Connecticut regulators approved a framework for measuring the performance of the state’s electric utilities on Wednesday.
Marissa Gillett, chairman of the state Public Utility Regulatory Authority, said the framework puts in place a performance-based incentive system to ensure that the state’s utilities have their earnings and profits tied to good performance.
“The utilities in this state and across the world are used to being compensated simply for what they put into the ground,” Gillett said. “And now we are saying what you put into the ground has to achieve the goals and the objectives that we’ve outlined for you as a condition for being reimbursed for those expenditures.”
The move is part of PURA’s effort to implement the Take Back Our Grid Act, which was signed into law by Governor Ned Lamont in 2020 following Tropical Storm Isaias.
That storm knocked out power to thousands of homes and businesses in Connecticut for an extended period.
“I want to make sure the utilities have incentives alongside what we want to have accomplished. And I think that's what performance-based regulation means.” Lamont said.
Lamont added the incentive system will ensure reliable and reasonably priced electricity in Connecticut.
