CT
Connecticut House Bill HB07006

Connecticut 2020 Regular Session

Connecticut House Bill HB07006 Compare Versions

OldNewDifferences
1+
2+
3+LCO No. 4364 1 of 24
4+
5+General Assembly Bill No. 7006
6+September Special Session, 2020
7+LCO No. 4364
8+
9+
10+Referred to Committee on No Committee
11+
12+
13+Introduced by:
14+REP. ARESIMOWICZ, 30
15+th
16+ Dist.
17+SEN. LOONEY, 11
18+th
19+ Dist.
20+SEN. DUFF, 25
21+th
22+ Dist.
23+REP. RITTER M., 1
24+st
25+ Dist.
126
227
328
4-House Bill No. 7006
529
6-September Special Session, Public Act No. 20-5
730
831
932 AN ACT CONCERNING EM ERGENCY RESPONSE BY ELECTRIC
10-DISTRIBUTION COMPANI ES, THE REGULATION O F OTHER
11-PUBLIC UTILITIES AND NEXUS PROVISIONS FO R CERTAIN
12-DISASTER-RELATED OR EMERGENCY-RELATED WO RK
13-PERFORMED IN THE STA TE.
33+DISTRIBUTION COMPANI ES, THE REGULATION OF OTHER PUBLIC
34+UTILITIES AND NEXUS PROVISIONS FOR CERTA IN DISASTER-
35+RELATED OR EMERGENCY -RELATED WORK PERFOR MED IN THE
36+STATE.
1437 Be it enacted by the Senate and House of Representatives in General
1538 Assembly convened:
1639
17-Section 1. (NEW) (Effective from passage) (a) (1) For the purposes of this
18-section, "electric distribution company" has the same meaning as
19-provided in section 16-1 of the general statutes and "emergency" has the
20-same meaning as provided in section 16-32e of the general statutes.
21-(2) "Resilience" means the ability to prepare for and adapt to changing
22-conditions and withstand and recover rapidly from deliberate attacks,
23-accidents or naturally occurring threats or incidents, including, but not
24-limited to, threats or incidents associated with the impacts of climate
25-change.
26-(b) Not later than June 1, 2021, the Public Utilities
27-Regulatory Authority shall initiate a proceeding to investigate, develop
28-and adopt a framework for implementing performance -based
29-regulation of each electric distribution company.  Such framework
30-adopted by the authority shall: (1) Establish standards and metrics for
31-measuring such electric distribution company's performance of House Bill No. 7006
40+Section 1. (NEW) (Effective from passage) (a) (1) For the purposes of this 1
41+section, "electric distribution company" has the same meaning as 2
42+provided in section 16-1 of the general statutes and "emergency" has the 3
43+same meaning as provided in section 16-32e of the general statutes. 4
44+(2) "Resilience" means the ability to prepare for and adapt to changing 5
45+conditions and withstand and recover rapidly from deliberate attacks, 6
46+accidents or naturally occurring threats or incidents, including, but not 7
47+limited to, threats or incidents associated with the impacts of climate 8
48+change. 9
49+Bill No.
3250
33-Sept. Sp. Sess., Public Act No. 20-5 2 of 25
3451
35-objectives that are in the interest of ratepayers or benefit the public,
36-which may include, but not be not limited to, safety,
37-reliability, emergency response, cost efficiency, affordability,  equity,
38-customer satisfaction, municipal engagement, resilience
39-and advancing the state's environmental and policy goals, including,
40-but not limited to, those goals established in section 22a-200a of the
41-general statutes, in the Integrated Resources Plan approved pursuant to
42-section 16a-3a of the general statutes and in the Comprehensive Energy
43-Strategy prepared pursuant to section 16a-3d of the general statutes; (2)
44-identify the manner, including the timeframe and extent, in which such
45-standards and metrics shall be used to apply the principles and
46-guidelines set forth in section 16-19e of the general statutes and to
47-determine the relative adequacy of the company's service and the
48-reasonableness and adequacy of rates proposed and considered
49-pursuant to section 16-19a of the general statutes; and (3) identify
50-specific mechanisms to be implemented to align utility performance
51-with the standards and metrics adopted pursuant to this section and
52-subsection (b) of section 16-19a of the general statutes, including, but not
53-limited to, reviewing the effectiveness of the electric distribution
54-company's revenue decoupling mechanism. The authority may
55-also initiate a proceeding to investigate, develop and adopt a framework
56-for implementation of performance-based regulation for gas and water
57-companies, as defined by section 16-1 of the general statutes, consistent
58-with the requirements and provisions of this section.
59-Sec. 2. Subsections (a) and (b) of section 16-19 of the general statutes
60-are repealed and the following is substituted in lieu thereof (Effective
61-from passage):
62-(a) No public service company may charge rates in excess of those
63-previously approved by the Public Utilities Control Authority or the
64-Public Utilities Regulatory Authority, except that any rate approved by
65-the Public Utilities Commission, the Public Utilities Control Authority House Bill No. 7006
6652
67-Sept. Sp. Sess., Public Act No. 20-5 3 of 25
53+LCO No. 4364 2 of 24
6854
69-or the Public Utilities Regulatory Authority shall be permitted until
70-amended by the Public Utilities Regulatory Authority, that rates not
71-approved by the Public Utilities Regulatory Authority may be charged
72-pursuant to subsection (b) of this section, and that the hearing
73-requirements with respect to adjustment clauses are as set forth in
74-section 16-19b. For water companies, existing rates shall include the
75-amount of any adjustments approved pursuant to section 16-262w since
76-the company's most recent general rate case, provided any adjustment
77-amount shall be separately identified in any customer bill. Each public
78-service company shall file any proposed amendment of its existing rates
79-with the authority in such form and in accordance with such reasonable
80-regulations as the authority may prescribe. Each electric distribution,
81-gas or telephone company filing a proposed amendment shall also file
82-with the authority an estimate of the effects of the amendment, for
83-various levels of consumption, on the household budgets of high and
84-moderate income customers and customers having household incomes
85-not more than one hundred fifty per cent of the federal poverty level.
86-Each electric distribution company shall also file such an estimate for
87-space heating customers. Each water company, except a water company
88-that provides water to its customers less than six consecutive months in
89-a calendar year, filing a proposed amendment, shall also file with the
90-authority a plan for promoting water conservation by customers in such
91-form and in accordance with a memorandum of understanding entered
92-into by the authority pursuant to section 4-67e. Each public service
93-company shall notify each customer who would be affected by the
94-proposed amendment, by mail, at least one week prior to the first public
95-hearing thereon, but not earlier than six weeks prior to such first public
96-hearing, that an amendment has been or will be requested. Such notice
97-shall also indicate (1) the date, time and location of any scheduled public
98-hearing, (2) a statement that customers may provide written comments
99-regarding the proposed amendment to the Public Utilities Regulatory
100-Authority or appear in person at any scheduled public hearing, (3) the
101-Public Utilities Regulatory Authority telephone number for obtaining House Bill No. 7006
55+(b) Not later than June 1, 2021, the Public Utilities 10
56+Regulatory Authority shall initiate a proceeding to investigate, develop 11
57+and adopt a framework for implementing performance -based 12
58+regulation of each electric distribution company.  Such framework 13
59+adopted by the authority shall: (1) Establish standards and metrics for 14
60+measuring such electric distribution company's performance of 15
61+objectives that are in the interest of ratepayers or benefit the public, 16
62+which may include, but not be not limited to, safety, 17
63+reliability, emergency response, cost efficiency, affordability,  equity, 18
64+customer satisfaction, municipal engagement, resilience 19
65+and advancing the state's environmental and policy goals, including, 20
66+but not limited to, those goals established in section 22a-200a of the 21
67+general statutes, in the Integrated Resources Plan approved pursuant to 22
68+section 16a-3a of the general statutes and in the Comprehensive Energy 23
69+Strategy prepared pursuant to section 16a-3d of the general statutes; (2) 24
70+identify the manner, including the timeframe and extent, in which such 25
71+standards and metrics shall be used to apply the principles and 26
72+guidelines set forth in section 16-19e of the general statutes and to 27
73+determine the relative adequacy of the company's service and the 28
74+reasonableness and adequacy of rates proposed and considered 29
75+pursuant to section 16-19a of the general statutes; and (3) identify 30
76+specific mechanisms to be implemented to align utility performance 31
77+with the standards and metrics adopted pursuant to this section and 32
78+subsection (b) of section 16-19a of the general statutes, including, but not 33
79+limited to, reviewing the effectiveness of the electric distribution 34
80+company's revenue decoupling mechanism. The authority may 35
81+also initiate a proceeding to investigate, develop and adopt a framework 36
82+for implementation of performance-based regulation for gas and water 37
83+companies, as defined by section 16-1 of the general statutes, consistent 38
84+with the requirements and provisions of this section. 39
85+Sec. 2. Subsections (a) and (b) of section 16-19 of the general statutes 40
86+are repealed and the following is substituted in lieu thereof (Effective 41
87+from passage): 42
88+Bill No.
