The process has been in the works since the act was signed in 2020, with the overarching objective to increase accountability among utility companies by incentivizing better service through performance-based regulations.
“Based on the principle, it sounds like a great idea, but it’s all in the details,” said Ivoryton’s Susie Beckman. “I think it’s good to vet those things in the public and through the legislature and with the people involved, with the businesses involved.”
On Wednesday, state leaders and the Public Utilities Regulatory Authority (PURA) outlined their performance-based regulation plan which would reward or penalize utility companies based on performance.
“I want to make sure the utilities have incentives alongside what we want to have accomplished, and I think that’s what a performance-based regulation means,” said Gov. Ned Lamont.
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In a statement, United Illuminating said it “welcomes the final decision on performance-based regulation issued by the Public Utilities Regulatory Authority today, and looks forward to aligning its operations, investments, customer service engagement, and system planning within this new, constructive regulatory framework.”
Eversource agreed, saying in a statement: “We support a strong and fair regulatory environment that balances the need for safe and reliable service for customers at affordable rates with the need to support sufficient investment in the system that powers our schools and educational facilities, healthcare networks, and the Connecticut economy every day.”
PURA finalized Phase I of the plan in a meeting on Wednesday morning, establishing objectives that include investment efficiency, reliable and resilient electric service and customer empowerment.
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“Those are the goals and outcomes that we’re going to set the financial incentives and penalties around moving forward,” said PURA Chairman Marissa Gillett.
Gillett said that Phase II of the process will now set concrete metrics that will determine whether or not the specific goals are met.
“We take those priority outcomes, we marry them up to metrics we’ve established elsewhere and then we define what the dollar amount incentive or penalty is that pairs to each of those objectives,” Gillett said.
PURA said it will finalize those metrics over the next year, with the goal of implementing this system by the middle of 2024.
