Is Connecticut’s Energy Policy Putting Ratepayers Last?

Across Connecticut, families and small businesses are seeing higher electric bills. But most people don’t realize part of those costs are being used to fund technology pilots for companies based in other states—not to fix problems here at home.

Through a state-run program, money collected from electric bills is going to out-of-state startups, especially in places like California, so they can test new ideas on Connecticut’s electric grid. These are not proven technologies, and they’re not guaranteed to lower costs or improve service for residents.

What’s Happening with the IES Program

The program is called Innovative Energy Solutions (IES) and it was created by the Public Utilities Regulatory Authority (PURA). PURA says it’s about modernizing the electric grid and exploring new technologies. But instead of focusing on local improvements or trusted solutions, the IES program is:

  • Spending $20 million of ratepayer money on early-stage pilot projects

  • Funding companies mostly from outside Connecticut—only 2 of 16 funded projects are from in-state

  • Giving money to companies with no plan to hire local workers or invest in Connecticut communities

  • Forcing utilities like Eversource and United Illuminating to charge customers for these costs, even if they don’t agree with how the program works

In short, this program is asking Connecticut residents to pay more today in hopes that untested technology might pay off down the road—with no guarantees.

Who’s Benefiting—and Who’s Paying?

Some of the companies receiving funding through IES have already raised millions from private investors. 

One example is AmpUp, a California-based startup that raised $15 million from venture capital firms. Even with that funding, they’re still collecting money from Connecticut electric customers to test their EV charging system.

And while PURA promotes the program as “equitable” and “forward-thinking,” there are no rules requiring local job creation, no cost protections if a project fails, and no way for residents to opt out.

The bottom line: ratepayers are being asked to take the financial risk—without a say, and without any clear reward.

What Smarter Energy Investment Looks Like

Connecticut ratepayers aren’t asking for the impossible. They’re asking for energy investments that actually benefit their families, communities, and the electric grid they rely on every day.

That means putting dollars into upgrades and programs that are proven, cost-effective, and responsive to local needs – not risky experiments from companies with no stake in the state’s future.

Upgrade the Grid Where It’s Failing

Connecticut still struggles with aging infrastructure, leading to preventable blackouts and service interruptions.

Instead of funding pilot projects for out-of-state startups, PURA should prioritize fixing what’s broken – starting with substations, transformers, and equipment in neighborhoods most impacted by service issues.

Expand Energy Efficiency Programs

Energy efficiency upgrades – like insulation, smart thermostats, and appliance rebates – are proven to lower energy bills and reduce demand on the grid.

These programs can deliver quick, measurable returns for consumers and are far more predictable than untested technologies.

 

Create Local Jobs with In-State Projects

Connecticut residents should benefit from job opportunities created by ratepayer-funded programs.

That means partnering with local electricians, technicians, contractors, and clean energy firms, instead of sending work and money to companies based across the country.

Prioritize Transparency and Public Input

Before any program is approved that uses ratepayer money, consumers should know the full costs, goals, and expected outcomes.

There should be public hearings, independent reviews, and clear criteria for measuring success—not backdoor decisions with little oversight.

Invest in What’s Already Working

Many solutions—like microgrids, storage systems, and demand-response programs—are already delivering results in other states and even here in Connecticut. These tools are known to enhance reliability and reduce emissions.

The state should scale what works instead of rolling the dice on unproven concepts.

What You Can Do

Connecticut ratepayers aren’t asking for the impossible. They’re asking for energy investments that actually benefit their families, communities, and the electric grid they rely on every day.

That means putting dollars into upgrades and programs that are proven, cost-effective, and responsive to local needs – not risky experiments from companies with no stake in the state’s future.

Let them know it’s time to rethink how PURA operates. Legislators have the power to:

  • Require more oversight of PURA-approved programs

  • Demand clear cost-benefit analysis before pilot projects are approved

  • Support legislation that ensures ratepayer dollars go to local benefits first

Click here to Find your legislator

Call on leaders to audit the IES program and others under PURA’s control. Connecticut deserves to know:

  • How much money has been spent

  • Which companies have received funding

  • Whether any projects have produced measurable savings or local benefits

Most residents have never heard of the IES program—but once they learn what’s happening, they want it to stop. You can help by:

  • Sharing this information on social media

  • Bringing it up at local board meetings or community forums

  • Talking to PTA groups, business owners, and local officials

A few conversations can go a long way toward building momentum.

Consumer voices are powerful when organized. Join our mailing list to learn how CEA is advocating for transparency, grid investment, and cost control. Whether you’re interested in writing a letter, testifying at a hearing, or staying informed, your involvement matters.

Affordable, reliable energy isn’t a luxury – it’s a necessity. Together, Connecticut residents can push for a future where innovation works for everyone, not just well-funded outsiders.

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