Connecticut’s Law Banning Ratepayer Funding for Political Activity

Connecticut’s SB 7 prohibits utilities from using money from customers’ bills to pay for political activities, including lobbying and trade association dues. Utilities are required to file annual disclosures to the Public Utility Regulatory Authority (PURA) including itemized lists of expenditures that they made on political influence activities. The law advances the state’s efforts toward performance-based ratemaking that would set utilities’ profits according to their success in meeting goals for reliability and affordability, rather than their capital expenditures. The bill also increases transparency of rate case settlements and broadens the PURA’s ability to consider affordability in setting rates.