House Bill No. 7006
September Special Session, Public Act No. 20-5
AN ACT CONCERNING EM ERGENCY RESPONSE BY ELECTRIC
DISTRIBUTION COMPANI ES, THE REGULATION O F OTHER
PUBLIC UTILITIES AND NEXUS PROVISIONS FO R CERTAIN
DISASTER-RELATED OR EMERGENCY-RELATED WO RK
PERFORMED IN THE STA TE.
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
section, "electric distribution company" has the same meaning as
provided in section 16-1 of the general statutes and "emergency" has the
same meaning as provided in section 16-32e of the general statutes.
(2) "Resilience" means the ability to prepare for and adapt to changing
conditions and withstand and recover rapidly from deliberate attacks,
accidents or naturally occurring threats or incidents, including, but not
limited to, threats or incidents associated with the impacts of climate
change.
(b) Not later than June 1, 2021, the Public Utilities
Regulatory Authority shall initiate a proceeding to investigate, develop
and adopt a framework for implementing performance -based
regulation of each electric distribution company. Such framework
adopted by the authority shall: (1) Establish standards and metrics for
measuring such electric distribution company's performance of House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 2 of 25
objectives that are in the interest of ratepayers or benefit the public,
which may include, but not be not limited to, safety,
reliability, emergency response, cost efficiency, affordability, equity,
customer satisfaction, municipal engagement, resilience
and advancing the state's environmental and policy goals, including,
but not limited to, those goals established in section 22a-200a of the
general statutes, in the Integrated Resources Plan approved pursuant to
section 16a-3a of the general statutes and in the Comprehensive Energy
Strategy prepared pursuant to section 16a-3d of the general statutes; (2)
identify the manner, including the timeframe and extent, in which such
standards and metrics shall be used to apply the principles and
guidelines set forth in section 16-19e of the general statutes and to
determine the relative adequacy of the company's service and the
reasonableness and adequacy of rates proposed and considered
pursuant to section 16-19a of the general statutes; and (3) identify
specific mechanisms to be implemented to align utility performance
with the standards and metrics adopted pursuant to this section and
subsection (b) of section 16-19a of the general statutes, including, but not
limited to, reviewing the effectiveness of the electric distribution
company's revenue decoupling mechanism. The authority may
also initiate a proceeding to investigate, develop and adopt a framework
for implementation of performance-based regulation for gas and water
companies, as defined by section 16-1 of the general statutes, consistent
with the requirements and provisions of this section.
Sec. 2. Subsections (a) and (b) of section 16-19 of the general statutes
are repealed and the following is substituted in lieu thereof (Effective
from passage):
(a) No public service company may charge rates in excess of those
previously approved by the Public Utilities Control Authority or the
Public Utilities Regulatory Authority, except that any rate approved by
the Public Utilities Commission, the Public Utilities Control Authority House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 3 of 25
or the Public Utilities Regulatory Authority shall be permitted until
amended by the Public Utilities Regulatory Authority, that rates not
approved by the Public Utilities Regulatory Authority may be charged
pursuant to subsection (b) of this section, and that the hearing
requirements with respect to adjustment clauses are as set forth in
section 16-19b. For water companies, existing rates shall include the
amount of any adjustments approved pursuant to section 16-262w since
the company's most recent general rate case, provided any adjustment
amount shall be separately identified in any customer bill. Each public
service company shall file any proposed amendment of its existing rates
with the authority in such form and in accordance with such reasonable
regulations as the authority may prescribe. Each electric distribution,
gas or telephone company filing a proposed amendment shall also file
with the authority an estimate of the effects of the amendment, for
various levels of consumption, on the household budgets of high and
moderate income customers and customers having household incomes
not more than one hundred fifty per cent of the federal poverty level.
