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General Assembly Bill No. 7006
September Special Session, 2020
LCO No. 4364
Referred to Committee on No Committee
Introduced by:
REP. ARESIMOWICZ, 30
th
Dist.
SEN. LOONEY, 11
th
Dist.
SEN. DUFF, 25
th
Dist.
REP. RITTER M., 1
st
Dist.
AN ACT CONCERNING EM ERGENCY RESPONSE BY ELECTRIC
DISTRIBUTION COMPANI ES, THE REGULATION OF OTHER PUBLIC
UTILITIES AND NEXUS PROVISIONS FOR CERTA IN DISASTER-
RELATED OR EMERGENCY -RELATED WORK PERFOR MED IN THE
STATE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) (a) (1) For the purposes of this 1
section, "electric distribution company" has the same meaning as 2
provided in section 16-1 of the general statutes and "emergency" has the 3
same meaning as provided in section 16-32e of the general statutes. 4
(2) "Resilience" means the ability to prepare for and adapt to changing 5
conditions and withstand and recover rapidly from deliberate attacks, 6
accidents or naturally occurring threats or incidents, including, but not 7
limited to, threats or incidents associated with the impacts of climate 8
change. 9
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(b) Not later than June 1, 2021, the Public Utilities 10
Regulatory Authority shall initiate a proceeding to investigate, develop 11
and adopt a framework for implementing performance -based 12
regulation of each electric distribution company. Such framework 13
adopted by the authority shall: (1) Establish standards and metrics for 14
measuring such electric distribution company's performance of 15
objectives that are in the interest of ratepayers or benefit the public, 16
which may include, but not be not limited to, safety, 17
reliability, emergency response, cost efficiency, affordability, equity, 18
customer satisfaction, municipal engagement, resilience 19
and advancing the state's environmental and policy goals, including, 20
but not limited to, those goals established in section 22a-200a of the 21
general statutes, in the Integrated Resources Plan approved pursuant to 22
section 16a-3a of the general statutes and in the Comprehensive Energy 23
Strategy prepared pursuant to section 16a-3d of the general statutes; (2) 24
identify the manner, including the timeframe and extent, in which such 25
standards and metrics shall be used to apply the principles and 26
guidelines set forth in section 16-19e of the general statutes and to 27
determine the relative adequacy of the company's service and the 28
reasonableness and adequacy of rates proposed and considered 29
pursuant to section 16-19a of the general statutes; and (3) identify 30
specific mechanisms to be implemented to align utility performance 31
with the standards and metrics adopted pursuant to this section and 32
subsection (b) of section 16-19a of the general statutes, including, but not 33
limited to, reviewing the effectiveness of the electric distribution 34
company's revenue decoupling mechanism. The authority may 35
also initiate a proceeding to investigate, develop and adopt a framework 36
for implementation of performance-based regulation for gas and water 37
companies, as defined by section 16-1 of the general statutes, consistent 38
with the requirements and provisions of this section. 39
Sec. 2. Subsections (a) and (b) of section 16-19 of the general statutes 40
are repealed and the following is substituted in lieu thereof (Effective 41
from passage): 42
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(a) No public service company may charge rates in excess of those 43
previously approved by the Public Utilities Control Authority or the 44
Public Utilities Regulatory Authority, except that any rate approved by 45
the Public Utilities Commission, the Public Utilities Control Authority 46
or the Public Utilities Regulatory Authority shall be permitted until 47
amended by the Public Utilities Regulatory Authority, that rates not 48
approved by the Public Utilities Regulatory Authority may be charged 49
pursuant to subsection (b) of this section, and that the hearing 50
requirements with respect to adjustment clauses are as set forth in 51
section 16-19b. For water companies, existing rates shall include the 52
amount of any adjustments approved pursuant to section 16-262w since 53
the company's most recent general rate case, provided any adjustment 54
amount shall be separately identified in any customer bill. Each public 55
service company shall file any proposed amendment of its existing rates 56
with the authority in such form and in accordance with such reasonable 57
regulations as the authority may prescribe. Each electric distribution, 58
gas or telephone company filing a proposed amendment shall also file 59
with the authority an estimate of the effects of the amendment, for 60
various levels of consumption, on the household budgets of high and 61
moderate income customers and customers having household incomes 62
not more than one hundred fifty per cent of the federal poverty level. 63
Each electric distribution company shall also file such an estimate for 64
space heating customers. Each water company, except a water company 65
that provides water to its customers less than six consecutive months in 66
a calendar year, filing a proposed amendment, shall also file with the 67
authority a plan for promoting water conservation by customers in such 68
form and in accordance with a memorandum of understanding entered 69
into by the authority pursuant to section 4-67e. Each public service 70
company shall notify each customer who would be affected by the 71
proposed amendment, by mail, at least one week prior to the first public 72
hearing thereon, but not earlier than six weeks prior to such first public 73
hearing, that an amendment has been or will be requested. Such notice 74
shall also indicate (1) the date, time and location of any scheduled public 75
hearing, (2) a statement that customers may provide written comments 76
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regarding the proposed amendment to the Public Utilities Regulatory 77
Authority or appear in person at any scheduled public hearing, (3) the 78
Public Utilities Regulatory Authority telephone number for obtaining 79
information concerning the schedule for public hearings on the 80
proposed amendment, and (4) whether the proposed amendment 81
would, in the company's best estimate, increase any rate or charge by 82
twenty per cent or more, and, if so, describe in general terms any such 83
rate or charge and the amount of the proposed increase, provided no 84
