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General Assembly Substitute Bill No. 960
January Session, 2019
AN ACT CONCERNING TH E PUBLIC UTILITIES REGULATORY
AUTHORITY'S REVIEW O F CLAIMS ARISING FROM CONTRAC TS
PREVIOUSLY APPROVED BY THE AUTHORITY, PERSONS
INVOLVED IN THE TRANSPORTATION OF NATURA L GAS AND
REQUIREMENTS FOR OPE RATOR QUALIFICATION OF INDIVIDUALS
PERFORMING COVERED T ASKS ON A PIPELINE FACILITY, CALL
BEFORE YOU DIG PROGR AM 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 Section 16-35 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective from passage): 2
(a) Any person, including, but not limited to, a company, town, city, 3
borough or corporation aggrieved by any order, authorization or 4
decision of the Public Utilities Regulatory Authority, except an order, 5
authorization or decision of the authority approving the taking of land, 6
in any matter to which such person was or ought to have been made a 7
party or intervenor, may appeal therefrom in accordance with the 8
provisions of section 4-183, provided any person who is party to a 9
contract described in subsection (d) of this section shall first bring their 10
claim to the authority pursuant to said subsection. Such person so 11
appealing shall give bond to the state, with sufficient surety, for the 12
benefit of the adverse party, in such sum as the authority fixes, to pay 13
all costs in case such person fails to sustain such appeal. No 14 Substitute Bill No. 960
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municipality or political subdivision shall be determined not to be 15
aggrieved solely because there are other persons who are similarly 16
affected by the order, authorization or decision of the authority. 17
(b) Any person who may appeal an order, authorization or decision 18
of the authority under subsection (a) of this section who was an 19
intervenor or, after timely application, was denied intervenor status to 20
the authority proceeding, shall be limited to raise on appeal only those 21
issues that (1) such person addressed during the proceeding or were 22
addressed in the final decision, or (2) such person raised in his request 23
for intervenor status if he was denied intervenor status. 24
(c) Notwithstanding any provision of this title and title 16a, 25
proceedings in which the Public Utilities Regulatory Authority 26
conducts a request for proposals or any other procurement process for 27
the purpose of acquiring electricity products or services for the benefit 28
of ratepayers shall be uncontested. 29
(d) (1) The first dispute arising from a contract that is approved by 30
the Public Utilities Regulatory Authority on or after the effective date 31
of this section where (A) the contract was approved by the authority 32
pursuant to section 16-19hh, 16-243m, 16-243u, 16-244r, 16-244s, 16-33
244t, 16-244y, 16a-3b, 16a-3f, 16a-3g, 16a-3h, 16a-3i, 16a-3j, 16a-3k, 16a-34
3l or 16a-3m, (B) a public service company is a party to the contract, (C) 35
the contract price is funded by ratepayers, and (D) the purpose of the 36
contract is for the public service company to purchase products and 37
services for the benefit of ratepayers, shall be brought by a party to 38
such contract to the authority. A party may petition the authority for a 39
declaratory ruling or make an application for review pursuant to this 40
subsection or the section of the general statutes that governs such 41
contract. Notwithstanding subsection (a) of section 4-176, the authority 42
may not on its own motion initiate a proceeding to review a contract 43
described in this subsection. 44
(2) The authority shall review such contract claims brought 45
pursuant to subdivision (1) of this subsection. The authority shall 46 Substitute Bill No. 960
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decide such contract claims by issuing a declaratory ruling or a final 47
decision in a contested case proceeding, including ordering legal and 48
equitable contract remedies. Any party to such contract shall have the 49
right to appeal to the Superior Court from any such declaratory ruling 50
or final decision adjudicating such contract claims pursuant to 51
subsection (a) of this section. 52
Sec. 2. Section 16-7 of the general statutes is repealed and the 53
following is substituted in lieu thereof (Effective from passage): 54
The utility commissioners of the Public Utilities Regulatory 55
Authority, or their designees, while engaged in the performance of 56
their duties may, at all reasonable times, enter any premises, buildings, 57
cars, plants or other places belonging to or controlled by any public 58
service company, [or] electric supplier or person involved in the 59
transportation of gas, as such terms are defined in section 16-280a, and 60
any person obstructing or in any way causing to be obstructed or 61
hindered any utility commissioner of the Public Utilities Regulatory 62
Authority or employee of the Public Utilities Regulatory Authority in 63
the performance of his or her duties shall be fined not more than two 64
hundred dollars or imprisoned not more than six months, or both. 65
Sec. 3. Section 16-8a of the general statutes is repealed and the 66
following is substituted in lieu thereof (Effective from passage): 67
(a) No public service company, as defined in section 16-1, as 68
amended by this act, holding company, as defined in section 16-47, 69
person involved in the transportation of gas, as such terms are defined 70
in section 16-280a, or Nuclear Regulatory Commission licensee 71
operating a nuclear power generating facility in this state, or person, 72
firm, corporation, contractor or subcontractor directly or indirectly 73
providing goods or services to such public service company, holding 74
company, person involved in the transportation of gas, as such terms 75
are defined in section 16-280a, or licensee, may take or threaten to take 76
any retaliatory action against an employee for the employee's 77
disclosure of (1) any matter involving the substantial misfeasance, 78 Substitute Bill No. 960
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malfeasance or nonfeasance in the management of such public service 79
company, holding company, person involved in the transportation of 80
gas, as such terms are defined in section 16-280a, or licensee, or (2) 81
information pursuant to section 31-51m. Any employee found to have 82
knowingly made a false disclosure shall be subject to disciplinary 83
action by the employee's employer, up to and including dismissal. 84
(b) Any employee of such a public service company, holding 85
company, person involved in the transportation of gas, as such terms 86
are defined in section 16-280a, or licensee, or of any person, firm, 87
corporation, contractor or subcontractor directly or indirectly 88
providing goods or services to such a public service company, holding 89
company, person involved in the transportation of gas, as such terms 90
are defined in section 16-280a, or licensee, having knowledge of any of 91
the following may transmit all facts and information in the employee's 92