Each electric distribution company shall also file such an estimate for
space heating customers. Each water company, except a water company
that provides water to its customers less than six consecutive months in
a calendar year, filing a proposed amendment, shall also file with the
authority a plan for promoting water conservation by customers in such
form and in accordance with a memorandum of understanding entered
into by the authority pursuant to section 4-67e. Each public service
company shall notify each customer who would be affected by the
proposed amendment, by mail, at least one week prior to the first public
hearing thereon, but not earlier than six weeks prior to such first public
hearing, that an amendment has been or will be requested. Such notice
shall also indicate (1) the date, time and location of any scheduled public
hearing, (2) a statement that customers may provide written comments
regarding the proposed amendment to the Public Utilities Regulatory
Authority or appear in person at any scheduled public hearing, (3) the
Public Utilities Regulatory Authority telephone number for obtaining House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 4 of 25
information concerning the schedule for public hearings on the
proposed amendment, and (4) whether the proposed amendment
would, in the company's best estimate, increase any rate or charge by
twenty per cent or more, and, if so, describe in general terms any such
rate or charge and the amount of the proposed increase, provided no
such company shall be required to provide more than one form of the
notice to each class of its customers. In the case of a proposed
amendment to the rates of any public service company, the authority
shall hold one or more public hearings thereon, except as permitted with
respect to interim rate amendments by subsections (d) and (g) of this
section, and shall make such investigation of such proposed amendment
of rates as is necessary to determine whether such rates conform to the
principles and guidelines set forth in section 16-19e, or are unreasonably
discriminatory or more or less than just, reasonable and adequate, or
that the service furnished by such company is inadequate to or in excess
of public necessity and convenience, provided the authority may (A)
evaluate the reasonableness and adequacy of the performance or service
of the public service company using any applicable metrics or standards
adopted by the authority pursuant to section 1 of this act, and (B)
determine the reasonableness of the allowed rate of return of the public
service company based on such performance evaluation. The authority,
if in its opinion such action appears necessary or suitable in the public
interest may, and, upon written petition or complaint of the state, under
direction of the Governor, shall, make the aforesaid investigation of any
such proposed amendment which does not involve an alteration in
rates. If the authority finds any proposed amendment of rates to not
conform to the principles and guidelines set forth in section 16-19e, or
to be unreasonably discriminatory or more or less than just, reasonable
and adequate to enable such company to provide properly for the public
convenience, necessity and welfare, or the service to be inadequate or
excessive, it shall determine and prescribe, as appropriate, an adequate
service to be furnished or just and reasonable maximum rates and
charges to be made by such company. In the case of a proposed House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 5 of 25
amendment filed by an electric distribution, gas or telephone company,
the authority shall also adjust the estimate filed under this subsection of
the effects of the amendment on the household budgets of the
company's customers, in accordance with the rates and charges
approved by the authority. The authority shall issue a final decision on
each electric distribution or gas company rate filing within [one] three
hundred fifty days from the proposed effective date thereof. [, provided
it may, before the end of such period and upon notifying all parties and
intervenors to the proceedings, extend the period by thirty days.] The
authority shall issue a final decision on all public service company rate
filings, except electric distribution or gas company rate filings, within
two hundred days from the proposed effective date thereof.
(b) If the authority has not made its finding respecting an amendment
of any electric distribution or gas company rate within [one] three
hundred fifty days from the proposed effective date of such amendment
thereof, or [within one hundred eighty days if the authority extends the
period in accordance with the provisions of subsection (a) of this
section] if the authority has not made its finding respecting an
amendment of any public service company rate, except electric
distribution or gas company rate, within two hundred days from the
proposed effective date of such amendment thereof, such amendment
may become effective pending the authority's finding with respect to
such amendment upon the filing by the company with the authority of
assurance satisfactory to the authority, which may include a bond with
surety, of the company's ability and willingness to refund to its
customers with interest such amounts as the company may collect from
them in excess of the rates fixed by the authority in its finding or fixed
at the conclusion of any appeal taken as a result of a finding by the
authority.
Sec. 3. Subsections (a) and (b) of section 16-19a of the general statutes
are repealed and the following is substituted in lieu thereof (Effective House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 6 of 25
November 1, 2020):
(a) (1) The Public Utilities Regulatory Authority shall, at intervals of
not more than four years from the last previous general rate hearing of
each gas and electric distribution company having more than seventy-
five thousand customers, conduct a complete review and investigation
of the financial and operating records of each such company and hold a
public hearing to determine whether the rates of each such company are
unreasonably discriminatory or more or less than just, reasonable and
adequate, or that the service furnished by such company is inadequate
to or in excess of public necessity and convenience or that the rates do
not conform to the principles and guidelines set forth in section 16-19e.
In making such determination, the authority shall consider the gross
and net earnings of such company since its last previous general rate
hearing, its retained earnings, its actual and proposed capital
expenditures, its advertising expenses, the dividends paid to its
stockholders, the rate of return paid on its preferred stock, bonds,
debentures and other obligations, its credit rating, and such other
financial and operating information as the authority may deem
pertinent.
(2) The authority may conduct a general rate hearing in accordance
with subsection (a) of section 16-19, in lieu of the periodic review and
investigation proceedings required under subdivision (1) of this
subsection.
