Researcher: GM Page 1 4/14/25
OLR Bill Analysis
sSB 1531
AN ACT CONCERNING PUBLIC UTILITY TRANSPARENCY AND
ACCOUNTABILITY AND PROCEEDINGS OF THE PUBLIC
UTILITIES REGULATORY AUTHORITY.
TABLE OF CONTENTS:
SUMMARY
§§ 1, 2 & 7 — FOIA AND UTILITIES AS PUBLIC AGENCIES
Subjects certain utility companies to FOIA and other laws by designating them as public
agencies and generally prohibits them from recovering their costs for complying with FOIA
through their rates; potentially subjects certain meetings between PURA commissioners to
FOIA’s notice requirements
§§ 3 & 4 — NEW DUTY AND HIRE FOR THE AUDITORS OF PUBLIC
ACCOUNTS
Requires the Auditors of Public Accounts to do a biennial financial and performance audit of
the Home Energy Solutions Audit program and hire an additional auditor to do performance
audits
§§ 5 & 6 — TIMING OF PURA HEARING NOTICES
Increases, from one to two weeks, the advance notice PURA must provide for all its hearings
§§ 8 & 9 — CAPS ON EDC RATES
Caps an EDC’s allowed rate of return at its weighted average cost of capital and requires
PURA to consider the need for a rate decrease if it finds that an EDC has a rate of return that
exceeds its weighted average cost of capital
§§ 10-12 — UTILITY ACQUISITION APPLICATIONS AND
PROHIBITION ON CONTROLLING BOTH AN EDC AND A GAS
COMPANY
Eliminates a deemed approved provision affecting certain utility acquisition applications;
beginning, October 1, 2025, prohibits PURA from approving applications to control a gas
company or EDC if the applicant controls either type already in Connecticut; starting January
1, 2026, prohibits entities from controlling both an EDC and a gas company and requires any
that do to divest one of the companies
§ 13 — RESTRICTION ON CONVEYING REAL PROPERTY TO
UTILITIES
Prohibits state agencies, quasi-public agencies, and municipalities from offering certain
utilities a right of first refusal for conveying any real property before offering the property for
general sale
§§ 14 & 15 — RESTRICTIONS ON UTILITY FEES 2025SB-01531-R000662-BA.DOCX
Researcher: GM Page 2 4/14/25
Limits PURA’s authority to approve a public service company fee if it would discourage the
adoption grid-enhancing or energy efficient technologies; expressly prohibits EDCs from
imposing any fee that PURA has not authorized
BACKGROUND
SUMMARY
This bill adds to and changes several laws, such as the Freedom of
Information Act (FOIA), that affect how electric distribution companies
(EDCs, i.e. Eversource and United Illuminating) and other utilities are
regulated, including by the Public Utility Regulatory Authority (PURA).
It also makes several technical and conforming changes.
EFFECTIVE DATE: October 1, 2025, unless otherwise specified
below.
§§ 1, 2 & 7 — FOIA AND UTILITIES AS PUBLIC AGENCIES
Subjects certain utility companies to FOIA and other laws by designating them as public
agencies and generally prohibits them from recovering their costs for complying with
FOIA through their rates; potentially subjects certain meetings between PURA
commissioners to FOIA’s notice requirements
The bill expands the statutory definition for “public agency” under
FOIA to include EDCs, gas companies, pipeline companies, and water
companies with more than 200,000 customers in Connecticut, for any
portions of their business subject to PURA’s regulation (§ 1). This
effectively subjects these companies to FOIA and other laws that use the
term.
Relatedly, the bill prohibits these companies from recovering their
direct or indirect costs for complying with FOIA through their rates
unless PURA recognizes them as proper business expenses that achieve
certain objectives under existing laws governing rate-making (e.g., that
they are just, reasonable, and adequate) (§ 2).
Separately, the bill eliminates a provision that expressly exempts
certain conferences and communications between PURA
commissioners from being considered a “meeting” under FOIA.
Specifically, when serving on a panel to adjudicate a matter before
PURA, conferences and communications between two or more PURA 2025SB-01531-R000662-BA.DOCX
Researcher: GM Page 3 4/14/25
commissioners that do not occur before the public are exempt under
current law (§ 7). Depending on the context and whether any other
exemptions apply, this elimination in the bill may subject these
conferences and communications to FOIA’s notice requirements for
meetings.
Extension of FOIA and Other Laws
The following table lists and briefly describes the laws that will apply
restrictions or requirements on EDCs, gas companies, pipeline
companies, and water companies that are a “public agency” under the
bill.
Table: Statutes With Restrictions or Requirements on Public Agencies
Statute(s) Brief Description
1-200 et seq.
