Governor Ned Lamont and the co-chairs of the legislature’s Energy and Technology Committee, State Senator Norm Needleman (D-Essex) and State Rep Jonathan Steinberg (D-Westport), are all applauding the commissioners of the Connecticut Public Utilities Regulatory Authority (PURA) for voting on Wednesday to approve a final decision as part of its development of a performance-based regulation framework for the state’s electric distribution companies.
PURA was required to develop the framework as a result of the Take Back Our Grid Act, which Governor Lamont signed into law in 2020 with the advocacy of Senator Needleman and Representative Steinberg in an effort to increase accountability among utility companies following widespread and prolonged service disruptions caused by Tropical Storm Isaias.
“Creating a performance-based incentive system will ensure that the earnings and profits of utility companies are tied to good performance and certain penalties can be enacted amid extensive service disruptions,” Governor Lamont said in a release. “I signed the Take Back Our Grid Act into law because ratepayers deserve a level of respect that puts them above the profits. During Tropical Storm Isaias, it became clear that Eversource and UI were not prepared to serve their ratepayers and keep their lights on. I appreciate the significant improvements they’ve made since that storm and believe that by implementing a performance-based system, we can give our state’s regulators added tools to increase accountability among the utility companies, advance our commitment to protecting ratepayers, and develop a more resilient and reliable electricity system. I thank the commissioners of PURA for their time and efforts investigating this framework and getting it approved.”
“It’s great to see that one of the most important parts of the Take Back Our Grid Act – performance and speed incorporated in rate making – is actually coming to life and will be part of how our utilities are judged,” Senator Needleman said. “We worked very hard to fashion legislation that was in the best interest of ratepayers and we’re hoping that both PBR and all of the parts of Take Back Our Grid, as well as additions that will be in legislation we are moving forward this year, will move the needle so that the ratepayers of Connecticut can feel assured we and the utilities are working in their best interest.”
“We’re committed to assuring utility accountability, while always looking out for ratepayers,” Representative Steinberg said. “This bill is the next step in shifting utility compensation to a performance-based framework. Connecticut needs a real partnership with its utilities if we’re going to secure an affordable, reliable energy future. These changes will help.”