(b) In [the] any proceeding required under subdivision (1) of
subsection (a) of this section, or in any rate hearing pursuant to section
16-19, the authority [may approve performance-based incentives to
encourage a gas or electric distribution company to operate efficiently
and provide high quality service at fair and reasonable prices] shall
consider the implementation of financial performance-based incentives
and penalties and performance-based metrics. Notwithstanding
subsection (a) of this section, if the authority approves such House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 7 of 25
performance-based incentives and penalties for a particular company,
the authority shall include in such approval a framework for periodic
monitoring and review of the company's performance [in regard to
criteria specified by the authority, which shall include, but not be
limited to, the company's return on equity, reliability and quality of
service. The authority's periodic monitoring and review shall be used in
lieu of the periodic review and investigation proceedings required
under subdivision (1) of subsection (a) of this section. If the authority
determines in the periodic monitoring and review that a more extensive
review of company performance is necessary, the authority may
institute a further proceeding in accordance with the purposes of this
chapter, including a complete review and investigation described in
subdivision (1) of subsection (a) of this section] pursuant to metrics
developed by the authority.
Sec. 4. (NEW) (Effective from passage) Notwithstanding any provision
of the general statutes, in exercising its discretion regarding whether to
allow the recovery through rates of any portion of the compensation
package for executives or officers or of any portion of any incentive
compensation for employees of any electric distribution company, gas
company or water company, as defined in section 16-1 of the general
statutes, the Public Utilities Regulatory Authority shall consider
whether to require that any such compensation that is recoverable
through rates be dependent upon the achievement of performance
targets established pursuant to section 1 of this act.
Sec. 5. (NEW) (Effective from passage) Not later than November 1, 2020,
the Public Utilities Regulatory Authority may initiate a proceeding or
proceedings to consider the implementation of an interim rate decrease,
low-income rates and economic development rates for customers of
electric distribution companies, pursuant to its authority in subsection
(g) of section 16-19 of the general statutes and sections 16-19e and 16-
19oo of the general statutes. House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 8 of 25
Sec. 6. Subsection (b) of section 16-43 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective
November 1, 2020):
(b) A public service company shall obtain the approval of the Public
Utilities Regulatory Authority to (1) issue any notes, bonds or other
evidences of indebtedness or securities of any nature, (2) lend or borrow
any moneys for a period of more than one year for any purpose other
than paying the expenses, including taxes, of conducting its business or
for the payment of dividends, or (3) amend any provision of an
indenture or similar financial instrument if such amendment would
affect the issuance or terms of any such notes, bonds or other evidences
of indebtedness or securities. The authority shall approve or disapprove
each such issue or amendment within [thirty] sixty days after the filing
of a written application for such approval unless the applicant agrees to
an extension of time. If not disapproved within said [thirty] sixty days
or within such extension, such issue shall be deemed to be approved.
The authority shall not require a company to issue its common stock
under terms or conditions not required by the general statutes. The
provisions of this subsection shall apply to a community antenna
television company only with regard to any noncable communications
services which the company may provide.
Sec. 7. Subsection (d) of section 16-47 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective January
1, 2021):
(d) The Public Utilities Regulatory Authority shall investigate and
hold a public hearing on the question of granting its approval with
respect to any application made under subsection (b) or (c) of this
section and thereafter may approve or disapprove any such application
in whole or in part and upon such terms and conditions as it deems
necessary or appropriate. In connection with its investigation, the
authority may request the views of the gas, electric distribution, water, House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 9 of 25
telephone or community antenna television company or holding
company which is the subject of the application with respect to the
proposed acquisition. After the filing of an application satisfying the
requirements of such regulations as the authority may adopt in
accordance with the provisions of chapter 54, but not later than thirty
business days after the filing of such application, the authority shall give
prompt notice of the public hearing to the person required to file the
application and to the subject company or holding company. Such
hearing shall be commenced as promptly as practicable after the filing
of the application, but not later than [thirty] sixty business days after the
filing, and the authority shall make its determination as soon as
practicable, but not later than [one] two hundred [twenty] days after the
filing of the application, provided it may, before the end of such period
and upon notifying all parties and intervenors to the proceedings,
extend the period by thirty days, or unless the person required to file
the application agrees to an extension of time. The authority may, in its
discretion, grant the subject company or holding company the
opportunity to participate in the hearing by presenting evidence and
oral and written argument. If the authority fails to give notice of its
determination to hold a hearing, commence the hearing, or render its
determination after the hearing within the time limits specified in this
subdivision, the proposed acquisition shall be deemed approved. In
each proceeding on a written application submitted under said
subsection (b) or (c), the authority shall, in a manner which treats all
parties to the proceeding on an equal basis, take into consideration (1)
the financial, technological and managerial suitability and
responsibility of the applicant, (2) the ability of the gas, electric
distribution, water, telephone or community antenna television
company or holding company which is the subject of the application to
provide safe, adequate and reliable service to the public through the
company's plant, equipment and manner of operation if the application
were to be approved, and (3) for an application concerning a telephone
company, the effect of approval on the location and accessibility of House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 10 of 25
management and operations and on the proportion and number of state
resident employees. The authority shall only grant its approval of an
application filed on or after January 1, 2021, made under subsection (c)
of this section, if the holding company effects a change in the
composition of the board of directors to include a proportional
percentage of Connecticut-based directors equivalent to the percentage
that Connecticut service areas represent of the total service areas
covered by the holding company.
