A NEWLY-introduced bill will reduce energy costs by 40%, according to lawmakers.
The bill aims to reform issues in energy procurement and cost recovery.
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A new bill seeks to establish a new independent agency to oversee electricity rates in Connecticut.
Lawmakers claim it could cut costs by 40% over the next two years.
At a press conference ahead of a Finance, Revenue, and Bonding Committee hearing, a bipartisan group of legislators voiced support for SB 1560.
The bill was described as a solution to Connecticut’s steep electricity prices.
The 80-page proposal calls for the creation of the Connecticut Electricity Procurement Authority (CEPA), an agency designed to tackle inefficiencies in how electricity is procured, as well as how transmission and distribution costs are recovered.
It aims to align procurement, grid operations, and customer behavior with the goals of affordability, reliability, and decarbonization.
According to the bill, CEPA would “harness in customer and system load data, assist in developing dynamic pricing and competitive market tools to reduce costs, improve infrastructure utilization through smart electric load growth and lower peak electric demand.”
It would be governed by a seven-member board tasked with implementing dynamic procurement and recommending “time-of-use” pricing policies.
Peak-hour rates would be set at least 300% higher than off-peak.
At a press conference ahead of the public hearing, Senator John Fonfara said CEPA would play a central role in overhauling Connecticut’s electric system.
He said current infrastructure wasn’t designed to support 80% of customers relying on standard service and that faith in markets alone “hasn’t worked.”
Fonfara emphasized CEPA’s approach to energy management and referenced the Connecticut Municipal Electric Energy Cooperative as a successful model.
Fonfara also cited solar adoption as a factor behind falling utility revenues, arguing that CEPA would better integrate solar energy into the grid.
He described every home with panels as a “mini power plant” and said CEPA would ensure the power they generate can be better utilized.
The bill also includes two major funds: one to stabilize rates and another to support smart meter adoption.
It mandates that the CEPA adopt smart meters and tasks PURA with launching a public outreach campaign to explain the benefits of time-of-use rates.
While PURA previously approved a smart meter rollout by Eversource for 1.3 million customers in 2024, the plan’s future is uncertain due to disagreements over rate recovery.
CEPA would also oversee a new municipal energy cooperative tasked with developing a plan to reduce standard service costs, funded through the state’s Green Bond Fund.
The bill eliminates the systems benefit charge and replaces it with bond proceeds – drawing criticism from groups like the Sierra Club and the Department of Energy and Environmental Protection (DEEP).
DEEP warned that the bonds could crowd out other programs and lead to higher long-term costs.
It noted that the bill authorizes $2.4 billion in new bonds for the Green Bond Fund but caps annual spending at $800 million – nearly a third of the state’s current borrowing capacity.
DEEP also raised concerns about CEPA’s transparency, noting it would not be subject to the same rules as state agencies, and said its responsibilities could overlap with DEEP and PURA.
Environmental groups, solar companies, and other stakeholders testified overwhelmingly against the bill.
Many solar firms said a section removing the ability to apply solar credits to delivery charges would devastate the solar industry, especially for low- to moderate-income households.
Nick King of Everlast Energy said the change would undermine the economics of residential solar and called the bill a “backdoor attempt to kill” net metering.
Other solar groups also vocalized this warning.
However, utilities like Eversource and United Illuminating supported the bill.
Eversource praised CEPA’s role in supply procurement and the replacement of the public benefits charge with bonds, estimating monthly savings of $40 to $50 for customers.
Eversource also argued that the bill addresses the true reason for increasing prices, falling electricity sales and rising utility costs.
The company said that SB 1560 would help by supporting smart meters and electrification efforts.
The House Republican caucus voiced support for the bill.
Minority Leader Vincent Candelora said it aligns with the party’s cost-cutting goals, and Rep. Joseph Polletta called the public benefits charge a burden on families.
Meanwhile, Rep. David Rutigliano said his own business had seen a $70,000 increase and supported strong measures to cut rates.