ConnecticutSB 000042025 Regular SessionSenateWALLET

AN ACT CONCERNING ENERGY AFFORDABILITY, ACCESS AND ACCOUNTABILITY.

Sponsored By: Energy and Technology Committee

Signed by Governor

Summary

To improve service and reduce costs for electricity ratepayers in the state.

energy and technology

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Bill Overview

Analyzed Economic Effects

41 provisions identified: 19 benefits, 8 costs, 14 mixed.

More outage relief after droughts and wildfires

Beginning October 1, 2025, droughts and wildfires can qualify residential electric customers for existing outage relief. Relief includes bill credits and compensation for spoiled food or medicine. The event must leave no more than 69% of the company’s customers without power at peak demand. The distribution-system outage must last more than 96 consecutive hours after the emergency. The law does not state payment amounts.

State bonds target hardship bill costs

Beginning July 1, 2025, Connecticut authorizes bonds to reduce hardship-protection costs charged through utility bills. The limit is $125 million for each fiscal year ending June 30, 2026, and June 30, 2027. Proceeds must bring annual hardship costs in the systems benefits charge down to their 2016–2020 average. Each bond authorization requires a request from the state budget secretary or the secretary’s representative. The law does not set each household’s bill reduction.

Restoration workers gain stronger safety protections

Beginning October 1, 2025, covered restoration plans must address crew safety, protective equipment, and applicable training and skill-progression plans. Companies and unions must jointly develop those training plans when crews have union representation. Electric companies cannot require unsafe work, including to avoid customer credits. They cannot fire, discipline, withhold wages, or otherwise punish workers solely for causing a missed 96-hour restoration deadline.

Electric suppliers face lower renewable targets

Class I renewable requirements fall from 32% to 25% in 2026, 34% to 26% in 2027, and 36% to 27% in 2028. They fall from 38% to 28% in 2029 and 40% to 29% in 2030; Class II stays at 4%. Beginning October 1, 2025, regulators must develop procedures for renewable certificates bought through specified state programs. Procedures can allow sales or retirement for ratepayers and further Class I reductions based on forecast purchases. Any further annual reduction must be set at least one year ahead; lower household bills are not guaranteed.

Charging incentives get tighter spending limits

Beginning January 1, 2026, covered light-duty electric vehicle charging programs have a $20 million annual expense cap. The cap covers charging stations and customer wiring upgrades in programs established by PURA. Single-family residential incentives for those expenses are limited to households at or below 300% of the federal poverty level. Residents of concentrated-poverty census tracts also qualify, regardless of that income test. The law does not set an individual incentive amount.

Low-income utility rates face new limits

Covered low-income electric, gas, and water rates must include monthly usage caps. Customers must have their income eligibility and rate tier checked at least every 12 months of enrollment. PURA, the state utility regulator, must review programs when costs exceed a specified share of utility revenue. These rules cover proceedings started on or after October 1, 2025, and pending rate cases without a final decision before November 1, 2025. The supplied text does not give the usage caps or revenue-share threshold.

Electric customers repay utility financing costs

Beginning July 1, 2025, the competitive transition assessment covers bond debt, interest, financing expenses, arrears, and approved utility costs not bond-funded. The charge continues until all covered costs are recovered. Financing orders require annual review, with needed adjustments approved within 90 days of filing or sooner if required. PURA can delay a later bond issue’s charge; existing special contracts are exempt until expiration, but later new or renewed contracts pay. The state cannot weaken protected financing rights before repayment unless it provides adequate legal protection for collection-right owners and bondholders.

Energy contracts bring bill charges and credits

Beginning October 1, 2025, covered nuclear and hydropower contracts generally must last 3–10 years. Another participating state’s term is allowed when the energy commissioner finds it serves ratepayers’ best interest. Electric companies can use eligible nuclear contracts for standard service after consulting consumer and procurement officials and getting regulatory approval. Companies recover covered long-term contract costs, minus sales revenues, through an unavoidable rate charge adjusted to actual costs. Net revenues from covered contracts outside standard service must flow back to customers through that same rate component.

Home energy tariffs add unavoidable charges

Covered home-generation tariffs require an on-site project of 25 kilowatts or less using a pollution-free Class I renewable source. Beginning January 1, 2026, the netting option includes an unavoidable charge of at least 3.25 cents per kilowatt-hour. PURA must also adjust buy-all payments so the two tariff options have substantially similar rates. These changes combine tighter eligibility and a new charge with payment adjustments intended to keep the options comparable.