Sec. 8. Section 16-243p of the general statutes is repealed and the
following is substituted in lieu thereof (Effective November 1, 2020):
(a) An electric distribution company may recover its costs and
investments that have been prudently incurred as well as its revenues
lost resulting from the provisions of sections 16-1, 16-19ff, 16-50k, 16-
50x, 16-243h to 16-243q, inclusive, 16-244c, 16-244u, 16-244x, 16-245d, 16-
245m, 16-245n, 16-245z, 16-262i, 16a-40l and 16a-40m and section 21 of
public act 05-1 of the June special session. The Public Utilities
Regulatory Authority shall, after a hearing held pursuant to the
provisions of chapter 54, determine the appropriate mechanism to
obtain such recovery in a timely manner which mechanism may be one
or more of the following: (1) Approval of rates as provided in sections
16-19 and 16-19e; (2) the energy adjustment clause as provided in section
16-19b; or (3) the federally mandated congestion charges, as defined in
section 16-1.
(b) No electric distribution company shall recover its costs associated
with its attendance or participation in any rate-making hearing before
the authority.
[(b)] (c) Electric distribution companies shall be authorized to earn an
incentive, as provided in section 16-19kk, for costs prudently incurred
by such companies pursuant to this section. House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 11 of 25
Sec. 9. Section 16-32i of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
The Public Utilities Regulatory Authority shall review the
performance of each electric distribution company and gas company, as
those terms are defined in section 16-1, after any emergency, as defined
in section 16-32e, (1) in which more than ten per cent of any such
company's customers were without service for more than forty-eight
consecutive hours, or (2) at the authority's discretion. The authority,
upon a finding that any such company failed to comply with any
standard of acceptable performance in emergency preparation or
restoration of service in an emergency, adopted pursuant to section 16-
32h, or with any order of the authority, shall make orders, after a hearing
that is conducted as a contested case in accordance with chapter 54, to
enforce such standards or orders and may levy civil penalties against
such company, pursuant to section 16-41, not to exceed a total of [two
and one-half] four per cent of such electric distribution or gas company's
annual distribution revenue, for noncompliance in any such emergency.
In determining the amount of any penalty, the authority shall consider
whether such company received approval and reasonable funding
allowances, as determined by the authority, from the authority to meet
infrastructure resiliency efforts to improve such company's
performance. Any such penalty shall be assessed in the form of [a credit
to] credits to the accounts of ratepayers of such electric distribution or
gas company. Any such penalty shall not be included as an operating
expense of such company for purposes of ratemaking.
Sec. 10. (NEW) (Effective from passage) (a) For the purposes of this
section, "emergency" has the same meaning as provided in subdivision
(1) of subsection (a) of section 16-32e of the general statutes and "electric
distribution company" has the same meaning as provided in section 16-
1 of the general statutes.
(b) Notwithstanding any other provision of the general statutes, on House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 12 of 25
and after July 1, 2021, each electric distribution company shall provide
to residential customers of such company a credit of twenty-five dollars,
on the balance of such customer's account, for each day of distribution-
system service outage that occurs for such customers for more than
ninety-six consecutive hours after the occurrence of an emergency.
(c) Any costs incurred by an electric distribution company pursuant
to this section shall not be recoverable.
(d) Not later than fourteen calendar days after the occurrence of an
emergency, an electric distribution company may petition the authority
for a waiver of the requirements of this section. Any petition for a waiver
made under this subsection shall include the severity of the emergency,
employee safety issues and conditions on the ground, and shall be
conducted as a contested case proceeding. The burden of proving that
such waiver is reasonable and warranted shall be on the electric
distribution company. In determining whether to grant such waiver, the
authority shall consider whether the electric distribution company
received approval and reasonable funding allowances, as determined
by the authority, to meet infrastructure resiliency efforts to improve
such company's performance.
(e) On or before January 1, 2021, the Public Utilities Regulatory
Authority shall initiate a proceeding to consider the implementation of
the residential customer credit and waiver provisions of this section and
establish circumstances, standards and methodologies applicable to
each electric distribution company and necessary to implement the
provisions of this section, including any modifications to the ninety-six-
consecutive-hour standard in subsection (b) of this section. The
authority shall issue a final decision in such proceeding on or before July
1, 2021.
