Connecticut lawmakers propose utility separation and stricter regulations

Connecticut lawmakers are discussing a new bill that could change how the state's largest utility companies operate. The proposed legislation, Senate Bill 1531, aims to separate electric and gas services owned by companies like Eversource and United Illuminating. It was introduced last week and is set to have a public hearing soon. The bill includes several changes. It would stop these companies from owning both electric and gas utilities. It would also restrict their potential profits and make their internal documents available to the public under the Freedom of Information Act. Additionally, the bill seeks to create stricter rules for board members of the Public Utilities Regulatory Authority (PURA) to avoid conflicts of interest. State Representative Matt Blumenthal, who leads the committee reviewing the bill, expressed concerns about high electricity prices in Connecticut. He described the bill as a necessary response to these issues, emphasizing that utility companies should not have too much power over customers. However, utility executives and business groups have raised objections. They argue the bill is not only unnecessary but also could lead to negative consequences for the state's utilities. They worry that capping the rate of return would discourage investment and undermine the financial stability of these companies. Executives from Eversource stated that the bill's language is flawed and raises constitutional concerns. They warned that the legislation could make it hard for utility companies to attract investment, ultimately harming customers. Some provisions of the bill focus on appointments to the PURA board, aiming to prevent individuals with ties to utilities facing violations from serving. This appears to target a recent nomination involving state Senator John Fonfara, who has faced penalties from PURA for his own business. Blumenthal noted that this bill complements other legislative efforts to address high electric costs in the state. A vote on the bill may happen soon.