10289
103-Sept. Sp. Sess., Public Act No. 20-5 4 of 25
10490
105-information concerning the schedule for public hearings on the
106-proposed amendment, and (4) whether the proposed amendment
107-would, in the company's best estimate, increase any rate or charge by
108-twenty per cent or more, and, if so, describe in general terms any such
109-rate or charge and the amount of the proposed increase, provided no
110-such company shall be required to provide more than one form of the
111-notice to each class of its customers. In the case of a proposed
112-amendment to the rates of any public service company, the authority
113-shall hold one or more public hearings thereon, except as permitted with
114-respect to interim rate amendments by subsections (d) and (g) of this
115-section, and shall make such investigation of such proposed amendment
116-of rates as is necessary to determine whether such rates conform to the
117-principles and guidelines set forth in section 16-19e, or are unreasonably
118-discriminatory or more or less than just, reasonable and adequate, or
119-that the service furnished by such company is inadequate to or in excess
120-of public necessity and convenience, provided the authority may (A)
121-evaluate the reasonableness and adequacy of the performance or service
122-of the public service company using any applicable metrics or standards
123-adopted by the authority pursuant to section 1 of this act, and (B)
124-determine the reasonableness of the allowed rate of return of the public
125-service company based on such performance evaluation. The authority,
126-if in its opinion such action appears necessary or suitable in the public
127-interest may, and, upon written petition or complaint of the state, under
128-direction of the Governor, shall, make the aforesaid investigation of any
129-such proposed amendment which does not involve an alteration in
130-rates. If the authority finds any proposed amendment of rates to not
131-conform to the principles and guidelines set forth in section 16-19e, or
132-to be unreasonably discriminatory or more or less than just, reasonable
133-and adequate to enable such company to provide properly for the public
134-convenience, necessity and welfare, or the service to be inadequate or
135-excessive, it shall determine and prescribe, as appropriate, an adequate
136-service to be furnished or just and reasonable maximum rates and
137-charges to be made by such company. In the case of a proposed House Bill No. 7006
13891
139-Sept. Sp. Sess., Public Act No. 20-5 5 of 25
92+LCO No. 4364 3 of 24
14093
141-amendment filed by an electric distribution, gas or telephone company,
142-the authority shall also adjust the estimate filed under this subsection of
143-the effects of the amendment on the household budgets of the
144-company's customers, in accordance with the rates and charges
145-approved by the authority. The authority shall issue a final decision on
146-each electric distribution or gas company rate filing within [one] three
147-hundred fifty days from the proposed effective date thereof. [, provided
148-it may, before the end of such period and upon notifying all parties and
149-intervenors to the proceedings, extend the period by thirty days.] The
150-authority shall issue a final decision on all public service company rate
151-filings, except electric distribution or gas company rate filings, within
152-two hundred days from the proposed effective date thereof.
153-(b) If the authority has not made its finding respecting an amendment
154-of any electric distribution or gas company rate within [one] three
155-hundred fifty days from the proposed effective date of such amendment
156-thereof, or [within one hundred eighty days if the authority extends the
157-period in accordance with the provisions of subsection (a) of this
158-section] if the authority has not made its finding respecting an
159-amendment of any public service company rate, except electric
160-distribution or gas company rate, within two hundred days from the
161-proposed effective date of such amendment thereof, such amendment
162-may become effective pending the authority's finding with respect to
163-such amendment upon the filing by the company with the authority of
164-assurance satisfactory to the authority, which may include a bond with
165-surety, of the company's ability and willingness to refund to its
166-customers with interest such amounts as the company may collect from
167-them in excess of the rates fixed by the authority in its finding or fixed
168-at the conclusion of any appeal taken as a result of a finding by the
169-authority.
170-Sec. 3. Subsections (a) and (b) of section 16-19a of the general statutes
171-are repealed and the following is substituted in lieu thereof (Effective House Bill No. 7006
94+(a) No public service company may charge rates in excess of those 43
95+previously approved by the Public Utilities Control Authority or the 44
96+Public Utilities Regulatory Authority, except that any rate approved by 45
97+the Public Utilities Commission, the Public Utilities Control Authority 46
98+or the Public Utilities Regulatory Authority shall be permitted until 47
99+amended by the Public Utilities Regulatory Authority, that rates not 48
100+approved by the Public Utilities Regulatory Authority may be charged 49
101+pursuant to subsection (b) of this section, and that the hearing 50
102+requirements with respect to adjustment clauses are as set forth in 51
103+section 16-19b. For water companies, existing rates shall include the 52
104+amount of any adjustments approved pursuant to section 16-262w since 53
105+the company's most recent general rate case, provided any adjustment 54
106+amount shall be separately identified in any customer bill. Each public 55
107+service company shall file any proposed amendment of its existing rates 56
108+with the authority in such form and in accordance with such reasonable 57
109+regulations as the authority may prescribe. Each electric distribution, 58
110+gas or telephone company filing a proposed amendment shall also file 59
111+with the authority an estimate of the effects of the amendment, for 60
112+various levels of consumption, on the household budgets of high and 61
113+moderate income customers and customers having household incomes 62
114+not more than one hundred fifty per cent of the federal poverty level. 63
115+Each electric distribution company shall also file such an estimate for 64
116+space heating customers. Each water company, except a water company 65
117+that provides water to its customers less than six consecutive months in 66
118+a calendar year, filing a proposed amendment, shall also file with the 67
119+authority a plan for promoting water conservation by customers in such 68
120+form and in accordance with a memorandum of understanding entered 69
121+into by the authority pursuant to section 4-67e. Each public service 70
122+company shall notify each customer who would be affected by the 71
123+proposed amendment, by mail, at least one week prior to the first public 72
124+hearing thereon, but not earlier than six weeks prior to such first public 73
125+hearing, that an amendment has been or will be requested. Such notice 74
126+shall also indicate (1) the date, time and location of any scheduled public 75
127+hearing, (2) a statement that customers may provide written comments 76
128+Bill No.
172129
173-Sept. Sp. Sess., Public Act No. 20-5 6 of 25
174130
175-November 1, 2020):
176-(a) (1) The Public Utilities Regulatory Authority shall, at intervals of
177-not more than four years from the last previous general rate hearing of
178-each gas and electric distribution company having more than seventy-
179-five thousand customers, conduct a complete review and investigation
180-of the financial and operating records of each such company and hold a
181-public hearing to determine whether the rates of each such company are
182-unreasonably discriminatory or more or less than just, reasonable and
183-adequate, or that the service furnished by such company is inadequate
184-to or in excess of public necessity and convenience or that the rates do
185-not conform to the principles and guidelines set forth in section 16-19e.
186-In making such determination, the authority shall consider the gross
187-and net earnings of such company since its last previous general rate
188-hearing, its retained earnings, its actual and proposed capital
189-expenditures, its advertising expenses, the dividends paid to its
190-stockholders, the rate of return paid on its preferred stock, bonds,
191-debentures and other obligations, its credit rating, and such other
192-financial and operating information as the authority may deem
193-pertinent.
194-(2) The authority may conduct a general rate hearing in accordance
195-with subsection (a) of section 16-19, in lieu of the periodic review and
196-investigation proceedings required under subdivision (1) of this
197-subsection.
198-(b) In [the] any proceeding required under subdivision (1) of
199-subsection (a) of this section, or in any rate hearing pursuant to section
200-16-19, the authority [may approve performance-based incentives to
201-encourage a gas or electric distribution company to operate efficiently
202-and provide high quality service at fair and reasonable prices] shall
203-consider the implementation of financial performance-based incentives
204-and penalties and performance-based metrics. Notwithstanding
205-subsection (a) of this section, if the authority approves such House Bill No. 7006
206131
207-Sept. Sp. Sess., Public Act No. 20-5 7 of 25
132+LCO No. 4364 4 of 24
208133
209-performance-based incentives and penalties for a particular company,
210-the authority shall include in such approval a framework for periodic
211-monitoring and review of the company's performance [in regard to
212-criteria specified by the authority, which shall include, but not be
213-limited to, the company's return on equity, reliability and quality of
214-service. The authority's periodic monitoring and review shall be used in
215-lieu of the periodic review and investigation proceedings required
216-under subdivision (1) of subsection (a) of this section. If the authority
217-determines in the periodic monitoring and review that a more extensive
218-review of company performance is necessary, the authority may
219-institute a further proceeding in accordance with the purposes of this
220-chapter, including a complete review and investigation described in
221-subdivision (1) of subsection (a) of this section] pursuant to metrics
222-developed by the authority.
223-Sec. 4. (NEW) (Effective from passage) Notwithstanding any provision
224-of the general statutes, in exercising its discretion regarding whether to
225-allow the recovery through rates of any portion of the compensation
226-package for executives or officers or of any portion of any incentive
227-compensation for employees of any electric distribution company, gas
228-company or water company, as defined in section 16-1 of the general
229-statutes, the Public Utilities Regulatory Authority shall consider
230-whether to require that any such compensation that is recoverable
231-through rates be dependent upon the achievement of performance
232-targets established pursuant to section 1 of this act.
