Connecticut Senate Bill SB00679

Connecticut 2023 Regular Session

• Introduced: 1/18/23
• Refer: 1/18/23

Caption

An Act Concerning Electric Distribution Companies' Return On Equity.

Impact

If enacted, SB00679 is expected to bring significant changes to the state laws governing electric utilities. The adjustment to the allowed return on equity could directly influence how electric companies set their rates. This could lead to a decrease in electricity prices, benefiting residents who are currently burdened by high utility costs. Additionally, this bill may encourage a review of how utility performances are measured and potentially intensify scrutiny into the financial practices of these companies.

Summary

SB00679, titled 'An Act Concerning Electric Distribution Companies' Return On Equity', aims to amend existing statutes related to the regulation of electric distribution companies in Connecticut. The bill mandates the Public Utilities Regulatory Authority to lower the allowed return on equity for these companies. The primary goal of this legislative change is to provide financial relief to ratepayers, who are affected by rising electricity costs. By reducing the rate of return for electric companies, proponents believe this will help in lowering rates for consumers and make electricity more affordable.

Contention

While the intent behind SB00679 is to assist consumers, there may be notable points of contention during discussions. Opponents could argue that lowering the return on equity may discourage utility companies from investing in infrastructure improvements or maintaining service quality. There could be concerns that a lower profit margin might impact the ability of these companies to operate effectively and respond to future energy demands. Furthermore, this bill may prompt debates about the balance between consumer protection and the financial viability of electric utilities.