possession to the Public Utilities Regulatory Authority: (1) Any matter 93
involving substantial misfeasance, malfeasance or nonfeasance in the 94
management of such public service company, holding company , 95
person involved in the transportation of gas, as such terms are defined 96
in section 16-280a, or licensee; or (2) any matter involving retaliatory 97
action or the threat of retaliatory action taken against an employee 98
who has reported the misfeasance, malfeasance or nonfeasance, in the 99
management of such public service company, holding company , 100
person involved in the transportation of gas, as such terms are defined 101
in section 16-280a, or licensee. With regard to any matter described in 102
subdivision (1) of this subsection, the authority shall investigate such 103
matter in accordance with the provisions of section 16-8 and shall not 104
disclose the identity of such employee without the employee's consent 105
unless it determines that such disclosure is unavoidable during the 106
course of the investigation. With regard to any matter described in 107
subdivision (2) of this subsection, the matter shall be handled in 108
accordance with the procedures set forth in subsections (c) and (d) of 109
this section. 110
(c) (1) Not more than ninety business days after receipt of a written 111 Substitute Bill No. 960
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complaint, in a form prescribed by the authority, by an employee 112
alleging the employee's employer has retaliated against an employee 113
in violation of subsection (a) of this section, the authority shall make a 114
preliminary finding in accordance with this subsection. 115
(2) Not more than five business days after receiving a written 116
complaint, in a form prescribed by the authority, the authority shall 117
notify the employer by certified mail. Such notification shall include a 118
description of the nature of the charges and the substance of any 119
relevant supporting evidence. The employer may submit a written 120
response and both the employer and the employee may present 121
rebuttal statements in the form of affidavits from witnesses and 122
supporting documents and may meet with the authority informally to 123
respond verbally about the nature of the employee's charges. The 124
authority shall consider in making its preliminary finding as provided 125
in subdivision (3) of this subsection any such written and verbal 126
responses, including affidavits and supporting documents, received by 127
the authority not more than twenty business days after the employer 128
receives such notice. Any such response received after twenty business 129
days shall be considered by the authority only upon a showing of good 130
cause and at the discretion of the authority. The authority shall make 131
its preliminary finding as provided in subdivision (3) of this subsection 132
based on information described in this subdivision, without a public 133
hearing. 134
(3) Unless the authority finds by clear and convincing evidence that 135
the adverse employment action was taken for a reason unconnected 136
with the employee's report of substantial misfeasance, malfeasance or 137
nonfeasance, there shall be a rebuttable presumption that an employee 138
was retaliated against in violation of subsection (a) of this section if the 139
authority finds that: (A) The employee had reported substantial 140
misfeasance, malfeasance or nonfeasance in the management of the 141
public service company, holding company, person involved in the 142
transportation of gas, as such terms are defined in section 16-280a, or 143
licensee; (B) the employee was subsequently discharged, suspended, 144 Substitute Bill No. 960
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demoted or otherwise penalized by having the employee's status of 145
employment changed by the employee's employer; and (C) the 146
subsequent discharge, suspension, demotion or other penalty followed 147
the employee's report closely in time. 148
(4) If such findings are made, the authority shall issue an order 149
requiring the employer to immediately return the employee to the 150
employee's previous position of employment or an equivalent position 151
pending the completion of the authority's full investigatory proceeding 152
pursuant to subsection (d) of this section. 153
(d) Not later than thirty days after making a preliminary finding in 154
accordance with the provisions of subsection (c) of this section, the 155
authority shall initiate a full investigatory proceeding in accordance 156
with the provisions of section 16-8, at which time the employer shall 157
have the opportunity to rebut the presumption. The authority may 158
issue orders, impose civil penalties, order payment of back pay or 159
award attorneys' fees in a manner that conforms with the notice and 160
hearing provisions in section 16-41, as amended by this act, against a 161
public service company, holding company, person involved in the 162
transportation of gas, as such terms are defined in section 16-280a, or 163
licensee or a person, firm, corporation, contractor or subcontractor 164
directly or indirectly providing goods or services to such public service 165
company, holding company, person involved in the transportation of 166
gas, as such terms are defined in section 16-280a, or licensee, in order 167
to enforce the provisions of this section. 168
(e) If an employee or former employee of such a public service 169
company, holding company, person involved in the transportation of 170
gas, as such terms are defined in section 16-280a, or licensee, or of a 171
person, firm, corporation, contractor or subcontractor directly or 172
indirectly providing goods or services to such a public service 173
company, holding company, person involved in the transportation of 174
gas, as such terms are defined in section 16-280a, or licensee, having 175
knowledge of any matter involving the substantial misfeasance, 176
malfeasance or nonfeasance in the management of such public service 177 Substitute Bill No. 960
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company, holding company, person involved in the transportation of 178
gas, as such terms are defined in section 16-280a, or licensee, enters 179
into an agreement with the employee's employer that contains a 180
provision directly or indirectly discouraging the employee from 181
presenting a written complaint or testimony concerning such 182
misfeasance, malfeasance or nonfeasance in any legislative, 183
administrative or judicial proceeding, such provision shall be void as 184
against public policy. 185
(f) The Public Utilities Regulatory Authority shall adopt regulations, 186
in accordance with chapter 54, to carry out the provisions of this 187
section. Such regulations shall include the following: (1) The 188
procedures by which a complaint may be brought pursuant to 189
subsection (a) of this section; (2) the time period in which such a 190
complaint may be brought; (3) the time period by which the authority 191
