Hartford Business Journal

HARTFORDBUSINESS.COM | JULY 8, 2024 29 Opinion & Commentary EDITOR'S TAKE Special legislative session sets bad precedent S pecial legislative sessions have become the norm in Connecticut politics. It seems almost every year state policymakers feel too confined by a part-time legislature that meets for only three or five months annually, so they add an extra session in the offseason to vote on, and usually pass, bills that address seemingly pressing issues. Special sessions aren't inherently a bad thing, but the most recent one that took place in late June set a bad precedent, even though most of the policies passed by the House and Senate were considered pro-business. The biggest concern was the Demo- cratic-led passage of an unvetted proposal that allows the South Central Connecticut Regional Water Authority to make a bid for and potentially purchase Bridgeport-based Aquarion Water Co., which was put up for sale earlier this year by parent company Eversource Energy. Lawmakers approved the proposal without a public hearing or any other type of vetting. It was a deal done behind closed doors, anathema to good governance. Unknown is the potential tie-ups' impact on consumer rates, the water supply industry's competitive land- scape and other issues. According to the Connecticut Mirror, the Regional Water Authority was created by a special act of the General Assembly in 1977, and needed new enabling legislation to expand outside its current territory of New Haven and about 20 suburbs. The Regional Water Authority's Director of Public Affairs Kevin Watsey told the Mirror that the acqui- sition of Aquarion would make sense because it would provide "improved economies of scale, operational effi- ciencies, a broader focus on customer service and community support, as well as lower cost of capital, access to a broader customer base for commercial offerings to reduce water rate increases, and access to a deep and talented pool of individuals living within the region." Republicans unsuccessfully attempted to block the proposal, which was a late addition to the special session agenda, arguing they didn't have enough time to weigh its consequences. The GOP's concerns were well- founded. More guardrails are needed around what can or can't be done during a special session. At the very least, if a bill is new and hasn't received a public hearing, some extra time should be allotted for proper vetting. To be fair, expanding the Regional Water Authority's territory could end up being good public policy that consumers and regulators embrace. And if the authority does end up making a bid on Aquarion, the deal will get regulatory oversight. But what's to stop future legislatures from hurriedly adopting unvetted proposals in a special session that could hurt the state's economic competitiveness, or result in some other negative long-term consequences? Past influence So, why do I believe the public could end up supporting the Regional Water Authority's ability to potentially acquire Aquarion? It's about having local control of the state's water supply business. That became a major issue just a few years ago, when California-based SJW Group in 2019 completed its $1.1 billion purchase of Clinton-based Connecticut Water Co., which provides water services to more than 107,000 customers in 60 Connecticut towns. That acquisition raised many concerns in Connecticut, particularly around having an out-of-state company controlling a significant stake in the state's water supply system. The on-again, off-again deal went through many ups and downs before ultimately being approved by state regulators. At one point, the Public Utilities Regulatory Authority signaled it would block the deal, arguing it would leave Connecticut Water in worse condition both "financially and managerially." That forced SJW and CT Water to withdraw their merger applica- tion and return months later with a revised deal structure and additional commitments to sweeten the offer for Connecticut ratepayers. PURA eventually approved the acquisition with conditions that required SJW to maintain a regional headquarters and management team in Connecticut, in addition to minimum in-state employee counts. PURA also placed restrictions on CT Water/SJW drawing on its local water sources to supply systems or customers outside of Connecticut. I suspect state lawmakers have concerns about another out-of-state company swooping in to purchase Aquarion, leaving more Connecticut water customers susceptible to out-of-state influences. In fact, SJW-owned Connecticut Water Co. told the Mirror it's consid- ering a bid to purchase Aquarion. Still, more time should have been granted to vet the change to the Regional Water Authority's charter. That's how the legislative process is supposed to work. OTHER VOICES Collaboration is key to tackling CT's challenges; offshore wind industry provides test case By Tony Sheridan A recent trip to view the first-ever utility-scale offshore wind farm in the United States, not far off the coast of Connecticut, recalled a boyhood dream to one day emigrate to America. I was about 12 or 13 years old, and I remember succinctly the excitement of hearing about the great things that happened in America. The skyscrapers, the great bridges, the big cars and movies, to name a few. This was in the late 1950s and early '60s. There was one black and white television in the local pub that a limited number of kids were allowed to watch on a Saturday afternoon. As children, we had to work together, collaborate and negotiate with each other to determine who got to watch the TV program. So, how does my childhood memory connect to the offshore wind farm off our Connecticut shore? Collaboration is the lifeblood of innovation, solu- tion-building and progress. Nowhere is there a better example of the monu- mental applications of these critical efforts than the offshore wind project. The success of the wind farm resulted, in great measure, because of the collaboration between three major entities: our Connecticut government, Eversource and Orsted, all in the best interest of the state, our citizens and our response to climate change. I was one of roughly 150 guests, including state and local officials, Eversource and Orsted employees, and media, on a ferry ride to visit the offshore wind farm. Getting that up-close look at the newly completed South Fork Wind project in the Atlantic Ocean — just off the coast of Montauk Point, New York — and seeing the magnificent and monstrous machines spinning to produce energy left us all in awe. For me, it was not only breathtaking and incredibly fascinating — it gave me a sense of pride in the major role our state plays in the burgeoning offshore wind industry, something all Connecticut residents should be proud of. With the redevelopment of the State Pier in New London, Connecticut has been at the center of the effort to launch the U.S. offshore wind industry, while creating hundreds of well-paying jobs. The State Pier is where the turbines, blades and nacelles for these projects are being staged and assem- bled, and then shipped out to the wind farm location for final construction. All of this results from daily collab- oration between several entities, workers, management and shipping, working in tandem to develop this new-to-the-U.S. industry for the state and our region, while addressing our climate concerns. The 12 turbines now anchored to the ocean floor proudly stand as the first utility-scale offshore wind farm in the United States. They are generating enough clean energy to power 70,000 homes in East Hampton, New York. Eversource, New England's largest energy delivery company, and Ørsted, a global leader in offshore wind, are responsible for making this renewable energy source a reality, and they're already building the next offshore wind farm — Revolution Wind. The 65 wind turbines in that project will deliver clean, renewable power to more than 350,000 residents in Connecticut and Rhode Island in 2025. These are exciting times in Connecticut, with the state, Eversource, Orsted, along with many other entities working together to make it all happen. It is what successful partnerships can accomplish, and we need more of it. Collaboration is how we will successfully tackle the big challenges we face. Not doing so will result in failure. The completion of South Fork Wind and the upcoming Revolution Wind projects, along with the successful development of the State Pier, prove America can tackle the major issues that climate change is bringing to us. These combined industrial efforts, supported by a regulatory and political environment, is what is needed to continue building on that progress. Our challenges in this new, ever- changing world we live in will be manageable if we work together for the betterment of all. Tony Sheridan is the president and CEO of the Chamber of Commerce of Eastern Connecticut. Greg Bordonaro Tony Sheridan

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