Author: Ingrid Behrsin Published: 3/26/2025 Institute for Local Self Reliance
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In this rebroadcast from the Volts podcast, Chairman Marissa Gillett of Connecticut’s Public Utilities Regulatory Authority talks about the challenges of reforming utility regulation given investor-owned utilities’ incredible influence.
Leading the Charge for Utility Reform in Connecticut
Connecticut’s utility regulation is experiencing a transformative period under the leadership of Marissa Gillett, the head of the state’s Public Utilities Regulatory Authority (PURA). Recognizing a long-standing “cozy” relationship between regulated monopoly utilities and state authorities that resulted in high electricity rates and mediocre service for citizens, Gillett was appointed in 2019 as a reformer. Her unique background, not as a former legislator or utility employee, but with experience on Maryland’s public utility commission, positioned her to bring a fresh perspective to the role.
“I see a lot of quotes from utility executives who think that my job is to balance what is fair for the utility and for the ratepayer, and I reject that characterization.”
Shaking Up Utility Dominance
Upon taking office, Gillett wasted no time in challenging the traditional regulatory environment. She tightened and enforced rules to shield PURA employees from utility influence and, significantly, began denying or scaling back utility requests for extravagant rate increases.
This assertive approach has predictably drawn the ire of utilities like Eversource and Avangrid, who see their established advantages under threat. Ongoing tensions between PURA and these utilities, which have sometimes resulted in lawsuits, highlight the challenges of introducing reform into utility regulation amidst the incredible influence wielded by the for-profit companies that provide most Americans with electricity.
But despite intense pressure from utility lobbyists and the investment class to curb her actions, Gillett has remained focused on the interests of Connecticut ratepayers.
Defending Ratepayers and Redefining Regulatory Norms
Gillett has explicitly rejected the notion that a regulator’s role is to simply balance the interests of utilities and ratepayers, asserting that PURA’s primary duty is to protect ratepayers as a substitute for a free market. She has challenged the utilities’ long-standing practice of expecting rate increases without rigorous justification, insisting that they must meet their burden of proving their requests are “just and reasonable.”
Despite facing criticism and even personal attacks, Gillett remains committed to bringing transparency and accountability to utility regulation in Connecticut, aiming to create a system that truly serves the interests of its citizens and supports the state’s energy and environmental objectives. She advocates for a more skilled and ethical composition of regulatory commissions and for greater public awareness of the crucial role these bodies play.
“I think there’s a real distinction between a regulator viewing themselves as someone who’s simply calling balls and strikes versus a regulator who’s like, ‘Wait a second, I need to be not just the umpire but the first base coach’”
Pioneering Innovation Through the Equitable Modern Grid Initiative
Gillett spearheaded the launch of the Equitable Modern Grid Initiative. Within this framework, she introduced dockets addressing crucial areas like distributed energy, energy storage, and advanced metering. A particularly innovative element is the “regulatory sandbox,” officially known as the Innovative Energy Solutions program, which Gillett championed as a way to test and scale promising new energy technologies and concepts rapidly.
“The program is really designed to bring pilots to scale or to find out if they can scale quickly.”
Inspired by lessons from Silicon Valley’s “fail-fast” mentality and drawing parallels to New York’s REV Connect program, Gillett designed the Innovative Energy Solutions program with defined cycles and phases to systematically evaluate and potentially integrate innovative solutions into the grid. This proactive approach, moving away from simply reacting to utility proposals, involves PURA actively defining its objectives and soliciting innovative ideas from a wide range of stakeholders.
Championing Performance-Based Regulation
A cornerstone of Gillett’s reform agenda is the implementation of performance-based regulation. She views performance-based regulation as a holistic shift in how utilities are regulated, moving beyond traditional cost-of-service models. Gillett emphasizes the need to align utility incentives with public policy goals, such as affordability and reduced greenhouse gas emissions. This involves defining clear performance metrics and potentially linking utility profits (return on equity) to the achievement of these outcomes.
“Performance-based regulation is a completely different lens through which we’re viewing these utilities.”
Gillett’s vision for performance-based regulation aims to incentivize utilities to prioritize investments in areas like energy efficiency and distributed energy resources, rather than simply maximizing capital expenditures. She has publicly stated that the traditional model inadvertently discourages utilities from pursuing solutions that could reduce their spending and thus their profits.
Episode Notes
See these resources for more behind the story:
- Check out several stories from the Connecticut Mirror about the debate over Gillett’s re-nomination:
Listen to the full episode and explore more resources below — including a transcript and summary of the episode.