Boosting CT Economy Through Utility Partnerships

Connecticut has much to be proud of in the most recent CNBC “2025 Best States for Business” rankings, which have been rightfully promoted by the likes of Gov. Ned Lamont and state Sen. Bob Duff, D-Norwalk, as the state achieved high marks for critical metrics including quality of life and its cultivation of a skilled workforce. However, when it comes to the state’s overall economy and infrastructure needed to support it, it’s clear that Connecticut has room to grow and further collaborate with the private sector to make the state even more attractive to prospective companies and provide groundwork for future job growth.

The good news? Connecticut has a reliable grid thanks to decades of consistent investment and partnership at the federal, state, and local levels. If we can build on those examples of collaboration and make the investments necessary for modern power needs, we can unleash economic activity and show the world what makes our state a leader.

Development and electric demand: A clear link

Economic development and increased electric demand growth have always gone hand-in-hand, and if we want to continue to spur economic activity in Connecticut, we must have a modern electric grid with sufficient headroom to proactively accommodate the growth in demand that comes with booming commercial and industrial sectors. If you look at states such as Virginia, North Carolina and Georgia — which were all named among CNBC’s top-10 best states for business — they are experiencing exponential electric demand growth primarily driven by a combination of data center development and economic expansion. All three states also have another key ingredient that gives them a competitive advantage in the eyes of new businesses: collaborative regulatory paradigms that support such strategic utility investments, which is essential for enabling economic development.

The proof is in the projections. Here’s a closer look at how these states are actively preparing to accommodate soaring electric demand from data centers and new businesses:   

These demand growth projections are like adding the entire state of Connecticut’s demand and then some to their respective states’ current peak electric demands. In Connecticut, ISO-NE is projecting a 590 Megawatt increase in demand growth over the next 10 years, substantially lagging behind the electric demand growth projections seen in the states where commercial and industrial growth is booming. A collaborative and constructive regulatory environment can and will help flip the script — one that is focused on pro-growth policies that can help attract more companies by accelerating the infrastructure expansion needed to support them.

How Conn. can catch up

While we’ve taken steps toward grid modernization, the pace must quicken if we want to compete nationally for new businesses and jobs — especially given the length of time it takes to engineer, permit, procure and construct electric grid infrastructure at scale. Though Connecticut may be small when it comes to square mileage, the opportunities are massive when it comes to private development and siting. If the state were to take a strategic, collaborative approach to address future economic and utility needs, it can unlock a host of economic activity which will drive up property tax revenues, grow jobs in manufacturing and high-tech sectors, while also improving utility reliability and resilience in these areas – bringing direct benefits to Connecticut residents.

Massachusetts, which ranked among CNBC’s top-20 best states for business, is already taking this approach. The commonwealth is leading the way with its grid planning process, which features an additional layer of transparency and engagement through its Grid Modernization Advisory Council (GMAC) — a layer that is visibly missing in Connecticut and one the state could significantly benefit from. This collaborative working group brings multiple stakeholders to the table to strategically plan future grid enhancements to meet the Commonwealth’s policy objectives, where no individual contributor is viewed as more of a friend or foe, but instead an important voice which must be heard to reach shared goals of sustainable growth and opportunity. The GMAC provides state regulators in Massachusetts with deep insights, perspectives, and specific recommendations on how to modernize and upgrade the electric grid efficiently and cost-effectively at scale, and regulators consider that input in their final decisions on any future investments. Connecticut continues to lack a comprehensive energy policy, which is imperative for utilities to develop specific grid plans by specific time frames that are backed by legislative mandates. Having a dedicated body focused on stakeholder engagement and transparency that clearly connect policy objectives to grid plans, has allowed Massachusetts to take strategic action toward reaching its electrification goals and has helped position the state as a leader in economic development in New England — and Connecticut could learn valuable lessons from this approach.

A path forward for smart development

We don’t have to look far to find a roadmap. States that embrace regulatory clarity, strong collaboration and infrastructure investment are thriving. It’s time Connecticut joins them.

Let’s build on our strengths and remove the barriers standing in the way of investment. If we bring our regulators, policymakers, and utilities to the same table — with the same goal — we can make Connecticut a beacon of innovation, resilience, and opportunity for generations to come.

Digaunto Chatterjee is Eversource’s senior vice president of engineering.