Connecticut lawmakers have approved a special act requiring a study of natural gas rates for certain commercial and agricultural customers that face intermittent peak demand charges.
The measure directs the state Department of Energy and Environmental Protection to examine whether some customers are paying gas rates that do not fairly reflect their actual energy usage because of demand charges tied to short-term spikes in consumption.
The issue can particularly affect businesses with seasonal or fluctuating energy needs, such as greenhouses and other agricultural operations, officials said.
State Comptroller Sean Scanlon, who supported the proposal, in written testimony about the legislation said some customers can incur elevated demand charges for an entire year after exceeding usage thresholds on a single day.
The Office of Consumer Counsel said any potential changes to gas rate structures could have broader impacts on other customer classes and should involve review by utility regulators and other stakeholders.
DEEP Commissioner Katie Dykes in written testimony also backed the bill, while noting that utility rate design involves balancing affordability, equity and cost allocation among customer groups.
If DEEP determines the charges unfairly increase costs for some customers, it must recommend possible changes to how the fees are calculated or applied. The agency’s report is due to the legislature’s Energy and Technology Committee by Jan. 15, 2027.
Lamont signed the bill into law on May 7
