Energy Bill a ‘First Step’ Towards Lower Costs, Stability

Lawmakers approved legislation promising modest relief to electric ratepayers in the closing days of the 2025 General Assembly session.

SB 4 passed the Senate on a 34-1 vote June 2 before winning House passage 144-3 the following day, the penultimate day of the session.

The bipartisan measure is expected to lower electric rates by 1 or 2 cents per kilowatt-hour—an average estimated savings of $100 annually for residential customers.

Greater cost savings are expected for small businesses and large consumers, with annual ratepayer savings estimated at $350 million-$400 million.

The bill was one of a number introduced during the legislative session in response to soaring residential and commercial electricity costs.

Connecticut has the third highest residential electric rates in the country—75% higher than the national average.

‘First Step’

Driven by a number of legislative leaders including Sen. Norm Needleman (D-Essex), Sen. Ryan Fazio (R-Greenwich), Rep. Tracy Marra (R-Darien), and Rep. Jonathan Steinberg (D-Westport), the bill is a step toward long-term policies to lower energy costs and improve infrastructure and reliability.

CBIA president and CEO Chris DiPentima said ongoing cost increases and electricity bill spikes reflected “two decades-plus of uncertain, unpredictable energy policy.”

“That has a very negative impact on our ability to retain and attract residents and businesses, with significant consequences for economic growth and job growth,” he said.

“This legislation is one step in the effort to make energy rates more affordable and we should not stop here.”

Gov. Ned Lamont

“This legislation is a step in the right direction for addressing high energy costs in Connecticut, which is crucial to unlocking our economic growth.”

Gov. Ned Lamont welcomed passage of the legislation and said he planned to sign it.

“Like many people, I think electric bills are too damn high, and this bipartisan bill is a first step in addressing a complex issue that is the result of policy decisions made years ago by legislators in both parties,” he said in a statement.

“I want to be clear—this legislation is one step in the effort to make energy rates more affordable and we should not stop here.”

Strategic Reforms 

At the heart of SB 4 are reforms that will directly benefit businesses across the state: 

• Reallocation of public benefits charges: The bill authorizes the issuance of state bonds to reduce the annual costs of hardship protection measures currently funded through the systems benefits charge. By shifting these costs off electric bills and into the state’s general bonding framework, businesses will see a meaningful reduction in their energy expenses—freeing up capital for investment, hiring, and growth. 
• Securitization of storm recovery costs: SB 4 allows utilities to securitize storm-related costs through the issuance of rate reduction bonds. This innovative financing mechanism spreads the cost of storm recovery over time, significantly lowering the immediate rate impact on businesses and households. It also enhances predictability in energy costs, a key factor in business planning and competitiveness. 

2025 Energy & Environment Conference

Beyond cost savings, SB 4 lays the groundwork for a more resilient, efficient, and equitable energy system.

Provisions supporting advanced metering infrastructure, time-varying rates, and grid-enhancing technologies will empower businesses to better manage their energy use and participate in demand response programs.

These tools are essential for modern energy management and will help Connecticut companies remain competitive in a rapidly evolving economy.

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For more information, contact CBIA’s Pete Myers (860.244.1921).