shall render a decision pursuant to subsection (d) of this section; (4) the 192
form on which written complaints shall be submitted to the authority 193
by an employee pursuant to subsection (c) of this section; and (5) the 194
requirement that a notice be posted in the workplace informing all 195
employees of any public service company, holding company, person 196
involved in the transportation of gas, as such terms are defined in 197
section 16-280a, and licensee and of any person, firm, corporation, 198
contractor or subcontractor directly or indirectly providing goods or 199
services to a company or licensee, as defined in subsection (b) of this 200
section, of their rights under this section, including the right to be 201
reinstated in accordance with subsection (c) of this section. 202
Sec. 4. Section 16-11 of the general statutes is repealed and the 203
following is substituted in lieu thereof (Effective from passage): 204
The Public Utilities Regulatory Authority shall, so far as is 205
practicable, keep fully informed as to the condition of the plant, 206
equipment and manner of operation of all public service companies 207
and persons involved in the transportation of gas, as such terms are 208
defined in section 16-280a, in respect to their adequacy and suitability 209
to accomplish the duties imposed upon such companies by law and in 210 Substitute Bill No. 960
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respect to their relation to the safety of the public and of the employees 211
of such companies. The authority may order such reasonable 212
improvements, repairs or alterations in such plant or equipment, or 213
such changes in the manner of operation, as may be reasonably 214
necessary in the public interest. The general purposes of this section 215
and sections 16-19, 16-25, 16-43 and 16-47 are to assure to the state of 216
Connecticut its full powers to regulate its public service companies, to 217
increase the powers of the Public Utilities Regulatory Authority and to 218
promote local control of the public service companies of this state, and 219
said sections shall be so construed as to effectuate these purposes. 220
Sec. 5. Section 16-16 of the general statutes is repealed and the 221
following is substituted in lieu thereof (Effective from passage): 222
Each public service company, [and] electric supplier and person 223
involved in the transportation of gas, as such terms are defined in 224
section 16-280a, subject to regulation by the Public Utilities Regulatory 225
Authority shall, in the event of any accident attended with personal 226
injury or involving public safety, which was or may have been 227
connected with or due to the operation of its or his property, or caused 228
by contact with the wires of any public service company or electric 229
supplier, notify the authority thereof, by telephone or otherwise, as 230
soon as may be reasonably possible after the occurrence of such 231
accident, unless such accident is a minor accident, as defined by 232
regulations of the authority. Each such person, company or electric 233
supplier shall report such minor accidents to the authority in writing, 234
in summary form, once each month. If notice of such accident, other 235
than a minor accident, is given otherwise than in writing, it shall be 236
confirmed in writing within five days after the occurrence of such 237
accident. Any person, company or electric supplier failing to comply 238
with the provisions of this section shall be fined not more than five 239
hundred dollars for each offense. 240
Sec. 6. Subsection (a) of section 16-41 of the general statutes is 241
repealed and the following is substituted in lieu thereof (Effective from 242
passage): 243 Substitute Bill No. 960
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(a) Each (1) public service company and its officers, agents and 244
employees, (2) electric supplier or person providing electric generation 245
services without a license in violation of section 16-245, and its officers, 246
agents and employees, (3) certified telecommunications provider or 247
person providing telecommunications services without authorization 248
pursuant to sections 16-247f to 16-247h, inclusive, and its officers, 249
agents and employees, (4) person, public agency or public utility, as 250
such terms are defined in section 16-345, subject to the requirements of 251
chapter 293, (5) person subject to the registration requirements under 252
section 16-258a, (6) cellular mobile telephone carrier, as described in 253
section 16-250b, (7) Connecticut electric efficiency partner, as defined 254
in section 16-243v, (8) company, as defined in section 16-49, as 255
amended by this act, [and] (9) entity approved to submeter pursuant to 256
section 16-19ff, and (10) person involved in the transportation of gas, 257
as such terms are defined in section 16-280a, shall obey, observe and 258
comply with all applicable provisions of this title and each applicable 259
order made or applicable regulations adopted by the Public Utilities 260
Regulatory Authority by virtue of this title as long as the same remains 261
in force. Any such company, electric supplier, certified 262
telecommunications provider, cellular mobile telephone carrier, 263
Connecticut electric efficiency partner, entity approved to submeter, 264
person, any officer, agent or employee thereof, public agency or public 265
utility which the authority finds has failed to obey or comply with any 266
such provision of this title, order or regulation shall be fined by order 267
of the authority in accordance with the penalty prescribed for the 268
violated provision of this title or, if no penalty is prescribed, not more 269
than ten thousand dollars for each offense, except that the penalty shall 270
be a fine of not more than forty thousand dollars for failure to comply 271
with an order of the authority made in accordance with the provisions 272
of section 16-19 or 16-247k or within thirty days of such order or 273
within any specific time period for compliance specified in such order. 274
Each distinct violation of any such provision of this title, order or 275
regulation shall be a separate offense and, in case of a continued 276
violation, each day thereof shall be deemed a separate offense. Each 277
such penalty and any interest charged pursuant to subsection (g) or (h) 278 Substitute Bill No. 960
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of section 16-49, as amended by this act, shall be excluded from 279
operating expenses for purposes of rate-making. 280
Sec. 7. Section 16-280e of the general statutes is repealed and the 281
following is substituted in lieu thereof (Effective from passage): 282
(a) Any person that violates any provision of the federal act, any 283
regulation issued under the federal act, any provision of this chapter or 284
any regulation adopted by the authority pursuant to subsection (b) or 285
(c) of section 16-280b, shall be subject to a civil penalty not to exceed 286
the higher of the maximum civil penalty provided under 49 USC 287
60122(a), as amended, or 49 CFR 190.223(a), as amended from time to 288
