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General Assembly Raised Bill No. 888
January Session, 2019
LCO No. 4619
Referred to Committee on ENERGY AND TECHNOLOGY
Introduced by:
(ET)
AN ACT CONCERNING CA LL BEFORE YOU DIG PROGRAM
VIOLATIONS AND FINES AND THE PUBLIC UTILITIES REGULATORY
POLICIES ACT.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 16-356 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective from passage): 2
Any person, public agency or public utility which the Public 3
Utilities Regulatory Authority determines, after notice and 4
opportunity for a hearing as provided in section 16-41, to have failed to 5
comply with any provision of this chapter or any regulation adopted 6
under section 16-357 shall forfeit and pay to the state a civil penalty of 7
not more than forty thousand dollars, provided any violation 8
involving the failure of a public utility to mark any approximate 9
location of an underground utility facility correctly or within the time 10
frames prescribed by regulation, which violation did not result in any 11
property damage or personal injury and was not the result of an act of 12
gross negligence on the part of the public utility, shall not result in a 13
civil penalty of more than one thousand dollars. Any civil penalty 14
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assessed for any violation involving the failure of a public utility to 15
properly or timely mark any approximate location of an underground 16
facility shall be paid by the person, public agency or public utility to 17
whom the notice is addressed. If any such person, public agency or 18
public utility recovers any portion of the penalty from any person, the 19
authority may direct such person, public agency or public utility to 20
forfeit such recovered penalty, as provided in such notice. 21
Notwithstanding the provisions contained in subsection (d) of section 22
16-41, the person, public agency or public utility receiving a notice of 23
violation pursuant to subsection (c) of section 16-41 shall have thirty 24
days from the date of receipt of the notice in which to deliver to the 25
authority a written application for a hearing. 26
Sec. 2. Section 16-243a of the general statutes is repealed and the 27
following is substituted in lieu thereof (Effective from passage): 28
[(a) As used in this section, "avoided costs" means the incremental 29
costs to an electric public service company, municipal electric energy 30
cooperative organized under chapter 101a or municipal electric utility 31
organized under chapter 101, of electric energy or capacity or both 32
which, but for the purchase from a private power producer, as defined 33
in section 16-243b, such company, cooperative or utility would 34
generate itself or purchase from another source. 35
(b) Each electric public service company, municipal electric energy 36
cooperative and municipal electric utility shall: (1) Purchase any 37
electrical energy and capacity made available, directly by a private 38
power producer or indirectly under subdivision (4) of this subsection; 39
(2) sell backup electricity to any private power producer in its service 40
territory; (3) make such interconnections in accordance with the 41
regulations adopted pursuant to subsection (h) of this section 42
necessary to accomplish such purchases and sales; (4) upon approval 43
by the Public Utilities Regulatory Authority of an application filed by a 44
willing private power producer, transmit energy or capacity from the 45
private power producer to any other such company, cooperative or 46
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utility or to another facility operated by the private power producer; 47
and (5) offer to operate in parallel with a private power producer. In 48
making a decision on an application filed under subdivision (4) of this 49
subsection, the authority shall consider whether such transmission 50
would (A) adversely impact the customers of the company, 51
cooperative or utility which would transmit energy or capacity to the 52
private power producer, (B) result in an uncompensated loss for, or 53
unduly burden, such company, cooperative, utility or private power 54
producer, (C) impair the reliability of service of such company, 55
cooperative or utility, or (D) impair the ability of the company, 56
cooperative or utility to provide adequate service to its customers. The 57
authority shall issue a decision on such an application not later than 58
one hundred twenty days after the application is filed, provided, the 59
authority may, before the end of such period and upon notifying all 60
parties and intervenors to the proceeding, extend the period by thirty 61
days. If the authority does not issue a decision within one hundred 62
twenty days after receiving such an application, or within one hundred 63
fifty days if the authority extends the period in accordance with the 64
provisions of this subsection, the application shall be deemed to have 65
been approved. The requirements under subdivisions (3), (4) and (5) of 66
this subsection shall be subject to reasonable standards for operating 67
safety and reliability and the nondiscriminatory assessment of costs 68
