Connecticut Agency Restructuring May Raise Consumer Costs, Lawmaker Says

The state’s utility watchdog faces a harsh new spotlight after a Superior Court judge ruled that Connecticut’s former chief utility regulator, Marissa Gillett, repeatedly broke the rules in setting electric and gas rates.

This decision blasts years of policy at the Public Utilities Regulatory Authority (PURA) and raises a sobering possibility for customers from Hartford to New Haven: some of the very rate cuts that were celebrated as consumer victories might now come back as higher bills, as Avangrid and Eversource try to recover investments the court says were improperly denied.

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Judge Says PURA Went Off the Rails Under Gillett

In a detailed ruling that stunned veteran energy lawyers and lawmakers, Judge Matthew Budzik found that Gillett operated “outside the law” and made flawed rate decisions that harmed Connecticut’s two largest electric utilities.

Hundreds of millions of dollars in investments and revenues are at stake, with ripple effects for households and businesses from Bridgeport to Waterbury.

Unilateral Control and Excluded Commissioners

The court concluded that Gillett seized unilateral control of rate-setting, sidelining the two other PURA commissioners who are supposed to share authority.

According to the decision, commissioners were shut out of key deliberations, formal procedures got brushed aside, and internal records were concealed or mishandled.

Those findings strike at the heart of how PURA should function as a three-member, quasi‑judicial panel.

Judge Budzik’s ruling also found that several rate cases under Gillett suffered from serious procedural defects.

In some instances, decisions lacked adequate evidentiary support, and utilities couldn’t fully present their cases.

That exposed PURA—and state taxpayers—to costly appeals the agency wasn’t prepared to defend.

Financial Fallout for Eversource and Avangrid

The ruling confirms what the utilities have quietly argued for years: PURA’s recent rate decisions not only slashed allowed revenues but did so in ways that spooked investors and the credit‑rating agencies monitoring utility stability.

For customers in Stamford, Norwalk, and beyond, the long-term financial health of these companies is tied directly to reliability and their ability to fund upgrades to the grid.

Credit Downgrades and Costly Legal Battles

Budzik cited evidence that Eversource and Avangrid suffered credit downgrades and higher borrowing costs after Gillett’s contested rulings.

Those downgrades didn’t happen in a vacuum; rating agencies pointed directly to regulatory uncertainty and what they saw as hostile, inconsistent treatment from PURA.

The utilities poured significant resources into long legal fights to overturn or modify the rulings.

The court’s decision validates those challenges, confirming that at least some of the harshest rate cuts were driven more by defective process than sound regulatory judgment.

From “Consumer Champion” to Courtroom Rebuke

Politically, the ruling is a sharp reversal.

For years, Governor Ned Lamont and legislative leaders praised Gillett as a tough regulator who put customers first, especially after unpopular rate spikes and storm‑related outages that enraged residents from New London to Middletown.

Attorney General’s Office Changes Course

One of the most striking developments came from Attorney General William Tong’s office.

Initially aligned with PURA, Tong’s team ultimately conceded key points raised by the utilities, admitting that Gillett’s process and decision-making couldn’t be fully defended.

That reversal added weight to the court’s finding that the problems at PURA weren’t minor technicalities but fundamental breakdowns in governance.

With Gillett’s credibility in tatters, she resigned shortly after the ruling.

Her departure marked the end of a tenure that began with high expectations for aggressive consumer protection but ended with a portrait of an agency in disarray.

A New Chair, But Old Problems Linger

Into this vacuum stepped Thomas Wiehl, the newly appointed PURA chair.

Wiehl has moved quickly to distance the agency from the most criticized policies, reopening lines of communication with utilities, legislators, and consumer advocates who say they were shut out or ignored under the previous regime.

Reversing Policies and Rebuilding Trust

Early signs from Wiehl’s tenure point to a more collaborative, transparent approach.

Internally, staff are being encouraged to share concerns, and PURA has started revisiting controversial rate orders that the court flagged as unreliable.

That process won’t be fast or cheap; every flawed rate case must be unwound, re‑examined, and litigated all over again.

For ratepayers, that means a prolonged period of uncertainty.

While some short-term relief remains in place, utilities are expected to seek recovery of investments previously disallowed.

If those claims are granted—even partially—customers could see incremental increases over several years as regulators try to balance fairness to consumers with the financial health of the grid.

Calls for Wider Investigation and Cultural Change

Former PURA commissioners have described a toxic culture under Gillett, marked by inconsistent decisions, restricted communication, and an atmosphere that discouraged dissenting views.

Lawmakers from both parties say they were caught off guard by the depth of the dysfunction described in the court record.

Beyond One Chair: Fixing the System, Not Just the Face

Plenty of folks at the Capitol now say that just removing Gillett doesn’t cut it. Calls are growing for a deeper look into PURA’s culture, hiring, and how it handles accountability.

Some lawmakers want clearer rules so no single chair can ever dominate the agency again. Others think the Office of Consumer Counsel and the Attorney General should keep a closer eye on things.

This whole situation really highlights how tricky it is to balance protecting consumers with keeping utilities financially healthy. Push too hard in either direction, and things can go sideways fast.

Under Gillett, the push to keep rates low may have actually led to court reversals and even higher costs down the line. Now, with Chair Wiehl stepping in, everyone’s watching to see if Connecticut can rebuild trust in its regulators and keep bills reasonable for families and businesses.

Here is the source article for this story: CT consumer costs could increase as state agency restructures. ‘There was a bad culture,’: lawmaker

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