FOIA’s record disclosure, notice, and other
requirements
4a-101 Requires public agencies to complete and
submit standard contractor evaluation forms for
work on certain state or municipal projects
4b-91 Requires prequalification for bidders on certain
public agency projects for public buildings or
public works
8-345d Prohibits public agency employees and
contractors from certain uses of information
about people receiving assistance from the
Department of Housing or participating in a
department-administered program
8-360 Exempts public agencies from disclosing under
FOIA the location of housing for domestic
violence victims
31-51m Prohibits employers from penalizing an
employee for disclosing illegal activities,
unethical practices, or suspected child abuse or
neglect to a public agency
47-61a Exempts from FOIA records of traditional
cultural knowledge submitted to a public agency
48-30 Prohibits representing the power to acquire
property by eminent domain unless an
appointed or elected official of a public agency
with such power
52-146r Generally prohibits disclosure of confidential
communications between a government 2025SB-01531-R000662-BA.DOCX
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Statute(s) Brief Description
attorney and an employee of a public agency
53a-301 Sets a five-year mandatory minimum sentence
for a computer crime in furtherance of terrorist
purposes when directed against a public
agency charged with protecting public safety
54-155a Prohibits public agencies from providing
information or using resources for an interstate
investigation or proceeding on the provision,
seeking, or receipt of, or assistance with,
reproductive health care services
54-155b Prohibits public agencies from providing
information or using resources for an interstate
investigation or proceeding on the provision,
seeking, or receipt of, or assistance with,
reproductive health care services or gender-
affirming health care services
§§ 3 & 4 — NEW DUTY AND HIRE FOR THE AUDITORS OF PUBLIC
ACCOUNTS
Requires the Auditors of Public Accounts to do a biennial financial and performance audit
of the Home Energy Solutions Audit program and hire an additional auditor to do
performance audits
The bill requires the Home Energy Solutions Audit program to have
a biennial financial and performance audit by the Auditors of Public
Accounts (APA), instead of being reviewed by the Department of
Energy and Environmental Protection (DEEP) commissioner for cost-
effectiveness annually or otherwise as practicable (§ 3). (The bill does
not further specify any criteria or requirements for these audits.) Under
current law, if DEEP’s review determines that the program is not cost-
effective, it must be modified to be cost-effective or be terminated,
unless it is integral to other programs that in combination are cost-
effective. (It is not clear if this requirement would apply to the program
after an APA audit.)
Additionally, the bill requires the APA to hire an additional auditor
to do performance audits by July 1, 2026 (§ 4).
EFFECTIVE DATE: July 1, 2025, except the program audit
requirement is effective July 1, 2026. 2025SB-01531-R000662-BA.DOCX
Researcher: GM Page 5 4/14/25
§§ 5 & 6 — TIMING OF PURA HEARING NOTICE S
Increases, from one to two weeks, the advance notice PURA must provide for all its
hearings
The bill increases, from one to two weeks, the advance notice PURA
must provide for all its hearings (§ 6). It makes a corresponding change
in a separate law to specify that two weeks’ advance notice is required
for a PURA hearing to rescind, reverse, or alter a PURA decision, order,
or authorization (§ 5).
§§ 8 & 9 — CAPS ON EDC RATES
Caps an EDC’s allowed rate of return at its weighted average cost of capital and requires
PURA to consider the need for a rate decrease if it finds that an EDC has a rate of return
that exceeds its weighted average cost of capital
When an EDC proposes to amend its rates, the bill caps the EDC’s
allowed rate of return at its weighted average cost of capital, as
determined by PURA (§ 8). Relatedly, the bill requires PURA to hold
either a special public hearing or combine an investigation with an
ongoing four-year review or a general rate hearing on the need for an
interim rate decrease if it finds that an EDC has a rate of return greater
than its weighted average cost of capital, as determined by PURA (§ 9).
(The legal effect of these provisions is unclear. Neither the bill or
existing statutes specifically define either “rate of return” or “weighted
average cost of capital.” Although the bill appears to treat these terms
as having two distinct meanings, in practice, the weighted average cost
of capital is the rate of return. Utilities generally finance their operations
through a mix of debt and equity. In practice, to calculate the weighted
average cost of capital, PURA uses the cost of debt (e.g., interest) and
the cost of equity (determined by PURA in a rate proceeding). The cost
of debt is weighted by the amount of debt the utility has and the cost of
equity is weighted by the amount of equity the utility has used to
finance its operations. The weighted average cost of capital is the rate of
return PURA uses to calculate the utility’s revenue requirement and the
rates it may charge.) 2025SB-01531-R000662-BA.DOCX
Researcher: GM Page 6 4/14/25
§§ 10-12 — UTILITY ACQUISITION APPLICATI ONS AND
PROHIBITION ON CONTR OLLING BOTH AN EDC A ND A GAS
COMPANY
Eliminates a deemed approved provision affecting certain utility acquisition applications;
beginning, October 1, 2025, prohibits PURA from approving applications to control a gas
company or EDC if the applicant controls either type already in Connecticut; starting
January 1, 2026, prohibits entities from controlling both an EDC and a gas company and
requires any that do to divest one of the companies
The bill makes changes affecting applications to:
1. exercise authority or control over any gas company, EDC, water
company, telephone company, or community antenna television
(CATV) company engaged in the business of supplying service
within Connecticut, or with or over any holding company doing
the principal part of its business within the state, and
2. become a holding company with control over a gas company,
EDC, water company, telephone company, or CATV company
engaged in the business of supplying service within Connecticut,
or acquire, directly or indirectly, control over such a holding
company, or take any action that would if successful cause it to
become or to acquire control over such a holding company.
