Connecticut House Bill HB06984

Connecticut 2015 Regular Session

• Introduced: 3/6/15
• Refer: 3/6/15
• Report Pass: 3/24/15
• Refer: 4/6/15
• Report Pass: 4/13/15
• Engrossed: 5/13/15
• Report Pass: 5/15/15
• Chaptered: 6/15/15
• Enrolled: 6/18/15
• Passed: 7/2/15

Caption

An Act Concerning Revenue Adjustment Charges For Water Companies.

Impact

The bill's amendments to section 16-262y of the general statutes focus on the reconciliation of actual revenues to allowed revenues for water companies. Under this framework, companies will be required to file annual reconciliations that also include assessments of water demand changes and conservation efforts. This shift is designed to align water companies' financial incentives with sustainability goals, encouraging them to promote water conservation measures actively.

Summary

House Bill 06984, titled 'An Act Concerning Revenue Adjustment Charges For Water Companies', was enacted to modify the regulatory framework under which water companies operate, particularly regarding their revenue adjustment mechanisms. The bill allows for annual authorization of a revenue adjustment mechanism after its initial approval, with provisions extending up to three years after the initial six-year period. This change is intended to provide water companies with a more predictable revenue stream and facilitate better financial planning.

Sentiment

The sentiment surrounding HB 06984 has generally been supportive, particularly among those involved in the water utility industry. By providing mechanisms for more predictable revenue, supporters argue that this bill enables water companies to enhance their infrastructure and service quality. Nonetheless, there is also a level of cautious oversight from regulatory bodies to ensure that the extended mechanisms do not lead to excessive rate increases that could burden consumers.

Contention

While the overall response to the bill is positive, points of contention include concerns about the potential for water companies to exploit the revenue adjustment mechanisms for disproportionate rate hikes. Critics argue that the bill should be paired with stronger consumer protections to ensure that the public's interest is safeguarded and that water companies are held accountable for their rate-setting practices.