General Assembly Raised Bill No. 1079
January Session, 2011 LCO No. 3885
*03885_______ET_*
Referred to Committee on Energy and Technology
Introduced by:
(ET)
General Assembly
Raised Bill No. 1079
January Session, 2011
LCO No. 3885
*03885_______ET_*
Referred to Committee on Energy and Technology
Introduced by:
(ET)
AN ACT CONCERNING OPERATIONS OF PUBLIC SERVICE COMPANIES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 16-19tt of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):
In any rate case initiated on and after [June 4, 2007] July 1, 2011, the Department of Public Utility Control shall order the state's gas and electric distribution companies to decouple distribution revenues from the volume of natural gas or electricity sales through [any of the following strategies, singly or in combination: (1) A] a mechanism that adjusts actual distribution revenues to allowed distribution revenues. [, (2) rate design changes that increase the amount of revenue recovered through fixed distribution charges, or (3) a sales adjustment clause, rate design changes that increase the amount of revenue recovered through fixed distribution charges, or both.] In making its determination on this matter, the department shall consider the impact of decoupling on the gas or electric distribution company's return on equity and make necessary adjustments thereto.
Sec. 2. (NEW) (Effective July 1, 2011) An electric distribution company, as defined in section 16-1 of the general statutes, may, notwithstanding any provision of title 16 or 16a of the general statutes, construct, own and operate a renewable energy source generation facility, provided the Department of Public Utility Control has (1) approved the construction, ownership and operation by an electric distribution company of such facility in a contested proceeding in which the department has made available to other persons the opportunity to submit proposals for such construction, ownership and operation, and (2) determined that the construction, ownership and operation of such facility by such electric distribution company is in the interest of the state in meeting renewable energy portfolio standards and maintaining reasonable costs of electric generation services. Any electric distribution company that submits a proposal to construct, own or operate a renewable energy source generation facility shall provide the department with any information the department deems to be in the public interest and that may assist the department in evaluating the cost and benefit to the state of such facility. Any electric distribution company constructing, owning or operating such facility shall be permitted to recover the costs of such construction, ownership and operation, including a return on investment, from a nonbypassable charge as determined by the department in an annual contested proceeding consistent with the provisions of sections 16-19, 16-19b and 16-19e of the general statutes. The return on investment associated with such project shall be established in the initial contested proceeding and reestablished every four years thereafter.
Sec. 3. (NEW) (Effective July 1, 2011) An electric distribution company, as defined in section 16-1 of the general statutes, may, notwithstanding any provision of titles 16 and 16a of the general statutes, own and operate a generation facility for customer-side distributed resources, as defined in section 16-1 of the general statutes. Such electric distribution company may enter into a contract with a customer on whose premises such facility is located or may establish a tariff, subject to approval of the Department of Public Utility Control, to make the services of such facility available. Such tariff or contract shall allow an electric distribution company to recover investment costs of such facility, including a reasonable return on investment. Prior to the execution of such contract, a customer may request that the department review the contract to determine that any provision concerning the return on investment for the electric distribution company is consistent with subdivision (4) of subsection (a) of section 16-19e of the general statutes.
Sec. 4. Subsection (a) of section 16-262c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):
(a) Notwithstanding any other provision of the general statutes no electric, electric distribution, gas, telephone or water company, no electric supplier or certified telecommunications provider, and no municipal utility furnishing electric, gas, telephone or water service shall cause cessation of any such service by reason of delinquency in payment for such service (1) on any Friday, Saturday, Sunday, legal holiday or day before any legal holiday, provided such a company, electric supplier, certified telecommunications provider or municipal utility may cause cessation of such service (A) to a nonresidential account on a Friday which is not a legal holiday or the day before a legal holiday when the business offices of the company, electric supplier, certified telecommunications provider or municipal utility are open to the public the succeeding Saturday, and (B) to a residential account on a Friday which is not a legal holiday or the day before a legal holiday when (i) the business offices of the company, electric supplier, certified telecommunications provider or municipal utility are open to the public the succeeding Saturday, (ii) the Department of Public Utility Control has determined that an adequate number of remote payment centers at which customers of such company, electric supplier, certified telecommunications provider or municipal utility may pay their bills are open on Saturdays, and (iii) the personnel sent to effect termination on such residential account on such a Friday are authorized to accept noncash payment from such customer, (2) at any time during which the business offices of said company, electric supplier, certified telecommunications provider or municipal utility are not open to the public, or (3) within one hour before the closing of the business offices of said company, electric supplier or municipal utility.
Sec. 5. Subdivision (1) of subsection (a) of section 16-262f of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):
(a) (1) Upon default of the owner, agent, lessor or manager of a residential dwelling or nursing home facility, as defined in section 19a-521, who is billed directly by an electric, electric distribution, gas or telephone company or by a municipal utility for electric or gas utility service furnished to such building, such company or municipal utility or electric supplier providing electric generation services may petition the Superior Court or a judge thereof, for appointment of a receiver of the rents or payments for use and occupancy or common expenses, as defined in section 47-202, for any dwelling or nursing home facility, as defined in section 19a-521, for which the owner, agent, lessor or manager is in default. The court or judge shall forthwith issue an order to show cause why a receiver should not be appointed, which shall be served upon the owner, agent, lessor or manager or his agent in a manner most reasonably calculated to give notice to such owner, agent, lessor or manager as determined by such court or judge, including, but not limited to, a posting of such order on the premises in question.
Sec. 6. Subsection (b) of section 16-19b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):
(b) (1) If the department finds that the changed price of purchased gas required for distribution by a gas company substantially threatens the ability of the company to earn a reasonable rate of return, or will cause the company to have an excessive rate of return, the department shall, after investigation and public hearing, approve a suitable purchased gas adjustment clause to be superimposed upon the existing rate schedule of the company. The department shall design any such purchased gas adjustment clause to allow the gas company to charge or to reimburse the consumer only for the changes in the cost of purchased gas and associated indirect gas costs, including, but not limited to, the commodity portion of uncollectible accounts, working capital related to the purchased gas commodity and carrying costs of the purchased gas commodity inventory, which occur when the actual price of purchased gas differs from the price reflected in the base rates of the company. The department may establish an efficiency factor in the purchased gas adjustment clause of each gas company, which may provide for less than one hundred per cent recovery of the gross earnings tax imposed by section 12-264 on the revenues from such purchased gas. A purchased gas adjustment clause approved pursuant to this section shall apply to all gas companies similarly affected by the costs which form the basis for the adjustment clause.
(2) The department shall allow a gas company to reconcile the differences between the costs associated with the purchased gas commodity and the costs included in the base delivery rates of such company.
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2011 16-19tt
Sec. 2 July 1, 2011 New section
Sec. 3 July 1, 2011 New section
Sec. 4 July 1, 2011 16-262c(a)
Sec. 5 July 1, 2011 16-262f(a)(1)
Sec. 6 July 1, 2011 16-19b(b)
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2011
16-19tt
Sec. 2
July 1, 2011
New section
Sec. 3
July 1, 2011
New section
Sec. 4
July 1, 2011
16-262c(a)
Sec. 5
July 1, 2011
16-262f(a)(1)
Sec. 6
July 1, 2011
16-19b(b)
Statement of Purpose:
To require that decoupling of utility company revenues occur through revenue adjustment rather than rate design changes; to permit electric distribution companies to construct, own and operate renewable energy generation facilities and customer-side distributed resource generation facilities; to permit utility service termination on Fridays for certain accounts; to allow a utility company to seek appointment of a receiver for certain nursing home facilities; and to permit a gas company to recover additional costs pursuant to the purchased gas adjustment clause.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]