It was expected that Simmons would challenge Courtney in 2008, and considering the close margin in the last election, I'm sure Joe Courtney is happy about the news.
This story from The Politico.Com (via Markos):
Former Rep. Rob Simmons (R) has accepted a job as Connecticut Gov. Jodi Rell’s Business Advocate, making it highly unlikely that he will run for his old seat.
His decision indicates that Rep. Joe Courtney, D-Conn., who defeated Simmons in the closest race of the 2006 cycle, will have a smoother re-election ride than many anticipated. This has traditionally been tough terrain for national Republicans; President Bush only won 44 percent of the vote here in 2004.
Simmons represented Connecticut’s Second District from 2000-2006, and during his tenure compiled one of the more centrist records of House Republicans.