such company shall be required to provide more than one form of the 85
notice to each class of its customers. In the case of a proposed 86
amendment to the rates of any public service company, the authority 87
shall hold one or more public hearings thereon, except as permitted with 88
respect to interim rate amendments by subsections (d) and (g) of this 89
section, and shall make such investigation of such proposed amendment 90
of rates as is necessary to determine whether such rates conform to the 91
principles and guidelines set forth in section 16-19e, or are unreasonably 92
discriminatory or more or less than just, reasonable and adequate, or 93
that the service furnished by such company is inadequate to or in excess 94
of public necessity and convenience, provided the authority may (A) 95
evaluate the reasonableness and adequacy of the performance or service 96
of the public service company using any applicable metrics or standards 97
adopted by the authority pursuant to section 1 of this act, and (B) 98
determine the reasonableness of the allowed rate of return of the public 99
service company based on such performance evaluation. The authority, 100
if in its opinion such action appears necessary or suitable in the public 101
interest may, and, upon written petition or complaint of the state, under 102
direction of the Governor, shall, make the aforesaid investigation of any 103
such proposed amendment which does not involve an alteration in 104
rates. If the authority finds any proposed amendment of rates to not 105
conform to the principles and guidelines set forth in section 16-19e, or 106
to be unreasonably discriminatory or more or less than just, reasonable 107
and adequate to enable such company to provide properly for the public 108
convenience, necessity and welfare, or the service to be inadequate or 109
excessive, it shall determine and prescribe, as appropriate, an adequate 110
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service to be furnished or just and reasonable maximum rates and 111
charges to be made by such company. In the case of a proposed 112
amendment filed by an electric distribution, gas or telephone company, 113
the authority shall also adjust the estimate filed under this subsection of 114
the effects of the amendment on the household budgets of the 115
company's customers, in accordance with the rates and charges 116
approved by the authority. The authority shall issue a final decision on 117
each electric distribution or gas company rate filing within [one] three 118
hundred fifty days from the proposed effective date thereof. [, provided 119
it may, before the end of such period and upon notifying all parties and 120
intervenors to the proceedings, extend the period by thirty days.] The 121
authority shall issue a final decision on all public service company rate 122
filings, except electric distribution or gas company rate filings, within 123
two hundred days from the proposed effective date thereof. 124
(b) If the authority has not made its finding respecting an amendment 125
of any electric distribution or gas company rate within [one] three 126
hundred fifty days from the proposed effective date of such amendment 127
thereof, or [within one hundred eighty days if the authority extends the 128
period in accordance with the provisions of subsection (a) of this 129
section] if the authority has not made its finding respecting an 130
amendment of any public service company rate, except electric 131
distribution or gas company rate, within two hundred days from the 132
proposed effective date of such amendment thereof, such amendment 133
may become effective pending the authority's finding with respect to 134
such amendment upon the filing by the company with the authority of 135
assurance satisfactory to the authority, which may include a bond with 136
surety, of the company's ability and willingness to refund to its 137
customers with interest such amounts as the company may collect from 138
them in excess of the rates fixed by the authority in its finding or fixed 139
at the conclusion of any appeal taken as a result of a finding by the 140
authority. 141
Sec. 3. Subsections (a) and (b) of section 16-19a of the general statutes 142
are repealed and the following is substituted in lieu thereof (Effective 143
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November 1, 2020): 144
(a) (1) The Public Utilities Regulatory Authority shall, at intervals of 145
not more than four years from the last previous general rate hearing of 146
each gas and electric distribution company having more than seventy-147
five thousand customers, conduct a complete review and investigation 148
of the financial and operating records of each such company and hold a 149
public hearing to determine whether the rates of each such company are 150
unreasonably discriminatory or more or less than just, reasonable and 151
adequate, or that the service furnished by such company is inadequate 152
to or in excess of public necessity and convenience or that the rates do 153
not conform to the principles and guidelines set forth in section 16-19e. 154
In making such determination, the authority shall consider the gross 155
and net earnings of such company since its last previous general rate 156
hearing, its retained earnings, its actual and proposed capital 157
expenditures, its advertising expenses, the dividends paid to its 158
stockholders, the rate of return paid on its preferred stock, bonds, 159
debentures and other obligations, its credit rating, and such other 160
financial and operating information as the authority may deem 161
pertinent. 162
(2) The authority may conduct a general rate hearing in accordance 163
with subsection (a) of section 16-19, in lieu of the periodic review and 164
investigation proceedings required under subdivision (1) of this 165
subsection. 166
(b) In [the] any proceeding required under subdivision (1) of 167
subsection (a) of this section, or in any rate hearing pursuant to section 168
16-19, the authority [may approve performance-based incentives to 169
encourage a gas or electric distribution company to operate efficiently 170
and provide high quality service at fair and reasonable prices] shall 171
consider the implementation of financial performance-based incentives 172
and penalties and performance-based metrics. Notwithstanding 173
subsection (a) of this section, if the authority approves such 174
performance-based incentives and penalties for a particular company, 175
