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Consumer and environmental groups press committee to ban ratepayer-funded utility lobbying, branding and perks
Summary
A coalition of ratepayer and environmental groups urged lawmakers to bar utilities from charging customers for lobbying, institutional advertising and executive perks, citing examples from recent rate cases and pointing to similar laws in other states that saved ratepayers millions.
Consumer advocates, energy policy researchers and climate‑justice organizers told the Joint Committee on State Administration and Regulatory Oversight that utilities should not be allowed to pass the costs of lobbying, institutional branding and executive perks on to customers.
Itay Vardi of the Energy and Policy Institute argued H.3400 would protect customers by prohibiting utilities from recovering in rates expenses related to executive‑branch lobbying, institutional advertising that primarily promotes the company brand, trade‑association lobbying, and nonessential perks. Vardi cited recent laws in Connecticut, Maine, Colorado and Maryland and said the Connecticut law has already spared ratepayers up to $10 million in costs that otherwise would have been charged through rates.
Jessna Higgin of the Sierra Club said she received an advertisement for National Grid inside a Boston arena and worried that promotional advertising and branded giveaways—some of which utilities have charged to ratepayers in recent rate cases—should be paid for by shareholders rather than customers. She testified that in a recent case Eversource sought recovery of about $230,000 in institutional advertising charges and that National Grid charged about $33,000 for branded “swag” items in a rate‑making period.
Local advocates described residents who say delivery fees and other charges have risen substantially while brand advertising and trade‑association fees remain on utility cost books. Witnesses urged the committee to pass H.3400 to create a clear statutory bar on rate recovery for these categories of expenses and to align the statute with modern utility advocacy practices, including executive‑branch lobbying.
Why it matters: Advocates framed the bill as a consumer protection measure that could lower household bills and restore trust in regulated utilities by ensuring ratepayer funds pay only for safe, reliable service.
Next steps: The committee will accept written exhibits and examples from recent rate cases and may seek utility responses before reporting.