233-Sec. 5. (NEW) (Effective from passage) Not later than November 1, 2020,
234-the Public Utilities Regulatory Authority may initiate a proceeding or
235-proceedings to consider the implementation of an interim rate decrease,
236-low-income rates and economic development rates for customers of
237-electric distribution companies, pursuant to its authority in subsection
238-(g) of section 16-19 of the general statutes and sections 16-19e and 16-
239-19oo of the general statutes. House Bill No. 7006
134+regarding the proposed amendment to the Public Utilities Regulatory 77
135+Authority or appear in person at any scheduled public hearing, (3) the 78
136+Public Utilities Regulatory Authority telephone number for obtaining 79
137+information concerning the schedule for public hearings on the 80
138+proposed amendment, and (4) whether the proposed amendment 81
139+would, in the company's best estimate, increase any rate or charge by 82
140+twenty per cent or more, and, if so, describe in general terms any such 83
141+rate or charge and the amount of the proposed increase, provided no 84
142+such company shall be required to provide more than one form of the 85
143+notice to each class of its customers. In the case of a proposed 86
144+amendment to the rates of any public service company, the authority 87
145+shall hold one or more public hearings thereon, except as permitted with 88
146+respect to interim rate amendments by subsections (d) and (g) of this 89
147+section, and shall make such investigation of such proposed amendment 90
148+of rates as is necessary to determine whether such rates conform to the 91
149+principles and guidelines set forth in section 16-19e, or are unreasonably 92
150+discriminatory or more or less than just, reasonable and adequate, or 93
151+that the service furnished by such company is inadequate to or in excess 94
152+of public necessity and convenience, provided the authority may (A) 95
153+evaluate the reasonableness and adequacy of the performance or service 96
154+of the public service company using any applicable metrics or standards 97
155+adopted by the authority pursuant to section 1 of this act, and (B) 98
156+determine the reasonableness of the allowed rate of return of the public 99
157+service company based on such performance evaluation. The authority, 100
158+if in its opinion such action appears necessary or suitable in the public 101
159+interest may, and, upon written petition or complaint of the state, under 102
160+direction of the Governor, shall, make the aforesaid investigation of any 103
161+such proposed amendment which does not involve an alteration in 104
162+rates. If the authority finds any proposed amendment of rates to not 105
163+conform to the principles and guidelines set forth in section 16-19e, or 106
164+to be unreasonably discriminatory or more or less than just, reasonable 107
165+and adequate to enable such company to provide properly for the public 108
166+convenience, necessity and welfare, or the service to be inadequate or 109
167+excessive, it shall determine and prescribe, as appropriate, an adequate 110
168+Bill No.
240169
241-Sept. Sp. Sess., Public Act No. 20-5 8 of 25
242170
243-Sec. 6. Subsection (b) of section 16-43 of the general statutes is
244-repealed and the following is substituted in lieu thereof (Effective
245-November 1, 2020):
246-(b) A public service company shall obtain the approval of the Public
247-Utilities Regulatory Authority to (1) issue any notes, bonds or other
248-evidences of indebtedness or securities of any nature, (2) lend or borrow
249-any moneys for a period of more than one year for any purpose other
250-than paying the expenses, including taxes, of conducting its business or
251-for the payment of dividends, or (3) amend any provision of an
252-indenture or similar financial instrument if such amendment would
253-affect the issuance or terms of any such notes, bonds or other evidences
254-of indebtedness or securities. The authority shall approve or disapprove
255-each such issue or amendment within [thirty] sixty days after the filing
256-of a written application for such approval unless the applicant agrees to
257-an extension of time. If not disapproved within said [thirty] sixty days
258-or within such extension, such issue shall be deemed to be approved.
259-The authority shall not require a company to issue its common stock
260-under terms or conditions not required by the general statutes. The
261-provisions of this subsection shall apply to a community antenna
262-television company only with regard to any noncable communications
263-services which the company may provide.
264-Sec. 7. Subsection (d) of section 16-47 of the general statutes is
265-repealed and the following is substituted in lieu thereof (Effective January
266-1, 2021):
267-(d) The Public Utilities Regulatory Authority shall investigate and
268-hold a public hearing on the question of granting its approval with
269-respect to any application made under subsection (b) or (c) of this
270-section and thereafter may approve or disapprove any such application
271-in whole or in part and upon such terms and conditions as it deems
272-necessary or appropriate. In connection with its investigation, the
273-authority may request the views of the gas, electric distribution, water, House Bill No. 7006
274171
275-Sept. Sp. Sess., Public Act No. 20-5 9 of 25
172+LCO No. 4364 5 of 24
276173
277-telephone or community antenna television company or holding
278-company which is the subject of the application with respect to the
279-proposed acquisition. After the filing of an application satisfying the
280-requirements of such regulations as the authority may adopt in
281-accordance with the provisions of chapter 54, but not later than thirty
282-business days after the filing of such application, the authority shall give
283-prompt notice of the public hearing to the person required to file the
284-application and to the subject company or holding company. Such
285-hearing shall be commenced as promptly as practicable after the filing
286-of the application, but not later than [thirty] sixty business days after the
287-filing, and the authority shall make its determination as soon as
288-practicable, but not later than [one] two hundred [twenty] days after the
289-filing of the application, provided it may, before the end of such period
290-and upon notifying all parties and intervenors to the proceedings,
291-extend the period by thirty days, or unless the person required to file
292-the application agrees to an extension of time. The authority may, in its
293-discretion, grant the subject company or holding company the
294-opportunity to participate in the hearing by presenting evidence and
295-oral and written argument. If the authority fails to give notice of its
296-determination to hold a hearing, commence the hearing, or render its
297-determination after the hearing within the time limits specified in this
298-subdivision, the proposed acquisition shall be deemed approved. In
299-each proceeding on a written application submitted under said
300-subsection (b) or (c), the authority shall, in a manner which treats all
301-parties to the proceeding on an equal basis, take into consideration (1)
302-the financial, technological and managerial suitability and
303-responsibility of the applicant, (2) the ability of the gas, electric
304-distribution, water, telephone or community antenna television
305-company or holding company which is the subject of the application to
306-provide safe, adequate and reliable service to the public through the
307-company's plant, equipment and manner of operation if the application
308-were to be approved, and (3) for an application concerning a telephone
309-company, the effect of approval on the location and accessibility of House Bill No. 7006
174+service to be furnished or just and reasonable maximum rates and 111
175+charges to be made by such company. In the case of a proposed 112
176+amendment filed by an electric distribution, gas or telephone company, 113
177+the authority shall also adjust the estimate filed under this subsection of 114
178+the effects of the amendment on the household budgets of the 115
179+company's customers, in accordance with the rates and charges 116
180+approved by the authority. The authority shall issue a final decision on 117
181+each electric distribution or gas company rate filing within [one] three 118
182+hundred fifty days from the proposed effective date thereof. [, provided 119
183+it may, before the end of such period and upon notifying all parties and 120
184+intervenors to the proceedings, extend the period by thirty days.] The 121
185+authority shall issue a final decision on all public service company rate 122
186+filings, except electric distribution or gas company rate filings, within 123
187+two hundred days from the proposed effective date thereof. 124
188+(b) If the authority has not made its finding respecting an amendment 125
189+of any electric distribution or gas company rate within [one] three 126
190+hundred fifty days from the proposed effective date of such amendment 127
191+thereof, or [within one hundred eighty days if the authority extends the 128
192+period in accordance with the provisions of subsection (a) of this 129
193+section] if the authority has not made its finding respecting an 130
194+amendment of any public service company rate, except electric 131
195+distribution or gas company rate, within two hundred days from the 132
196+proposed effective date of such amendment thereof, such amendment 133
197+may become effective pending the authority's finding with respect to 134
198+such amendment upon the filing by the company with the authority of 135
199+assurance satisfactory to the authority, which may include a bond with 136
200+surety, of the company's ability and willingness to refund to its 137
201+customers with interest such amounts as the company may collect from 138
202+them in excess of the rates fixed by the authority in its finding or fixed 139
203+at the conclusion of any appeal taken as a result of a finding by the 140
204+authority. 141
205+Sec. 3. Subsections (a) and (b) of section 16-19a of the general statutes 142
206+are repealed and the following is substituted in lieu thereof (Effective 143
207+Bill No.
310208
311-Sept. Sp. Sess., Public Act No. 20-5 10 of 25
312209
313-management and operations and on the proportion and number of state
314-resident employees. The authority shall only grant its approval of an
315-application filed on or after January 1, 2021, made under subsection (c)
316-of this section, if the holding company effects a change in the
317-composition of the board of directors to include a proportional
318-percentage of Connecticut-based directors equivalent to the percentage
319-that Connecticut service areas represent of the total service areas
320-covered by the holding company.