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the authority shall include in such approval a framework for periodic 176
monitoring and review of the company's performance [in regard to 177
criteria specified by the authority, which shall include, but not be 178
limited to, the company's return on equity, reliability and quality of 179
service. The authority's periodic monitoring and review shall be used in 180
lieu of the periodic review and investigation proceedings required 181
under subdivision (1) of subsection (a) of this section. If the authority 182
determines in the periodic monitoring and review that a more extensive 183
review of company performance is necessary, the authority may 184
institute a further proceeding in accordance with the purposes of this 185
chapter, including a complete review and investigation described in 186
subdivision (1) of subsection (a) of this section] pursuant to metrics 187
developed by the authority. 188
Sec. 4. (NEW) (Effective from passage) Notwithstanding any provision 189
of the general statutes, in exercising its discretion regarding whether to 190
allow the recovery through rates of any portion of the compensation 191
package for executives or officers or of any portion of any incentive 192
compensation for employees of any electric distribution company, gas 193
company or water company, as defined in section 16-1 of the general 194
statutes, the Public Utilities Regulatory Authority shall consider 195
whether to require that any such compensation that is recoverable 196
through rates be dependent upon the achievement of performance 197
targets established pursuant to section 1 of this act. 198
Sec. 5. (NEW) (Effective from passage) Not later than November 1, 2020, 199
the Public Utilities Regulatory Authority may initiate a proceeding or 200
proceedings to consider the implementation of an interim rate decrease, 201
low-income rates and economic development rates for customers of 202
electric distribution companies, pursuant to its authority in subsection 203
(g) of section 16-19 of the general statutes and sections 16-19e and 16-204
19oo of the general statutes. 205
Sec. 6. Subsection (b) of section 16-43 of the general statutes is 206
repealed and the following is substituted in lieu thereof (Effective 207
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November 1, 2020): 208
(b) A public service company shall obtain the approval of the Public 209
Utilities Regulatory Authority to (1) issue any notes, bonds or other 210
evidences of indebtedness or securities of any nature, (2) lend or borrow 211
any moneys for a period of more than one year for any purpose other 212
than paying the expenses, including taxes, of conducting its business or 213
for the payment of dividends, or (3) amend any provision of an 214
indenture or similar financial instrument if such amendment would 215
affect the issuance or terms of any such notes, bonds or other evidences 216
of indebtedness or securities. The authority shall approve or disapprove 217
each such issue or amendment within [thirty] sixty days after the filing 218
of a written application for such approval unless the applicant agrees to 219
an extension of time. If not disapproved within said [thirty] sixty days 220
or within such extension, such issue shall be deemed to be approved. 221
The authority shall not require a company to issue its common stock 222
under terms or conditions not required by the general statutes. The 223
provisions of this subsection shall apply to a community antenna 224
television company only with regard to any noncable communications 225
services which the company may provide. 226
Sec. 7. Subsection (d) of section 16-47 of the general statutes is 227
repealed and the following is substituted in lieu thereof (Effective January 228
1, 2021): 229
(d) The Public Utilities Regulatory Authority shall investigate and 230
hold a public hearing on the question of granting its approval with 231
respect to any application made under subsection (b) or (c) of this 232
section and thereafter may approve or disapprove any such application 233
in whole or in part and upon such terms and conditions as it deems 234
necessary or appropriate. In connection with its investigation, the 235
authority may request the views of the gas, electric distribution, water, 236
telephone or community antenna television company or holding 237
company which is the subject of the application with respect to the 238
proposed acquisition. After the filing of an application satisfying the 239
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requirements of such regulations as the authority may adopt in 240
accordance with the provisions of chapter 54, but not later than thirty 241
business days after the filing of such application, the authority shall give 242
prompt notice of the public hearing to the person required to file the 243
application and to the subject company or holding company. Such 244
hearing shall be commenced as promptly as practicable after the filing 245
of the application, but not later than [thirty] sixty business days after the 246
filing, and the authority shall make its determination as soon as 247
practicable, but not later than [one] two hundred [twenty] days after the 248
filing of the application, provided it may, before the end of such period 249
and upon notifying all parties and intervenors to the proceedings, 250
extend the period by thirty days, or unless the person required to file 251
the application agrees to an extension of time. The authority may, in its 252
discretion, grant the subject company or holding company the 253
opportunity to participate in the hearing by presenting evidence and 254
oral and written argument. If the authority fails to give notice of its 255
determination to hold a hearing, commence the hearing, or render its 256
determination after the hearing within the time limits specified in this 257
subdivision, the proposed acquisition shall be deemed approved. In 258
each proceeding on a written application submitted under said 259
subsection (b) or (c), the authority shall, in a manner which treats all 260
parties to the proceeding on an equal basis, take into consideration (1) 261
the financial, technological and managerial suitability and 262
responsibility of the applicant, (2) the ability of the gas, electric 263
distribution, water, telephone or community antenna television 264
company or holding company which is the subject of the application to 265
provide safe, adequate and reliable service to the public through the 266
