Hedge Funds in Hartford: Power Down on Dominion to Make a Fortune.

Nevertheless, the windy anti-windpower diva is making common cause with hunters from hedge funds over the energy tax proposal in Senate Bill 1176. The $300 million production-based tax would fall almost completely on Dominion’s two nuclear power plants in Connecticut. The proposal, also backed by Nardello co-chair state Senator John Fonfara (D-Hartford), eked out of Energy and is on its way to the tax-loving Finance Committee. Proponents say the tax would not add a sou to the hefty price consumers already pay for electricity in the Constitution State.

Dominion’s share price has fallen amid some spikes in trading lately. The tax bill has become catnip for some hedge funds. Keeping the bill alive would likely continue to drive down the price of the stock. Prolonging its life would allow funds to round up investors to get in on the short-term money making boon, and there are never enough of those. Their work will be done and profits pocketed by the time more responsible voices put a stake through the Nardello/Fonfara bill later in the session, which ends on June 8th.

Some hedge funds have reportedly ramped up their interest in making cha-ching on electricity by seeking lobbyists to represent their interests in the short-term, big profit fight to keep the bill in the legislative mix. Calls are being made, contracts circulated.  Attention will turn to the state’s ethics agency, where lobbyists are required in these circumstances to register prior to the commencement of lobbying.