Time-based electric rates include customer opt-outs

Electric companies must propose time-based residential and business rates by October 1, 2027, for utility-regulator review. Approved rates become the default, with an opt-out process, phase-in rules, and possible medical or financial-hardship exceptions. Bills can change based on when customers use power; approval requires justified costs and benefits without undue customer harm. Beginning October 1, 2025, companies must design customer education programs with consumer and energy officials, including outreach and performance reporting. Rate cases started on or after July 1, 2025, must include these programs or updates for approval.

Utility bonds spread costs across customer bills

Connecticut allows up to $2.2 billion in rate-reduction bonds when the utility regulator finds financing serves ratepayers’ best interest. Eligible costs include prudent storm costs from January 1, 2018, through January 1, 2025. They also include prudent meter-system costs after January 1, 2025, related replaced equipment balances, and financing costs. Electric companies must apply for approval of eligible costs. Customers repay principal, interest, and related costs through an unavoidable bill assessment, adjusted to match actual bond costs.

Energy equipment tax relief excludes land

For assessment years starting on or after October 1, 2025, qualifying solar photovoltaic equipment is included in the property-tax exemption. The law also limits the covered electricity-generation exemption to equipment and devices, not the land or building holding them. Owners can therefore owe property tax on the real estate even when equipment is exempt. File the required written exemption application by November 1 of the assessment year.

Electric customers get financing cost safeguards

Electric customers receive the net deferred-tax benefits tied to utility services financed with rate-reduction bonds. The bond amount is reduced by those benefits’ present value, using the bonds’ expected interest rate. If PURA finds advanced-metering bond proceeds exceeded prudent deployment costs, customers receive the bond costs tied to that excess, with interest. PURA chooses how to return the money, including another unavoidable charge or the revenue-adjustment mechanism. The competitive transition assessment itself cannot be reduced for that refund.

Phone customers get debt-reporting warnings

Telephone companies and certified telecommunications providers must mail notice before sending unpaid-service information to credit-rating or debt-collection agencies. First-class notice must arrive through the mailing process at least 30 days before submission. It must include the required warning about possible credit harm for accounts more than 60 days overdue.

Fishermen gain more vessel inspection options

Beginning October 1, 2025, fishermen gain another inspection option for boats used in selected offshore-wind project support work. Inspectors accredited through the United States National Association of Marine Surveyors’ vessel inspector program can perform the required inspections. They join the inspectors already authorized. Boats still need the required inspection before fishermen provide project support services.

Broadband access goal includes all residents

Beginning October 1, 2025, Connecticut’s broadband access goal covers every resident, rather than only citizens. The Office of State Broadband must help expand availability and use of gigabit-capable networks. This includes residents who are not citizens. The law does not guarantee a connection or provide a household subsidy.

Utility votes become public within hours

Beginning October 1, 2025, utility commissioners’ votes must be written down and included in meeting minutes. Votes must appear on the utility regulator’s website within 48 hours. Regulatory decisions, including rate cases, must follow guidance from state energy plans and environmental agency policies. These rules do not set specific rates.

Consumer advocates gain appeals and information

Beginning October 1, 2025, the Office of Consumer Counsel can appeal state regulatory decisions affecting consumers without first participating in the case. PURA must also share covered confidential business and financial information from utility holding companies and subsidiaries with the office. Both agencies must protect that information. Consumer Counsel employees cannot disclose or use it for personal financial gain.

Utility regulators face stronger ethics limits

Beginning October 1, 2025, expanded ethics rules cover current and former PURA commissioners and employees. They cannot take work that substantially conflicts with public duties or requires or encourages disclosure of confidential official information. Commissioners whose service ends on or after July 1, 2025, face a one-year ban on specified utility-related jobs. The ban also covers specified lobbying, legal, and related entities. During that year, attorney commissioners cannot participate in or receive payment for matters before PURA.

Grants support local thermal energy networks

Beginning October 1, 2025, the energy department must establish grants and loans for customer-side thermal energy networks. Funding depends on available appropriations and can cover studies, design, engineering, infrastructure, or nonfederal cost shares. Eligible applicants include governments, tribes, utilities, energy districts, nonprofits, schools, and private entities. Recipients must demonstrate that they have adopted the required wage standards.

