OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-1531
AN ACT CONCERNING PUBLIC UTILITY TRANSPARENCY AND
ACCOUNTABILITY AND PROCEEDINGS OF THE PUBLIC
UTILITIES REGULATORY AUTHORITY.
Primary Analyst: SB 4/14/25
Contributing Analyst(s): ME
Reviewer: PR
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
Auditors GF - Cost None 82,187
State Comptroller - Fringe
Benefits
1
GF - Cost None 32,115
Consumer Counsel
2
CC&PUCF - Cost 356,022 356,022
Note: GF=General Fund; CC&PUCF=Consumer Counsel and Public Utility Control Fund
Municipal Impact: None
Explanation
The bill makes various changes impacting how electric distribution
companies (EDCs, i.e. Eversource and United Illuminating) and other
utilities are regulated. The bill results in annual costs to the Auditors of
Public Accounts (APA) of $114,302 beginning in FY 27 and annual costs
to the Office of Consumer Counsel of $356,022 beginning in FY 26.
The bill requires the APA to biennially perform a financial and
performance audit of the Home Energy Solutions Audit program
resulting in a cost to the state. Additionally, the bill requires the APA
1
The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 40.71% of payroll in FY 26.
2
The fringe benefit costs for employees funded out of other appropriated funds are
budgeted within the fringe benefit account of those funds, as opposed to the fringe
benefit accounts within the Office of the State Comptroller. The estimated active
employee fringe benefit cost associated with most personnel changes for other
appropriated fund employees is 83.26% of payroll in FY 26. 2025SB-01531-R000662-FN.DOCX Page 2 of 3
to hire one additional auditor to help conduct performance audits
resulting in a cost of $82,187 in FY 27 and an associated fringe benefit
cost of $32,115 in FY 27.
The bill triggers additional interim rate decrease proceedings, which
results in an additional cost to the OCC associated with two new full-
time positions. OCC would require one full-time Utilities Examiner 2
with an annual salary of $97,141 and corresponding fringe benefits of
$80,870 and one full-time Staff Attorney with an annual salary of $97,141
and corresponding fringe benefits of $80,870.
The bill makes various other changes including how the Public Utility
Regulatory Authority (PURA) regulates EDCs, and Freedom of
Information Act (FOIA) laws. These changes do not result in a fiscal
impact to the state, as PURA has the staff and expertise necessary to
implement the changes.
Rate Payer Impact
The rate payer impact of the bill results in a potential savings to
various rate payers. However, the overall savings is indeterminate and
would be dependent upon policy decisions made by individual gas or
electric utility companies.
The bill results in a potential savings to rate payers through various
mechanisms contained within the bill, including: 1) conducting a
biennial financial and performance audit by the APA, 2) capping the
EDC’s allowed rate of return at its weighted average cost of capital, 3)
prohibiting PURA from approving a public service company fee that
would discourage the adoption of grid-enhancing or energy efficient
technologies, and 4) prohibiting various mergers.
Currently, when utility companies transfer ownership the cost of the
transaction can be passed onto rate payers through increased rates.
However, increasing the number of customers within a service territory
allows the cost of any large infrastructure project to be spread across the
additional customers, lowering the overall impact to rate payers. The 2025SB-01531-R000662-FN.DOCX Page 3 of 3
net impact, which is anticipated to result in a savings, would be
dependent on decisions made by utility companies that are outside the
immediate scope of the bill.
Generally, grid enhancing technologies reduce costs to rate payers.
Grid enhancing technologies can reduce utility capital investment and
reduce distribution system costs, which can be reflected as savings to
rate payers. Additionally, grid enhancing technologies lower energy
costs and improve the benefits of updating and investing in various
capital projects by EDCs.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.