time. 289
(b) Any such civil penalty may be compromised by the Public 290
Utilities Regulatory Authority. In determining the amount of such 291
penalty, or the amount agreed upon in compromise, the authority shall 292
consider the criteria set forth in 49 USC 60122(b), as amended. 293
(c) Nothing in this section shall be construed to limit the penalties 294
available under section 16-33. 295
Sec. 8. (NEW) (Effective from passage) (a) For purposes of this section: 296
(1) "Covered task" means an activity that is performed on a pipeline 297
facility and that affects the safety or integrity of the pipeline; and 298
(2) "Evaluation" means a process, established and documented by 299
the operator, to determine an individual's ability to perform a covered 300
task by a (A) a written or oral examination, and (B) observation during 301
performance on the job or simulations. 302
(b) In addition to the minimum requirements for operator 303
qualification of individuals performing covered tasks on a pipeline 304
facility pursuant to 49 CFR 192, Subpart N, the requirements of this 305
section shall be applicable to such operators in the state. 306 Substitute Bill No. 960
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(c) Each operator shall: 307
(1) Evaluate an individual if the operator has reason to believe that 308
the individual did not correctly perform a covered task; 309
(2) Train all individuals to ensure that individuals performing 310
covered tasks have the necessary knowledge and skills to perform 311
covered tasks in a manner that ensures the safe operation of pipeline 312
facilities; 313
(3) Document in a plan the training requirements, including, but not 314
limited to, the minimum training time for each covered task; 315
(4) Conduct evaluations more than forty-eight hours after training; 316
(5) Ensure that the evaluation process is performed by operator 317
personnel or independent third-party contractors; 318
(6) Ensure that the evaluation process evaluates task-specific 319
abnormal operating conditions; 320
(7) Ensure that inspectors are qualified for the covered tasks they 321
are inspecting; 322
(8) Ensure that the training and evaluation process is specific to the 323
operator's plans, procedures and standards; and 324
(9) Ensure that the written qualification program includes a training 325
and evaluation process for personnel performing engineering tasks. 326
Sec. 9. (NEW) (Effective from passage) (a) Any person involved in the 327
transportation of gas, as such terms are defined in section 16-280a of 328
the general statutes, except persons involved in the transportation of 329
propane, shall utilize geographic information systems to map all of 330
such person's pipeline facilities, as defined in section 16-280a of the 331
general statutes. 332
(b) Any person involved in the transportation of gas, as such terms 333 Substitute Bill No. 960
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are defined in section 16-280a of the general statutes, except persons 334
involved in the transportation of propane, shall provide remote real-335
time, read-only access to all of such person's electronic systems, if the 336
authority determines that such access will be beneficial in keeping the 337
authority fully informed as to the condition of a plant, equipment and 338
manner of operation pursuant to section 16-11 of the general statutes, 339
as amended by this act. 340
Sec. 10. (NEW) (Effective from passage) On or before October 1, 2019, 341
and on or before October first of each year thereafter, any person 342
involved in the transportation of gas, as such terms are defined in 343
section 16-280a of the general statutes, except persons involved in the 344
transportation of natural gas, shall submit to the authority, on a form 345
prescribed by the authority, information the authority deems relevant 346
about such person's propane distribution systems that are subject to 347
the jurisdiction of the authority. Any changes to such information 348
submitted shall be submitted to the authority within thirty days of 349
such change. 350
Sec. 11. Section 16-356 of the general statutes is repealed and the 351
following is substituted in lieu thereof (Effective from passage): 352
Any person, public agency or public utility which the Public 353
Utilities Regulatory Authority determines, after notice and 354
opportunity for a hearing as provided in section 16-41, as amended by 355
this act, to have failed to comply with any provision of this chapter or 356
any regulation adopted under section 16-357 shall forfeit and pay to 357
the state a civil penalty of not more than forty thousand dollars, 358
provided any violation involving the failure of a public utility to mark 359
any approximate location of an underground utility facility correctly 360
or within the time frames prescribed by regulation, which violation 361
did not result in any property damage or personal injury and was not 362
the result of an act of gross negligence on the part of the public utility, 363
shall not result in a civil penalty of more than one thousand dollars. 364
Any civil penalty assessed for any violation involving the failure of a 365
public utility to properly or timely mark any approximate location of 366 Substitute Bill No. 960
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an underground facility shall be paid by the person, public agency or 367
public utility to whom the notice is addressed. If any such person, 368
public agency or public utility recovers any portion of the penalty from 369
any person, the authority may direct such person, public agency or 370
public utility to forfeit such recovered penalty, as provided in such 371
notice. Notwithstanding the provisions contained in subsection (d) of 372
section 16-41, the person, public agency or public utility receiving a 373
notice of violation pursuant to subsection (c) of section 16-41 shall have 374
thirty days from the date of receipt of the notice in which to deliver to 375
the authority a written application for a hearing. 376
Sec. 12. Section 16-243a of the general statutes is repealed and the 377
following is substituted in lieu thereof (Effective from passage): 378
[(a) As used in this section, "avoided costs" means the incremental 379
costs to an electric public service company, municipal electric energy 380
cooperative organized under chapter 101a or municipal electric utility 381
organized under chapter 101, of electric energy or capacity or both 382
which, but for the purchase from a private power producer, as defined 383
in section 16-243b, such company, cooperative or utility would 384
generate itself or purchase from another source. 385
(b) Each electric public service company, municipal electric energy 386
cooperative and municipal electric utility shall: (1) Purchase any 387
electrical energy and capacity made available, directly by a private 388
power producer or indirectly under subdivision (4) of this subsection; 389
(2) sell backup electricity to any private power producer in its service 390
