Connecticut Utilities Pursue Bias Claims Against Former Regulator

Two major utility companies in Connecticut are intensifying their efforts to investigate alleged bias by the former head of the state’s Public Utilities Regulatory Authority (PURA), Marissa Gillett. Despite her resignation on October 10, 2023, and a subsequent restructuring of the agency, Eversource and Avangrid, which owns United Illuminating, are pursuing legal action that claims Gillett overstepped her authority during her six-year tenure.

This scrutiny is primarily unfolding through two lawsuits filed by the utility companies over the past year. The lawsuits allege that Gillett disregarded state laws and exercised excessive control over rate cases, undermining regulatory fairness. The mounting pressure from lawmakers, paired with the allegations in these lawsuits, ultimately led to Gillett’s departure.

In court filings, attorneys for PURA have acknowledged that several of Gillett’s actions, including her self-appointment as “presiding officer” on numerous contested matters, breached the state’s Uniform Administrative Procedures Act. They have also agreed to reconsider a rate case set for 2024 involving two of Avangrid’s gas utilities, which is central to the legal dispute.

Legal representatives for the utilities have stated that these concessions are insufficient. They are actively seeking access to records and the opportunity to interview Gillett’s former colleagues to substantiate their claims of bias against utility companies. This includes allegations that Gillett collaborated on an op-ed with two state lawmakers that criticized the utilities for “propaganda.”

Perry Rowthorn, an attorney representing Avangrid, emphasized the need for thorough investigation during a court hearing on Wednesday in New Britain. He stated, “All of these issues remain in play, and we need to get to the bottom of it.”

Despite the utilities’ concerns, the judge overseeing the case, Matthew Budzik, expressed skepticism about the necessity of further inquiry, questioning why he needed to explore the matter at length. He noted that the state has agreed to send back the previous rate case decision—which denied Avangrid’s request for a gas rate increase and mandated price reductions—for a fresh round of hearings.

“I’m not sure what you want me to do other than say that this process was infected by all these issues and you have to do it over again,” Budzik remarked.

Neither PURA nor Gillett responded to requests for comment during the hearing. Gillett is currently a senior fellow at the American Economic Liberties Project, a non-profit organization involved in the anti-monopoly movement.

The claims against Gillett gained further support last week from Michael Caron, a former PURA commissioner who testified that Gillett was a self-described “control freak” with apparent biases against utility companies. Caron described her as a “talented… borderline brilliant person,” but acknowledged that her controversial tactics led to divisions within the agency.

“There’s some who find her a champion [of consumers] and there’s some who believe she’s upending the regulatory compact,” he stated in his deposition. He expressed concern that Gillett’s decisions during her leadership pushed costs into the future without delivering savings for ratepayers.

Caron’s testimony is part of a joint lawsuit filed by Eversource and Avangrid in January, which claims Gillett overstepped her bounds by issuing numerous procedural rulings without the input of other commissioners. He indicated that he felt sidelined by her leadership style, which limited his access to information and staff regarding ongoing cases.

In a related development, William Tong, Connecticut’s Attorney General, filed a complaint accusing the utilities’ attorneys of utilizing Caron’s deposition to explore unrelated topics. This includes whether Gillett had a role in drafting the op-ed or attempted to conceal communications regarding it. Tong’s office is also seeking a pause in future depositions until a court ruling can define the scope of the proceedings.

Attorneys for Eversource and Avangrid defended their inquiry into Gillett’s potential biases and the use of auto-delete settings on her personal phone, arguing that understanding these issues is vital to addressing the agency’s systemic problems. They acknowledged ongoing efforts to reform internal procedures under Gillett’s successor, Thomas Wiehl, but expressed that these changes have not yet been fully implemented.

Both Gillett and the lawmakers involved in the op-ed, Senator Norm Needleman and Representative Jonathan Steinberg, have denied any allegations of wrongdoing related to its drafting. Both lawmakers, who chair the Energy and Technology Committee that oversees utility regulations, have faced requests for depositions, which the state is contesting.

“I would have hoped that the utilities would have moved on,” Steinberg remarked in an interview. He added, “It would be good for everybody if these lawsuits were resolved and PURA was allowed to focus on the things that matter to the people of Connecticut.”