Sec. 11. (NEW) (Effective from passage) (a) For the purposes of this
section, "emergency" has the same meaning as provided in subdivision House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 13 of 25
(1) of subsection (a) of section 16-32e of the general statutes and "electric
distribution company" has the same meaning as provided in section 16-
1 of the general statutes.
(b) On and after July 1, 2021, each electric distribution company shall
provide to each residential customer compensation in an amount of two
hundred fifty dollars, in the aggregate, for any medication and food that
expires or spoils due to a distribution-system service outage that lasts
more than ninety-six consecutive hours in duration after the occurrence
of an emergency.
(c) Any costs incurred by an electric distribution company pursuant
to this section shall not be recoverable.
(d) Not later than fourteen calendar days after the occurrence of an
emergency, an electric distribution company may petition the authority
for a waiver of the requirements of this section. Any petition for a waiver
made under this subsection shall include the severity of the emergency,
employee safety issues and conditions on the ground, and shall be
conducted as a contested case proceeding. The burden of proving that
such waiver is reasonable and warranted shall be on the electric
distribution company. In determining whether to grant such waiver, the
authority shall consider whether the electric distribution company
received approval and reasonable funding allowances, as determined
by the authority, to meet infrastructure resiliency efforts to improve
such company's performance.
(e) On or before January 1, 2021, the Public Utilities Regulatory
Authority shall initiate a proceeding to consider the implementation of
the compensation reimbursement and waiver provisions of this section
and establish circumstances, standards and methodologies applicable to
each electric distribution company and necessary to implement the
provisions of this section, including any modifications to the ninety-six-
consecutive-hour standard in subsection (b) of this section. The House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 14 of 25
authority shall issue a final decision in such proceeding on or before July
1, 2021.
Sec. 12. (NEW) (Effective from passage) (a) As used in this section,
"electric distribution company" has the same meaning as provided in
section 16-1 of the general statutes.
(b) Not later than January 1, 2021, each electric distribution company
shall submit to the joint standing committee of the General Assembly
having cognizance of matters relating to energy, in accordance with the
provisions of section 11-4a of the general statutes, and the Public
Utilities Regulatory Authority the following:
(1) A cost-benefit analysis identifying the resources expended in
response to the last five storm events classified as a level three, four or
five. Such analysis shall include a review of the number of line crew
workers and shall distinguish between line crew workers (A) directly
employed by the electric distribution company and working full time
within the state, (B) directly employed by the electric distribution
company working primarily in another state, and (C) hired as
contractors or subcontractors.
(2) An analysis of any such company's (A) estimates concerning
potential damage and service outages prior to the last five storm events
classified as a level three, four or five, (B) damage and service outage
assessments after the last five storm events classified as a level three,
four or five, (C) restoration management after the last five storm events
classified as a level three, four or five, including access to alternate
restoration resources via regional and reciprocal aid contracts, (D)
planning for at-risk and vulnerable customers, (E) communication
policies with state and local officials and customers, including
individual customer restoration estimates and the accuracy of such
estimates, (F) infrastructure, facilities and equipment, which shall
include, but not be limited to, an examination of (i) whether such House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 15 of 25
infrastructure, facilities and equipment are in good repair and capable
of meeting operational standards, (ii) whether such company is
following standard industry practice concerning operation and
maintenance of such infrastructure, facilities and equipment, (iii) the age
and condition of such infrastructure, facilities and equipment, (iv)
whether maintenance of such infrastructure, facilities and equipment
has been delayed, and (v) whether such company had access to
adequate replacement equipment for such infrastructure, facilities and
equipment during the course of the last five storm events classified as a
level three, four or five, and (G) compliance with any emergency
response standards adopted by the authority.
(c) Not later than January 1, 2021, the authority shall initiate a docket,
or incorporate into an existing docket, to review the report provided by
each electric distribution company pursuant to subsection (b) of this
section. The authority shall submit the final decision of such docket, in
accordance with the provisions of section 11-4a of the general statutes,
to the joint standing committee of the General Assembly having
cognizance of matters relating to energy.
(d) After issuing its final decision in the docket initiated pursuant to
subsection (c) of this section, the authority shall establish standards for
minimum staffing levels for any electric distribution company for
outage planning and restoration personnel, including linemen,
technicians and system engineers, tree trimming crews and personnel
responsible for directing operations and communicating with state,
municipal and regional officials. Such staffing standards may reflect
different staffing levels based on the severity of any emergency.