territory; (3) make such interconnections in accordance with the 391
regulations adopted pursuant to subsection (h) of this section 392
necessary to accomplish such purchases and sales; (4) upon approval 393
by the Public Utilities Regulatory Authority of an application filed by a 394
willing private power producer, transmit energy or capacity from the 395
private power producer to any other such company, cooperative or 396
utility or to another facility operated by the private power producer; 397
and (5) offer to operate in parallel with a private power producer. In 398
making a decision on an application filed under subdivision (4) of this 399 Substitute Bill No. 960
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subsection, the authority shall consider whether such transmission 400
would (A) adversely impact the customers of the co mpany, 401
cooperative or utility which would transmit energy or capacity to the 402
private power producer, (B) result in an uncompensated loss for, or 403
unduly burden, such company, cooperative, utility or private power 404
producer, (C) impair the reliability of service of such company, 405
cooperative or utility, or (D) impair the ability of the company, 406
cooperative or utility to provide adequate service to its customers. The 407
authority shall issue a decision on such an application not later than 408
one hundred twenty days after the application is filed, provided, the 409
authority may, before the end of such period and upon notifying all 410
parties and intervenors to the proceeding, extend the period by thirty 411
days. If the authority does not issue a decision within one hundred 412
twenty days after receiving such an application, or within one hundred 413
fifty days if the authority extends the period in accordance with the 414
provisions of this subsection, the application shall be deemed to have 415
been approved. The requirements under subdivisions (3), (4) and (5) of 416
this subsection shall be subject to reasonable standards for operating 417
safety and reliability and the nondiscriminatory assessment of costs 418
against private power producers, approved by the Public Utilities 419
Regulatory Authority with respect to electric public service companies 420
or determined by municipal electric energy cooperatives and 421
municipal electric utilities. 422
(c) The Public Utilities Regulatory Authority, with respect to electric 423
public service companies, and each municipal electric energy 424
cooperative and municipal electric utility shall establish rates and 425
conditions of service for: (1) The purchase of electrical energy and 426
capacity made available by a private power producer; and (2) the sale 427
of backup electricity to a private power producer. The rates for 428
electricity purchased from a private power producer shall be based on 429
the full avoided costs of the electric public service company, municipal 430
electric energy cooperative or municipal electric utility, regardless of 431
whether the purchaser is simultaneously making sales to the private 432
power producer. Payment for energy and capacity purchased from a 433 Substitute Bill No. 960
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private power producer by any such company, cooperative or utility 434
shall be pursuant to such rates and conditions or the terms of a 435
contract between the parties. The rates and conditions of service for the 436
purchase of energy and capacity established by the authority pursuant 437
to this subsection shall include specific schedules for pricing in long-438
term contracts for the sale of electricity from small renewable power 439
projects to electric public service companies by private power 440
producers. Such schedules shall not exceed the present worth of the 441
projected avoided costs of the electric public service company over the 442
term of the contract. The authority shall apply to a proposed contract 443
filed with the authority after January 1, 1992, by a private power 444
producer for a small renewable power project the rates and conditions 445
of service, including the pricing schedule, in effect on the date the 446
private power producer submits its proposed contract to the authority, 447
regardless of the subsequent creation of differing schedules or the 448
subsequent amendment of existing schedules. 449
(d) When any person, firm or corporation proposes to enter into a 450
contract to sell energy and capacity as a private power producer, an 451
electric public service company, municipal electric energy cooperative 452
or municipal electric utility shall respond promptly to all requests and 453
offers and negotiate in good faith to arrive at a contract which fairly 454
reflects the provisions of this section and the anticipated avoided costs 455
over the life of the contract. Upon application by a private power 456
producer, the authority may approve a contract which provides for 457
payment of less than the anticipated avoided costs if, considering all of 458
the provisions, the contract is at least as favorable to the private power 459
producer as a contract providing for the full avoided costs. The 460
contract may extend for a period of not more than thirty years at the 461
option of the private power producer if it has a generating facility with 462
a capacity of at least one hundred kilowatts. 463
(e) The authority shall consider generating capacity available from 464
cogeneration technology and renewable energy resources in its 465
periodic reviews of electric public service companies and shall require 466 Substitute Bill No. 960
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the companies to include the availability of such capacity in 467
applications for rate relief filed in accordance with section 16-19a. 468
(f) If a private power producer believes that an electric distribution 469
company has violated any provision of this section it may submit a 470
written petition alleging such violation to the authority. Upon receipt 471
of the petition, the authority shall fix a time and place for a hearing 472
and mail notice of the hearing to the parties in interest at least one 473
week in advance. Upon the hearing, the authority may, if it finds the 474
company has violated any such provision, prescribe the manner in 475
which it shall comply. 476
(g) After January 1, 1992, the authority shall approve each proposed 477
contract submitted by a private power producer for a small renewable 478
power project, with any modifications agreed to by the parties to the 479
contract, if the filing meets the standards for exemption from the 480
proposal process and for an approvable contract established pursuant 481
to section 16-6b, and is consistent with the pricing schedules adopted 482
pursuant to subsection (c) of this section. Nothing in this section shall 483
preclude a modification of such a contract if the parties to the contract 484
agree to the modification. Any such modification shall be approved by 485
the authority. The authority shall reconsider each decision issued 486
pursuant to this section between January 1, 1992, and June 29, 1993, 487
