USEA's Power Sector Podcast USEA Power Sector Podcast Episode 103: United Illuminating Director of Regulatory Affairs Ted Novicki
Jan 9, 2025
Ted Novicki, Director of Regulatory Affairs at United Illuminating and adjunct professor in Public Utility Management, dives into Connecticut's shift to performance-based regulation. He discusses how this new model rewards utilities for achieving public policy goals rather than infrastructure investments. The conversation also covers the challenges of stakeholder engagement, communication gaps, and the complexities faced by companies under the evolving regulatory framework. Novicki’s insights offer a unique look at how utilities can adapt while balancing performance and customer satisfaction.
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Connecticut's Regulatory Approach
- Connecticut's PURA aims to shift utility rewards from infrastructure investment to achieving public policy goals.
- Ted Novicki notes that Connecticut has historically rewarded utilities for multi-year rate case outcomes and used decoupling mechanisms.
Stakeholder Engagement Challenges
- United Illuminating has participated in over 20 stakeholder meetings, totaling 60-80 hours, regarding PBR.
- Despite this extensive participation, they've received minimal feedback, leading to frustration among stakeholders.
Concerns About PBR Implementation
- Ted Novicki expresses concern about the initial setup of PBR, particularly the "going-in rates".
- He points out flaws in accounting for inflation and the lack of clarity regarding the costs associated with new metrics.