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SB 97

AN ACT CONCERNING POWER PURCHASE AGREEMENT RATES ABOVE WHOLESALE PRICES.

2025 Regular Session Introduced by Tony Hwang

Connecticut SB 97 regulates power purchase agreement rates to prevent charges significantly exceeding wholesale electricity prices, aiming to control consumer energy costs.

REF. TO JOINT COMM. ON Energy and Technology
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Bill Summary · SB 97

Legislative bill overview

SB 97 addresses the rates charged in power purchase agreements (PPAs) that exceed wholesale electricity prices. The bill appears designed to regulate or establish parameters for when and how utilities or energy providers can charge rates above the baseline wholesale cost for electricity. This is a technical measure focused on energy market pricing mechanisms in Connecticut.

Why is this important

Power purchase agreements are fundamental contracts that determine how much consumers ultimately pay for electricity. When PPA rates significantly exceed wholesale prices, it can increase consumer energy bills and affect the competitiveness of Connecticut's energy market. The bill signals legislative concern about potential pricing practices that may pass unnecessary costs to ratepayers.

Potential points of contention

  • Industry vs. Consumer Interests: Energy providers may argue premiums above wholesale are necessary to cover infrastructure, grid modernization, and renewable energy transition costs, while consumer advocates contend unnecessary markups inflate bills
  • Market Competition Effects: Unclear whether rate caps could discourage renewable energy investment or long-term clean energy contracts that may require above-wholesale pricing to be financially viable
  • Regulatory Authority: Questions about whether this overlaps with existing Public Utilities Regulatory Authority (PURA) jurisdiction and how it coordinates with Connecticut's renewable portfolio standards

Compiled from official sources — confirm details with the bill’s official record.

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