regarding such contracts and shall make any modifications to each 488
such decision necessary to ensure that each such decision conforms 489
with the provisions of this section. 490
(h) Not later than January 1, 2008, the Public Utilities Regulatory 491
Authority shall issue a final decision approving interconnection 492
standards that meet or exceed national standards of interconnectivity. 493
If the authority does not issue a final decision by October 1, 2008, each 494
electric distribution company, municipal electric energy cooperative 495
and municipal electric utility shall meet the standards set forth in Title 496
4, Chapter 4, Subchapter 9, "Net Metering and Interconnection 497
Standards for Class I Renewable Energy Systems" of the New Jersey 498
Administrative Code.] 499 Substitute Bill No. 960
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(a) As used in this title, "PURPA" means the Public Utilities 500
Regulatory Policies Act of 1978, codified at 18 USC 824a-3, and its 501
implementing regulations, 18 CFR 292, as amended from time to time, 502
and "Qualifying Facilities" or "QF" has the same meaning as provided 503
in 18 CFR 292.101(b)(1). 504
(b) As used in section 16-243b, as amended by this act, "avoided 505
costs" means the costs avoided by an electric distribution company as a 506
result of purchasing power or capacity from a qualifying facility, as 507
approved by the Public Utilities Regulatory Authority in accordance 508
with section 16-243b, as amended by this act, and that do not result in 509
costs greater than those which the purchasing electric distribution 510
company would incur if such electric distribution company did not 511
make such purchases and instead purchased electricity or capacity 512
from the regional wholesale electricity markets. 513
Sec. 13. Section 16-243b of the general statutes is repealed and the 514
following is substituted in lieu thereof (Effective from passage): 515
[(a) As used in this title: 516
(1) "Private power production facility" means a facility which 517
generates electricity in the state (A) solely through the use of 518
cogeneration technology, provided the average useful thermal energy 519
output of the facility is at least twenty per cent of the total energy 520
output of the facility, (B) solely through the use of renewable energy 521
sources, or (C) through both only; 522
(2) "Useful thermal energy output" means the thermal energy made 523
available for use in any industrial or commercial process, or used in 524
any heating or cooling application; 525
(3) "Private power producer" means (A) a subsidiary of a gas public 526
service company which is not affiliated with an electric public service 527
company, or a subsidiary of a holding company controlling, directly or 528
indirectly, a gas public service company but not an electric public 529
service company, which generates electricity solely through ownership 530 Substitute Bill No. 960
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of fifty per cent or less of a private power production facility or, with 531
the approval of the Public Utilities Regulatory Authority, through 532
ownership of one hundred per cent of a private power production 533
facility which (i) uses a source of energy other than gas as the primary 534
energy source of the facility, or (ii) uses gas as the primary energy 535
source of the facility and uses an improved and innovative technology 536
which furthers the state energy policy as set forth in section 16a-35k, 537
(B) a subsidiary of any other public service company or a subsidiary of 538
a holding company controlling, directly or indirectly, such a public 539
service company, which generates electricity solely through ownership 540
of fifty per cent or less of a private power production facility, (C) the 541
state, a political subdivision of the state or any other person, firm or 542
corporation other than a public service company or any corporation 543
which was a public service company, prior to July 1, 1981, and which 544
consents to be regulated as a public service company or a holding 545
company for a public service company, which generates electricity 546
solely through ownership of one hundred per cent or less of a private 547
power production facility, or (D) any combination thereof; 548
(4) "Private power provider" means any person, firm, corporation, 549
nonprofit corporation, limited liability company, governmental entity, 550
or other entity, including any public service company, holding 551
company, or subsidiary, which provides energy conservation or 552
demand management measures pursuant to section 16 -243f and 553
regulations and orders issued hereunder, which replace the need for 554
electricity generating capacity that electric public service companies 555
would otherwise require; 556
(5) "Electricity conservation or demand management measures" 557
means the provision pursuant to this section and section 16-243f and 558
regulations and orders adopted hereunder by a private power 559
provider to an electric public service company or its customers of 560
equipment or services or both designed to conserve electricity or to 561
manage electricity load; and 562
(6) "Small renewable power project" means any private power 563 Substitute Bill No. 960
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production facility which has a capacity of five megawatts or less and 564
is fueled by a renewable resource, as defined in section 16a-2, other 565
than wood. 566
(b) No provision of this section shall limit the jurisdiction of the 567
Public Utilities Regulatory Authority with regard to the effects on a 568
public service company of a private power producer which is an 569
affiliate or a subsidiary of the public service company.] 570
(a) Each electric distribution company shall file with the Public 571
Utilities Regulatory Authority for review and approval three pro 572
forma tariffs for the purchase of energy and capacity from eligible 573
qualifying facilities from which the electric distribution company is 574
obligated to purchase energy or capacity pursuant to 18 CFR 292.303. 575
Tariffs required pursuant to this section shall address each of the 576
following types of PURPA transactions: (1) Energy-only qualifying 577
facility sales; (2) capacity-only qualifying facility sales; and (3) energy 578
and capacity qualifying facility sales. 579
(b) The Public Utilities Regulatory Authority shall conduct an 580
uncontested proceeding to review tariffs submitted pursuant to 581
subsection (a) of this section. The authority shall approve tariffs that it 582
determines satisfy the requirements of PURPA and any other 583
requirements the authority deems appropriate. 584
(c) Each tariff submitted pursuant to subsection (a) of this section 585
shall establish a process by which qualifying facilities may elect to be 586
compensated either: (1) Based on avoided costs calculated at the time 587
of delivery; or (2) based on avoided costs forecasted at the time an 588
obligation to purchase arises pursuant to 18 CFR 292.303. 589
