Senate Bill No. 1354 seeks to amend Section 16-47 of the general statutes to impose stricter regulations on the mergers and acquisitions of utility companies, specifically gas and electric distribution companies. The bill mandates that the Public Utilities Regulatory Authority (PURA) must investigate and hold public hearings on such applications, with new provisions requiring notification to the applicant and subject company within thirty business days and the commencement of hearings within sixty business days of the application filing. If PURA fails to meet these deadlines, the proposed acquisition will be automatically approved, unless the applicant already controls a similar utility in the state. Additionally, starting January 1, 2021, holding companies must include a proportional percentage of Connecticut-based directors on their boards, and from October 1, 2025, PURA will not approve applications for control of in-state gas or electric distribution companies if the applicant already controls a similar entity.

The bill reinforces regulatory oversight by modifying the scope of review for applications to focus on the financial, technological, and managerial suitability of the applicants while ensuring equitable treatment of all parties involved. It also includes technical changes to existing regulations to align with the new prohibitions on utility mergers. Importantly, the bill is designed to have no fiscal impact on the state or municipalities, as PURA has the necessary resources to handle the review process without incurring additional costs. However, the potential impact on ratepayers remains uncertain and will depend on the decisions made by utility companies regarding ownership changes and infrastructure projects.