this lake, whose owners, over the course of six years, have had to work with two different companies to resolve their differences on how the lakes are managed," said Murphy.

Murphy's letter to Chairman Dingell requests that his committee, which has jurisdiction over the Federal Energy Regulatory Commission (FERC), to examine the effect of short-term ownership of power assets. Murphy also asked that the Committee explore the efficacy of requiring investors to own certain types of power assets for minimum amounts of time or whether new regulations are necessary to ensure that these facilities are managed, maintained, and operated in a consistent manner from one owner to the next.

Since taking office, Murphy has been working to address the concerns of Candlewood Lake area residents who have been frustrated with the process by which the Shoreline Management Plan (SMP) was crafted. After residents of the Candlewood Lake area, local elected officials, former Congresswoman Nancy Johnson, and Murphy had all requested that FERC hold a public meeting on its SMP, and had all been denied, Murphy attempted to address this problem legislatively. He introduced legislation to ensure that FERC allow more public input in future land use decisions, and he also introduced it as an amendment to a comprehensive energy package.

When House leaders scheduled a vote on the Murphy amendment, FERC reversed its decision and agreed to give Candlewood Lake a meeting. On September 24, J. Mark Robinson, Director of Energy Projects at FERC, came to New Fairfield for a four hour hearing, listening to testimony from members of the public regarding the detrimental effects of the SMP.

In a stunning announcement in October 2007, FERC alerted Murphy that it was throwing out its approval of the SMP, allowing citizens of the Lake area to have a say in the re-drafting of the plan.

"At a time when energy prices are rising and energy speculators are getting much of the blame, this is a reminder of what's wrong with our national energy strategy. I sincerely hope that First Light will do the right thing and provide continuity in the ownership of our lakes. But if they don't, then I will explore potential solutions to this problem so that Candlewood Lake area residents may have some peace of mind," said Murphy.

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