against private power producers, approved by the Public Utilities 69
Regulatory Authority with respect to electric public service companies 70
or determined by municipal electric energy cooperatives and 71
municipal electric utilities. 72
(c) The Public Utilities Regulatory Authority, with respect to electric 73
public service companies, and each municipal electric energy 74
cooperative and municipal electric utility shall establish rates and 75
conditions of service for: (1) The purchase of electrical energy and 76
capacity made available by a private power producer; and (2) the sale 77
of backup electricity to a private power producer. The rates for 78
electricity purchased from a private power producer shall be based on 79
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the full avoided costs of the electric public service company, municipal 80
electric energy cooperative or municipal electric utility, regardless of 81
whether the purchaser is simultaneously making sales to the private 82
power producer. Payment for energy and capacity purchased from a 83
private power producer by any such company, cooperative or utility 84
shall be pursuant to such rates and conditions or the terms of a 85
contract between the parties. The rates and conditions of service for the 86
purchase of energy and capacity established by the authority pursuant 87
to this subsection shall include specific schedules for pricing in long-88
term contracts for the sale of electricity from small renewable power 89
projects to electric public service companies by private power 90
producers. Such schedules shall not exceed the present worth of the 91
projected avoided costs of the electric public service company over the 92
term of the contract. The authority shall apply to a proposed contract 93
filed with the authority after January 1, 1992, by a private power 94
producer for a small renewable power project the rates and conditions 95
of service, including the pricing schedule, in effect on the date the 96
private power producer submits its proposed contract to the authority, 97
regardless of the subsequent creation of differing schedules or the 98
subsequent amendment of existing schedules. 99
(d) When any person, firm or corporation proposes to enter into a 100
contract to sell energy and capacity as a private power producer, an 101
electric public service company, municipal electric energy cooperative 102
or municipal electric utility shall respond promptly to all requests and 103
offers and negotiate in good faith to arrive at a contract which fairly 104
reflects the provisions of this section and the anticipated avoided costs 105
over the life of the contract. Upon application by a private power 106
producer, the authority may approve a contract which provides for 107
payment of less than the anticipated avoided costs if, considering all of 108
the provisions, the contract is at least as favorable to the private power 109
producer as a contract providing for the full avoided costs. The 110
contract may extend for a period of not more than thirty years at the 111
option of the private power producer if it has a generating facility with 112
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a capacity of at least one hundred kilowatts. 113
(e) The authority shall consider generating capacity available from 114
cogeneration technology and renewable energy resources in its 115
periodic reviews of electric public service companies and shall require 116
the companies to include the availability of such capacity in 117
applications for rate relief filed in accordance with section 16-19a. 118
(f) If a private power producer believes that an electric distribution 119
company has violated any provision of this section it may submit a 120
written petition alleging such violation to the authority. Upon receipt 121
of the petition, the authority shall fix a time and place for a hearing 122
and mail notice of the hearing to the parties in interest at least one 123
week in advance. Upon the hearing, the authority may, if it finds the 124
company has violated any such provision, prescribe the manner in 125
which it shall comply. 126
(g) After January 1, 1992, the authority shall approve each proposed 127
contract submitted by a private power producer for a small renewable 128
power project, with any modifications agreed to by the parties to the 129
contract, if the filing meets the standards for exemption from the 130
proposal process and for an approvable contract established pursuant 131
to section 16-6b, and is consistent with the pricing schedules adopted 132
pursuant to subsection (c) of this section. Nothing in this section shall 133
preclude a modification of such a contract if the parties to the contract 134
agree to the modification. Any such modification shall be approved by 135
the authority. The authority shall reconsider each decision issued 136
pursuant to this section between January 1, 1992, and June 29, 1993, 137
regarding such contracts and shall make any modifications to each 138
such decision necessary to ensure that each such decision conforms 139
with the provisions of this section. 140
(h) Not later than January 1, 2008, the Public Utilities Regulatory 141