company's plant, equipment and manner of operation if the application 267
were to be approved, and (3) for an application concerning a telephone 268
company, the effect of approval on the location and accessibility of 269
management and operations and on the proportion and number of state 270
resident employees. The authority shall only grant its approval of an 271
application filed on or after January 1, 2021, made under subsection (c) 272
of this section, if the holding company effects a change in the 273
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composition of the board of directors to include a proportional 274
percentage of Connecticut-based directors equivalent to the percentage 275
that Connecticut service areas represent of the total service areas 276
covered by the holding company. 277
Sec. 8. Section 16-243p of the general statutes is repealed and the 278
following is substituted in lieu thereof (Effective November 1, 2020): 279
(a) An electric distribution company may recover its costs and 280
investments that have been prudently incurred as well as its revenues 281
lost resulting from the provisions of sections 16-1, 16-19ff, 16-50k, 16-282
50x, 16-243h to 16-243q, inclusive, 16-244c, 16-244u, 16-244x, 16-245d, 16-283
245m, 16-245n, 16-245z, 16-262i, 16a-40l and 16a-40m and section 21 of 284
public act 05-1 of the June special session. The Public Utilities 285
Regulatory Authority shall, after a hearing held pursuant to the 286
provisions of chapter 54, determine the appropriate mechanism to 287
obtain such recovery in a timely manner which mechanism may be one 288
or more of the following: (1) Approval of rates as provided in sections 289
16-19 and 16-19e; (2) the energy adjustment clause as provided in section 290
16-19b; or (3) the federally mandated congestion charges, as defined in 291
section 16-1. 292
(b) No electric distribution company shall recover its costs associated 293
with its attendance or participation in any rate-making hearing before 294
the authority. 295
[(b)] (c) Electric distribution companies shall be authorized to earn an 296
incentive, as provided in section 16-19kk, for costs prudently incurred 297
by such companies pursuant to this section. 298
Sec. 9. Section 16-32i of the general statutes is repealed and the 299
following is substituted in lieu thereof (Effective from passage): 300
The Public Utilities Regulatory Authority shall review the 301
performance of each electric distribution company and gas company, as 302
those terms are defined in section 16-1, after any emergency, as defined 303
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in section 16-32e, (1) in which more than ten per cent of any such 304
company's customers were without service for more than forty-eight 305
consecutive hours, or (2) at the authority's discretion. The authority, 306
upon a finding that any such company failed to comply with any 307
standard of acceptable performance in emergency preparation or 308
restoration of service in an emergency, adopted pursuant to section 16-309
32h, or with any order of the authority, shall make orders, after a hearing 310
that is conducted as a contested case in accordance with chapter 54, to 311
enforce such standards or orders and may levy civil penalties against 312
such company, pursuant to section 16-41, not to exceed a total of [two 313
and one-half] four per cent of such electric distribution or gas company's 314
annual distribution revenue, for noncompliance in any such emergency. 315
In determining the amount of any penalty, the authority shall consider 316
whether such company received approval and reasonable funding 317
allowances, as determined by the authority, from the authority to meet 318
infrastructure resiliency efforts to improve such company's 319
performance. Any such penalty shall be assessed in the form of [a credit 320
to] credits to the accounts of ratepayers of such electric distribution or 321
gas company. Any such penalty shall not be included as an operating 322
expense of such company for purposes of ratemaking. 323
Sec. 10. (NEW) (Effective from passage) (a) For the purposes of this 324
section, "emergency" has the same meaning as provided in subdivision 325
(1) of subsection (a) of section 16-32e of the general statutes and "electric 326
distribution company" has the same meaning as provided in section 16-327
1 of the general statutes. 328
(b) Notwithstanding any other provision of the general statutes, on 329
and after July 1, 2021, each electric distribution company shall provide 330
to residential customers of such company a credit of twenty-five dollars, 331
on the balance of such customer's account, for each day of distribution-332
system service outage that occurs for such customers for more than 333
ninety-six consecutive hours after the occurrence of an emergency. 334
(c) Any costs incurred by an electric distribution company pursuant 335
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to this section shall not be recoverable. 336
(d) Not later than fourteen calendar days after the occurrence of an 337
emergency, an electric distribution company may petition the authority 338
for a waiver of the requirements of this section. Any petition for a waiver 339
made under this subsection shall include the severity of the emergency, 340
employee safety issues and conditions on the ground, and shall be 341
conducted as a contested case proceeding. The burden of proving that 342
such waiver is reasonable and warranted shall be on the electric 343
distribution company. In determining whether to grant such waiver, the 344
authority shall consider whether the electric distribution company 345
received approval and reasonable funding allowances, as determined 346
by the authority, to meet infrastructure resiliency efforts to improve 347
such company's performance. 348
(e) On or before January 1, 2021, the Public Utilities Regulatory 349
Authority shall initiate a proceeding to consider the implementation of 350
the residential customer credit and waiver provisions of this section and 351
establish circumstances, standards and methodologies applicable to 352
each electric distribution company and necessary to implement the 353
provisions of this section, including any modifications to the ninety-six-354
consecutive-hour standard in subsection (b) of this section. The 355
authority shall issue a final decision in such proceeding on or before July 356
1, 2021. 357
Sec. 11. (NEW) (Effective from passage) (a) For the purposes of this 358
