Blumenthal Demands FERC Oversight of Transmission Projects to Drive Down Rising Energy Costs

[Hartford, CT] – Today, U.S. Senator Richard Blumenthal (D-CT), in a new letter to the Federal Energy Regulatory Commission (FERC), demanded solutions to drive down rising energy costs in Connecticut and across New England. Blumenthal called for increased oversight of the planning process for regional transmission projects, including the implementation of an independent review mechanism that ensures the proposed upgrade or maintenance project is truly necessary and that the costs are reasonable and prudent.

Connecticut consumers face some of the highest electricity rates in the nation, with an average cost of 28.16 cents per kilowatt-hour compared to the national average of 16.26 cents per kilowatt-hour as of December 2024.

Blumenthal wrote, “Currently, transmission owners in New England can unilaterally invest in significant transmission construction for local upgrades and maintenance projects, often termed “asset condition projects,” with little to no meaningful review or oversight. Transmission owners are investing heavily in these types of projects. In fact, spending on asset condition projects represents 73 percent of the annual amount that transmission owners spend on all projects in New England. However, these investments receive minimal scrutiny. As a result, the necessity, scope, and cost of the asset condition projects often go unreviewed, unchecked, and unrestrained.”

Energy costs in Connecticut are already extraordinarily high, and Connecticut consumers pay for a portion of the costs of all transmission projects throughout the ISO-New England region. The number of these transmission projects have skyrocketed, in large part because the return on investment percentages for the utility companies are higher than for other projects.

“As we continue to build and improve transmission lines to meet the growing demand for energy, it is essential to ensure that these projects receive close scrutiny. The ratepayers in Connecticut and across the country should not be burdened with paying for projects that may be unnecessary. Our investments must be both cost-effective and grounded in actual need,” wrote Blumenthal.

The full text of the letter to FERC is available here.

Video of Blumenthal’s press conference in Hartford is available here.

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