Connecticut to implement time-of-use rates by October 2026 under new bill provisions

On April 10, 2025, the Connecticut State Legislature introduced Senate Bill 1560, a significant piece of legislation aimed at modernizing the state's electric rate structures and enhancing energy efficiency. The bill primarily focuses on implementing time-of-use (TOU) hourly rates for residential and commercial customers, a move designed to encourage energy conservation and optimize resource use.

One of the key provisions of Senate Bill 1560 mandates that the Public Utilities Regulatory Authority (PURA) must evaluate the appropriateness of various rate design standards, including TOU rates, within a specified timeframe. If PURA does not approve these rates by October 1, 2026, the proposed TOU rates submitted by the Connecticut Energy Procurement Authority will automatically be deemed approved. This provision aims to expedite the transition to more dynamic pricing models that reflect actual energy consumption patterns.

The bill also requires electric distribution companies to submit plans for deploying advanced metering systems by January 1, 2026. These systems are essential for supporting net metering and tracking energy usage accurately, which is crucial for the effective implementation of TOU rates.

Debate surrounding Senate Bill 1560 has highlighted concerns about the potential impact on consumers, particularly low-income households that may struggle with fluctuating energy costs. Critics argue that while TOU rates can promote energy efficiency, they may disproportionately affect those who cannot adjust their energy usage to off-peak times. Proponents, however, assert that the bill will ultimately lead to lower overall energy costs and a more sustainable energy grid.

The implications of this legislation extend beyond immediate consumer costs. By encouraging energy conservation and the use of advanced metering technology, Senate Bill 1560 positions Connecticut as a leader in energy innovation. Experts suggest that successful implementation could serve as a model for other states grappling with similar energy challenges.

As the bill progresses through the legislative process, stakeholders will be closely monitoring its potential economic and social impacts. The outcome of Senate Bill 1560 could reshape Connecticut's energy landscape, influencing how residents and businesses interact with their energy providers and manage their consumption in the years to come.