The General Assembly voted this week to pass the Ratepayers First Act, detailed energy legislation approaching Connecticut’s energy needs with short- and long-term focus to provide financial relief to residents.
The bill, which passed both chambers of the legislature with bipartisan support, aims to cut consumer electric costs by about $800 million through 2028 by shifting the funding source of some charges and adjusting current amendments, improving the long-term review and reform of the energy grid with long-term goals of keeping energy costs at a lower level to provide relief to ratepayers.
The proposal follows years of concern and frustration borne from consumers’ electric bills, an issue with a variety of causes, none of which are easy to fix individually. Fluctuations in the power grid related to volatility in the cost of natural gas, record-high summer temperatures and global pressures including the Russian invasion of Ukraine have all contributed to these costs, which the Ratepayers First Act seeks to fix.
Sen. Norm Needleman, an Essex Democrat who co-chairs the legislature’s Energy and Technology Committee, said the people of Connecticut had demanded relief from their energy bills and the legislation sought to provide a remedy.
“This is an extremely detailed and thorough piece of legislation looking at our energy present and our energy future with equal levels of importance,” Needleman said. “It will achieve hundreds of millions in cost savings for consumers while ensuring a better long-term environment for our state to achieve its power generation and sourcing goals.”
The bill has three focuses, including short-term cost savings, long-term cost savings and review of current policies while looking to the future.
Short-term cost cutting strategies include shifting a total of $300 million in the 2026 and 2027 fiscal years to support payments to hardship recovery for consumers struggling during the COVID-19 pandemic and cost spikes that occurred after the invasion of Ukraine. It will further lower required use of renewable resources through 2030 to keep costs low; using rate reduction bonds for storm repair recovery costs can save another $100 million.
Long-term strategies also involve rate reduction bonds, which will be applied to smart metering and can allow state utilities to pursue up to $1 billion in future technology upgrades without such costs being applied to consumer electric bills. State energy procurement strategies will also be adjusted with a purchasing direction focused on lowering costs.
The legislation will also spur reviews of current charges and programs, such as collecting three years of data on the new low-income discount rate program ratepayers will experience. This will also include more information published regarding public benefits charges for consumers and how they work.
Senate Majority Leader Bob Duff, D-Norwalk, said the people of Connecticut deserved a more resilient power grid.
“We can invest state resources in a more efficient manner to achieve stronger long-term returns while shifting costs to deliver short-term gain, all without losing sight of making sure people understand how the grid’s changes impact them,” Duff said. “I’m encouraged to see this collaboration between so many stakeholders and grateful that we’re finding real benefits to support our communities.”