321-Sec. 8. Section 16-243p of the general statutes is repealed and the
322-following is substituted in lieu thereof (Effective November 1, 2020):
323-(a) An electric distribution company may recover its costs and
324-investments that have been prudently incurred as well as its revenues
325-lost resulting from the provisions of sections 16-1, 16-19ff, 16-50k, 16-
326-50x, 16-243h to 16-243q, inclusive, 16-244c, 16-244u, 16-244x, 16-245d, 16-
327-245m, 16-245n, 16-245z, 16-262i, 16a-40l and 16a-40m and section 21 of
328-public act 05-1 of the June special session. The Public Utilities
329-Regulatory Authority shall, after a hearing held pursuant to the
330-provisions of chapter 54, determine the appropriate mechanism to
331-obtain such recovery in a timely manner which mechanism may be one
332-or more of the following: (1) Approval of rates as provided in sections
333-16-19 and 16-19e; (2) the energy adjustment clause as provided in section
334-16-19b; or (3) the federally mandated congestion charges, as defined in
335-section 16-1.
336-(b) No electric distribution company shall recover its costs associated
337-with its attendance or participation in any rate-making hearing before
338-the authority.
339-[(b)] (c) Electric distribution companies shall be authorized to earn an
340-incentive, as provided in section 16-19kk, for costs prudently incurred
341-by such companies pursuant to this section. House Bill No. 7006
342210
343-Sept. Sp. Sess., Public Act No. 20-5 11 of 25
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345-Sec. 9. Section 16-32i of the general statutes is repealed and the
346-following is substituted in lieu thereof (Effective from passage):
347-The Public Utilities Regulatory Authority shall review the
348-performance of each electric distribution company and gas company, as
349-those terms are defined in section 16-1, after any emergency, as defined
350-in section 16-32e, (1) in which more than ten per cent of any such
351-company's customers were without service for more than forty-eight
352-consecutive hours, or (2) at the authority's discretion. The authority,
353-upon a finding that any such company failed to comply with any
354-standard of acceptable performance in emergency preparation or
355-restoration of service in an emergency, adopted pursuant to section 16-
356-32h, or with any order of the authority, shall make orders, after a hearing
357-that is conducted as a contested case in accordance with chapter 54, to
358-enforce such standards or orders and may levy civil penalties against
359-such company, pursuant to section 16-41, not to exceed a total of [two
360-and one-half] four per cent of such electric distribution or gas company's
361-annual distribution revenue, for noncompliance in any such emergency.
362-In determining the amount of any penalty, the authority shall consider
363-whether such company received approval and reasonable funding
364-allowances, as determined by the authority, from the authority to meet
365-infrastructure resiliency efforts to improve such company's
366-performance. Any such penalty shall be assessed in the form of [a credit
367-to] credits to the accounts of ratepayers of such electric distribution or
368-gas company. Any such penalty shall not be included as an operating
369-expense of such company for purposes of ratemaking.
370-Sec. 10. (NEW) (Effective from passage) (a) For the purposes of this
371-section, "emergency" has the same meaning as provided in subdivision
372-(1) of subsection (a) of section 16-32e of the general statutes and "electric
373-distribution company" has the same meaning as provided in section 16-
374-1 of the general statutes.
375-(b) Notwithstanding any other provision of the general statutes, on House Bill No. 7006
213+November 1, 2020): 144
214+(a) (1) The Public Utilities Regulatory Authority shall, at intervals of 145
215+not more than four years from the last previous general rate hearing of 146
216+each gas and electric distribution company having more than seventy-147
217+five thousand customers, conduct a complete review and investigation 148
218+of the financial and operating records of each such company and hold a 149
219+public hearing to determine whether the rates of each such company are 150
220+unreasonably discriminatory or more or less than just, reasonable and 151
221+adequate, or that the service furnished by such company is inadequate 152
222+to or in excess of public necessity and convenience or that the rates do 153
223+not conform to the principles and guidelines set forth in section 16-19e. 154
224+In making such determination, the authority shall consider the gross 155
225+and net earnings of such company since its last previous general rate 156
226+hearing, its retained earnings, its actual and proposed capital 157
227+expenditures, its advertising expenses, the dividends paid to its 158
228+stockholders, the rate of return paid on its preferred stock, bonds, 159
229+debentures and other obligations, its credit rating, and such other 160
230+financial and operating information as the authority may deem 161
231+pertinent. 162
232+(2) The authority may conduct a general rate hearing in accordance 163
233+with subsection (a) of section 16-19, in lieu of the periodic review and 164
234+investigation proceedings required under subdivision (1) of this 165
235+subsection. 166
236+(b) In [the] any proceeding required under subdivision (1) of 167
237+subsection (a) of this section, or in any rate hearing pursuant to section 168
238+16-19, the authority [may approve performance-based incentives to 169
239+encourage a gas or electric distribution company to operate efficiently 170
240+and provide high quality service at fair and reasonable prices] shall 171
241+consider the implementation of financial performance-based incentives 172
242+and penalties and performance-based metrics. Notwithstanding 173
243+subsection (a) of this section, if the authority approves such 174
244+performance-based incentives and penalties for a particular company, 175
245+Bill No.
376246
377-Sept. Sp. Sess., Public Act No. 20-5 12 of 25
378247
379-and after July 1, 2021, each electric distribution company shall provide
380-to residential customers of such company a credit of twenty-five dollars,
381-on the balance of such customer's account, for each day of distribution-
382-system service outage that occurs for such customers for more than
383-ninety-six consecutive hours after the occurrence of an emergency.
384-(c) Any costs incurred by an electric distribution company pursuant
385-to this section shall not be recoverable.
386-(d) Not later than fourteen calendar days after the occurrence of an
387-emergency, an electric distribution company may petition the authority
388-for a waiver of the requirements of this section. Any petition for a waiver
389-made under this subsection shall include the severity of the emergency,
390-employee safety issues and conditions on the ground, and shall be
391-conducted as a contested case proceeding. The burden of proving that
392-such waiver is reasonable and warranted shall be on the electric
393-distribution company. In determining whether to grant such waiver, the
394-authority shall consider whether the electric distribution company
395-received approval and reasonable funding allowances, as determined
396-by the authority, to meet infrastructure resiliency efforts to improve
397-such company's performance.
398-(e) On or before January 1, 2021, the Public Utilities Regulatory
399-Authority shall initiate a proceeding to consider the implementation of
400-the residential customer credit and waiver provisions of this section and
401-establish circumstances, standards and methodologies applicable to
402-each electric distribution company and necessary to implement the
403-provisions of this section, including any modifications to the ninety-six-
404-consecutive-hour standard in subsection (b) of this section. The
405-authority shall issue a final decision in such proceeding on or before July
406-1, 2021.
407-Sec. 11. (NEW) (Effective from passage) (a) For the purposes of this
408-section, "emergency" has the same meaning as provided in subdivision House Bill No. 7006
409248
410-Sept. Sp. Sess., Public Act No. 20-5 13 of 25
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412-(1) of subsection (a) of section 16-32e of the general statutes and "electric
413-distribution company" has the same meaning as provided in section 16-
414-1 of the general statutes.
415-(b) On and after July 1, 2021, each electric distribution company shall
416-provide to each residential customer compensation in an amount of two
417-hundred fifty dollars, in the aggregate, for any medication and food that
418-expires or spoils due to a distribution-system service outage that lasts
419-more than ninety-six consecutive hours in duration after the occurrence
420-of an emergency.
421-(c) Any costs incurred by an electric distribution company pursuant
422-to this section shall not be recoverable.
423-(d) Not later than fourteen calendar days after the occurrence of an
424-emergency, an electric distribution company may petition the authority
425-for a waiver of the requirements of this section. Any petition for a waiver
426-made under this subsection shall include the severity of the emergency,
427-employee safety issues and conditions on the ground, and shall be
428-conducted as a contested case proceeding. The burden of proving that
429-such waiver is reasonable and warranted shall be on the electric
430-distribution company. In determining whether to grant such waiver, the
431-authority shall consider whether the electric distribution company
432-received approval and reasonable funding allowances, as determined
433-by the authority, to meet infrastructure resiliency efforts to improve
434-such company's performance.
435-(e) On or before January 1, 2021, the Public Utilities Regulatory
436-Authority shall initiate a proceeding to consider the implementation of
437-the compensation reimbursement and waiver provisions of this section
438-and establish circumstances, standards and methodologies applicable to
439-each electric distribution company and necessary to implement the
440-provisions of this section, including any modifications to the ninety-six-
441-consecutive-hour standard in subsection (b) of this section. The House Bill No. 7006
251+the authority shall include in such approval a framework for periodic 176
252+monitoring and review of the company's performance [in regard to 177
253+criteria specified by the authority, which shall include, but not be 178
254+limited to, the company's return on equity, reliability and quality of 179
255+service. The authority's periodic monitoring and review shall be used in 180
256+lieu of the periodic review and investigation proceedings required 181
257+under subdivision (1) of subsection (a) of this section. If the authority 182
258+determines in the periodic monitoring and review that a more extensive 183
259+review of company performance is necessary, the authority may 184
260+institute a further proceeding in accordance with the purposes of this 185
261+chapter, including a complete review and investigation described in 186
262+subdivision (1) of subsection (a) of this section] pursuant to metrics 187
263+developed by the authority. 188
264+Sec. 4. (NEW) (Effective from passage) Notwithstanding any provision 189
265+of the general statutes, in exercising its discretion regarding whether to 190
266+allow the recovery through rates of any portion of the compensation 191
267+package for executives or officers or of any portion of any incentive 192
268+compensation for employees of any electric distribution company, gas 193
269+company or water company, as defined in section 16-1 of the general 194
270+statutes, the Public Utilities Regulatory Authority shall consider 195
271+whether to require that any such compensation that is recoverable 196
272+through rates be dependent upon the achievement of performance 197
273+targets established pursuant to section 1 of this act. 198
274+Sec. 5. (NEW) (Effective from passage) Not later than November 1, 2020, 199
275+the Public Utilities Regulatory Authority may initiate a proceeding or 200
276+proceedings to consider the implementation of an interim rate decrease, 201
277+low-income rates and economic development rates for customers of 202
278+electric distribution companies, pursuant to its authority in subsection 203
279+(g) of section 16-19 of the general statutes and sections 16-19e and 16-204
280+19oo of the general statutes. 205
281+Sec. 6. Subsection (b) of section 16-43 of the general statutes is 206
282+repealed and the following is substituted in lieu thereof (Effective 207
283+Bill No.
