Federal regulators have failed for years to do their job protecting the public’s interest when it comes to reviewing mergers in the telecommunications and cable television industries, according to the state Senate majority leader, and now he wants to do something about it.
State Sen. Bob Duff, D-Norwalk, said Thursday he wants to strengthen existing laws to give utility regulators more control when companies in those industries that do business in Connecticut decide to merge. Duff said if his bill became law, mergers would require approval from the state’s Public Utilities Regulatory Authority before Connecticut officials sign off on any deal involving cable television or telecommunications companies.
“I think it’s time for Connecticut to take back regulatory control,” Duff said in an interview with CT Insider. “A lot of state control has been ceded to the federal government when it comes to these mergers. And the federal government has taken a hands-off approach with it.”
Here in Connecticut, the state’s general statutes already require PURA to conduct hearings when a utility company regulated by the agency sees change in control of who operates it. High profile acquisitions that have undergone PURA’s regulatory scrutiny include the SJW Group acquiring Clinton-based Connecticut Water Co., Frontier Communications’ acquisition of AT&T’s telecommunications network in the state and the 2017 acquisition of Aquarion Water Co. by Eversource Energy.
On the federal level, all corporate mergers are reviewed by the U.S. Justice Department or the Federal Trade Commission to determine whether combining two companies violates anti-trust laws. The Communications Act of 1934 also requires a review of mergers in both the cable television and telecommunications industries by the Federal Communications Commission.
Duff said his decision to propose the bill during the current legislative session was based on “looking at the laws that we have on the books and seeing if there are any gaps.”
“The courts are starting to side with the states on issues of jurisdiction,” he said.
State Sen. Norman Needleman, D-Essex, is co-chairman of the legislature’s Energy and Technology Committee. Needleman said although he hasn’t spoken with Duff about the bill, he will raise the bill before the committee as a courtesy.
“It’s certainly worth a conversation because as these companies merge, there are fewer choices for the public,” Needleman said.
Taren O’Connor, a spokeswoman for PURA, said the regulatory agency has a policy of not commenting on proposed bills until they have had a chance to fully review the language in the legislation.
“PURA looks forward to working with our legislative colleagues on any and all proposals that increase transparency and accountability in utility regulation,” O’Connor said.
A Connecticut-based spokeswoman for cable television giant Comcast referred all questions about Duff’s bill to the New England Cable & Telecommunications Association. Tim Wilkerson, president of the Massachusetts-based trade group, was not immediately available for comment Friday on Duff’s bill.
Officials at Frontier Communications, which provides cable television and telecommunications service in the state and is headquartered in Norwalk did not respond Friday to a request for comment on the legislation.
luther.turmelle@hearstmediact.com