State bonds support electric vehicle charging

Beginning July 1, 2025, Connecticut authorizes bonds for its covered electric vehicle charging programs. Authorization totals up to $30 million for the fiscal year ending June 30, 2026. Another $20 million is authorized for the year ending June 30, 2027. Each authorization requires a request from the state policy secretary or a representative, and proceeds must fund those programs.

Utility regulator gains clean energy flexibility

Beginning October 1, 2025, PURA can choose who runs clean energy programs funded through customer rates. Options include the Green Bank, DEEP, electric utilities, outside administrators, or a combination. Selection must rest on evidence in an uncontested proceeding and consider experience, projected savings, efficiency, and customer experience. PURA can also set standards for cogeneration and renewable-fuel systems without following DEEP policies. These changes do not promise household savings.

Crews help review emergency restoration plans

Beginning October 1, 2025, covered electric companies must form committees to review emergency restoration plans after major outages. At least half the members must be line or restoration workers, chosen by their union or the crews themselves. Committees must meet within 60 days after an emergency cuts service to at least 30% of customers. Wildfires expressly count as emergencies under covered restoration-planning rules.

Grid builders must examine cost-saving alternatives

Beginning October 1, 2025, covered grid builders must submit alternatives using advanced conductors and grid-enhancing or nontransmission technology. The conductor requirement does not apply when the main project already uses one; covered material changes cost at least $25 million. The Siting Council must favor alternatives meeting cost, reliability, and impact tests, with specified feasibility and prior-review waivers. Companies must report costs and timing for grid technologies in rate and capital cases; regulators can approve cost-effective deployment. Annual reports cover ten-year project plans and completed facilities, with the first filing reaching back to January 1, 2022. State officials screen projects, and compliance reports begin January 1, 2027, repeating every five years.

Grid programs must benefit paying customers

Beginning October 1, 2025, energy officials can create goals and programs to improve use of the electric system. Options include incentives to dispatch customer-side solar and investments in electrification or large-scale storage. Each program’s benefits to ratepayers must exceed its costs. Energy-department programs depend on available funding and authority and must follow state emissions goals.

Utility bond money faces spending safeguards

Beginning July 1, 2025, utility bond proceeds can fund only purposes approved in the financing order. They cannot buy generation assets, buy back stock, pay shareholder dividends, or cover operating expenses. Taxes caused by receiving the proceeds are an exception. Economic recovery revenue bonds must mature within eight years of issuance, as approved by PURA. An extension is allowed for economic reasons on the financing entity’s advice.

Tax breaks cover utility financing agents

Beginning July 1, 2025, utility financing tax exemptions expressly cover electric-company affiliates and collection or other agents. The exemptions apply to specified property, revenues, and related income handled under the rate-reduction financing laws. They do not establish a household tax break.

Electric bills fund state grid consultants

Beginning October 1, 2025, the utility regulator must adjust retail transmission rates to pay specified state consultant costs. These consultants support the energy department and consumer counsel in siting proceedings and covered grid-project reviews. Electric customers pay through rates; the law gives no individual bill amount.

Gas customers face higher allowed charges

Beginning October 1, 2025, gas companies can exceed the conservation-charge limit equivalent to 4.6 cents per hundred cubic feet. The extra charge can fund net costs of an agreement approved under the law’s specified agreement process. The law does not state how much above the limit customers can pay.

Utilities must follow common certificate procedures

Beginning October 1, 2025, electric utilities must follow common statutory procedures for renewable energy certificates from specified state procurement programs. These procedures replace program-specific rules allowing or requiring utilities to sell or retain those certificates. The law does not specify a household payment or bill change from this shift.

Affected utilities pay energy consultant costs

Beginning October 1, 2025, DEEP, PURA, and the Office of Consumer Counsel can hire consultants for specified federal proceedings and negotiations. Consultants can fill gaps in staff expertise or supplement it. Affected entities pay reasonable and proper expenses, divided by their shares of reported revenue for the most recent fiscal year. Expenses are capped at $2.5 million per calendar year unless PURA finds good cause to exceed that amount. No household rate increase is specified.

Transmission owners must join regional operator

Electric distribution companies cannot own or control covered Connecticut transmission facilities unless they participate in the regional grid operator. The restriction applies to the transmission facilities identified in the law. It does not set a customer charge or a household benefit.

