Canada will pay zero tariffs on the electricity New England imports from our northern neighbor. President Donald Trump has often professed his love for tariffs and always denies Americans will pay them. New England consumers of electricity will learn what we have always known: we pay the tariffs.

Electricity does not arrive at a port or stop at a border crossing. The tens of millions of dollars that the Trump tariffs impose on New England ratepayers will have to be collected by an entity. In the long run, a different collection system may be required to perform the task, but at the start ISO-New England, a non-profit organization, believes it may be tagged with the expensive task. It is required to prepare for the tariffs that are scheduled to begin next week.

Here is the ISO-New England statement:

ISO New England intends to file this week with the Federal Energy Regulatory Commission (FERC) a proposed mechanism by which the ISO can, if directed by the federal government, collect customs duties related to electricity imported from Canada and sold into ISO-administered markets. 

We believe this filing is prudent in light of President Donald J. Trump’s executive orders and recent statements. 

ISO New England also believes that the custom duties described by the Trump Administration do not appear to apply to electricity and that, even if they do, ISO New England would not be responsible implementing them. 

However, given the uncertainty surrounding these issues, the ISO deemed it necessary to make this filing to ensure a process is in place in the event the federal government determines the duties apply to electricity and that ISO New England is responsible for playing a role in their collection. 

Failure to have a procedure in place could result in potentially serious adverse consequences for the region’s wholesale markets. 

The ISO’s proposal 

The ISO’s proposal would set up a process by which, in the event any future duty is applied to imported Canadian electricity, importers of that electricity for sale into New England’s energy markets are assessed the cost of such duties. The process would only kick in if a federal agency required ISO New England, via invoice, to pay the duty, and is intended to be temporary, allowing 120 days for the ISO and stakeholders to file a replacement process that is specific to terms and conditions of the imposed import tariff.  

Published February 28, 2025.

Governor Ned Lamont’s nomination of Diana Gomez for the Superior Court was expected to be withdrawn on Wednesday, two days after the public defender appeared before the Judiciary Committee for a confirmation hearing. Gomez was the subject of considerable and detailed criticism of her conduct by other public defenders. Gomez was not included in the roll call vote with the other 12 Superior Court nominees.

State Representative Craig Fishbein (R-Wallingford), the committee’s House ranking member, expressed his dismay at Monday’s hearing. Fishbein, Daily Ructions has learned, examined the transcript of Gomez’s testimony, compared it to the available record, and presented his findings to the committee’s co-chairs.

Members received a letter Tuesday from a public defender, Rosanna Capetta, who had worked with Gomez in Derby. The letter, attached below, shares alleged difficulties she endured working in the same office as Gomez that go beyond typical workplace differences. Capetta emphasized what she calls Gomez’s “vindictive nature,” accusing her of creating a “toxic work environment” that seems to have been known by others.

The Gomez controversy once more raises the issue of what due diligence the Judicial Selection Commission and the governor’s top aides perform before nominating lawyers to the bench, where each day they can irrevocably affect scores of lives.

Published February 26, 2025.

Profligate Connecticut State Colleges and Universities (CSCU) Chancellor Terrence Cheng will find nothing on the menu at his favorite restaurant, the tony Capital Grille in Hartford, to ease the pain of being squeezed out of his $440,000 a year sinecure. Three state audits have examined Cheng’s spending habits and found them wanting.

Cheng is on a payment plan to return housing expenses. State auditors concluded that Cheng did not move from New York to Connecticut while receiving a housing allowance. He used system funds to dine with other state employees and even hired a car and driver while receiving a generous automobile allowance.

An influential member of the Board of Regents, with the consent of several board colleagues, contacted a finalist in the search that produced Cheng about replacing the former English professor and novelist, Daily Ructions can report. The discussion was not a success because the Regents are not certain of the way forward after the disappointing and tumultuous Cheng years.

The formulation of a plan to shed Cheng will be discussed in an executive session of the Regents on Thursday. Any thorough discussion of Cheng’s deteriorating position will include his disappointing appearance this week before the General Assembly’s budget committee. The air at the Capitol Village was thick with dismay over Cheng’s conduct and concern at how solid some of his enrollment figures will be when subject to scrutiny. Cheng’s position may deteriorate further as staff members share tales of their treatment by Cheng and his palace guard.

This is a developing story. Updates as events require.

Published February 21, 2025.

Fairfield Republican Peter Lumaj is exploring another run for statewide office, his fifth.

Lumaj has created an exploratory committee for an undesignated statewide office in 2026 that does not include treasurer, according to records at the State Elections Enforcement Commission. Lumaj sought the Republican nomination for the U.S. Senate in 2012 and in 2022. In 2022, Lumaj qualified for the primary ballot and came in third, far behind Themis Klarides, who ran 10% behind winner Leora Levy.

Lumaj ran for governor in 2018. He failed to qualify for the primary ballot in the crowded field. His only appearance on a general election ballot came in 2014 when Lumaj was the Republican nominee for secretary of the state.

