The Connecticut General Assembly passed regulatory reform that rightly curtails the ability of Connecticut's large utilities to charge customers for the money spent on lobbying, travel, lodging, entertainment, private jets, industry trade associations, political expenses and costs associated with ratemaking hearings and appeals.

Public Act 23-102 blocks utilities from passing on these significant costs to customers already suffering sticker shock at the rising costs on all components of their utility bills. Utilities are different from most businesses because, by law, they are entitled to a reasonable rate of return on certain capital and operating costs and set their rates accordingly. Historically, the law has allowed utilities to recover expenses for lobbying, entertainment, travel and even money spent on hearings and appeals over the rates the utility wants to charge its customers (and have those same customers foot the bill). This was a bad policy that went on for too long and created a low level of accountability for those costs. Utilities are, of course, still free to incur those expenses but now they will have to explain the costs to company shareholders rather than passing them on to customers.