Authority shall issue a final decision approving interconnection 142
standards that meet or exceed national standards of interconnectivity. 143
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If the authority does not issue a final decision by October 1, 2008, each 144
electric distribution company, municipal electric energy cooperative 145
and municipal electric utility shall meet the standards set forth in Title 146
4, Chapter 4, Subchapter 9, "Net Metering and Interconnection 147
Standards for Class I Renewable Energy Systems" of the New Jersey 148
Administrative Code.] 149
(a) As used in this title, "PURPA" means the Public Utilities 150
Regulatory Policies Act of 1978, codified at 18 USC 824a-3, and its 151
implementing regulations, 18 CFR Part 292, as amended from time to 152
time, and "Qualifying Facilities" or "QF" has the same meaning as 153
provided in 18 CFR 292.101(b)(1). 154
(b) As used in section 16-243b, as amended by this act, "avoided 155
costs" means the costs avoided by an electric distribution company as a 156
result of purchasing power or capacity from a qualifying facility, as 157
approved by the Public Utilities Regulatory Authority in accordance 158
with section 16-243b, as amended by this act, and shall not result in 159
costs greater than those which the purchasing electric distribution 160
company would incur if such electric distribution company did not 161
make such purchases and instead purchased electricity or capacity 162
from the regional wholesale electricity markets. 163
Sec. 3. Section 16-243b of the general statutes is repealed and the 164
following is substituted in lieu thereof (Effective from passage): 165
[(a) As used in this title: 166
(1) "Private power production facility" means a facility which 167
generates electricity in the state (A) solely through the use of 168
cogeneration technology, provided the average useful thermal energy 169
output of the facility is at least twenty per cent of the total energy 170
output of the facility, (B) solely through the use of renewable energy 171
sources, or (C) through both only; 172
(2) "Useful thermal energy output" means the thermal energy made 173
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available for use in any industrial or commercial process, or used in 174
any heating or cooling application; 175
(3) "Private power producer" means (A) a subsidiary of a gas public 176
service company which is not affiliated with an electric public service 177
company, or a subsidiary of a holding company controlling, directly or 178
indirectly, a gas public service company but not an electric public 179
service company, which generates electricity solely through ownership 180
of fifty per cent or less of a private power production facility or, with 181
the approval of the Public Utilities Regulatory Authority, through 182
ownership of one hundred per cent of a private power production 183
facility which (i) uses a source of energy other than gas as the primary 184
energy source of the facility, or (ii) uses gas as the primary energy 185
source of the facility and uses an improved and innovative technology 186
which furthers the state energy policy as set forth in section 16a-35k, 187
(B) a subsidiary of any other public service company or a subsidiary of 188
a holding company controlling, directly or indirectly, such a public 189
service company, which generates electricity solely through ownership 190
of fifty per cent or less of a private power production facility, (C) the 191
state, a political subdivision of the state or any other person, firm or 192
corporation other than a public service company or any corporation 193
which was a public service company, prior to July 1, 1981, and which 194
consents to be regulated as a public service company or a holding 195
company for a public service company, which generates electricity 196
solely through ownership of one hundred per cent or less of a private 197
power production facility, or (D) any combination thereof; 198
(4) "Private power provider" means any person, firm, corporation, 199
nonprofit corporation, limited liability company, governmental entity, 200
or other entity, including any public service company, holding 201
company, or subsidiary, which provides energy conservation or 202
demand management measures pursuant to section 16 -243f and 203
regulations and orders issued hereunder, which replace the need for 204
electricity generating capacity that electric public service companies 205
would otherwise require; 206
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(5) "Electricity conservation or demand management measures" 207
means the provision pursuant to this section and section 16-243f and 208
regulations and orders adopted hereunder by a private power 209
provider to an electric public service company or its customers of 210
equipment or services or both designed to conserve electricity or to 211
manage electricity load; and 212
(6) "Small renewable power project" means any private power 213
production facility which has a capacity of five megawatts or less and 214
is fueled by a renewable resource, as defined in section 16a-2, other 215