Large solar owners owe municipal taxes

Beginning July 1, 2026, qualifying solar owners owe annual municipal tax of $10,000 times capacity in megawatts, including fractional megawatts. The tax lasts 20 tax years and covers systems over one megawatt whose capacity exceeds the location’s electricity demand. Owners must receive permission to operate on or after July 1, 2026, and notify the town within seven days. Exclusions cover state land, brownfields, landfills, rooftops, solar canopies, and microgrids serving critical facilities. Revenue is divided among towns by capacity located there; towns can freeze or stabilize the tax, and overdue amounts accrue 1.5% monthly interest.

Utility rate cases get new deadlines

Beginning October 1, 2025, covered rate-change cases require every appointed, qualified utility commissioner, not a smaller panel. Amended rates take effect without a ruling after 350 days for electric or gas companies, or 270 days for other utilities. The company must first give PURA satisfactory assurance that it can and will refund excess collections with interest. PURA can extend the deadline by up to 90 days when two companies each serving over 75,000 customers file within 60 days of each other. The law does not set the amended rates.

Energy storage programs shift customer focus

Beginning October 1, 2025, PURA must establish energy storage programs and funding mechanisms for residential customers. It must create separate programs for commercial and industrial customers. The law removes the explicit requirement for a program covering storage connected ahead of customer meters and away from customer premises. It does not set funding amounts or promise household payments.

Nuclear projects gain funding and permit rules

Beginning July 1, 2025, a competitive state program supports advanced-reactor site studies, infrastructure reviews, and community planning. It can use grants or loans, up to $5 million in authorized bonds, and federal funds. Government and utility applicants must show interest in hosting reactors; private applicants must have or seek an eligible partner. Beginning October 1, 2025, new nuclear developers must obtain all required state and federal permits and approvals. Those approvals cover construction, operation, and funding to shut down and dismantle the facility.

Clean energy projects face revised eligibility

Beginning October 1, 2025, covered renewable tariff projects must use a Class I source that emits no pollutants. Shared clean energy facilities placed in service after January 1, 2026, must meet that standard too. Shared facilities are exempt from the rule tying project size to one customer’s meter load; covered customer-generation projects remain subject to it. State, municipal, and agricultural customers retain an off-site location exception for covered customer-generation projects. That location exception does not extend to the shared-facility program.

Clean energy status shifts among generators

Beginning October 1, 2025, Class I renewable status excludes landfill methane and includes nuclear facilities constructed on or after October 1, 2023. Biomass facilities need an electricity-supply agreement signed before October 1, 2025. They must also meet sustainable-fuel and nitrogen-oxide standards, or be under 500 kilowatts with construction begun before July 1, 2003. The small-facility route lasts only as long as the agreement. The law also repeals the required schedule of gradually declining renewable-credit values for qualifying biomass and landfill methane facilities.

Nuclear projects gain routes with conditions

Beginning October 1, 2025, new nuclear construction must satisfy at least one of three routes. One requires federally approved high-level waste disposal; another allows sites with Connecticut nuclear generation operating on October 1, 2022. Advanced reactors have a route requiring approval from the host town and every additional town within the federal emergency planning zone. Those approvals require an affirmative legislative-body vote or referendum. The energy commissioner also coordinates state nuclear-development work and helps public and private groups navigate siting, permits, and other requirements.

Renewable tariff programs get capacity caps

For program years starting January 1, 2025, two covered renewable tariff programs have annual capacity limits of 100 and 50 megawatts. PURA can allow more capacity only within a fixed contract-cost ceiling. Total payments over the selected projects’ tariff terms cannot exceed the corresponding total for projects selected in that program during 2024. These are program-wide limits, not individual project allowances.

Utilities gain ongoing service financing authority

Beginning July 1, 2025, PURA has ongoing authority to finance or refinance approved utility services, removing a December 31, 2008 cutoff. Utilities need separate cost-recovery approval before seeking service financing; PURA can also start most financing cases itself. Except for economic recovery bonds, orders require the utility’s written consent and can support charges on customer bills. Utilities own related collection rights but cannot include them in the asset base used to set rates. For economic recovery transfers and specified General Fund energy-program payments, utilities act only as collection agents; existing financing rights remain unchanged.