Erin Stewart, completing her sixth term as mayor of New Britain this year, has also filed an exploratory committee for statewide office and is expected to run for governor. She is the early frontrunner.

Published February 19, 2025.

“We all are caught in the middle of one long treacherous riddle. Can I trust you? Can you trust me too?

—The Riddle from The Scarlet Pimpernel

What will Governor Ned Lamont do about his Marissa Gillett problem? The chair of the Public Utilities Regulatory Authority (PURA) faces a difficult confirmation hearing for a second term on Thursday. Lamont was scrambling to reach an agreement with legislative leaders on heaving Gillett over the finish line without giving away many of his prerogatives over energy regulation.

State Senator John Fonfara (D-Hartford) and Lamont have met with no agreement on reconfiguring PURA into a quasi-public entity with five members, one of whom could be Fonfara, who served for more than a decade as co-chair of the General Assembly’s energy committee. Lamont has expressed his opposition to the idea but may have gone wobbly as opposition to a second four-year term for Gillett has hardened in a controversy that has become a significant distraction for legislators.

The Gillett nomination holds promise and danger for the shrinking ranks of Republican legislators. If they remain united in opposing Gillett they will have accomplished something rare for them: influenced a significant decision at the Capitol. It their unity cracks and Republican votes provide Gillett with a second term, they will have tagged themselves as responsible for all that follows in the next four years of energy costs. Senate Republicans appear especially susceptible to bargaining their souls away for trinkets. House Republicans seem more resolute in ushering in a new dawn in utility regulation.

Any deal comes with a pressing question each party must answer: Can they trust each other to keep their word? Will they fulfill in the future the promises they make today? That is the riddle.

Published February 19, 2025.

Another difficult day at the Legislative Office Building for beleaguered Connecticut State Colleges and Universities (CSCU) Chancellor Terrence Cheng. The appearance of the leader of the state’s largest higher education system concluded with budget committee House co-chair Toni Walker (D-New Haven) with a heaping helping of scorn poured over Cheng.

Walker, a Southern Connecticut State University graduate, surveyed the state of CSCU, its potential, and Cheng’s failings. Walker, listing what alarms her, said, “The thing that scares me the most, sir, is that the people who work for you” do not have confidence in you. Cheng has been on the losing end of two votes of no confidence.

“We cannot continue to look the other way,” Walker declared in a reference to three recent critical audits of Cheng’s personal spending prompted by Hearst newspapers investigative reporter Jacqueline Rabe Thomas. “We don’t have to indulge in those perks.” With federal support of public education in doubt, Walker reminded Cheng, his entourage, and her colleagues, “This is not a time to turn our backs on our children.”

“I’m very disappointed,” Walker concluded. Walker is not ordinary legislator. She is prudent in her pronouncements and enjoys the respect of her colleagues. CSCU’s Board of Regents would be wise to take note of Walker’s appropriations aria. When you have lost Toni Walker on higher education, you have lost.

Walker’s remarks begin at 1:30:03 in the above YouTube video.

Published February 19, 2025.

Governor Ned Lamont appeared on Brian Shactman’s Brian & Company morning program on WTIC 1080 Tuesday morning as part of his administration’s campaign to rescue Marissa Gillett’s reappointment to lead the Public Utilities Regulatory Authority (PURA). (A clip is posted above.)

Lamont said he believes Gillett will win another term. The Greenwich Democrat once more stated his opposition to complying with the 2019 legislation expanding the membership of PURA to five from three. Lamont signed that bill when it reached it desk in his first year in office.

Eversource, the governor said, wants Gillett out and enjoys a lot of influence at the legislature. Lamont pointed to Gillett’s experience at a crucial time and said he does not “want three or five rookies on that board.” This appeared to be a reference to support for placing state Senator John Fonfara and former state Representative Holly Cheeseman on PURA. Fonfara spent more than a decade as co-chair of the legislature’s energy committee. Cheeseman is widely regarded as a talented utility player who would not hesitate to exercise authority independent of Gillett.

The campaign to rescue Gillett from responsibility for electricity rates that are among the highest in the nation has accelerated as Lamont’s office and a handful of Democratic legislators have started counting votes. Gillett’s supporters have claimed that she is the target of sexism, signaling they have abandoned making the case for her based on her record in office.

Lamont blotted his copy when he told Shactman that Gillett is kind of, sort of a consumer advocate. State statutes provide for an independent consumer advocate at PURA who is not a member of the commission. Lamont has previously said that it is not PURA’s chair’s job to be a consumer advocate but to call balls and strikes.

Gillett’s renomination was submitted to the Senate weeks ago but has not yet been scheduled for a public hearing by the Executive and Legislative Nominations Committee. The delay is unusual in the normal course of legislative business.

Published February 11, 2025.

