Eversource and United Illuminating Currently Collecting “Bonus” on Transmission Rates; No Longer Allowed Under 2025 Law
(HARTFORD, CT) – Governor Ned Lamont today announced that the Connecticut Department of Energy and Environmental Protection (DEEP), the Connecticut Office of Consumer Counsel (OCC), the Connecticut Public Utilities Regulatory Authority (PURA), and the Connecticut Office of the Attorney General (OAG) have filed a complaint with the Federal Energy Regulatory Commission (FERC) seeking to eliminate an unjustified charge to Connecticut ratepayers by Eversource Energy and United Illuminating for the utilities’ participation in New England’s regional transmission organization (RTO), ISO New England (ISO-NE), which operates the region’s transmission grid.
FERC is the federal agency that regulates transmission rates—which covers the cost of maintaining, upgrading, and building new electricity transmission infrastructure like power lines and transformers—and determines whether the transmission rates customers pay in their electric bills are appropriate. Historically, FERC has allowed transmission owners like Eversource and United Illuminating to collect an extra bonus charge from the state’s ratepayers because the transmission owners chose to voluntarily participate in ISO-NE.
In 2025, Governor Lamont signed Public Act 25-173, which includes a provision to end these ratepayer subsidies to the utilities by simply requiring Eversource and United Illuminating to participate in ISO-NE. The complaint filed today takes the next, and final, step to ask FERC to remove this aspect of the rate, as their participation is no longer optional and the rationale for the incentive no longer exists. Connecticut is the third state in the nation and the first state in New England to make this change.
If FERC grants the state’s complaint, Connecticut ratepayers will save $4.5 million on electricity bills each year as a result of this legislation. If other states in New England pass similar legislation, Connecticut ratepayers could save up to $14.5 million per year in reduced costs for regionally shared transmission investments.
Transmission costs have become a growing component of electric bills in Connecticut. Since 2015, annual transmission costs have grown by 77% and now make up 15-16% of the typical Connecticut residential customer’s monthly electricity bill.
“This filing demonstrates our administration’s commitment to reducing costs for ratepayers,” Governor Lamont said. “Utilities with record profits should not receive bonus profits for doing something they are required to do by law. This is another way we’re addressing the issue of high electric bills in our state and ensuring utilities are not able to take advantage of ratepayers.”
“Ratepayers are footing the bill for a $4.5 million annual bonus to utilities for doing what they are already required to do by law,” Attorney General William Tong said. “Connecticut families are paying way too much for their energy bills, and we cannot afford to bankroll multi-million dollar brainless bonuses. We’re suing to stop this waste and we are demanding full refunds for ratepayers now.”
Since 2004, the transmission owners have received what became known as the “RTO Incentive Adder.” Approved by FERC, this “Adder” provided transmission-owning utilities with a 0.50% additional profit margin, paid for by ratepayers, as an “incentive” to join their region’s RTO. For more than 22 years, Connecticut ratepayers have been required to pay this charge, increasing bills and inflating utility shareholder profits.
“Every dollar collected through transmission rates ultimately comes from Connecticut households and businesses,” DEEP Commissioner Katie Dykes said. “As we work to build the electric infrastructure needed to support an affordable, reliable, and clean electric grid capable of supporting economic growth, it is critical that ratepayers only pay for justified transmission costs. Our utilities don’t need an extra incentive to do what they have always done and are required to do by law.”
“In keeping with the spirit of Connecticut law—that electric rates be ‘no more than sufficient’ to allow utilities to cover their operating costs—PURA supports the initiative to ensure that Connecticut ratepayers are not covering returns to transmission owners in excess of the cost of equity capital,” PURA Chairman Tom Wiehl said.
“The Office of Consumer Counsel is proud to join our state partners in this litigation urging federal regulators to enforce Connecticut’s commonsense reform to remove inappropriate and unnecessary bonuses paid to transmission companies by families and businesses across the state,” Consumer Counsel Claire Coleman said. “Today’s action builds on our other efforts successfully challenging utility profit margins for transmission lines before FERC. We will keep working to protect consumers from unreasonable and inflated utility asks out of touch with the economic realities ratepayers are currently facing.”
The filing reflects a coordinated effort among Connecticut offices charged with protecting ratepayers and overseeing the state’s energy policy. DEEP worked closely with OCC, PURA, and OAG in developing the complaint and advancing Connecticut’s position.
The complaint was filed today with FERC and is available through the commission’s eLibrary system.
**Download: Complaint of Connecticut state agencies challenging RTO adder costs and requesting termination