section, "emergency" has the same meaning as provided in subdivision 359
(1) of subsection (a) of section 16-32e of the general statutes and "electric 360
distribution company" has the same meaning as provided in section 16-361
1 of the general statutes. 362
(b) On and after July 1, 2021, each electric distribution company shall 363
provide to each residential customer compensation in an amount of two 364
hundred fifty dollars, in the aggregate, for any medication and food that 365
expires or spoils due to a distribution-system service outage that lasts 366
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more than ninety-six consecutive hours in duration after the occurrence 367
of an emergency. 368
(c) Any costs incurred by an electric distribution company pursuant 369
to this section shall not be recoverable. 370
(d) Not later than fourteen calendar days after the occurrence of an 371
emergency, an electric distribution company may petition the authority 372
for a waiver of the requirements of this section. Any petition for a waiver 373
made under this subsection shall include the severity of the emergency, 374
employee safety issues and conditions on the ground, and shall be 375
conducted as a contested case proceeding. The burden of proving that 376
such waiver is reasonable and warranted shall be on the electric 377
distribution company. In determining whether to grant such waiver, the 378
authority shall consider whether the electric distribution company 379
received approval and reasonable funding allowances, as determined 380
by the authority, to meet infrastructure resiliency efforts to improve 381
such company's performance. 382
(e) On or before January 1, 2021, the Public Utilities Regulatory 383
Authority shall initiate a proceeding to consider the implementation of 384
the compensation reimbursement and waiver provisions of this section 385
and establish circumstances, standards and methodologies applicable to 386
each electric distribution company and necessary to implement the 387
provisions of this section, including any modifications to the ninety-six-388
consecutive-hour standard in subsection (b) of this section. The 389
authority shall issue a final decision in such proceeding on or before July 390
1, 2021. 391
Sec. 12. (NEW) (Effective from passage) (a) As used in this section, 392
"electric distribution company" has the same meaning as provided in 393
section 16-1 of the general statutes. 394
(b) Not later than January 1, 2021, each electric distribution company 395
shall submit to the joint standing committee of the General Assembly 396
having cognizance of matters relating to energy, in accordance with the 397
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provisions of section 11-4a of the general statutes, and the Public 398
Utilities Regulatory Authority the following: 399
(1) A cost-benefit analysis identifying the resources expended in 400
response to the last five storm events classified as a level three, four or 401
five. Such analysis shall include a review of the number of line crew 402
workers and shall distinguish between line crew workers (A) directly 403
employed by the electric distribution company and working full time 404
within the state, (B) directly employed by the electric distribution 405
company working primarily in another state, and (C) hired as 406
contractors or subcontractors. 407
(2) An analysis of any such company's (A) estimates concerning 408
potential damage and service outages prior to the last five storm events 409
classified as a level three, four or five, (B) damage and service outage 410
assessments after the last five storm events classified as a level three, 411
four or five, (C) restoration management after the last five storm events 412
classified as a level three, four or five, including access to alternate 413
restoration resources via regional and reciprocal aid contracts, (D) 414
planning for at-risk and vulnerable customers, (E) communication 415
policies with state and local officials and customers, including 416
individual customer restoration estimates and the accuracy of such 417
estimates, (F) infrastructure, facilities and equipment, which shall 418
include, but not be limited to, an examination of (i) whether such 419
infrastructure, facilities and equipment are in good repair and capable 420
of meeting operational standards, (ii) whether such company is 421
following standard industry practice concerning operation and 422
maintenance of such infrastructure, facilities and equipment, (iii) the age 423
and condition of such infrastructure, facilities and equipment, (iv) 424
whether maintenance of such infrastructure, facilities and equipment 425
has been delayed, and (v) whether such company had access to 426
adequate replacement equipment for such infrastructure, facilities and 427
equipment during the course of the last five storm events classified as a 428
level three, four or five, and (G) compliance with any emergency 429
response standards adopted by the authority. 430
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(c) Not later than January 1, 2021, the authority shall initiate a docket, 431
or incorporate into an existing docket, to review the report provided by 432
each electric distribution company pursuant to subsection (b) of this 433
section. The authority shall submit the final decision of such docket, in 434
accordance with the provisions of section 11-4a of the general statutes, 435
to the joint standing committee of the General Assembly having 436
cognizance of matters relating to energy. 437
(d) After issuing its final decision in the docket initiated pursuant to 438
subsection (c) of this section, the authority shall establish standards for 439
minimum staffing levels for any electric distribution company for 440
outage planning and restoration personnel, including linemen, 441
technicians and system engineers, tree trimming crews and personnel 442
responsible for directing operations and communicating with state, 443
municipal and regional officials. Such staffing standards may reflect 444
different staffing levels based on the severity of any emergency. 445
(e) The authority may establish as it deems fit any other standards for 446
acceptable performance by any electric distribution company to ensure 447
the reliability of such company's services in any emergency and to 448
prevent, minimize and restore any long-term service outages or 449
disruptions caused by such emergency. 450
(f) The authority, upon a finding that any electric distribution 451