(e) The authority may establish as it deems fit any other standards for
acceptable performance by any electric distribution company to ensure
the reliability of such company's services in any emergency and to
prevent, minimize and restore any long-term service outages or
disruptions caused by such emergency. House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 16 of 25
(f) The authority, upon a finding that any electric distribution
company failed to comply with any standard of acceptable performance
adopted pursuant to this section or any order of the authority, shall
make orders to enforce such standards and may levy civil penalties
against such company, pursuant to section 16-41 of the general statutes.
Any such penalty shall not be included as an operating expense of such
company for purposes of ratemaking.
Sec. 13. Subsection (a) of section 16-41 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective from
passage):
(a) Each (1) public service company and its officers, agents and
employees, (2) electric supplier or person providing electric generation
services without a license in violation of section 16-245, and its officers,
agents and employees, (3) certified telecommunications provider or
person providing telecommunications services without authorization
pursuant to sections 16-247f to 16-247h, inclusive, and its officers, agents
and employees, (4) person, public agency or public utility, as such terms
are defined in section 16-345, subject to the requirements of chapter 293,
(5) person subject to the registration requirements under section 16-
258a, (6) cellular mobile telephone carrier, as described in section 16-
250b, (7) Connecticut electric efficiency partner, as defined in section 16-
243v, (8) company, as defined in section 16-49, and (9) entity approved
to submeter pursuant to section 16-19ff shall obey, observe and comply
with all applicable provisions of this title and each applicable order
made or applicable regulations adopted by the Public Utilities
Regulatory Authority by virtue of this title as long as the same remains
in force. Any such company, electric supplier, cert ified
telecommunications provider, cellular mobile telephone carrier,
Connecticut electric efficiency partner, entity approved to submeter,
person, any officer, agent or employee thereof, public agency or public
utility which the authority finds has failed to obey or comply with any House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 17 of 25
such provision of this title, order or regulation shall be fined, ordered to
pay restitution to customers or ordered to pay a combination of a fine
and restitution by order of the authority in accordance with the penalty
prescribed for the violated provision of this title or, if no penalty is
prescribed, not more than ten thousand dollars for each offense, except
that the penalty shall be a fine, restitution to customers or a combination
of a fine and restitution of not more than forty thousand dollars for
failure to comply with an order of the authority made in accordance
with the provisions of section 16-19 or 16-247k or within thirty days of
such order or within any specific time period for compliance specified
in such order. The authority may direct a portion of any fine levied
pursuant to this section to be paid to a nonprofit agency engaged in
energy assistance programs named by the authority in its decision or
notice of violation. Each distinct violation of any such provision of this
title, order or regulation shall be a separate offense and, in case of a
continued violation, each day thereof shall be deemed a separate
offense. Each such penalty and any interest charged pursuant to
subsection (g) or (h) of section 16-49 shall be excluded from operating
expenses for purposes of rate-making.
Sec. 14. (NEW) (Effective from passage) Not later than January 15, 2021,
the Commissioner of Energy and Environmental Protection shall submit
a report to the joint standing committee of the General Assembly having
cognizance of matters relating to energy (1) evaluating whether
Connecticut's reliance on the wholesale energy markets administered by
the regional independent system operator, as defined in section 16-1 of
the general statutes, benefits Connecticut ratepayers, and (2)
recommending alternative approaches to better meet Connecticut's
need for clean, reliable and affordable electricity generation supply in a
manner that leverages competition, reduces ratepayer risk and achieves
the state's public policy goals, including, but not limited to, pursuant to
section 22a-200a of the general statutes. House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 18 of 25
Sec. 15. Section 16-243y of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
(a) As used in this section:
(1) "Municipality" has the same meaning as provided in section 7-
233b;
(2) "Critical facility" means any hospital, police station, fire station,
water treatment plant, sewage treatment plant, public shelter,
correctional facility or production and transmission facility of a
television or radio station, whether broadcast, cable or satellite, licensed
by the Federal Communications Commission, any commercial area of a
municipality, a municipal center, as identified by the chief elected
official of any municipality, or any other facility or area identified by the
Department of Energy and Environmental Protection as critical;
(3) "Distributed energy generation" means the generation of
electricity from a unit with a rating of not more than sixty-five
megawatts on the premises of a retail end user within the transmission
and distribution system;
(4) "Electric distribution company" and "participating municipal
electric utility" have the same meanings as provided in section 16-1;
[and]
(5) "Microgrid" means a group of interconnected loads and
distributed energy resources within clearly defined electrical
boundaries that acts as a single controllable entity with respect to the
grid and that connects and disconnects from such grid to enable it to
operate in both grid-connected or island mode; [.]