Under existing law, PURA must investigate and hold a public
hearing on whether to approve these applications, give certain notice
about the hearing, and decide on the application within a specified time
frame. The bill eliminates a provision that deems these applications
approved if PURA fails to perform either of these duties by their
deadlines.
Beginning October 1, 2025, the bill also prohibits PURA from
approving any application to exercise authority or control over a gas
company or EDC (or either’s holding company) if the applicant already
controls a gas company or EDC (or either’s holding company) in
Connecticut (§ 10).
Additionally, beginning January 1, 2026, the bill prohibits any person,
firm, or corporation from controlling both an EDC and a gas company.
It requires anyone who controls both these types of companies to divest 2025SB-01531-R000662-BA.DOCX
Researcher: GM Page 7 4/14/25
one of them by that date. It also requires PURA to, after notice and
hearing, revoke the franchise to operate as a public service company of
any person, firm, or corporation that is non-compliant with these
provisions (§ 11).
The bill makes corresponding changes to PURA’s revocation of
franchise law to account for the bill’s revocation requirement. Under the
bill and existing law, PURA must (1) fix a time and place for a hearing
whenever someone is non-compliant, (2) give notice to all interested
parties, and (3) investigate the non-compliance. PURA may revoke a
franchise or make another order as needed to provide a franchise’s
service if it finds at the hearing that the franchise holder failed to comply
and that there is an immediate need for the franchise’s service (§ 12).
(These provisions may be subject to litigation brought by a utility that
has its franchise revoked as violations of the Connecticut or the U.S.
Constitution’s Taking Clauses, which prohibit taking property for
public use without just compensation.)
§ 13 — RESTRICTION ON CO NVEYING REAL PROPERT Y TO
UTILITIES
Prohibits state agencies, quasi-public agencies, and municipalities from offering certain
utilities a right of first refusal for conveying any real property before offering the property
for general sale
The bill prohibits state agencies, quasi-public agencies, and
municipalities from offering public service companies a right of first
refusal for conveying any real property before offering the property for
general sale. This prohibition applies regardless of any other statute.
§§ 14 & 15 — RESTRICTIONS ON UTILITY FEES
Limits PURA’s authority to approve a public service company fee if it would discourage
the adoption grid-enhancing or energy efficient technologies; expressly prohibits EDCs
from imposing any fee that PURA has not authorized
The bill prohibits PURA from approving a public service company
fee that would discourage the adoption of grid-enhancing or energy
efficient technologies, as long as it is not construed to discourage the
company from making capital investments in the grid (§ 14). It also
expressly prohibits EDCs from imposing any fee that PURA has not
authorized (§ 15). 2025SB-01531-R000662-BA.DOCX
Researcher: GM Page 8 4/14/25
BACKGROUND
Definitions
By law and under the bill, an “electric distribution company” is
generally any person providing electric transmission or distribution
services in the state. It does not include, among other things, a private
power producer, a municipal electric utility, or a municipal electric
energy cooperative.
A “gas company” is generally any person owning, maintaining,
operating, or controlling mains, pipes, or other fixtures in public
highways or streets to transmit or distribute gas for sale for heat or
power in the state. It does not include, among other things, (1) a person
manufacturing gas through a biomass gasification plant under certain
conditions or (2) municipal gas utilities.
A “pipeline company” is generally any person owning, maintaining,
operating, or controlling mains, pipes, or other fixtures through, over,
or under any public land, water, parkways, highways, parks or public
grounds to transport, transmit, or distribute petroleum products for hire
in the state.
A “water company” is generally any person owning, maintaining,
operating, or controlling any pond, lake, reservoir, stream, well, or
distributing plant or system to supply water to at least 50 consumers. It
does not include, among other things, homeowners, condominium
associations providing water only to their members; municipal
waterworks systems; or a district, metropolitan district, municipal
district or special services district authorized to supply water.
A “public service company” includes electric distribution, gas,
telephone, pipeline, sewage, water, and community antenna television
companies and holders of a certificate of cable franchise authority,
owning, leasing, maintaining, operating, managing, or controlling
plants or parts of plants or equipment. It excludes towns, cities,
boroughs, any municipal corporation or department, wh ether
separately incorporated or not, a private power producer, or an exempt
wholesale generator. 2025SB-01531-R000662-BA.DOCX
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Related Bills
HB 6882 (File 81), favorably reported by the Government Oversight
Committee, makes several changes to FOIA, including ones affecting
public agencies.
sHB 7091 (File 514), favorably reported by the Government Oversight
Committee, generally requires the APA to audit all the state’s ratepayer-
funded energy efficiency programs.
SB 1354 (File 539), favorably reported by the Energy and Technology
Committee, also prohibits PURA from approving applications from in-
state gas or electric utilities seeking to control other in-state gas or
electric utilities.
COMMITTEE ACTION
Government Administration and Elections Committee
Joint Favorable Substitute
Yea 13 Nay 6 (03/26/2025)