Hartford Business Journal

28 HARTFORDBUSINESS.COM | APRIL 7, 2025 POWE R 50 8 Marissa P. Gillett A fter six years at the helm of the Public Utilities Regulatory Authority, PURA Chairwoman Marissa Gillett has embraced her role as a disruptor in Connecticut's regulatory environment. Much to the chagrin of Connecti- cut's utility companies, Gillett has made implementing perfor- mance-based ratemaking, which was mandated by the legislature in 2020, a hallmark of her tenure. Performance-based ratemaking represents a fundamental shift in how utilities are regulated, moving away from traditional cost-of-service models toward outcome-driven compensation. The approach ties electric utility revenues to measurable performance metrics aligned with state policy goals, such as affordability, grid resil- 9 Daniel O'Keefe D epartment of Economic and Community Devel- opment Commissioner Daniel O'Keefe, a former tech exec- utive and investor, heads a state agency responsible for passing out hundreds of millions of dollars aimed at boosting Connecticut's economic vitality. He was recruited as the state's "chief innovation officer" in July 2023, then elevated to acting commissioner that December. It's been a steep learning curve, O'Keefe stressed. He's learned to carefully shepherd resources, including relationships with deci- sion-makers. But he's also been unafraid to use his bully pulpit to argue for a more competitive energy policy that lowers costs for busi- nesses. And he's a big advocate for a mandated return of state workers to the office. O'Keefe believes Connecticut's progress in paying down debt obli- gations and several years of budget surpluses have put the state in a position to begin making deeper investments in promoting economic growth.That includes a tentative $50 million investment over the next two fiscal years into a new greyfields revi- talization program, which would help fund the demolition of underused office and retail sites, or their conver- sion into apartments. In January, state officials announced a $25 million "Strategic Supply Chain" initiative, which will offer companies in the state's core 10 Caroline Simmons C aroline Simmons leads one of Connecticut's fastest-growing cities that's home to major corporations and a growing population. Simmons is the mayor of Stam- ford and has been an emerging power player in Connecticut's Democratic Party. She was elected mayor in 2021, defeating former New York Mets manager Bobby Valentine in what became a hotly contested and watched race. Before that, Simmons served as a state representative, where she became known for supporting pro-business legislation as co-chair of the Commerce Committee and bipartisan Manufacturing Caucus. She also previously worked at a mental health policy lab at the Yale School of Medicine and the Women's Business Development Council. According to her biography, Simmons' top priorities as mayor include investing in the city's "infra- structure, advancing economic prosperity, and making government more responsive to enhance quality of life for residents." Simmons made headlines recently when she joined other industries — high-tech manufac- turing, clean energy, IT, insurtech/ fintech, etc. — matching grants for investments in facilities, equipment or research and development. This program will provide grants up to $5 million, with recipients required to match part of the state funding. Lamont's budget plan also allocates $35 million annually for brownfield cleanups and recapi- talizes the Manufacturing Assis- tance Act (MAA) fund with $150 million over the coming two years. "Connecticut really got its (fiscal) house back in order," O'Keefe said in a recent interview. "Now, I'm going to start pushing us forward, and I want to see more of a balance between continuing to pay down the mistakes of the past — we still have too much per-capita debt — and also fundamentally investing in our future in projects that have tangible, definable ROI (return on investment)." Connecticut mayors and super- intendents at the state Capitol in Hartford to lobby for additional state education funding. At a joint news conference in January, city leaders from New Haven, Hartford, Bridgeport, Waterbury and Stamford said the state's school districts need $545 million more in the coming year to serve students. "It's pretty rare that you get five mayors and five superintendents to agree completely and unani- mously on one single issue, but this is truly one of those issues that is so fundamental to the future of our cities and towns and our state," Simmons said. ience and climate objectives. PURA has been seen as a national leader in implementing the framework. While consumer advocates have lauded Gillett's efforts, she's attracted the ire of both Eversource and United Illuminating by rejecting — in some cases by wide margins — rate increase requests made by both energy companies. Eversource and United Illumi- nating claim the new regulatory environment has hurt their ability to attract investors and lowered their margins to untenable levels. Recently, United Illuminating blamed PURA for putting its finances in such dire straits that its return on equity (a measure of profitability) in 2024 fell to 3.55%. With such meager returns, United Illuminating said it has been forced to defer investments, such as new substations and protective flood walls. The high-profile battle even led Eversource and United Illuminating to file a lawsuit accusing Gillett of bypassing the authority of fellow commissioners and issuing hundreds of unilateral decisions in rate cases. But Gov. Ned Lamont has stood by Gillett's side, noting "her record of fairness, collaboration and accountability." In a 2023 interview with the Hartford Business Journal, Gillett said Lamont hired her to effect change. "If there is discomfort with the fact that I've kind of thrown the doors wide open here and invited in different perspectives, I would embrace that critique because that was intentional," Gillett said. Before joining PURA, she was the vice president of external relations for the Energy Storage Association, a national trade group representing the energy storage industry. From 2011 to 2018, Gillett worked at Maryland's energy utilities regulator, the Maryland Public Service Commission. PHOTO | CT MIRROR/SHAHRZAD RASEKH

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