442284
443-Sept. Sp. Sess., Public Act No. 20-5 14 of 25
444285
445-authority shall issue a final decision in such proceeding on or before July
446-1, 2021.
447-Sec. 12. (NEW) (Effective from passage) (a) As used in this section,
448-"electric distribution company" has the same meaning as provided in
449-section 16-1 of the general statutes.
450-(b) Not later than January 1, 2021, each electric distribution company
451-shall submit to the joint standing committee of the General Assembly
452-having cognizance of matters relating to energy, in accordance with the
453-provisions of section 11-4a of the general statutes, and the Public
454-Utilities Regulatory Authority the following:
455-(1) A cost-benefit analysis identifying the resources expended in
456-response to the last five storm events classified as a level three, four or
457-five. Such analysis shall include a review of the number of line crew
458-workers and shall distinguish between line crew workers (A) directly
459-employed by the electric distribution company and working full time
460-within the state, (B) directly employed by the electric distribution
461-company working primarily in another state, and (C) hired as
462-contractors or subcontractors.
463-(2) An analysis of any such company's (A) estimates concerning
464-potential damage and service outages prior to the last five storm events
465-classified as a level three, four or five, (B) damage and service outage
466-assessments after the last five storm events classified as a level three,
467-four or five, (C) restoration management after the last five storm events
468-classified as a level three, four or five, including access to alternate
469-restoration resources via regional and reciprocal aid contracts, (D)
470-planning for at-risk and vulnerable customers, (E) communication
471-policies with state and local officials and customers, including
472-individual customer restoration estimates and the accuracy of such
473-estimates, (F) infrastructure, facilities and equipment, which shall
474-include, but not be limited to, an examination of (i) whether such House Bill No. 7006
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476-Sept. Sp. Sess., Public Act No. 20-5 15 of 25
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477288
478-infrastructure, facilities and equipment are in good repair and capable
479-of meeting operational standards, (ii) whether such company is
480-following standard industry practice concerning operation and
481-maintenance of such infrastructure, facilities and equipment, (iii) the age
482-and condition of such infrastructure, facilities and equipment, (iv)
483-whether maintenance of such infrastructure, facilities and equipment
484-has been delayed, and (v) whether such company had access to
485-adequate replacement equipment for such infrastructure, facilities and
486-equipment during the course of the last five storm events classified as a
487-level three, four or five, and (G) compliance with any emergency
488-response standards adopted by the authority.
489-(c) Not later than January 1, 2021, the authority shall initiate a docket,
490-or incorporate into an existing docket, to review the report provided by
491-each electric distribution company pursuant to subsection (b) of this
492-section. The authority shall submit the final decision of such docket, in
493-accordance with the provisions of section 11-4a of the general statutes,
494-to the joint standing committee of the General Assembly having
495-cognizance of matters relating to energy.
496-(d) After issuing its final decision in the docket initiated pursuant to
497-subsection (c) of this section, the authority shall establish standards for
498-minimum staffing levels for any electric distribution company for
499-outage planning and restoration personnel, including linemen,
500-technicians and system engineers, tree trimming crews and personnel
501-responsible for directing operations and communicating with state,
502-municipal and regional officials. Such staffing standards may reflect
503-different staffing levels based on the severity of any emergency.
504-(e) The authority may establish as it deems fit any other standards for
505-acceptable performance by any electric distribution company to ensure
506-the reliability of such company's services in any emergency and to
507-prevent, minimize and restore any long-term service outages or
508-disruptions caused by such emergency. House Bill No. 7006
289+November 1, 2020): 208
290+(b) A public service company shall obtain the approval of the Public 209
291+Utilities Regulatory Authority to (1) issue any notes, bonds or other 210
292+evidences of indebtedness or securities of any nature, (2) lend or borrow 211
293+any moneys for a period of more than one year for any purpose other 212
294+than paying the expenses, including taxes, of conducting its business or 213
295+for the payment of dividends, or (3) amend any provision of an 214
296+indenture or similar financial instrument if such amendment would 215
297+affect the issuance or terms of any such notes, bonds or other evidences 216
298+of indebtedness or securities. The authority shall approve or disapprove 217
299+each such issue or amendment within [thirty] sixty days after the filing 218
300+of a written application for such approval unless the applicant agrees to 219
301+an extension of time. If not disapproved within said [thirty] sixty days 220
302+or within such extension, such issue shall be deemed to be approved. 221
303+The authority shall not require a company to issue its common stock 222
304+under terms or conditions not required by the general statutes. The 223
305+provisions of this subsection shall apply to a community antenna 224
306+television company only with regard to any noncable communications 225
307+services which the company may provide. 226
308+Sec. 7. Subsection (d) of section 16-47 of the general statutes is 227
309+repealed and the following is substituted in lieu thereof (Effective January 228
310+1, 2021): 229
311+(d) The Public Utilities Regulatory Authority shall investigate and 230
312+hold a public hearing on the question of granting its approval with 231
313+respect to any application made under subsection (b) or (c) of this 232
314+section and thereafter may approve or disapprove any such application 233
315+in whole or in part and upon such terms and conditions as it deems 234
316+necessary or appropriate. In connection with its investigation, the 235
317+authority may request the views of the gas, electric distribution, water, 236
318+telephone or community antenna television company or holding 237
319+company which is the subject of the application with respect to the 238
320+proposed acquisition. After the filing of an application satisfying the 239
321+Bill No.
509322
510-Sept. Sp. Sess., Public Act No. 20-5 16 of 25
511323
512-(f) The authority, upon a finding that any electric distribution
513-company failed to comply with any standard of acceptable performance
514-adopted pursuant to this section or any order of the authority, shall
515-make orders to enforce such standards and may levy civil penalties
516-against such company, pursuant to section 16-41 of the general statutes.
517-Any such penalty shall not be included as an operating expense of such
518-company for purposes of ratemaking.
519-Sec. 13. Subsection (a) of section 16-41 of the general statutes is
520-repealed and the following is substituted in lieu thereof (Effective from
521-passage):
522-(a) Each (1) public service company and its officers, agents and
523-employees, (2) electric supplier or person providing electric generation
524-services without a license in violation of section 16-245, and its officers,
525-agents and employees, (3) certified telecommunications provider or
526-person providing telecommunications services without authorization
527-pursuant to sections 16-247f to 16-247h, inclusive, and its officers, agents
528-and employees, (4) person, public agency or public utility, as such terms
529-are defined in section 16-345, subject to the requirements of chapter 293,
530-(5) person subject to the registration requirements under section 16-
531-258a, (6) cellular mobile telephone carrier, as described in section 16-
532-250b, (7) Connecticut electric efficiency partner, as defined in section 16-
533-243v, (8) company, as defined in section 16-49, and (9) entity approved
534-to submeter pursuant to section 16-19ff shall obey, observe and comply
535-with all applicable provisions of this title and each applicable order
536-made or applicable regulations adopted by the Public Utilities
537-Regulatory Authority by virtue of this title as long as the same remains
538-in force. Any such company, electric supplier, cert ified
539-telecommunications provider, cellular mobile telephone carrier,
540-Connecticut electric efficiency partner, entity approved to submeter,
541-person, any officer, agent or employee thereof, public agency or public
542-utility which the authority finds has failed to obey or comply with any House Bill No. 7006
543324
544-Sept. Sp. Sess., Public Act No. 20-5 17 of 25
325+LCO No. 4364 9 of 24
545326
546-such provision of this title, order or regulation shall be fined, ordered to
547-pay restitution to customers or ordered to pay a combination of a fine
548-and restitution by order of the authority in accordance with the penalty
549-prescribed for the violated provision of this title or, if no penalty is
550-prescribed, not more than ten thousand dollars for each offense, except
551-that the penalty shall be a fine, restitution to customers or a combination
552-of a fine and restitution of not more than forty thousand dollars for
553-failure to comply with an order of the authority made in accordance
554-with the provisions of section 16-19 or 16-247k or within thirty days of
555-such order or within any specific time period for compliance specified
556-in such order. The authority may direct a portion of any fine levied
557-pursuant to this section to be paid to a nonprofit agency engaged in
558-energy assistance programs named by the authority in its decision or
559-notice of violation. Each distinct violation of any such provision of this
560-title, order or regulation shall be a separate offense and, in case of a
561-continued violation, each day thereof shall be deemed a separate
562-offense. Each such penalty and any interest charged pursuant to
563-subsection (g) or (h) of section 16-49 shall be excluded from operating
564-expenses for purposes of rate-making.
