| 11 | 11 | | |
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| 12 | 12 | | AN ACT CONCERNING WATER CONSERVATION. |
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| 13 | 13 | | |
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| 14 | 14 | | Be it enacted by the Senate and House of Representatives in General Assembly convened: |
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| 15 | 15 | | |
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| 16 | 16 | | Section 1. (NEW) (Effective from passage) (a) The Public Utilities Regulatory Authority shall authorize rates upon application by any water company, as defined in section 16-1 of the general statutes, that promote water conservation. Such rates may include: (1) Rate designs that promote conservation including, but not limited to, inclining block rates, seasonal rates, peak period rates and drought rates, to reduce outside or other discretionary water use, (2) the implementation of measures to provide timely price signals for consumers, (3) multiyear rate plans, (4) measures to reduce system water losses, and (5) funds for consumer programs that promote conservation through education and incentives or rebates for the retrofit of fixtures and appliances with water-efficient fixtures and appliances. |
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| 17 | 17 | | |
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| 18 | 18 | | (b) The authority shall initiate a generic docket to identify water and energy conservation programs that, if implemented by water companies pursuant to subsection (a) of this section, would be eligible for recovery in a water company general rate case, provided the water company demonstrates that the expenses for such programs are reasonable and prudent. On or before July 1, 2012, the Water Planning Council, established pursuant to section 25-33o of the general statutes, shall submit a report to the authority and the Energy Efficiency Board within the Department of Energy and Environmental Protection that identifies recommended conservation programs and measures for consideration by the authority during such generic docket and for possible inclusion in the comprehensive conservation and load management plan prepared pursuant to section 16-245m of the general statutes. The measures to be considered by the Water Planning Council in making such recommendations shall include, but not be limited to: (1) The use of renewable energy supplies, (2) meter equipment and technology designed to promote timely price signals, and (3) programs for consumers such as monthly billing, customer water audits, leak detection programs, and rebates for the retrofit of fixtures and appliances with water-efficient fixtures and appliances. |
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| 19 | 19 | | |
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| 20 | 20 | | Sec. 2. (NEW) (Effective from passage) (a) The Public Utilities Regulatory Authority shall authorize a water conservation and sustainability adjustment charge or credit, in accordance with subsections (b) and (c) of this section, whenever any water company, as defined in section 16-1 of the general statutes, demonstrates that during the twelve-month period that is the subject of such adjustment such water company: (1) Did not recover the revenues authorized by the authority pursuant to sections 16-19 and 16-262w of the general statutes, as amended by this act, and (2) did not exceed such water company's authorized rate of return by more than one hundred basis points for any calendar year. |
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| 21 | 21 | | |
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| 22 | 22 | | (b) (1) Any water company that intends to seek a water conservation and sustainability adjustment charge or credit pursuant to subsection (a) of this section shall indicate in such water company's rate application filed pursuant to section 16-19 of the general statutes that such water company will seek a water conservation and sustainability adjustment charge or credit. |
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| 23 | 23 | | |
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| 24 | 24 | | (2) Any water conservation and sustainability adjustment charge or credit approved pursuant to subsection (a) of this section may be assessed as a rate adjustment charge or credit on customer bills. Such water conservation and sustainability adjustment charge or credit shall be: (A) Calculated as a percentage based on the difference between the actual revenues such water company collected during the subject twelve-month period and the revenues authorized pursuant to the last general rate case of such water company, (B) applied as a charge or credit rate to customer bills for the twelve-month period following approval by the authority pursuant to this section, (C) applied to all customer classes, except public fire accounts, (D) applied on customer bills rendered on or after April first of the calendar year in which such adjustment is approved, and (E) in effect at the rate authorized each year until new base rates are approved by the authority during the next general rate case of such water company. The amount of such conservation and sustainability adjustment shall be reset to zero as of the effective date of any new base rates approved for such water company pursuant to section 16-19 of the general statutes and shall be reset to zero if such water company exceeds the authorized rate of return by more than one hundred basis points for any calendar year. Such water company shall include in new base rates any remaining amounts due for any surcharge or credit authorized pursuant to this section for the calendar year in which such new rates are approved. For the purposes of this section, the revenues authorized for such water company shall not be adjusted for customer growth, except that the revenues authorized for such water company shall include authorized revenues for any customers acquired by such water company through an acquisition approved by the authority pursuant to section 16-262n of the general statutes. |
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| 25 | 25 | | |
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| 26 | 26 | | (c) No proposed water conservation and sustainability adjustment charge or credit shall become effective until the authority approves such charge or credit pursuant to an administrative proceeding that shall not be deemed a contested case pursuant to chapter 54 of the general statutes. The authority may receive and consider comments from interested persons and members of the public at such administrative proceeding. Such administrative proceeding shall be completed not later than thirty days after the filing of an application by a water company for such adjustment charge or credit. In the event the authority fails to render a decision on any such application at the conclusion of such thirty-day period, such proposed water conservation and sustainability adjustment charge or credit may be applied by such water company until the authority renders a decision on such application, provided such water company shall refund to customers any such amounts collected from such customers in excess of any charges approved by the authority. Any approval or denial of such application by the authority pursuant to this subsection shall not be deemed an order, authorization or decision of the authority for the purpose of section 16-35 of the general statutes. |
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| 27 | 27 | | |
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| 28 | 28 | | Sec. 3. Subsection (a) of section 7-239 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage): |
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| 29 | 29 | | |