company failed to comply with any standard of acceptable performance 452
adopted pursuant to this section or any order of the authority, shall 453
make orders to enforce such standards and may levy civil penalties 454
against such company, pursuant to section 16-41 of the general statutes. 455
Any such penalty shall not be included as an operating expense of such 456
company for purposes of ratemaking. 457
Sec. 13. Subsection (a) of section 16-41 of the general statutes is 458
repealed and the following is substituted in lieu thereof (Effective from 459
passage): 460
(a) Each (1) public service company and its officers, agents and 461
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employees, (2) electric supplier or person providing electric generation 462
services without a license in violation of section 16-245, and its officers, 463
agents and employees, (3) certified telecommunications provider or 464
person providing telecommunications services without authorization 465
pursuant to sections 16-247f to 16-247h, inclusive, and its officers, agents 466
and employees, (4) person, public agency or public utility, as such terms 467
are defined in section 16-345, subject to the requirements of chapter 293, 468
(5) person subject to the registration requirements under section 16-469
258a, (6) cellular mobile telephone carrier, as described in section 16-470
250b, (7) Connecticut electric efficiency partner, as defined in section 16-471
243v, (8) company, as defined in section 16-49, and (9) entity approved 472
to submeter pursuant to section 16-19ff shall obey, observe and comply 473
with all applicable provisions of this title and each applicable order 474
made or applicable regulations adopted by the Public Utilities 475
Regulatory Authority by virtue of this title as long as the same remains 476
in force. Any such company, electric supplier, certified 477
telecommunications provider, cellular mobile telephone carrier, 478
Connecticut electric efficiency partner, entity approved to submeter, 479
person, any officer, agent or employee thereof, public agency or public 480
utility which the authority finds has failed to obey or comply with any 481
such provision of this title, order or regulation shall be fined, ordered to 482
pay restitution to customers or ordered to pay a combination of a fine 483
and restitution by order of the authority in accordance with the penalty 484
prescribed for the violated provision of this title or, if no penalty is 485
prescribed, not more than ten thousand dollars for each offense, except 486
that the penalty shall be a fine, restitution to customers or a combination 487
of a fine and restitution of not more than forty thousand dollars for 488
failure to comply with an order of the authority made in accordance 489
with the provisions of section 16-19 or 16-247k or within thirty days of 490
such order or within any specific time period for compliance specified 491
in such order. The authority may direct a portion of any fine levied 492
pursuant to this section to be paid to a nonprofit agency engaged in 493
energy assistance programs named by the authority in its decision or 494
notice of violation. Each distinct violation of any such provision of this 495
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title, order or regulation shall be a separate offense and, in case of a 496
continued violation, each day thereof shall be deemed a separate 497
offense. Each such penalty and any interest charged pursuant to 498
subsection (g) or (h) of section 16-49 shall be excluded from operating 499
expenses for purposes of rate-making. 500
Sec. 14. (NEW) (Effective from passage) Not later than January 15, 2021, 501
the Commissioner of Energy and Environmental Protection shall submit 502
a report to the joint standing committee of the General Assembly having 503
cognizance of matters relating to energy (1) evaluating whether 504
Connecticut's reliance on the wholesale energy markets administered by 505
the regional independent system operator, as defined in section 16-1 of 506
the general statutes, benefits Connecticut ratepayers, and (2) 507
recommending alternative approaches to better meet Connecticut's 508
need for clean, reliable and affordable electricity generation supply in a 509
manner that leverages competition, reduces ratepayer risk and achieves 510
the state's public policy goals, including, but not limited to, pursuant to 511
section 22a-200a of the general statutes. 512
Sec. 15. Section 16-243y of the general statutes is repealed and the 513
following is substituted in lieu thereof (Effective from passage): 514
(a) As used in this section: 515
(1) "Municipality" has the same meaning as provided in section 7-516
233b; 517
(2) "Critical facility" means any hospital, police station, fire station, 518
water treatment plant, sewage treatment plant, public shelter, 519
correctional facility or production and transmission facility of a 520
television or radio station, whether broadcast, cable or satellite, licensed 521
by the Federal Communications Commission, any commercial area of a 522
municipality, a municipal center, as identified by the chief elected 523
official of any municipality, or any other facility or area identified by the 524
Department of Energy and Environmental Protection as critical; 525
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(3) "Distributed energy generation" means the generation of 526
electricity from a unit with a rating of not more than sixty-five 527
megawatts on the premises of a retail end user within the transmission 528
and distribution system; 529
(4) "Electric distribution company" and "participating municipal 530
electric utility" have the same meanings as provided in section 16-1; 531
[and] 532
(5) "Microgrid" means a group of interconnected loads and 533
distributed energy resources within clearly defined electrical 534
boundaries that acts as a single controllable entity with respect to the 535
grid and that connects and disconnects from such grid to enable it to 536
operate in both grid-connected or island mode; [.] 537
(6) "Resilience" means the ability to prepare for and adapt to changing 538
conditions and withstand and recover rapidly from deliberate attacks, 539
accidents or naturally occurring threats or incidents, including, but not 540
limited to, threats or incidents associated with the impacts of climate 541
change; and 542
(7) "Vulnerable communities" means populations that may be 543
disproportionately impacted by the effects of climate change, including, 544