565-Sec. 14. (NEW) (Effective from passage) Not later than January 15, 2021,
566-the Commissioner of Energy and Environmental Protection shall submit
567-a report to the joint standing committee of the General Assembly having
568-cognizance of matters relating to energy (1) evaluating whether
569-Connecticut's reliance on the wholesale energy markets administered by
570-the regional independent system operator, as defined in section 16-1 of
571-the general statutes, benefits Connecticut ratepayers, and (2)
572-recommending alternative approaches to better meet Connecticut's
573-need for clean, reliable and affordable electricity generation supply in a
574-manner that leverages competition, reduces ratepayer risk and achieves
575-the state's public policy goals, including, but not limited to, pursuant to
576-section 22a-200a of the general statutes. House Bill No. 7006
327+requirements of such regulations as the authority may adopt in 240
328+accordance with the provisions of chapter 54, but not later than thirty 241
329+business days after the filing of such application, the authority shall give 242
330+prompt notice of the public hearing to the person required to file the 243
331+application and to the subject company or holding company. Such 244
332+hearing shall be commenced as promptly as practicable after the filing 245
333+of the application, but not later than [thirty] sixty business days after the 246
334+filing, and the authority shall make its determination as soon as 247
335+practicable, but not later than [one] two hundred [twenty] days after the 248
336+filing of the application, provided it may, before the end of such period 249
337+and upon notifying all parties and intervenors to the proceedings, 250
338+extend the period by thirty days, or unless the person required to file 251
339+the application agrees to an extension of time. The authority may, in its 252
340+discretion, grant the subject company or holding company the 253
341+opportunity to participate in the hearing by presenting evidence and 254
342+oral and written argument. If the authority fails to give notice of its 255
343+determination to hold a hearing, commence the hearing, or render its 256
344+determination after the hearing within the time limits specified in this 257
345+subdivision, the proposed acquisition shall be deemed approved. In 258
346+each proceeding on a written application submitted under said 259
347+subsection (b) or (c), the authority shall, in a manner which treats all 260
348+parties to the proceeding on an equal basis, take into consideration (1) 261
349+the financial, technological and managerial suitability and 262
350+responsibility of the applicant, (2) the ability of the gas, electric 263
351+distribution, water, telephone or community antenna television 264
352+company or holding company which is the subject of the application to 265
353+provide safe, adequate and reliable service to the public through the 266
354+company's plant, equipment and manner of operation if the application 267
355+were to be approved, and (3) for an application concerning a telephone 268
356+company, the effect of approval on the location and accessibility of 269
357+management and operations and on the proportion and number of state 270
358+resident employees. The authority shall only grant its approval of an 271
359+application filed on or after January 1, 2021, made under subsection (c) 272
360+of this section, if the holding company effects a change in the 273
361+Bill No.
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578-Sept. Sp. Sess., Public Act No. 20-5 18 of 25
579363
580-Sec. 15. Section 16-243y of the general statutes is repealed and the
581-following is substituted in lieu thereof (Effective from passage):
582-(a) As used in this section:
583-(1) "Municipality" has the same meaning as provided in section 7-
584-233b;
585-(2) "Critical facility" means any hospital, police station, fire station,
586-water treatment plant, sewage treatment plant, public shelter,
587-correctional facility or production and transmission facility of a
588-television or radio station, whether broadcast, cable or satellite, licensed
589-by the Federal Communications Commission, any commercial area of a
590-municipality, a municipal center, as identified by the chief elected
591-official of any municipality, or any other facility or area identified by the
592-Department of Energy and Environmental Protection as critical;
593-(3) "Distributed energy generation" means the generation of
594-electricity from a unit with a rating of not more than sixty-five
595-megawatts on the premises of a retail end user within the transmission
596-and distribution system;
597-(4) "Electric distribution company" and "participating municipal
598-electric utility" have the same meanings as provided in section 16-1;
599-[and]
600-(5) "Microgrid" means a group of interconnected loads and
601-distributed energy resources within clearly defined electrical
602-boundaries that acts as a single controllable entity with respect to the
603-grid and that connects and disconnects from such grid to enable it to
604-operate in both grid-connected or island mode; [.]
605-(6) "Resilience" means the ability to prepare for and adapt to changing
606-conditions and withstand and recover rapidly from deliberate attacks,
607-accidents or naturally occurring threats or incidents, including, but not House Bill No. 7006
608364
609-Sept. Sp. Sess., Public Act No. 20-5 19 of 25
365+LCO No. 4364 10 of 24
610366
611-limited to, threats or incidents associated with the impacts of climate
612-change; and
613-(7) "Vulnerable communities" means populations that may be
614-disproportionately impacted by the effects of climate change, including,
615-but not limited to, low and moderate income communities,
616-environmental justice communities pursuant to section 22a-20a,
617-communities eligible for community reinvestment pursuant to section
618-36a-30 and the Community Reinvestment Act of 1977, 12 USC 2901 et
619-seq., as amended from time to time, populations with increased risk and
620-limited means to adapt to the effects of climate change, or as further
621-defined by the Department of Energy and Environmental Protection in
622-consultation with community representatives.
623-(b) The Department of Energy and Environmental Protection shall
624-establish a microgrid and resilience grant and loan pilot program to
625-support local distributed energy generation for critical facilities or
626-resilience projects. The department shall develop and issue a request for
627-proposals from municipalities, electric distribution companies,
628-participating municipal electric utilities, energy improvement districts,
629-and nonprofit, academic and private entities seeking to develop
630-microgrid distributed energy generation, or to repurpose existing
631-distributed energy generation for use with microgrids, to support
632-critical facilities or to develop resilience projects. Any entity eligible to
633-submit a proposal pursuant to this section may collaborate with any
634-other such entity in submitting such proposal. The department may hire
635-a technical consultant to support the implementation of this section
636-using any bond funds authorized in support of microgrids or resilience.
637-(c) The department shall award grants or loans under the microgrid
638-and resilience grant and loan pilot program to any number of recipients.
639-The department shall prioritize proposals that benefit vulnerable
640-communities. To the extent possible, the amount of loans and grants
641-awarded under the program shall be evenly distributed between small, House Bill No. 7006
367+composition of the board of directors to include a proportional 274
368+percentage of Connecticut-based directors equivalent to the percentage 275
369+that Connecticut service areas represent of the total service areas 276
370+covered by the holding company. 277
371+Sec. 8. Section 16-243p of the general statutes is repealed and the 278
372+following is substituted in lieu thereof (Effective November 1, 2020): 279
373+(a) An electric distribution company may recover its costs and 280
374+investments that have been prudently incurred as well as its revenues 281
375+lost resulting from the provisions of sections 16-1, 16-19ff, 16-50k, 16-282
376+50x, 16-243h to 16-243q, inclusive, 16-244c, 16-244u, 16-244x, 16-245d, 16-283
377+245m, 16-245n, 16-245z, 16-262i, 16a-40l and 16a-40m and section 21 of 284
378+public act 05-1 of the June special session. The Public Utilities 285
379+Regulatory Authority shall, after a hearing held pursuant to the 286
380+provisions of chapter 54, determine the appropriate mechanism to 287
381+obtain such recovery in a timely manner which mechanism may be one 288
382+or more of the following: (1) Approval of rates as provided in sections 289
383+16-19 and 16-19e; (2) the energy adjustment clause as provided in section 290
384+16-19b; or (3) the federally mandated congestion charges, as defined in 291
385+section 16-1. 292
386+(b) No electric distribution company shall recover its costs associated 293
387+with its attendance or participation in any rate-making hearing before 294
388+the authority. 295
389+[(b)] (c) Electric distribution companies shall be authorized to earn an 296
390+incentive, as provided in section 16-19kk, for costs prudently incurred 297
391+by such companies pursuant to this section. 298
392+Sec. 9. Section 16-32i of the general statutes is repealed and the 299
393+following is substituted in lieu thereof (Effective from passage): 300
394+The Public Utilities Regulatory Authority shall review the 301
395+performance of each electric distribution company and gas company, as 302
396+those terms are defined in section 16-1, after any emergency, as defined 303
397+Bill No.
