New utility regulators promise more transparency. But can they lower your electric bill?
State lawmakers grilled four new commissioners on the Public Utilities Regulatory Authority about high electric rates and years of dysfunction at PURA.
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Paying too much for power?
State lawmakers grilled Connecticut’s new team of utility regulators about high electric rates on Thursday.
The four new Public Utilities Regulatory Authority commissioners pledged a fresh approach and more transparency. But after years of scandal and gridlock, can PURA actually get consumer bills under control?
“IT’S OUTRAGEOUS”
Connecticut has some of the nation’s most expensive electricity.
“Wow, horrendous,” said Giuseppe Conte, of Norwalk. “I mean, it’s outrageous.”
Some of those rates are set by PURA. And at a hearing on Thursday, lawmakers pressed the commission’s new members for solutions.
“Electricity prices are an existential threat to the economy of the state of Connecticut,” said state Sen. John Fonfara (D-Hartford). “I don’t know how much more serious that can be said than that.”
PURA just approved $68 million in rate increases for United Illuminating this week.
But new commissioners stressed that they have limited authority to reject rates. The main issue is lack of generation capacity, they said. By law, utilities are allowed to recoup losses and earn enough money to invest in the electric grid.
“Our role is to keep the lights on, but not hand out candy,” said PURA commissioner Holly Cheeseman, a former GOP state lawmaker. “I wish I could say that some of these people being nominated to serve today had that magic formula, but we don’t. And I wish we did.”
Lawmakers from both parties urged PURA to be more aggressive.
“You’re not there to be a supplier’s or delivery organization or company’s helpmate,” said veteran state Rep. Bob Godfrey (D-Danbury). “You’re there to represent consumers.”
Republicans agreed.
“There are ways that maybe you and your other fellow commissioners could look at potentially lowering our rates,” said state Rep. Dave Yaccarino (R-North Haven).
PURA CONTROVERSIES
But how far is too far?
Former PURA chair Marissa Gillett aggressively denied rate increases. But she also resigned in controversy after lawsuits accused her of conspiring against utility companies and making decisions in secret.
"Unfortunately, have seen PURA on the front page of the papers and in the news a lot. We’re hoping that it goes back to Page 7,” said Connecticut Senate Majority Leader Bob Duff (D-Norwalk).
The new team promised more transparency.
“I think we have to be engaged. We have to be able to communicate,” said PURA commissioner Janice Beecher. “We have to be open and transparent and accessible to the public.”
LONG-TERM SOLUTIONS
Beyond PURA, Connecticut is looking at both immediate – and longer-term – ways to lower electric rates.
Lawmakers shifted hundreds of millions of dollars in Public Benefits Charges off customers’ bills last year. Those fees cover hardship programs for those who can’t pay, energy efficiency programs and clean energy incentives.
PURA commissioners pledged to take a fresh look at the Public Benefits charges.
“There are things we can do that at least impact the costs of the other parts of the bill,” said PURA chairman Thomas Wiehl. “There are costs in the Public Benefits Charge that ultimately – that include prices that were ultimately determined by PURA or tariff designs that PURA took the initiative on.”
Later this year, Connecticut is poised to receive 304 megawatts of electricity from a new offshore wind project. Revolution Wind is expected to power about 350,000 homes across Connecticut and Rhode Island. The Trump administration tried to halt construction twice, but in both cases, judges allowed work to continue.
Gov. Ned Lamont is also pursuing more hydropower from Canada, expanded nuclear capacity and more natural gas.
But none of those solutions is quick – or cheap.
In the meantime, lawmakers are hoping the new team at PURA can forge a new relationship with utilities, so both sides can work together on solutions.
“What I understand is business. What I understand is trying to get things done in the best way possible,” commissioner Everett Smith told the General Assembly’s Executive and Legislative Nominations Committee.
The panel approved all four of Lamont’s picks after a day-long hearing.