Sponsors & Cosponsors

Sponsor

  • Energy and Technology Committee

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 268 • No: 38

Senate vote • 5/23/2025

APP Vote Tally Sheet (Joint Favorable)

Yes: 41 • No: 11

Senate vote • 5/19/2025

FIN Vote Tally Sheet (Joint Favorable)

Yes: 32 • No: 15 • Other: 2

Senate vote • 1/23/2025

ET Vote Tally Sheet-A (MOTION FAILED)

Yes: 0 • No: 0

House vote • 1/23/2025

House Roll Call Vote 312 AS AMENDED

Yes: 144 • No: 3

Senate vote • 1/23/2025

Senate Roll Call Vote 329

Yes: 34 • No: 1

Senate vote • 1/23/2025

ET Vote Tally Sheet (Joint Favorable Substitute)

Yes: 17 • No: 8

Actions Timeline

  1. Signed by the Governor

    7/1/2025legislature
  2. Transmitted by Secretary of the State to Governor

    6/27/2025legislature
  3. Transmitted to the Secretary of State

    6/27/2025legislature
  4. Public Act 25-173

    6/23/2025legislature
  5. In Concurrence

    6/3/2025legislature
  6. House Passed as Amended by Senate Amendment Schedule A

    6/3/2025House
  7. House Adopted Senate Amendment Schedule A

    6/3/2025House
  8. House Calendar Number 679

    6/2/2025House
  9. Favorable Report, Tabled for the Calendar, House

    6/2/2025House
  10. Transmitted Pursuant To Joint Rule 17

    6/2/2025legislature
  11. Senate Passed as Amended by Senate Amendment Schedule A

    6/2/2025Senate
  12. Senate Rejected Senate Amendment Schedule B 10432

    6/2/2025Senate
  13. Senate Adopted Senate Amendment Schedule A 10429

    6/2/2025Senate
  14. Favorable Report, Tabled for the Calendar, Senate

    5/27/2025Senate
  15. No New File by Committee on Appropriations

    5/27/2025legislature
  16. Reported Out of Legislative Commissioners' Office

    5/23/2025legislature
  17. Filed with Legislative Commissioners' Office

    5/23/2025legislature
  18. Joint Favorable

    5/23/2025legislature
  19. Rules Suspended and Transmitted

    5/21/2025legislature
  20. Referred by Senate to Committee on Appropriations

    5/21/2025Senate
  21. Favorable Report, Tabled for the Calendar, Senate

    5/19/2025Senate
  22. No New File by Committee on Finance, Revenue and Bonding

    5/19/2025legislature
  23. Reported Out of Legislative Commissioners' Office

    5/19/2025legislature
  24. Filed with Legislative Commissioners' Office

    5/19/2025legislature
  25. Joint Favorable

    5/19/2025legislature

Bill Text

  • Public Act No. 25-173

    5/21/2025

  • File No. 325

    3/31/2025

  • APP Joint Favorable

    3/13/2025

  • Committee Bill

    3/13/2025

  • ET Joint Favorable Substitute

    3/13/2025

  • FIN Joint Favorable

    3/13/2025

  • Proposed Bill

    1/8/2025

  • APP Vote Tally Sheet (Joint Favorable)

  • Bill Analysis For File Copy 325

  • Bill Analysis for SB-4, as amended by Senate "A"

  • ET Joint Fav. Rpt

  • ET Vote Tally Sheet (Joint Favorable Substitute)

  • ET Vote Tally Sheet-A (MOTION FAILED)

  • FIN Joint Fav. Rpt

  • FIN Vote Tally Sheet (Joint Favorable)

  • Fiscal Note For File Copy 325

  • Fiscal Note for Amendment LCO 10202 (See Fiscal Note Details)

  • Fiscal Note for Amendment LCO 10309 (See Fiscal Note Details)

  • Fiscal Note for Amendment LCO 10362 (See Fiscal Note Details)

  • Fiscal Note for Amendment LCO 10419 (See Fiscal Note Details)

  • Fiscal Note for Amendment LCO 10429 (See Fiscal Note Details)

  • Fiscal Note for Amendment LCO 10432 (See Fiscal Note Details)

  • Fiscal Note for Amendment LCO 10498 (No Fiscal Impact)

  • Fiscal Note for SB-4, As Amended by Senate "A" (LCO 10429)

  • House LCO Amendment #10498 (R)

  • House Roll Call Vote 312 AS AMENDED

  • Senate LCO Amendment #10202 (D)

  • Senate LCO Amendment #10309 (R)

  • Senate LCO Amendment #10362 (J)

  • Senate LCO Amendment #10419 (J)

  • Senate Roll Call Vote 329

  • Senate Schedule A LCO# 10429 (J)

  • Senate Schedule B LCO# 10432 (J)

  • Summary for Public Act No. 25-173

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