Sec. 14. Subdivision (24) of subsection (b) of section 7-233e of the 590
general statutes is repealed and the following is substituted in lieu 591
thereof (Effective from passage): 592
(24) To contract for the purchase or exchange of electricity produced 593
by a [person using cogeneration technology or renewable fuel 594 Substitute Bill No. 960
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resources] Qualifying Facility, as defined in [section 16-1] 18 CFR 595
292.101(b)(1), or for the sale or exchange of electricity produced by the 596
municipal cooperative to such person, provided such purchase, sale or 597
exchange [is subject to the rates and conditions of service established 598
in accordance with section 16-243a] complies with the rates and 599
conditions of service established in 18 CFR 292; 600
Sec. 15. Section 12-408b of the general statutes is repealed and the 601
following is substituted in lieu thereof (Effective from passage): 602
On and after July 1, 1991, any person, firm or corporation who pays 603
a sales and use tax, which tax would not have been due prior to July 1, 604
1991, pursuant to subdivision (39) of section 12-412 of the general 605
statutes, revision of 1958, revised to January 1991, shall recover the tax 606
paid by (1) adding such tax to any amounts otherwise payable [under 607
a sales contract] pursuant to a tariff approved by the Public Utilities 608
Regulatory Authority pursuant to [subsection (d) of] section 16-243a, 609
as amended by this act, and (2) amortizing such tax, together with 610
interest at the rate paid on front-loaded payments, over the life of a 611
sales contract approved by the department pursuant to said subsection 612
(d). 613
Sec. 16. Subdivision (3) of subsection (a) of section 16-1 of the 614
general statutes is repealed and the following is substituted in lieu 615
thereof (Effective from passage): 616
(3) "Public service company" includes electric distribution, gas, 617
telephone, pipeline, sewage, water and community antenna television 618
companies and holders of a certificate of cable franchise authority, 619
owning, leasing, maintaining, operating, managing or controlling 620
plants or parts of plants or equipment, but shall not include towns, 621
cities, boroughs, any municipal corporation or department thereof, 622
whether separately incorporated or not, a [private power producer] 623
producer Qualifying Facility, as defined in [section 16-243b] 18 CFR 624
292.101(b)(1), or an exempt wholesale generator, as defined in 15 USC 625
79z-5a; 626 Substitute Bill No. 960
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Sec. 17. Subdivision (23) of subsection (a) of section 16-1 of the 627
general statutes is repealed and the following is substituted in lieu 628
thereof (Effective from passage): 629
(23) "Electric distribution company" or "distribution company" 630
means any person providing electric transmission or distribution 631
services within the state, but does not include: (A) A [private power 632
producer] Qualifying Facility, as defined in [section 16-243b] 18 CFR 633
292.101(b)(1); (B) a municipal electric utility established under chapter 634
101, other than a participating municipal electric utility; (C) a 635
municipal electric energy cooperative established under chapter 101a; 636
(D) an electric cooperative established under chapter 597; (E) any other 637
electric utility owned, leased, maintained, operated, managed or 638
controlled by any unit of local government under any general statute 639
or special act; (F) an electric supplier; (G) an entity approved to 640
submeter pursuant to section 16-19ff; or (H) a municipality, state or 641
federal governmental entity authorized to distribute electricity across a 642
public highway or street pursuant to section 16-243aa; 643
Sec. 18. Subsection (a) of section 16-50i of the general statutes is 644
repealed and the following is substituted in lieu thereof (Effective from 645
passage): 646
(a) "Facility" means: (1) An electric transmission line of a design 647
capacity of sixty-nine kilovolts or more, including associated 648
equipment but not including a transmission line tap, as defined in 649
subsection (e) of this section; (2) a fuel transmission facility, except a 650
gas transmission line having a design capability of less than two 651
hundred pounds per square inch gauge pressure or having a design 652
capacity of less than twenty per cent of its specified minimum yield 653
strength; (3) any electric generating or storage facility using any fuel, 654
including nuclear materials, including associated equipment for 655
furnishing electricity but not including an emergency generating 656
device, as defined in subsection (f) of this section or a facility (A) 657
[owned and operated by a private power producer, as defined in 658
section 16-243b, (B) which is a qualifying small power production 659 Substitute Bill No. 960
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facility or a qualifying cogeneration facility under the Public Utility 660
Regulatory Policies Act of 1978, as amended] which is a Qualifying 661
Facility, as defined in 18 CFR 292.101(b)(1), or a facility determined by 662
the council to be primarily for a producer's own use, and [(C)] (B) 663
which has, in the case of a [facility] Qualifying Facility utilizing 664
renewable energy sources, a generating capacity of one megawatt of 665
electricity or less and, in the case of a [facility] Qualifying Facility 666
utilizing cogeneration technology, a generating capacity of twenty-five 667
megawatts of electricity or less; (4) any electric substation or 668
switchyard designed to change or regulate the voltage of electricity at 669
sixty-nine kilovolts or more or to connect two or more electric circuits 670
at such voltage, which substation or switchyard may have a substantial 671
adverse environmental effect, as determined by the council established 672
under section 16-50j, and other facilities which may have a substantial 673
adverse environmental effect as the council may, by regulation, 674
prescribe; (5) such community antenna television towers and head-end 675
structures, including associated equipment, which may have a 676
substantial adverse environmental effect, as said council shall, by 677
regulation, prescribe; and (6) such telecommunication towers, 678
including associated telecommunications equipment, owned or 679
operated by the state, a public service company or a certified 680
telecommunications provider or used in a cellular system, as defined 681
in [the Code of Federal Regulations Title 47, Part 22] 47 CFR 22, as 682
amended, which may have a substantial adverse environmental effect, 683
as said council shall, by regulation, prescribe; 684
Sec. 19. Section 16a-49 of the general statutes is repealed and the 685
following is substituted in lieu thereof (Effective from passage): 686
[(a)] The Public Utilities Regulatory Authority shall require each gas 687
and electric public service company to implement a cost effective 688
conservation and load management program consistent with 689