(6) "Resilience" means the ability to prepare for and adapt to changing
conditions and withstand and recover rapidly from deliberate attacks,
accidents or naturally occurring threats or incidents, including, but not House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 19 of 25
limited to, threats or incidents associated with the impacts of climate
change; and
(7) "Vulnerable communities" means populations that may be
disproportionately impacted by the effects of climate change, including,
but not limited to, low and moderate income communities,
environmental justice communities pursuant to section 22a-20a,
communities eligible for community reinvestment pursuant to section
36a-30 and the Community Reinvestment Act of 1977, 12 USC 2901 et
seq., as amended from time to time, populations with increased risk and
limited means to adapt to the effects of climate change, or as further
defined by the Department of Energy and Environmental Protection in
consultation with community representatives.
(b) The Department of Energy and Environmental Protection shall
establish a microgrid and resilience grant and loan pilot program to
support local distributed energy generation for critical facilities or
resilience projects. The department shall develop and issue a request for
proposals from municipalities, electric distribution companies,
participating municipal electric utilities, energy improvement districts,
and nonprofit, academic and private entities seeking to develop
microgrid distributed energy generation, or to repurpose existing
distributed energy generation for use with microgrids, to support
critical facilities or to develop resilience projects. Any entity eligible to
submit a proposal pursuant to this section may collaborate with any
other such entity in submitting such proposal. The department may hire
a technical consultant to support the implementation of this section
using any bond funds authorized in support of microgrids or resilience.
(c) The department shall award grants or loans under the microgrid
and resilience grant and loan pilot program to any number of recipients.
The department shall prioritize proposals that benefit vulnerable
communities. To the extent possible, the amount of loans and grants
awarded under the program shall be evenly distributed between small, House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 20 of 25
medium and large municipalities. Such grants and loans may provide:
(1) Assistance with community planning that includes, but is not limited
to, microgrid or resilience project feasibility, including benefit-cost
analyses, (2) assistance to recipients for the cost of design, engineering
services and interconnection infrastructure for any such microgrid [,
and (2)] or resilience project, (3) matching funds or low interest loans for
an energy storage system or systems, as defined in section 16-1, or
distributed energy generation projects first placed in service on or after
July 1, 2016, provided such generation is derived from a Class I
renewable energy source, as defined in section 16-1, or a Class III energy
source, as defined in section 16-1, for any such microgrid or resilience
project, and (4) nonfederal cost share for grant or loan applications for
projects or programs that include microgrids or resilience. The
department may establish any financing mechanism to provide or
leverage additional funding to support the development of
interconnection infrastructure, distributed energy generation, [and]
microgrids and resilience projects.
(d) Not later than January first, annually, for a period of five years
after receiving a grant or loan under the microgrid and resilience grant
and loan pilot program, the recipient of such grant or loan shall submit
a report to the Public Utilities Regulatory Authority, the Office of
Consumer Counsel and the Department of Energy and Environmental
Protection and, in accordance with section 11-4a, to the joint standing
committees of the General Assembly having cognizance of matters
relating to appropriations and energy. Such report shall include
information concerning the status of such recipient's microgrid or
resilience project.
[(e) On or before January 1, 2013, the department shall file a report,
in accordance with the provisions of section 11-4a, with the joint
standing committee of the General Assembly having cognizance of
matters relating to energy, identifying other funding sources necessary House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 21 of 25
to expand the microgrid grant and loan pilot program established
pursuant to this section and any legislative changes necessary to access
such funding.]
[(f)] (e) The Department of Energy and Environmental Protection, in
consultation with the Connecticut Academy of Science and Engineering,
shall study the methods of providing reliable electric services to critical
facilities, taking into consideration the location of such critical facilities.
Such study shall evaluate the costs and benefits of such methods,
including, but not limited to, the use of microgrids, undergrounding
and portable turbine generation, and shall make recommendations
identifying the most cost-effective and reliable of such methods. Not
later than January 1, 2013, the department shall submit the findings of
such study, in accordance with section 11-4a, to the joint standing
committee of the General Assembly having cognizance of matters
relating to energy and technology.