What a difference audits and reviews of CSCU Chancellor Terrence Cheng’s promiscuous use of his student and public financed expense account make. A day after the CT State College Senate adopted a motion of “no confidence” in Cheng, the head of the 85,000 student higher education system drove himself to a legislative breakfast at Northwestern, formerly known as Northwestern Connecticut Community College, in Winsted.

In October, Hearst investigative reporter Jacqueline Rabe Thomas found Cheng “had expensed chauffeured despite being provided a state car, charged for pricey meals with other state employees, and collected a $2,100 monthly housing allowance while living in a New York town just across Connecticut’s border.” A review of spending by State Comptroller Sean Scanlon’s office found “troubling” expenses charged to Cheng’s expense account. State auditors found that while Cheng received a generous housing allowance to live in Connecticut he continued to live in New York. Cheng also receives a car allowance, though he also spent system funds on a chauffeur.

Cheng, whose contract ends next year, will find it difficult to make the case to legislators that they should once again contest Governor Ned Lamont’s allocation to CSCU in his budget proposal. Lamont rebuked Cheng in his Wednesday budget address, noting, higher education “should not be immune to reform and CT State in particular must reimagine how we tain our workforce for 21st century jobs.” Lamont added “student population is down 30% is down 30%, most students don’t graduate, and costs keep escalating.”

On Friday, Sen. Minority Leader Stephen Harding and House Minority Leader Vincent Candelora praised the CT State College Senate for its call to change the CSCU leadership. The two Republicans had to tread carefully on their criticism of Lamont and CSCU Regents for allowing Cheng to continue leading the system. They criticized Lamont and “most Regents” for standing by Cheng. The “most” is meant to suggest that Regent Erin Stewart, a Republican exploring a 2026 bid for governor, has called for Cheng’s resignation, which Stewart says she has. Stewart was critical of Cheng’s penchant for secrecy and successfully argued for changes when Lamont appointed a new chairman of the Regents.

Published February 7, 2025.

Commissioner Daniel O’Keefe of the Department of Economic and Community Development posted an endorsement on his LinkedIn account of a software company in which he is an investor. O’Keefe identifies himself on LinkedIn as commissioner and the state’s Chief Innovation Officer.

Daily Ructions asked O’Keefe if he had sought and obtained an opinion from the state’s ethics agency before posting the endorsement of Roam (or Ro.am).

Here, in bold and in part, is his reply:

Yes – I am an investor in Roam, as well as a number of other companies (my background prior to state service was a technology investor). All are, of course, disclosed to state ethics in my financial disclosures.

I did not seek an opinion from ethics specific to the below post. When I joined the administration, I did seek an opinion as to my (passive) involvement with those companies generally (including Roam), and was advised that (1) I cannot be paid by any of those companies (I am not) and (2) if any have business in front of the state I need to recuse myself (none do, and I would if they did). I did not ask for an opinion specific to social media posts, but did just now after receiving your email, as well as to whether any further disclosures needed if I do post about a company.

While I await that, I’ve deleted the post, and publicly disclosed that I’ve done so. Because I think you are right – while in that moment in my head I was posting as an individual (I’ve been active on LinkedIn since its founding), the reality is my title is right there, and it can’t look like I’m supporting something in my official role if I am not. While I’m curious what the above opinion ultimately suggests, regardless I don’t plan to post about companies I am invested in anymore.

I appreciate what you do, as it makes those of us in service better, and I’ll do better.

Some public officials, too many, immediately take an adversarial position when asked about obvious errors. They stonewall or escalate. Instead, they ought to adopt the O’Keefe method. Stop relying on spokesmen and give a candid answer to simple questions.

Published February 7, 2025.

“Any matter coming before the authority may be assigned by the chairperson to [a panel of three] one or more utility commissioners.”

It is not the usual place to discover an admission against interest in high stakes litigation, but there it is in Raised Bill 1193 from the General Assembly’s energy committee. The committee bill, An Act Concerning the Composition of the Public Utilities Regulatory Authority (PURA), seeks to fix the mess that the husbanding of authority in its chair has caused ratepayers and utilities.

The issue of dockets decided by one member of PURA is the subject of litigation brought by utilities Eversource and Avangrid. If a court adopts the plain meaning of the law, PURA will suffer a humiliating loss. Raised Bill 1193 suggests PURA chair Marissa Gillett and her dwindling number of friends at the legislature have blotted their copy by seeking to make the plaintiffs’ point for them. And if once is not enough, a second bill, 1194, does the same.

If one member of PURA had the authority to make decisions, there would be no need for 1193. But there it is: headed for public hearing tomorrow, February 4th.

The lawsuit was dismissed by state Senator Norm Needleman (D-Essex), Senate co-chair of the energy committee, as “frivolous.” This is reckless and beneath the dignity of Needleman. Plaintiff lawyers Thomas J. Murphy and James J. Healey are widely recognized as among the state’s most talented. If anyone needs proof of this consensus, read the transcripts of Healey deposing a Department of Public Health official in the grim Stone Academy litigation.

Published February 3, 2025.