integrated resource planning principles. As part of each conservation 690
and load management program, the authority shall require specific 691
programs to target the needs of manufacturers. The authority shall 692 Substitute Bill No. 960
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allow the gas or electric public service company either: (1) To earn a 693
return on prudently incurred multiyear conservation and load 694
management expenditures on programs and measures approved by 695
the authority included in the company's rate base and successfully 696
implemented by the company at a rate at least one percentage point 697
but no more than five percentage points higher than such company's 698
rate of return otherwise found to be reasonable; or (2) authorize a 699
return of at least one percentage point but no more than five 700
percentage points on the company's prudently incurred conservation 701
and load management expenditures treated as operating costs on 702
programs and measures approved by the authority and successfully 703
implemented by the company. For the purposes of this section, 704
"conservation and load management expenditures" shall include all 705
prudent expenditures, approved by the authority by gas or electric 706
public service companies designed to conserve energy or manage gas 707
or energy load. 708
[(b) The authority may authorize an electric public service company 709
a return on such company's expenditures in acquiring energy 710
conservation or load management measures, approved by the 711
authority, from private power providers, as defined in section 16-712
243b.] 713
Sec. 20. Section 49-4c of the general statutes is repealed and the 714
following is substituted in lieu thereof (Effective from passage): 715
Any mortgage entered into subsequent to July 1, 1986, between a 716
[private power producer, as defined in section 16-243b, or the owner or 717
operator of a qualifying facility] Qualifying Facility, as defined in [Part 718
292 of Title 18 of the Code of Federal Regulations] 18 CFR 292, or a 719
guarantor of any of their respective obligations, as mortgagor, and an 720
electric distribution company, as defined in section 16-1, as amended 721
by this act, as mortgagee, shall be valid to secure all obligations then 722
existing or thereafter arising of the mortgagor to the mortgagee under 723
an electricity purchase [agreement] tariff, including, without 724
limitation, recovery of amounts paid to [the private power producer 725 Substitute Bill No. 960
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or] the owner or operator of a [qualifying facility] Qualifying Facility 726
by the mortgagee in excess of the mortgagee's avoided costs, as 727
defined in accordance with tariffs approved by the Public Utilities 728
Regulatory Authority pursuant to section 16-243a, as amended by this 729
act, and all other damages for failure to deliver electric energy or 730
capacity or other breach of an electricity purchase agreement, 731
including, without limitation, the net replacement cost of the capacity 732
being secured by such mortgage, together with accrued interest, if any, 733
as computed in accordance with the terms of the electricity purchase 734
agreement or the mortgage, and under a guarantee of such obligations 735
or obligations created by the mortgage, and shall have priority over the 736
rights of others who shall acquire any rights in the property covered 737
by such mortgage subsequent to the recording of the mortgage in the 738
land records of the town in which the mortgaged property is situated 739
provided: (1) The electricity purchase [agreement] tariff is substantially 740
in the form approved by the Public Utilities Regulatory Authority 741
pursuant to section 16-243a, as amended by this act, and shall have 742
been entered into by the mortgagor and mortgagee prior to or 743
simultaneously with or subsequent to the execution and delivery of the 744
mortgage, (2) the caption to the mortgage shall contain the words 745
"Open-End Mortgage" and ["Electricity Purchase Agreement"] 746
"Electricity Purchase Tariff", (3) the mortgage shall state that it is 747
entered into to secure the mortgagor's obligations to the mortgagee 748
under an electricity purchase [agreement] tariff or under a guarantee 749
of any electricity purchase [agreement] tariff obligations and shall 750
recite either the address of an office of the mortgagee or its assignee in 751
the state at which a copy of the electricity purchase [agreement] tariff 752
is on file and may be inspected by the public during normal business 753
hours or that the electricity purchase [agreement] tariff has been 754
recorded, as an exhibit to the mortgage or otherwise, on or before the 755
date the mortgage is recorded, in the land records of the town in which 756
the mortgaged property is situated, provided the electricity purchase 757
[agreement] tariff shall be so recorded, (4) the amount of the obligation 758
from time to time secured by the mortgage may be determined or 759
reasonably approximated on the basis of records maintained by the 760 Substitute Bill No. 960
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mortgagee or its assignee in the state, which records and an estimate of 761
the amount claimed by the mortgagee to be secured are made available 762
to the public with reasonable promptness upon written request, and 763
(5) the mortgage states the maximum amount which it shall secure. 764
Nothing in this section shall invalidate any mortgage which would be 765
valid without this section. For purposes of this section, ["electricity 766
purchase agreement"] "electricity purchase tariff" means [a contract or] 767
an agreement to purchase and sell electric energy or capacity by and 768
between [a private power producer, as defined in section 16-243b, or] 769
the owner or operator of a [qualifying facility] Qualifying Facility, as 770
defined in [Part 292 of Title 18 of the Code of Federal Regulations] 18 771
CFR 292.101(b)(1), and an electric distribution company, as defined in 772
section 16-1, as amended by this act. 773
Sec. 21. Sections 16-243d, 16-243f and 16-243g of the general statutes 774
are repealed. (Effective from passage) 775
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 16-35
Sec. 2 from passage 16-7
Sec. 3 from passage 16-8a
Sec. 4 from passage 16-11
Sec. 5 from passage 16-16
Sec. 6 from passage 16-41(a)
Sec. 7 from passage 16-280e
Sec. 8 from passage New section
Sec. 9 from passage New section
Sec. 10 from passage New section
Sec. 11 from passage 16-356
Sec. 12 from passage 16-243a
Sec. 13 from passage 16-243b
Sec. 14 from passage 7-233e(b)(24)
Sec. 15 from passage 12-408b
Sec. 16 from passage 16-1(a)(3) Substitute Bill No. 960
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Sec. 17 from passage 16-1(a)(23)
Sec. 18 from passage 16-50i(a)
Sec. 19 from passage 16a-49
Sec. 20 from passage 49-4c
Sec. 21 from passage Repealer section
Statement of Legislative Commissioners:
In Sec. 11(a) and in Sec. 14, "Part" was deleted for consistency with
standard drafting conventions.
ET Joint Favorable Subst.