Connecticut’s energy ratemaking and policy took up more of the headlines in 2025 than it arguably has for the preceding 10 years.
There are many reasons for this, but with a reconstituted Public Utilities Regulatory Authority and recent decisions issued from Connecticut’s courts, the state may be poised to start a sorely needed new chapter in energy policy in 2026.
Connecticut continues to face a host of energy challenges. Despite significant changes at the federal level, most New England states have retained ambitious goals to reduce carbon dioxide emissions by at least 80% from 1990 levels by 2050, through a combination of electrified heating and transportation, zero-carbon electricity production and other strategies.
Regional grid operator ISO New England’s latest annual forecast projects an 11% increase in annual regional electricity use between 2025 and 2034, due in part to these policies. As more heating shifts to electric, ISO New England estimates that by 2034 the region’s winter peak will approach levels typically seen in the summer, and exceed those levels.
If New England is going to achieve its zero-carbon future, it will need to materially increase its electricity production in the next 30 years to power not only current uses, but also vehicles, HVAC, data centers and other new technologies.
Some projections show that data center energy consumption could double or even triple by 2028, accounting for up to 12% of overall U.S. electricity use.
There are a variety of energy-generation technologies to meet or reduce this growing demand, including solar, offshore wind, small modular reactors and energy storage. Some of these technologies are available now, some are in development, but even when taking their various tradeoffs into account, all can and must be part of Connecticut’s future resource mix.
In order to effectively deploy new energy sources, we cannot afford further infighting or regulatory paralysis.
As of September 2025, Connecticut had the third-highest average electricity price in the country at 30.48 cents per kilowatt-hour, behind only Hawaii and California. Our state must earnestly and honestly take a clear-eyed look at its existing regulatory systems and find new ways to keep costs as low as possible while building new infrastructure we unquestionably need.
These are the actions we would put at the top of our 2026 wish list.
Incentivize our utilities to be true partners
For years, Connecticut’s energy agenda has been implemented through mandates to the state’s utilities without providing those utilities any return. This has led to repeated clashes, creating an inconsistent and unpredictable interconnection queue, and has made Connecticut a complicated place to launch energy initiatives.
In other states, utilities have been true partners in progress. Connecticut needs to find a way to bring Eversource and Avangrid to the table with incentives to streamline processes and find efficiencies. Whether through a long-awaited performance-based ratemaking initiative or other regulatory mechanisms, finding a way to positively involve our utilities in the process must be prioritized by regulators and policymakers.
Reset the relationship between utilities and regulators
There has been a significant shift at PURA in the last two months. Gov. Lamont has moved the agency from three commissioners to five, and in doing so has appointed individuals with a diverse slate of experience.
Despite these efforts, the agency remains mired in lawsuits. Against this backdrop, the state’s largest electric utility — Eversource Energy — is imminently filing a rate case, which it has not done since 2017.
At no time in recent memory has this regulatory body been such a blank slate. That means that the agency is not beholden to the past, and can now move forward.
Take bold action
Incrementalism has gotten us where we are today, with high costs, consumer outrage and frustration for businesses. Big, bold decisions are needed to break this inertia, as the continuing cost of incrementalism will undoubtedly be more expensive than capturing the lowest-cost available technologies today.
Other states, like New Hampshire, have worked to minimize impacts on their ratepayers by streamlining permitting for data centers. Massachusetts has told the solar industry it is “open for business.”
Connecticut’s messaging needs to be at least as bold as its peers.
Connecticut has a once-in-a-generation opportunity to hit the reset button; there is no reason we should not take advantage of it. The Land of Steady Habits must find a way to divert from its namesake.
We simply cannot afford more of the same.
Lee D. Hoffman and Kathryn E. Boucher are members of the energy and environmental practice at law firm Pullman & Comley LLC. Hoffman is also chair of the firm.