than wood. 216
(b) No provision of this section shall limit the jurisdiction of the 217
Public Utilities Regulatory Authority with regard to the effects on a 218
public service company of a private power producer which is an 219
affiliate or a subsidiary of the public service company.] 220
(a) Each electric distribution company shall file with the Public 221
Utilities Regulatory Authority for review and approval three pro 222
forma tariffs for the purchase of energy and capacity from eligible 223
qualifying facilities from which the electric distribution company is 224
obligated to purchase energy or capacity pursuant to 18 CFR 292.303. 225
Tariffs required pursuant to this section shall address each of the 226
following types of PURPA transactions: (1) Energy-only qualifying 227
facility sales; (2) capacity-only qualifying facility sales; and (3) energy 228
and capacity qualifying facility sales. 229
(b) The Public Utilities Regulatory Authority shall conduct an 230
uncontested proceeding to review tariffs submitted pursuant to 231
subsection (a) of this section. The authority shall approve tariffs that it 232
determines satisfy the requirements of PURPA and any other 233
requirements the authority deems appropriate. 234
(c) Each tariff submitted pursuant to subsection (a) of this section 235
shall establish a process by which qualifying facilities may elect to be 236
compensated either: (1) Based on avoided costs calculated at the time 237
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of delivery; or (2) based on avoided costs forecasted at the time an 238
obligation to purchase arises pursuant to 18 CFR 292.303. 239
Sec. 4. Subdivision (24) of subsection (b) of section 7-233e of the 240
general statutes is repealed and the following is substituted in lieu 241
thereof (Effective from passage): 242
(24) To contract for the purchase or exchange of electricity produced 243
by a [person using cogeneration technology or renewable fuel 244
resources] Qualifying Facility, as defined in [section 16-1] 18 CFR 245
292.101(b)(1), or for the sale or exchange of electricity produced by the 246
municipal cooperative to such person, provided such purchase, sale or 247
exchange [is subject to the rates and conditions of service established 248
in accordance with section 16-243a] complies with the rates and 249
conditions of service established in 18 CFR Part 292; 250
Sec. 5. Section 12-408b of the general statutes is repealed and the 251
following is substituted in lieu thereof (Effective from passage): 252
On and after July 1, 1991, any person, firm or corporation who pays 253
a sales and use tax, which tax would not have been due prior to July 1, 254
1991, pursuant to subdivision (39) of section 12-412 of the general 255
statutes, revision of 1958, revised to January 1991, shall recover the tax 256
paid by (1) adding such tax to any amounts otherwise payable [under 257
a sales contract] pursuant to a tariff approved by the Public Utilities 258
Regulatory Authority pursuant to [subsection (d) of] section 16-243a, 259
as amended by this act, and (2) amortizing such tax, together with 260
interest at the rate paid on front-loaded payments, over the life of a 261
sales contract approved by the department pursuant to said subsection 262
(d). 263
Sec. 6. Subdivision (3) of subsection (a) of section 16-1 of the general 264
statutes is repealed and the following is substituted in lieu thereof 265
(Effective from passage): 266
(3) "Public service company" includes electric distribution, gas, 267
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telephone, pipeline, sewage, water and community antenna television 268
companies and holders of a certificate of cable franchise authority, 269
owning, leasing, maintaining, operating, managing or controlling 270
plants or parts of plants or equipment, but shall not include towns, 271
cities, boroughs, any municipal corporation or department thereof, 272
whether separately incorporated or not, [a private power producer] 273
producer Qualifying Facility, as defined in [section 16-243b] 18 CFR 274
292.101(b)(1), or an exempt wholesale generator, as defined in 15 USC 275
79z-5a; 276
Sec. 7. Subdivision (23) of subsection (a) of section 16-1 of the 277
general statutes is repealed and the following is substituted in lieu 278
thereof (Effective from passage): 279
(23) "Electric distribution company" or "distribution company" 280
means any person providing electric transmission or distribution 281
services within the state, but does not include: (A) A [private power 282
producer] Qualifying Facility, as defined in [section 16-243b] 18 CFR 283
292.101(b)(1); (B) a municipal electric utility established under chapter 284
101, other than a participating municipal electric utility; (C) a 285
municipal electric energy cooperative established under chapter 101a; 286
(D) an electric cooperative established under chapter 597; (E) any other 287
electric utility owned, leased, maintained, operated, managed or 288
controlled by any unit of local government under any general statute 289
or special act; (F) an electric supplier; (G) an entity approved to 290
submeter pursuant to section 16-19ff; or (H) a municipality, state or 291
