Connecticut Utility Regulator Steps Down, Leaving Decisions in Limbo
The chief utility regulator of Connecticut, Chairperson Gillett, has announced her decision to step down, effective October 10. This resignation comes as she removes herself from any regulatory decisions during the transition period, a move that may have significant implications for utility rate determinations impacting thousands of customers statewide.
Governor Ned Lamont‘s office confirmed Gillett’s resignation, which follows a contentious tenure marked by disputes with the state’s largest utilities, Eversource and Avangrid. The utilities previously threatened legal action against the Public Utility Regulatory Authority (PURA) if Gillett remained involved in ongoing rate cases.
In letters addressed to Lamont, Eversource and Avangrid expressed “significant concerns” about pending rate cases, urging for Gillett to have no further involvement due to her alleged bias and prejudgment. They also called out other high-ranking PURA officials, particularly general counsel Scott Muska, for their conduct during the ongoing disputes.
Gillett’s resignation follows a tumultuous period highlighted by a recent revelation that email correspondence, which she previously testified did not exist, had indeed been located. This led to calls for her impeachment, culminating in her decision to step down.
With Gillett’s departure, uncertainty looms over upcoming regulatory proceedings, including rate increase requests from United Illuminating and Yankee Gas, as well as the sale of Aquarion Water. The changes have raised questions about whether the remaining two commissioners, Michael Caron and David Arconti, can form a quorum necessary for PURA to conduct business effectively.
A pivotal test is set to occur on Thursday morning, when PURA will hold a hearing regarding a proposed denial of a $105 million rate increase requested by United Illuminating. The utilities filed this request after previous requests were significantly reduced by the authority.
In recent discussions, Lamont indicated plans to fill all five commissioner positions on PURA by the end of the year. Potential nominees include former state representative Holly Cheeseman and lawyer Joaquina Borges King, with other names like Arthur House, a former PURA chair, and Clare Kindall, currently with the state Election Enforcement Commission, being considered.
Despite the regulatory chaos, Wall Street reacted positively to Gillett’s resignation. Analysts at Moody’s Ratings suggested that her departure could lead to a more “balanced” regulatory environment in Connecticut. Moody’s noted that under Gillett’s leadership, PURA had consistently denied multiyear rate plans and authorized returns on equity significantly below industry averages, contributing to a challenging atmosphere for state utilities.
The ongoing litigation and the utilities’ accusations of bias against Gillett could persist, potentially leading to further complications for the newly appointed PURA. If the utilities succeed in their legal challenges, it may require the new commission to revisit previous decisions, adding to the regulatory uncertainty in Connecticut.
As the state transitions to new leadership within PURA, the future direction of utility regulation remains unclear, with significant implications for both service providers and consumers alike.
