Connecticut Senate Bill SB00416

Connecticut 2012 Regular Session

• Introduced: 3/8/12
• Refer: 3/8/12
• Report Pass: 3/28/12
• Refer: 4/9/12
• Report Pass: 4/16/12

Caption

An Act Concerning Mergers And Acquisitions Of The Holding Companies Of Certain Public Utility Companies.

Impact

The introduction of SB00416 is expected to provide greater oversight and regulatory control over the mergers and acquisitions of public utility holding companies. By requiring these entities to demonstrate how their actions will benefit Connecticut ratepayers, the bill aims to protect consumers from potential negative impacts that such corporate changes might introduce. The focus on public hearings also allows for community involvement in regulatory decisions, promoting transparency in the utility sector.

Summary

SB00416 aims to amend existing regulations regarding mergers and acquisitions of holding companies overseeing public utilities in Connecticut. It mandates that any corporation seeking to acquire control over public utility companies must first obtain approval from the Public Utilities Regulatory Authority (PURA). The bill specifically defines what constitutes a holding company and outlines the process for seeking regulatory approval, including the requirement for public hearings to ensure transparency and accountability in the decision-making process.

Sentiment

Overall, the sentiment surrounding SB00416 appears to be supportive amongst consumer advocacy groups and some lawmakers who emphasize the need for enhanced regulatory oversight. Proponents of the bill argue that it serves the public interest by ensuring that any changes in ownership do not adversely affect service reliability, rates, or consumer protections. Conversely, there may be some concerns from utility companies regarding the potential delays that regulatory approvals could introduce into the merger process.

Contention

Notable points of contention include the balance between regulatory oversight and the freedom of businesses to operate efficiently. While supporters of the bill advocate for strict regulatory measures to protect consumers, critics argue that excessive regulation could deter potential investments and make it difficult for utilities to respond swiftly to market changes. This tension reflects a broader debate within state legislatures about the role of regulation in promoting both consumer protection and business development.