federal governmental entity authorized to distribute electricity across a 292
public highway or street pursuant to section 16-243aa; 293
Sec. 8. Subsection (a) of section 16-50i of the general statutes is 294
repealed and the following is substituted in lieu thereof (Effective from 295
passage): 296
(a) "Facility" means: (1) An electric transmission line of a design 297
capacity of sixty-nine kilovolts or more, including associated 298
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equipment but not including a transmission line tap, as defined in 299
subsection (e) of this section; (2) a fuel transmission facility, except a 300
gas transmission line having a design capability of less than two 301
hundred pounds per square inch gauge pressure or having a design 302
capacity of less than twenty per cent of its specified minimum yield 303
strength; (3) any electric generating or storage facility using any fuel, 304
including nuclear materials, including associated equipment for 305
furnishing electricity but not including an emergency generating 306
device, as defined in subsection (f) of this section or a facility (A) 307
[owned and operated by a private power producer, as defined in 308
section 16-243b, (B) which is a qualifying small power production 309
facility or a qualifying cogeneration facility under the Public Utility 310
Regulatory Policies Act of 1978, as amended] which is a Qualifying 311
Facility, as defined in 18 CFR 292.101(b)(1), or a facility determined by 312
the council to be primarily for a producer's own use, and [(C)] (B) 313
which has, in the case of a [facility] Qualifying Facility utilizing 314
renewable energy sources, a generating capacity of one megawatt of 315
electricity or less and, in the case of a [facility] Qualifying Facility 316
utilizing cogeneration technology, a generating capacity of twenty-five 317
megawatts of electricity or less; (4) any electric substation or 318
switchyard designed to change or regulate the voltage of electricity at 319
sixty-nine kilovolts or more or to connect two or more electric circuits 320
at such voltage, which substation or switchyard may have a substantial 321
adverse environmental effect, as determined by the council established 322
under section 16-50j, and other facilities which may have a substantial 323
adverse environmental effect as the council may, by regulation, 324
prescribe; (5) such community antenna television towers and head-end 325
structures, including associated equipment, which may have a 326
substantial adverse environmental effect, as said council shall, by 327
regulation, prescribe; and (6) such telecommunication towers, 328
including associated telecommunications equipment, owned or 329
operated by the state, a public service company or a certified 330
telecommunications provider or used in a cellular system, as defined 331
in [the Code of Federal Regulations Title 47, Part 22] 47 CFR 22, as 332
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amended, which may have a substantial adverse environmental effect, 333
as said council shall, by regulation, prescribe; 334
Sec. 9. Section 16a-49 of the general statutes is repealed and the 335
following is substituted in lieu thereof (Effective from passage): 336
[(a)] The Public Utilities Regulatory Authority shall require each gas 337
and electric public service company to implement a cost effective 338
conservation and load management program consistent with 339
integrated resource planning principles. As part of each conservation 340
and load management program, the authority shall require specific 341
programs to target the needs of manufacturers. The authority shall 342
allow the gas or electric public service company either: (1) To earn a 343
return on prudently incurred multiyear conservation and load 344
management expenditures on programs and measures approved by 345
the authority included in the company's rate base and successfully 346
implemented by the company at a rate at least one percentage point 347
but no more than five percentage points higher than such company's 348
rate of return otherwise found to be reasonable; or (2) authorize a 349
return of at least one percentage point but no more than five 350
percentage points on the company's prudently incurred conservation 351
and load management expenditures treated as operating costs on 352
programs and measures approved by the authority and successfully 353
implemented by the company. For the purposes of this section, 354
"conservation and load management expenditures" shall include all 355
prudent expenditures, approved by the authority by gas or electric 356
public service companies designed to conserve energy or manage gas 357
or energy load. 358
[(b) The authority may authorize an electric public service company 359
a return on such company's expenditures in acquiring energy 360
conservation or load management measures, approved by the 361
authority, from private power providers, as defined in section 16-362
243b.] 363
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Sec. 10. Section 49-4c of the general statutes is repealed and the 364
following is substituted in lieu thereof (Effective from passage): 365