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| 30 | 30 | | (a) The legislative body shall establish just and equitable rates or charges for the use of the waterworks system authorized herein, to be paid by the owner of each lot or building which is connected with and uses such system, and may change such rates or charges from time to time. Such rates or charges shall be sufficient in each year for the payment of the expense of operation, repair, replacements and maintenance of such system and for the payment of the sums herein required to be paid into the sinking fund. In establishing such rates or charges, the legislative body may consider measures that promote water conservation and reduce the demand on the state's water and energy resources. Such rates or charges may include: (1) Rate designs that promote conservation, including, but not limited to, inclining block rates, seasonal rates, peak period rates and drought rates, (2) implementation of measures to provide timely price signals for consumers, (3) multiyear rate plans, (4) measures to reduce system water losses, and (5) funds for consumer programs that promote conservation through education and incentives or rebates for the retrofit of fixtures and appliances with water-efficient fixtures and appliances. No such rate or charge shall be established until after a public hearing at which all the users of the waterworks system and the owners of property served or to be served and others interested shall have an opportunity to be heard concerning such proposed rate or charge. Notice of such hearing shall be given, at least ten days before the date set therefor, in a newspaper having a circulation in such municipality. Such notice shall set forth a schedule of rates or charges, and a copy of the schedule of rates or charges established shall be kept on file in the office of the legislative body and in the office of the clerk of the municipality, and shall be open to inspection by the public. The rates or charges so established for any class of users or property served shall be extended to cover any additional premises thereafter served which are within the same class, without the necessity of a hearing thereon. Any change in such rates or charges may be made in the same manner in which they were established, provided, if any change is made substantially pro rata as to all classes of service, no hearing shall be required. The provisions of this section shall not apply to the sale of bottled water. |
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| 31 | 31 | | |
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| 32 | 32 | | Sec. 4. Subdivision (1) of section 16-262v of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage): |
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| 33 | 33 | | |
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| 34 | 34 | | (1) "Eligible projects" means those water company plant projects not previously included in the water company's rate base in its most recent general rate case and that are intended to improve or protect the quality and reliability of service to customers, including (A) renewal or replacement of existing infrastructure, including mains, valves, services, meters and hydrants that have either reached the end of their useful life, are worn out, are in deteriorated condition, are or will be contributing to unacceptable levels of unaccounted for water, or are negatively impacting water quality or reliability of service if not replaced; (B) main cleaning and relining projects; (C) relocation of facilities as a result of government actions, the capital costs of which are not otherwise eligible for reimbursement; [and] (D) purchase of leak detection equipment or installation of production meters, and pressure reducing valves; (E) purchase of energy-efficient equipment or investments in renewable energy supplies; and (F) capital improvements necessary to achieve compliance with flow standards for rivers and streams established in regulations adopted pursuant to section 26-141b. |
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| 35 | 35 | | |
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| 36 | 36 | | Sec. 5. Subsection (i) of section 16-262w of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage): |
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| 37 | 37 | | |
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| 38 | 38 | | (i) The amount of the WICA applied between general rate case filings shall not exceed [seven and one-half] ten per cent of the water company's annual retail water revenues approved in its most recent rate filing, and shall not exceed five per cent of such revenues for any twelve-month period. The amount of the adjustment shall be reset to zero as of the effective date of new base rates approved pursuant to section 16-19 and shall be reset to zero if the company exceeds the allowable rate of return by more than one hundred basis points for any calendar year. |
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| 39 | 39 | | |
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| 40 | 40 | | |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | This act shall take effect as follows and shall amend the following sections: |
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| 44 | 44 | | Section 1 from passage New section |
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| 45 | 45 | | Sec. 2 from passage New section |
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| 46 | 46 | | Sec. 3 from passage 7-239(a) |
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| 47 | 47 | | Sec. 4 from passage 16-262v(1) |
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| 48 | 48 | | Sec. 5 from passage 16-262w(i) |
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| 49 | 49 | | |
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| 50 | 50 | | This act shall take effect as follows and shall amend the following sections: |
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| 51 | 51 | | |
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| 52 | 52 | | Section 1 |
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| 53 | 53 | | |
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| 54 | 54 | | from passage |
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| 55 | 55 | | |
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| 56 | 56 | | New section |
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| 57 | 57 | | |
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| 58 | 58 | | Sec. 2 |
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| 59 | 59 | | |
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| 60 | 60 | | from passage |
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| 61 | 61 | | |
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| 62 | 62 | | New section |
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| 63 | 63 | | |
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| 64 | 64 | | Sec. 3 |
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| 65 | 65 | | |
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| 66 | 66 | | from passage |
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| 67 | 67 | | |
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| 68 | 68 | | 7-239(a) |
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| 69 | 69 | | |
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| 70 | 70 | | Sec. 4 |
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| 71 | 71 | | |
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| 72 | 72 | | from passage |
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| 73 | 73 | | |
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| 74 | 74 | | 16-262v(1) |
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| 75 | 75 | | |
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| 76 | 76 | | Sec. 5 |
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| 77 | 77 | | |
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| 78 | 78 | | from passage |
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| 79 | 79 | | |
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| 80 | 80 | | 16-262w(i) |
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| 81 | 81 | | |
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