Connecticut Senate Bill SB01104

Connecticut 2025 Regular Session

• Introduced: 1/23/25
• Refer: 1/23/25

Caption

An Act Establishing A Cap On The Rate Of Return For Electric Distribution Companies.

Impact

Should SB01104 be enacted, it would amend the general statutes related to electric distribution companies, instituting a limit on the allowable rate of return for these entities. This legislative change is significant as it will fundamentally alter the financial structure of how electric distribution companies are compensated. Proponents of the bill argue that capping the rate of return will protect consumers from excessive rates and promote a more sustainable business model for utilities.

Summary

SB01104 proposes the establishment of a cap on the rate of return for electric distribution companies in Connecticut. This bill aims to modify the current regulatory framework governing electricity providers by limiting the profit margins that these companies can earn, thereby addressing consumer concerns over rising utility rates. The goal is to create a fairer system for consumers, who have expressed dissatisfaction with the increasing costs associated with electric services.

Contention

The bill has generated discussion regarding its implications for the utility industry. Supporters view the cap as a necessary mechanism to ensure affordability and transparency in utility pricing. However, opponents express concerns that such a cap might discourage investment in infrastructure and lead to a decline in service quality over time, as companies may face limitations in recovering costs associated with upgrades and maintenance. The balance between consumer protection and industry sustainability is a critical point of contention among stakeholders.