Any mortgage entered into subsequent to July 1, 1986, between [a 366
private power producer, as defined in section 16-243b, or the owner or 367
operator of a qualifying facility] a Qualifying Facility, as defined in 368
[Part 292 of Title 18 of the Code of Federal Regulations] 18 CFR 292, or 369
a guarantor of any of their respective obligations, as mortgagor, and an 370
electric distribution company, as defined in section 16-1, as amended 371
by this act, as mortgagee, shall be valid to secure all obligations then 372
existing or thereafter arising of the mortgagor to the mortgagee under 373
an electricity purchase [agreement] tariff, including, without 374
limitation, recovery of amounts paid to [the private power producer 375
or] the owner or operator of a [qualifying facility] Qualifying Facility 376
by the mortgagee in excess of the mortgagee's avoided costs, as 377
defined in accordance with tariffs approved by the Public Utilities 378
Regulatory Authority pursuant to section 16-243a, as amended by this 379
act, and all other damages for failure to deliver electric energy or 380
capacity or other breach of an electricity purchase agreement, 381
including, without limitation, the net replacement cost of the capacity 382
being secured by such mortgage, together with accrued interest, if any, 383
as computed in accordance with the terms of the electricity purchase 384
agreement or the mortgage, and under a guarantee of such obligations 385
or obligations created by the mortgage, and shall have priority over the 386
rights of others who shall acquire any rights in the property covered 387
by such mortgage subsequent to the recording of the mortgage in the 388
land records of the town in which the mortgaged property is situated 389
provided: (1) The electricity purchase [agreement] tariff is substantially 390
in the form approved by the Public Utilities Regulatory Authority 391
pursuant to section 16-243a, as amended by this act, and shall have 392
been entered into by the mortgagor and mortgagee prior to or 393
simultaneously with or subsequent to the execution and delivery of the 394
mortgage, (2) the caption to the mortgage shall contain the words 395
"Open-End Mortgage" and ["Electricity Purchase Agreement"] 396
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"Electricity Purchase Tariff", (3) the mortgage shall state that it is 397
entered into to secure the mortgagor's obligations to the mortgagee 398
under an electricity purchase [agreement] tariff or under a guarantee 399
of any electricity purchase [agreement] tariff obligations and shall 400
recite either the address of an office of the mortgagee or its assignee in 401
the state at which a copy of the electricity purchase [agreement] tariff 402
is on file and may be inspected by the public during normal business 403
hours or that the electricity purchase [agreement] tariff has been 404
recorded, as an exhibit to the mortgage or otherwise, on or before the 405
date the mortgage is recorded, in the land records of the town in which 406
the mortgaged property is situated, provided the electricity purchase 407
[agreement] tariff shall be so recorded, (4) the amount of the obligation 408
from time to time secured by the mortgage may be determined or 409
reasonably approximated on the basis of records maintained by the 410
mortgagee or its assignee in the state, which records and an estimate of 411
the amount claimed by the mortgagee to be secured are made available 412
to the public with reasonable promptness upon written request, and 413
(5) the mortgage states the maximum amount which it shall secure. 414
Nothing in this section shall invalidate any mortgage which would be 415
valid without this section. For purposes of this section, ["electricity 416
purchase agreement"] "electricity purchase tariff" means [a contract or] 417
an agreement to purchase and sell electric energy or capacity by and 418
between [a private power producer, as defined in section 16-243b, or] 419
the owner or operator of a [qualifying facility] Qualifying Facility, as 420
defined in [Part 292 of Title 18 of the Code of Federal Regulations] 18 421
CFR 292.101(b)(1), and an electric distribution company, as defined in 422
section 16-1, as amended by this act. 423
Sec. 11. Sections 16-243d, 16-243f and 16-243g of the general statutes 424
are repealed. (Effective from passage) 425
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 16-356
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Sec. 2 from passage 16-243a
Sec. 3 from passage 16-243b
Sec. 4 from passage 7-233e(b)(24)
Sec. 5 from passage 12-408b
Sec. 6 from passage 16-1(a)(3)
Sec. 7 from passage 16-1(a)(23)
Sec. 8 from passage 16-50i(a)
Sec. 9 from passage 16a-49
Sec. 10 from passage 49-4c
Sec. 11 from passage Repealer section
Statement of Purpose:
To require that civil penalties for the failure of a public utility to
properly or timely mark the approximate location of an underground
facility be paid by the person, public agency or public utility to whom
the notice of failure to comply is addressed and to make changes
regarding the Public Utilities Regulatory Policies Act of 1978.
[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.]