642398
643-Sept. Sp. Sess., Public Act No. 20-5 20 of 25
644399
645-medium and large municipalities. Such grants and loans may provide:
646-(1) Assistance with community planning that includes, but is not limited
647-to, microgrid or resilience project feasibility, including benefit-cost
648-analyses, (2) assistance to recipients for the cost of design, engineering
649-services and interconnection infrastructure for any such microgrid [,
650-and (2)] or resilience project, (3) matching funds or low interest loans for
651-an energy storage system or systems, as defined in section 16-1, or
652-distributed energy generation projects first placed in service on or after
653-July 1, 2016, provided such generation is derived from a Class I
654-renewable energy source, as defined in section 16-1, or a Class III energy
655-source, as defined in section 16-1, for any such microgrid or resilience
656-project, and (4) nonfederal cost share for grant or loan applications for
657-projects or programs that include microgrids or resilience. The
658-department may establish any financing mechanism to provide or
659-leverage additional funding to support the development of
660-interconnection infrastructure, distributed energy generation, [and]
661-microgrids and resilience projects.
662-(d) Not later than January first, annually, for a period of five years
663-after receiving a grant or loan under the microgrid and resilience grant
664-and loan pilot program, the recipient of such grant or loan shall submit
665-a report to the Public Utilities Regulatory Authority, the Office of
666-Consumer Counsel and the Department of Energy and Environmental
667-Protection and, in accordance with section 11-4a, to the joint standing
668-committees of the General Assembly having cognizance of matters
669-relating to appropriations and energy. Such report shall include
670-information concerning the status of such recipient's microgrid or
671-resilience project.
672-[(e) On or before January 1, 2013, the department shall file a report,
673-in accordance with the provisions of section 11-4a, with the joint
674-standing committee of the General Assembly having cognizance of
675-matters relating to energy, identifying other funding sources necessary House Bill No. 7006
676400
677-Sept. Sp. Sess., Public Act No. 20-5 21 of 25
401+LCO No. 4364 11 of 24
678402
679-to expand the microgrid grant and loan pilot program established
680-pursuant to this section and any legislative changes necessary to access
681-such funding.]
682-[(f)] (e) The Department of Energy and Environmental Protection, in
683-consultation with the Connecticut Academy of Science and Engineering,
684-shall study the methods of providing reliable electric services to critical
685-facilities, taking into consideration the location of such critical facilities.
686-Such study shall evaluate the costs and benefits of such methods,
687-including, but not limited to, the use of microgrids, undergrounding
688-and portable turbine generation, and shall make recommendations
689-identifying the most cost-effective and reliable of such methods. Not
690-later than January 1, 2013, the department shall submit the findings of
691-such study, in accordance with section 11-4a, to the joint standing
692-committee of the General Assembly having cognizance of matters
693-relating to energy and technology.
694-Sec. 16. (NEW) (Effective from passage) (a) As used in this section:
695-(1) "Public service company" and "telecommunications company"
696-have the same meanings as provided in section 16-1 of the general
697-statutes;
698-(2) "Critical infrastructure" means real property and tangible personal
699-property, including, but not limited to, buildings, conduits, lines, fiber
700-optic cables, poles, pipes, structures and equipment, owned or used by
701-a public service company or a telecommunications company to
702-generate, transmit or distribute such company's product or service in
703-the state;
704-(3) "State disaster or emergency" means a disaster or an emergency
705-event for which (A) the Governor has issued a proclamation of a disaster
706-or an emergency pursuant to chapter 517 of the general statutes, or (B)
707-the President of the United States has issued a declaration of the House Bill No. 7006
403+in section 16-32e, (1) in which more than ten per cent of any such 304
404+company's customers were without service for more than forty-eight 305
405+consecutive hours, or (2) at the authority's discretion. The authority, 306
406+upon a finding that any such company failed to comply with any 307
407+standard of acceptable performance in emergency preparation or 308
408+restoration of service in an emergency, adopted pursuant to section 16-309
409+32h, or with any order of the authority, shall make orders, after a hearing 310
410+that is conducted as a contested case in accordance with chapter 54, to 311
411+enforce such standards or orders and may levy civil penalties against 312
412+such company, pursuant to section 16-41, not to exceed a total of [two 313
413+and one-half] four per cent of such electric distribution or gas company's 314
414+annual distribution revenue, for noncompliance in any such emergency. 315
415+In determining the amount of any penalty, the authority shall consider 316
416+whether such company received approval and reasonable funding 317
417+allowances, as determined by the authority, from the authority to meet 318
418+infrastructure resiliency efforts to improve such company's 319
419+performance. Any such penalty shall be assessed in the form of [a credit 320
420+to] credits to the accounts of ratepayers of such electric distribution or 321
421+gas company. Any such penalty shall not be included as an operating 322
422+expense of such company for purposes of ratemaking. 323
423+Sec. 10. (NEW) (Effective from passage) (a) For the purposes of this 324
424+section, "emergency" has the same meaning as provided in subdivision 325
425+(1) of subsection (a) of section 16-32e of the general statutes and "electric 326
426+distribution company" has the same meaning as provided in section 16-327
427+1 of the general statutes. 328
428+(b) Notwithstanding any other provision of the general statutes, on 329
429+and after July 1, 2021, each electric distribution company shall provide 330
430+to residential customers of such company a credit of twenty-five dollars, 331
431+on the balance of such customer's account, for each day of distribution-332
432+system service outage that occurs for such customers for more than 333
433+ninety-six consecutive hours after the occurrence of an emergency. 334
434+(c) Any costs incurred by an electric distribution company pursuant 335
435+Bill No.
708436
709-Sept. Sp. Sess., Public Act No. 20-5 22 of 25
710437
711-existence in the state of a major disaster or an emergency;
712-(4) "Disaster-related or emergency-related work" means repairing,
713-renovating, installing, constructing or rendering services to critical
714-infrastructure in the state that has been damaged, impaired or destroyed
715-by a state disaster or emergency;
716-(5) "Disaster response period" means the period (A) commencing ten
717-calendar days prior to the date of issuance of the proclamation or
718-declaration of a state disaster or emergency, and (B) ending sixty
719-calendar days after the Governor has proclaimed or the President has
720-declared, as applicable, the end of such disaster or emergency;
721-(6) (A) "Out-of-state business" means a business entity that, in the
722-income or taxable year immediately preceding the income year or
723-taxable year in which the state disaster or emergency occurred, (i) was
724-not registered with the state or any political subdivision thereof, (ii) did
725-not submit any tax filings to the state, and (iii) did not derive income
726-from sources within the state.
727-(B) "Out-of-state business" includes a business entity that (i) was
728-present in the state or conducted operations in the state, to perform
729-disaster-related or emergency-related work, but otherwise satisfies the
730-provisions of this subdivision, or (ii) is affiliated with a registered
731-business solely through common ownership but otherwise satisfies the
732-provisions of this subdivision;
733-(7) "Out-of-state employee" means an employee of an out-of-state
734-business, who does not work in the state other than performing disaster-
735-related or emergency-related work during a disaster response period for
736-such out-of-state business;
737-(8) "Registered business" means a business entity that is registered
738-with the Secretary of the State to do business in the state prior to the
739-state disaster or emergency; and House Bill No. 7006
740438
741-Sept. Sp. Sess., Public Act No. 20-5 23 of 25
439+LCO No. 4364 12 of 24
742440
743-(9) "Business entity" means any person that would be subject to the
744-tax under chapter 208, 211, 212, 212b or 228z of the general statutes, if
745-such person conducted business in the state or derived income from
746-sources within the state.
747-(b) Notwithstanding any provision of title 12 of the general statutes
748-or subsection (c) of section 14-34a of the general statutes, no out-of-state
749-business or out-of-state employee that is present in the state or conducts
750-operations in the state, to perform disaster-related or emergency-related
751-work during a disaster response period, shall be deemed to have
752-established sufficient presence in the state to require such business or
753-employee to (1) register with the state or any political subdivision
754-thereof; (2) be licensed by the state, provided such business or employee
755-is properly registered, licensed or otherwise authorized under the laws
756-of another state to perform disaster-related or emergency-related work;
757-(3) be subject to property tax, tax on the income derived from the
758-performance of disaster-related or emergency-related work during a
759-disaster response period or use tax on tangible personal property
760-temporarily in the state to aid such employee in the performance of such
761-work; or (4) submit any tax filing to the state; except that, with respect
762-to out-of-state employees, the provisions of subdivisions (3) and (4) of
763-this subsection shall apply only to an out-of-state employee who is a
764-resident of a state that has a law substantially similar to the provisions
765-of this subsection and subsection (c) of this section or that does not
766-impose a personal income tax.
767-(c) The activities associated with disaster-related or emergency-
768-related work performed in the state by an out-of-state business that is
769-present in the state or conducts operations in the state solely to perform
770-such work shall be disregarded for purposes of any filing required for a
771-tax imposed on income or gross receipts, including, but not limited to, a
772-combined unitary tax return.
