Connecticut to implement new electric distribution regulations by July 2026

The Connecticut State Legislature introduced Senate Bill 1560 on April 10, 2025, aiming to reform the state's electric transmission and distribution services. The bill seeks to clarify the definition of gross earnings for electric companies and mandates the implementation of time-of-use rates for residential customers.

Key provisions of the bill include the repeal and substitution of specific sections in the general statutes regarding gross earnings from electric services. The bill specifies that gross earnings will now encompass all income classified as such by the Commissioner of Revenue Services, in consultation with the Public Utilities Regulatory Authority (PURA). Notably, it excludes income from services provided to certain companies, ensuring that the bill targets specific revenue streams.

Another significant aspect of Senate Bill 1560 is the requirement for electric distribution companies to submit applications to PURA by July 1, 2026, to implement time-of-use rates. This provision aims to encourage energy conservation by incentivizing consumers to use electricity during off-peak hours, potentially leading to lower energy costs and reduced strain on the grid.

Debate surrounding the bill has focused on its potential economic implications. Proponents argue that the introduction of time-of-use rates could lead to more efficient energy consumption and lower overall costs for consumers. However, opponents express concerns about the impact on low-income households, who may struggle to adjust their energy usage patterns to benefit from the proposed rates.

The bill's passage could have significant social and economic ramifications, particularly in promoting energy efficiency and sustainability in Connecticut. Experts suggest that if implemented effectively, these changes could position Connecticut as a leader in energy reform, potentially influencing similar legislative efforts in other states.

As the bill progresses through the legislative process, stakeholders from various sectors, including energy providers, consumer advocacy groups, and environmental organizations, are closely monitoring its developments. The outcome of Senate Bill 1560 may set a precedent for future energy policies in Connecticut and beyond.