Copyright Hartford Courant
Gov. Ned Lamont began repairing the state’s stalled regulatory system Monday when he nominated four new members — three with long experience in energy regulation and financing — to the Public Utility Regulatory Authority. The appointments expand PURA from the current three members to the five required by law and replaces embattled PURA chairman Marissa Gillett with Thomas Wiehl, the top lawyer at the state Office of Consumer Council, a position from which he advocates before PURA for the interests of utility customers. For months, Lamont has expressed a desire to appoint commissioners with regulatory and technical backgrounds, a departure from the appointment of generalists who have held the seats in recent years and relying mostly on staff expertise for complex decisions.. “It has gotten a lot more complicated over the last 25 years,” Lamont said, adding that he was looking for people who can “hit the ground running.” While announcing the appointments at a Capitol press conference Monday, Lamont sounded as if the restructuring of PURA could be an opportunity to end the bitter and litigious dispute between regulators and utilities that has characterized regulatory decision-making under Gillett’s chairmanship. The governor said he expects a reorganized PURA to focus on “reliability and affordability.” He said he wants the regulators to hold utilities “accountable.” But in an acknowledgement near continuous disagreement, Lamont said he wants the utilities held accountable in a “respectful and collaborative way.” In addition to Wiehl, Lamont nominated: Janice Beecher, of New Britain, an expert on utility regulation and director emeritus of the Institute of Public Utilities at Michigan State University. She was editor-in-chief of the journal Utilities Policy and has held staff positions at the Illinois Commerce Commission, that state’s regulatory body; The Ohio State University and Indiana University, and has worked as a consultant. Everett Smith III, of Greenwich, who has more than 45 years of experience as a specialist investor in energy and carbon free energy projects around the world. Most recently he founded and was CEO of GoldenSet Capital Partners, which since 2012 has constructed and owned more than 54 solar and wind projects, two of which are solar fields operating in Colchester and Franklin. Earlier in his career, Smith was involved in energy investing with GE Capital and Chemical Bank. Holly Cheeseman, of Niantic, a former Republican state Legislator, who served on the Legislature’s Energy and Technology Committee. Cheeseman also was elected to the East Lyme Board of Selectmen, has held various local positions and until recently was executive director of the Niantic Children’s Museum. Lamont said he decided against reappointing current PURA commissioner Michael Caron, a former state legislator because he decided it was “time for a change.” Caron on Monday praised the new PURA nominees and said he expects to leave his position at the end of the year. Lamont left in place only one PURA commissioner. Former State Rep. David Arconti of Danbury. Lamont nominated Arconti, a former United Illuminating executive, 14 months ago. Utility interests, which have been locked in an ugly public dispute with PURA and the Lamont administration over what they have called Gillett’s anti-utility bias, sounded optimistic about Lamont’s PURA appointments and preliminary statements from the governor and Wiehl about its regulatory outlook. The Connecticut dispute is being followed by utilities and regulators around the country. “With this new commission, there is a genuine opportunity for balance and collaboration among all parties to ensure that the needs of Connecticut residents and businesses are met in the most affordable and transparent way through an open, lawful, and predictable regulatory process,” Eversource spokeswoman Jamie Ratliff said.“Critical needs exist for state and regional infrastructure investments to maintain a reliable and resilient grid that can accommodate new sources of generation to meet historic levels of electric demand projected in the coming years. “The current and new members of PURA bring to the table financial expertise and an understanding of the utility investment model – both of which are imperative to achieving the state’s policy goals. At OCC, Chairman Wiehl’s collaboration and moderating presence have been appreciated. We look forward to partnering with the new commission to deliver cost-effective solutions for our customers and getting back to work for the benefit of residents and businesses across the state.” Standing next to Lamont outside the governor’s office Monday, Wiehl sounded as if he too is looking for a fresh start. In particular, Wiehl acknowledged two of the main complaints the utilities have made against Gillett: Their assertion — denied by Gillett — that she had taken control of the rate making process by freezing out fellow commissioners and that she was infringing on utility due process rights by denying certain appeal rights. Asked an open-ended question about how he would conduct regulatory business, Wiehl said “every commissioner needs to be part of our conversation” and “due process is important.” Eversource and United Illuminating accused Gillett of bias and of trying to take sole control of rate decisions in a joint suit in Superior Court, which where a growing number of PURA decisions are ending up on appeal. In one appeal, two Avangrid gas subsidiaries claim that Gillett demonstrated bias by secretly collaborating with two legislators on a news opinion column or op-ed critical of state utilities. The piece took what some financial experts have suggested is the far-fetched position that, in an effort to undermine Gillett, a state electric utility conspired with an internationally known rating agency to have its credit score lowered. Gillett has denied collaborating on the piece. Lamont said Monday he does not know whether Gillett was involved in writing the op-ed. “No idea, “ Lamont said. “I really don’t know.” Asked whether allegations about whether the op-ed contributed to Gillett’s decision to resign late last month, Lamont said, “She was under attack and sued quite frequently. I think she was looking for a break.” Wiehl said he will work toward creating a fair regulatory process. “I’m a firm believer in fairness and process,” Wiehl said. “I’m not interested in writing op-eds.” The legislature has been pushing to expand PURA to the legally required five positions for months. Lamont had resisted, saying there was an argument — supported by some in the utility industry — that three commissioners are able to act more expeditiously. Gillett critics said she opposed expansion to five because it would dilute her control over the authority. Republicans in the state House and Senate issued a statement Monday applauding the expansion to five. “After six years, Governor Lamont has finally complied with state law and filled all vacancies on the Public Utilities Regulatory Authority,” they said. “Connecticut ratepayers have endured enough drama—they want lower electric bills, not bureaucratic chaos.”