but not limited to, low and moderate income communities, 545
environmental justice communities pursuant to section 22a-20a, 546
communities eligible for community reinvestment pursuant to section 547
36a-30 and the Community Reinvestment Act of 1977, 12 USC 2901 et 548
seq., as amended from time to time, populations with increased risk and 549
limited means to adapt to the effects of climate change, or as further 550
defined by the Department of Energy and Environmental Protection in 551
consultation with community representatives. 552
(b) The Department of Energy and Environmental Protection shall 553
establish a microgrid and resilience grant and loan pilot program to 554
support local distributed energy generation for critical facilities or 555
resilience projects. The department shall develop and issue a request for 556
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proposals from municipalities, electric distribution companies, 557
participating municipal electric utilities, energy improvement districts, 558
and nonprofit, academic and private entities seeking to develop 559
microgrid distributed energy generation, or to repurpose existing 560
distributed energy generation for use with microgrids, to support 561
critical facilities or to develop resilience projects. Any entity eligible to 562
submit a proposal pursuant to this section may collaborate with any 563
other such entity in submitting such proposal. The department may hire 564
a technical consultant to support the implementation of this section 565
using any bond funds authorized in support of microgrids or resilience. 566
(c) The department shall award grants or loans under the microgrid 567
and resilience grant and loan pilot program to any number of recipients. 568
The department shall prioritize proposals that benefit vulnerable 569
communities. To the extent possible, the amount of loans and grants 570
awarded under the program shall be evenly distributed between small, 571
medium and large municipalities. Such grants and loans may provide: 572
(1) Assistance with community planning that includes, but is not limited 573
to, microgrid or resilience project feasibility, including benefit-cost 574
analyses, (2) assistance to recipients for the cost of design, engineering 575
services and interconnection infrastructure for any such microgrid [, 576
and (2)] or resilience project, (3) matching funds or low interest loans for 577
an energy storage system or systems, as defined in section 16-1, or 578
distributed energy generation projects first placed in service on or after 579
July 1, 2016, provided such generation is derived from a Class I 580
renewable energy source, as defined in section 16-1, or a Class III energy 581
source, as defined in section 16-1, for any such microgrid or resilience 582
project, and (4) nonfederal cost share for grant or loan applications for 583
projects or programs that include microgrids or resilience. The 584
department may establish any financing mechanism to provide or 585
leverage additional funding to support the development of 586
interconnection infrastructure, distributed energy generation, [and] 587
microgrids and resilience projects. 588
(d) Not later than January first, annually, for a period of five years 589
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after receiving a grant or loan under the microgrid and resilience grant 590
and loan pilot program, the recipient of such grant or loan shall submit 591
a report to the Public Utilities Regulatory Authority, the Office of 592
Consumer Counsel and the Department of Energy and Environmental 593
Protection and, in accordance with section 11-4a, to the joint standing 594
committees of the General Assembly having cognizance of matters 595
relating to appropriations and energy. Such report shall include 596
information concerning the status of such recipient's microgrid or 597
resilience project. 598
[(e) On or before January 1, 2013, the department shall file a report, 599
in accordance with the provisions of section 11-4a, with the joint 600
standing committee of the General Assembly having cognizance of 601
matters relating to energy, identifying other funding sources necessary 602
to expand the microgrid grant and loan pilot program established 603
pursuant to this section and any legislative changes necessary to access 604
such funding.] 605
[(f)] (e) The Department of Energy and Environmental Protection, in 606
consultation with the Connecticut Academy of Science and Engineering, 607
shall study the methods of providing reliable electric services to critical 608
facilities, taking into consideration the location of such critical facilities. 609
Such study shall evaluate the costs and benefits of such methods, 610
including, but not limited to, the use of microgrids, undergrounding 611
and portable turbine generation, and shall make recommendations 612
identifying the most cost-effective and reliable of such methods. Not 613
later than January 1, 2013, the department shall submit the findings of 614
such study, in accordance with section 11-4a, to the joint standing 615
committee of the General Assembly having cognizance of matters 616
relating to energy and technology. 617
Sec. 16. (NEW) (Effective from passage) (a) As used in this section: 618
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(1) "Public service company" and "telecommunications company" 619
have the same meanings as provided in section 16-1 of the general 620
statutes; 621
(2) "Critical infrastructure" means real property and tangible personal 622
property, including, but not limited to, buildings, conduits, lines, fiber 623
optic cables, poles, pipes, structures and equipment, owned or used by 624
a public service company or a telecommunications company to 625
generate, transmit or distribute such company's product or service in 626
the state; 627
(3) "State disaster or emergency" means a disaster or an emergency 628
event for which (A) the Governor has issued a proclamation of a disaster 629
or an emergency pursuant to chapter 517 of the general statutes, or (B) 630
the President of the United States has issued a declaration of the 631
existence in the state of a major disaster or an emergency; 632
(4) "Disaster-related or emergency-related work" means repairing, 633
renovating, installing, constructing or rendering services to critical 634
infrastructure in the state that has been damaged, impaired or destroyed 635
by a state disaster or emergency; 636