Sec. 16. (NEW) (Effective from passage) (a) As used in this section:
(1) "Public service company" and "telecommunications company"
have the same meanings as provided in section 16-1 of the general
statutes;
(2) "Critical infrastructure" means real property and tangible personal
property, including, but not limited to, buildings, conduits, lines, fiber
optic cables, poles, pipes, structures and equipment, owned or used by
a public service company or a telecommunications company to
generate, transmit or distribute such company's product or service in
the state;
(3) "State disaster or emergency" means a disaster or an emergency
event for which (A) the Governor has issued a proclamation of a disaster
or an emergency pursuant to chapter 517 of the general statutes, or (B)
the President of the United States has issued a declaration of the House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 22 of 25
existence in the state of a major disaster or an emergency;
(4) "Disaster-related or emergency-related work" means repairing,
renovating, installing, constructing or rendering services to critical
infrastructure in the state that has been damaged, impaired or destroyed
by a state disaster or emergency;
(5) "Disaster response period" means the period (A) commencing ten
calendar days prior to the date of issuance of the proclamation or
declaration of a state disaster or emergency, and (B) ending sixty
calendar days after the Governor has proclaimed or the President has
declared, as applicable, the end of such disaster or emergency;
(6) (A) "Out-of-state business" means a business entity that, in the
income or taxable year immediately preceding the income year or
taxable year in which the state disaster or emergency occurred, (i) was
not registered with the state or any political subdivision thereof, (ii) did
not submit any tax filings to the state, and (iii) did not derive income
from sources within the state.
(B) "Out-of-state business" includes a business entity that (i) was
present in the state or conducted operations in the state, to perform
disaster-related or emergency-related work, but otherwise satisfies the
provisions of this subdivision, or (ii) is affiliated with a registered
business solely through common ownership but otherwise satisfies the
provisions of this subdivision;
(7) "Out-of-state employee" means an employee of an out-of-state
business, who does not work in the state other than performing disaster-
related or emergency-related work during a disaster response period for
such out-of-state business;
(8) "Registered business" means a business entity that is registered
with the Secretary of the State to do business in the state prior to the
state disaster or emergency; and House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 23 of 25
(9) "Business entity" means any person that would be subject to the
tax under chapter 208, 211, 212, 212b or 228z of the general statutes, if
such person conducted business in the state or derived income from
sources within the state.
(b) Notwithstanding any provision of title 12 of the general statutes
or subsection (c) of section 14-34a of the general statutes, no out-of-state
business or out-of-state employee that is present in the state or conducts
operations in the state, to perform disaster-related or emergency-related
work during a disaster response period, shall be deemed to have
established sufficient presence in the state to require such business or
employee to (1) register with the state or any political subdivision
thereof; (2) be licensed by the state, provided such business or employee
is properly registered, licensed or otherwise authorized under the laws
of another state to perform disaster-related or emergency-related work;
(3) be subject to property tax, tax on the income derived from the
performance of disaster-related or emergency-related work during a
disaster response period or use tax on tangible personal property
temporarily in the state to aid such employee in the performance of such
work; or (4) submit any tax filing to the state; except that, with respect
to out-of-state employees, the provisions of subdivisions (3) and (4) of
this subsection shall apply only to an out-of-state employee who is a
resident of a state that has a law substantially similar to the provisions
of this subsection and subsection (c) of this section or that does not
impose a personal income tax.
(c) The activities associated with disaster-related or emergency-
related work performed in the state by an out-of-state business that is
present in the state or conducts operations in the state solely to perform
such work shall be disregarded for purposes of any filing required for a
tax imposed on income or gross receipts, including, but not limited to, a
combined unitary tax return.
(d) Except as specified under subsections (b) and (c) of this section, House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 24 of 25
any out-of-state business or out-of-state employee that is present in the
state or conducts operations in the state, to perform disaster-related or
emergency-related work during a disaster response period, shall be
subject to all other applicable state taxes and fees during such period.
(e) (1) Any out-of-state business that is present in the state or
conducts operations in the state, to perform disaster-related or
emergency-related work during a disaster response period, shall
provide, upon request by the Secretary of the State, a written statement
that such business is in the state for purposes of responding to the state
disaster or emergency. Such statement shall include the out-of-state
business's name, state of domicile, principal business address, telephone
number, electronic mail address, federal tax identification number and
date of entry into the state, and may be provided electronically.
(2) The Secretary of the State may request a registered business that
is an affiliate of such out-of-state business to provide the written
statement and information set forth in subdivision (1) of this subsection.
Such registered business shall also include the registered business's
name, principal business address, telephone number and electronic mail
address.
(3) No out-of-state business that has received a request from the
Secretary of the State for a written statement or is an affiliate of a
registered business that has received such request shall be prevented
from commencing disaster-related or emergency-related work in the
state prior to the provision of the written statement.
(f) Any out-of-state business or out-of-state employee who remains
in the state after the disaster response period shall be subject to all other
laws that provide standards to establish presence in the state and shall
comply with any provision of the general statutes that becomes
applicable to such business or employee due to such presence. House Bill No. 7006
Sept. Sp. Sess., Public Act No. 20-5 25 of 25
Approved October 2, 2020