Colorado & Connecticut Slash Utility Bills, Saving Residents Hundreds of Thousands!

Americans across the country are facing rising utility bills, but many may not realize that they are paying for more than just electricity and gas. Hidden within their bills are costs associated with corporate lobbying, political advertisements, and even luxury perks for executives. However, new laws in states like Colorado and Connecticut are putting a stop to these unfair charges, saving residents hundreds of thousands of dollars.

The Hidden Costs Behind Utility Bills

A recent report by the Energy and Policy Institute (EPI), a watchdog group, revealed that electric and gas utilities frequently pass on the costs of lobbying, brand advertising, and executive benefits to consumers. Although laws exist to prevent companies from billing customers for lobbying expenses, the enforcement of these regulations has been weak. This has allowed utility companies to include millions of dollars in additional charges in their customers’ monthly bills.

New Laws Are Making a Difference

In 2023, Colorado, Connecticut, and Maine became the first states to implement comprehensive laws prohibiting utilities from charging customers for lobbying, advertising, and other political expenses. These new laws prevent utilities from passing on costs such as:

• Membership fees for trade associations that engage in lobbying
• Donations to political advocacy groups
• Public relations and brand advertising campaigns
• Legal and consulting fees aimed at securing rate increases

Furthermore, utilities in these states must now provide annual reports detailing their political spending to ensure that shareholders—not customers—cover these costs.

Early Results Show Significant Savings

While these laws are still relatively new, early enforcement has already yielded impressive results. In Colorado, regulators rejected over $775,000 in lobbying fees and investor relations costs that Xcel Energy attempted to charge customers. Similarly, in Connecticut, officials blocked Avangrid from passing $555,000 in political and promotional expenses onto consumers.

According to Karlee Weinmann, a researcher at EPI and co-author of the report, the savings seen in these early cases highlight just how much utilities have been overcharging customers for non-essential expenses. “As more people see the financial impact of these policies, demand for similar laws in other states will continue to grow,” Weinmann stated.

More States Following Suit

The success of these laws has sparked interest across the country. In 2023, eight states introduced similar bills aimed at preventing utilities from passing political and advertising costs onto customers. So far, in 2024, five additional states have introduced legislation to increase utility accountability.

In states without such protections, regulators and consumer advocacy groups must scrutinize rate proposals line by line to identify and dispute improper charges. This process is time-consuming and difficult, often allowing utilities to slip unauthorized costs into their customers’ bills.

High-Profile Cases of Utility Overcharging

Even in states without comprehensive utility accountability laws, regulators have flagged several instances of excessive and inappropriate charges:

• Virginia: Dominion Energy was caught billing customers for millions of dollars in lobbying expenses in rate cases in 2021 and 2023.
• California: An investigation found that SoCalGas improperly charged customers for a lobbying campaign promoting natural gas.
• Ohio: FirstEnergy subsidiaries agreed to refund tens of millions of dollars after it was discovered that they had charged customers for lobbying expenses related to a bribery scandal involving Ohio House Speaker Larry Householder.
• Maryland: Chesapeake Utilities attempted to pass off the costs of its “Natural Gas Does More” promotional campaign to customers. Regulators deemed this inappropriate and denied the request.
• Michigan: DTE Energy requested approval to charge customers for private jet trips, prompting Attorney General Dana Nessel to call the request “insulting to customers.”
• Indiana: Duke Energy was caught billing customers over $5 million for private jet costs between 2021 and 2023.

The Push for Greater Transparency

Despite the growing number of states introducing reforms, utility trade associations argue that additional regulations are unnecessary. They claim that existing federal and state laws already prevent improper billing. However, consumer advocates insist that current laws are insufficient, as many utilities continue to disguise lobbying and promotional expenses under vague accounting categories.

Adria Tinnin, director of race equity and legislative policy at The Utility Reform Network, emphasized the need for greater transparency. “Without clear reporting requirements, we can’t know to what extent ratepayers are being overcharged,” Tinnin stated. Advocacy groups are currently working to draft new legislation in California and other states to ensure stronger protections for consumers.

Rising Utility Costs Make Reform Even More Urgent

With utility costs on the rise, these laws are helping to address an affordability crisis that is affecting households across the country. According to recent estimates, household utility bill debt has increased by 8.4% since December 2023. Meanwhile, power shutoffs due to nonpayment have surged, leaving many families struggling to keep the lights on.

Additionally, global economic factors such as potential tariffs on Canadian fossil fuels could drive prices even higher in the near future. Every dollar saved by customers through these accountability laws is a step toward making energy more affordable and fair for everyone.

The Future of Utility Accountability Laws

As more states consider similar reforms, the impact of these early accountability laws in Colorado and Connecticut serves as a model for others to follow. With increasing public awareness and growing pressure on lawmakers, the movement to prevent utility companies from overcharging customers is only gaining momentum.

“People are starting to ask, ‘How can we make this happen in our state?’” Weinmann said. “And that’s exactly the kind of momentum we need to create lasting change.”

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