(5) "Disaster response period" means the period (A) commencing ten 637
calendar days prior to the date of issuance of the proclamation or 638
declaration of a state disaster or emergency, and (B) ending sixty 639
calendar days after the Governor has proclaimed or the President has 640
declared, as applicable, the end of such disaster or emergency; 641
(6) (A) "Out-of-state business" means a business entity that, in the 642
income or taxable year immediately preceding the income year or 643
taxable year in which the state disaster or emergency occurred, (i) was 644
not registered with the state or any political subdivision thereof, (ii) did 645
not submit any tax filings to the state, and (iii) did not derive income 646
from sources within the state. 647
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(B) "Out-of-state business" includes a business entity that (i) was 648
present in the state or conducted operations in the state, to perform 649
disaster-related or emergency-related work, but otherwise satisfies the 650
provisions of this subdivision, or (ii) is affiliated with a registered 651
business solely through common ownership but otherwise satisfies the 652
provisions of this subdivision; 653
(7) "Out-of-state employee" means an employee of an out-of-state 654
business, who does not work in the state other than performing disaster-655
related or emergency-related work during a disaster response period for 656
such out-of-state business; 657
(8) "Registered business" means a business entity that is registered 658
with the Secretary of the State to do business in the state prior to the 659
state disaster or emergency; and 660
(9) "Business entity" means any person that would be subject to the 661
tax under chapter 208, 211, 212, 212b or 228z of the general statutes, if 662
such person conducted business in the state or derived income from 663
sources within the state. 664
(b) Notwithstanding any provision of title 12 of the general statutes 665
or subsection (c) of section 14-34a of the general statutes, no out-of-state 666
business or out-of-state employee that is present in the state or conducts 667
operations in the state, to perform disaster-related or emergency-related 668
work during a disaster response period, shall be deemed to have 669
established sufficient presence in the state to require such business or 670
employee to (1) register with the state or any political subdivision 671
thereof; (2) be licensed by the state, provided such business or employee 672
is properly registered, licensed or otherwise authorized under the laws 673
of another state to perform disaster-related or emergency-related work; 674
(3) be subject to property tax, tax on the income derived from the 675
performance of disaster-related or emergency-related work during a 676
disaster response period or use tax on tangible personal property 677
temporarily in the state to aid such employee in the performance of such 678
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work; or (4) submit any tax filing to the state; except that, with respect 679
to out-of-state employees, the provisions of subdivisions (3) and (4) of 680
this subsection shall apply only to an out-of-state employee who is a 681
resident of a state that has a law substantially similar to the provisions 682
of this subsection and subsection (c) of this section or that does not 683
impose a personal income tax. 684
(c) The activities associated with disaster-related or emergency-685
related work performed in the state by an out-of-state business that is 686
present in the state or conducts operations in the state solely to perform 687
such work shall be disregarded for purposes of any filing required for a 688
tax imposed on income or gross receipts, including, but not limited to, a 689
combined unitary tax return. 690
(d) Except as specified under subsections (b) and (c) of this section, 691
any out-of-state business or out-of-state employee that is present in the 692
state or conducts operations in the state, to perform disaster-related or 693
emergency-related work during a disaster response period, shall be 694
subject to all other applicable state taxes and fees during such period. 695
(e) (1) Any out-of-state business that is present in the state or 696
conducts operations in the state, to perform disaster-related or 697
emergency-related work during a disaster response period, shall 698
provide, upon request by the Secretary of the State, a written statement 699
that such business is in the state for purposes of responding to the state 700
disaster or emergency. Such statement shall include the out-of-state 701
business's name, state of domicile, principal business address, telephone 702
number, electronic mail address, federal tax identification number and 703
date of entry into the state, and may be provided electronically. 704
(2) The Secretary of the State may request a registered business that 705
is an affiliate of such out-of-state business to provide the written 706
statement and information set forth in subdivision (1) of this subsection. 707
Such registered business shall also include the registered business's 708
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name, principal business address, telephone number and electronic mail 709
address. 710
(3) No out-of-state business that has received a request from the 711
Secretary of the State for a written statement or is an affiliate of a 712
registered business that has received such request shall be prevented 713
from commencing disaster-related or emergency-related work in the 714
state prior to the provision of the written statement. 715
(f) Any out-of-state business or out-of-state employee who remains 716
in the state after the disaster response period shall be subject to all other 717
laws that provide standards to establish presence in the state and shall 718
comply with any provision of the general statutes that becomes 719
applicable to such business or employee due to such presence. 720
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Sec. 2 from passage 16-19(a) and (b)
Sec. 3 November 1, 2020 16-19a(a) and (b)
Sec. 4 from passage New section
Sec. 5 from passage New section
Sec. 6 November 1, 2020 16-43(b)
Sec. 7 January 1, 2021 16-47(d)
Sec. 8 November 1, 2020 16-243p
Sec. 9 from passage 16-32i
Sec. 10 from passage New section
Sec. 11 from passage New section
Sec. 12 from passage New section
Sec. 13 from passage 16-41(a)
Sec. 14 from passage New section
Sec. 15 from passage 16-243y
Sec. 16 from passage New section