773-(d) Except as specified under subsections (b) and (c) of this section, House Bill No. 7006
441+to this section shall not be recoverable. 336
442+(d) Not later than fourteen calendar days after the occurrence of an 337
443+emergency, an electric distribution company may petition the authority 338
444+for a waiver of the requirements of this section. Any petition for a waiver 339
445+made under this subsection shall include the severity of the emergency, 340
446+employee safety issues and conditions on the ground, and shall be 341
447+conducted as a contested case proceeding. The burden of proving that 342
448+such waiver is reasonable and warranted shall be on the electric 343
449+distribution company. In determining whether to grant such waiver, the 344
450+authority shall consider whether the electric distribution company 345
451+received approval and reasonable funding allowances, as determined 346
452+by the authority, to meet infrastructure resiliency efforts to improve 347
453+such company's performance. 348
454+(e) On or before January 1, 2021, the Public Utilities Regulatory 349
455+Authority shall initiate a proceeding to consider the implementation of 350
456+the residential customer credit and waiver provisions of this section and 351
457+establish circumstances, standards and methodologies applicable to 352
458+each electric distribution company and necessary to implement the 353
459+provisions of this section, including any modifications to the ninety-six-354
460+consecutive-hour standard in subsection (b) of this section. The 355
461+authority shall issue a final decision in such proceeding on or before July 356
462+1, 2021. 357
463+Sec. 11. (NEW) (Effective from passage) (a) For the purposes of this 358
464+section, "emergency" has the same meaning as provided in subdivision 359
465+(1) of subsection (a) of section 16-32e of the general statutes and "electric 360
466+distribution company" has the same meaning as provided in section 16-361
467+1 of the general statutes. 362
468+(b) On and after July 1, 2021, each electric distribution company shall 363
469+provide to each residential customer compensation in an amount of two 364
470+hundred fifty dollars, in the aggregate, for any medication and food that 365
471+expires or spoils due to a distribution-system service outage that lasts 366
472+Bill No.
774473
775-Sept. Sp. Sess., Public Act No. 20-5 24 of 25
776474
777-any out-of-state business or out-of-state employee that is present in the
778-state or conducts operations in the state, to perform disaster-related or
779-emergency-related work during a disaster response period, shall be
780-subject to all other applicable state taxes and fees during such period.
781-(e) (1) Any out-of-state business that is present in the state or
782-conducts operations in the state, to perform disaster-related or
783-emergency-related work during a disaster response period, shall
784-provide, upon request by the Secretary of the State, a written statement
785-that such business is in the state for purposes of responding to the state
786-disaster or emergency. Such statement shall include the out-of-state
787-business's name, state of domicile, principal business address, telephone
788-number, electronic mail address, federal tax identification number and
789-date of entry into the state, and may be provided electronically.
790-(2) The Secretary of the State may request a registered business that
791-is an affiliate of such out-of-state business to provide the written
792-statement and information set forth in subdivision (1) of this subsection.
793-Such registered business shall also include the registered business's
794-name, principal business address, telephone number and electronic mail
795-address.
796-(3) No out-of-state business that has received a request from the
797-Secretary of the State for a written statement or is an affiliate of a
798-registered business that has received such request shall be prevented
799-from commencing disaster-related or emergency-related work in the
800-state prior to the provision of the written statement.
801-(f) Any out-of-state business or out-of-state employee who remains
802-in the state after the disaster response period shall be subject to all other
803-laws that provide standards to establish presence in the state and shall
804-comply with any provision of the general statutes that becomes
805-applicable to such business or employee due to such presence. House Bill No. 7006
806475
807-Sept. Sp. Sess., Public Act No. 20-5 25 of 25
476+LCO No. 4364 13 of 24
808477
809-Approved October 2, 2020
478+more than ninety-six consecutive hours in duration after the occurrence 367
479+of an emergency. 368
480+(c) Any costs incurred by an electric distribution company pursuant 369
481+to this section shall not be recoverable. 370
482+(d) Not later than fourteen calendar days after the occurrence of an 371
483+emergency, an electric distribution company may petition the authority 372
484+for a waiver of the requirements of this section. Any petition for a waiver 373
485+made under this subsection shall include the severity of the emergency, 374
486+employee safety issues and conditions on the ground, and shall be 375
487+conducted as a contested case proceeding. The burden of proving that 376
488+such waiver is reasonable and warranted shall be on the electric 377
489+distribution company. In determining whether to grant such waiver, the 378
490+authority shall consider whether the electric distribution company 379
491+received approval and reasonable funding allowances, as determined 380
492+by the authority, to meet infrastructure resiliency efforts to improve 381
493+such company's performance. 382
494+(e) On or before January 1, 2021, the Public Utilities Regulatory 383
495+Authority shall initiate a proceeding to consider the implementation of 384
496+the compensation reimbursement and waiver provisions of this section 385
497+and establish circumstances, standards and methodologies applicable to 386
498+each electric distribution company and necessary to implement the 387
499+provisions of this section, including any modifications to the ninety-six-388
500+consecutive-hour standard in subsection (b) of this section. The 389
501+authority shall issue a final decision in such proceeding on or before July 390
502+1, 2021. 391
503+Sec. 12. (NEW) (Effective from passage) (a) As used in this section, 392
504+"electric distribution company" has the same meaning as provided in 393
505+section 16-1 of the general statutes. 394
506+(b) Not later than January 1, 2021, each electric distribution company 395
507+shall submit to the joint standing committee of the General Assembly 396
508+having cognizance of matters relating to energy, in accordance with the 397
509+Bill No.
510+
511+
512+
513+LCO No. 4364 14 of 24
514+
515+provisions of section 11-4a of the general statutes, and the Public 398
516+Utilities Regulatory Authority the following: 399
517+(1) A cost-benefit analysis identifying the resources expended in 400
518+response to the last five storm events classified as a level three, four or 401
519+five. Such analysis shall include a review of the number of line crew 402
520+workers and shall distinguish between line crew workers (A) directly 403
521+employed by the electric distribution company and working full time 404
522+within the state, (B) directly employed by the electric distribution 405
523+company working primarily in another state, and (C) hired as 406
524+contractors or subcontractors. 407
525+(2) An analysis of any such company's (A) estimates concerning 408
526+potential damage and service outages prior to the last five storm events 409
527+classified as a level three, four or five, (B) damage and service outage 410
528+assessments after the last five storm events classified as a level three, 411
529+four or five, (C) restoration management after the last five storm events 412
530+classified as a level three, four or five, including access to alternate 413
531+restoration resources via regional and reciprocal aid contracts, (D) 414
532+planning for at-risk and vulnerable customers, (E) communication 415
533+policies with state and local officials and customers, including 416
534+individual customer restoration estimates and the accuracy of such 417
535+estimates, (F) infrastructure, facilities and equipment, which shall 418
536+include, but not be limited to, an examination of (i) whether such 419
537+infrastructure, facilities and equipment are in good repair and capable 420
538+of meeting operational standards, (ii) whether such company is 421
539+following standard industry practice concerning operation and 422
540+maintenance of such infrastructure, facilities and equipment, (iii) the age 423
541+and condition of such infrastructure, facilities and equipment, (iv) 424
542+whether maintenance of such infrastructure, facilities and equipment 425
543+has been delayed, and (v) whether such company had access to 426
544+adequate replacement equipment for such infrastructure, facilities and 427
545+equipment during the course of the last five storm events classified as a 428
546+level three, four or five, and (G) compliance with any emergency 429
547+response standards adopted by the authority. 430
548+Bill No.
549+
550+
551+
552+LCO No. 4364 15 of 24
553+
554+(c) Not later than January 1, 2021, the authority shall initiate a docket, 431
555+or incorporate into an existing docket, to review the report provided by 432
556+each electric distribution company pursuant to subsection (b) of this 433
557+section. The authority shall submit the final decision of such docket, in 434
558+accordance with the provisions of section 11-4a of the general statutes, 435
559+to the joint standing committee of the General Assembly having 436
560+cognizance of matters relating to energy. 437
561+(d) After issuing its final decision in the docket initiated pursuant to 438
562+subsection (c) of this section, the authority shall establish standards for 439
563+minimum staffing levels for any electric distribution company for 440
564+outage planning and restoration personnel, including linemen, 441
565+technicians and system engineers, tree trimming crews and personnel 442
566+responsible for directing operations and communicating with state, 443
567+municipal and regional officials. Such staffing standards may reflect 444
568+different staffing levels based on the severity of any emergency. 445
569+(e) The authority may establish as it deems fit any other standards for 446
570+acceptable performance by any electric distribution company to ensure 447
571+the reliability of such company's services in any emergency and to 448
572+prevent, minimize and restore any long-term service outages or 449
573+disruptions caused by such emergency. 450
574+(f) The authority, upon a finding that any electric distribution 451
575+company failed to comply with any standard of acceptable performance 452
576+adopted pursuant to this section or any order of the authority, shall 453
577+make orders to enforce such standards and may levy civil penalties 454
578+against such company, pursuant to section 16-41 of the general statutes. 455
579+Any such penalty shall not be included as an operating expense of such 456
580+company for purposes of ratemaking. 457
581+Sec. 13. Subsection (a) of section 16-41 of the general statutes is 458
582+repealed and the following is substituted in lieu thereof (Effective from 459
583+passage): 460
584+(a) Each (1) public service company and its officers, agents and 461
585+Bill No.
586+
587+
588+
589+LCO No. 4364 16 of 24
590+
591+employees, (2) electric supplier or person providing electric generation 462
592+services without a license in violation of section 16-245, and its officers, 463
593+agents and employees, (3) certified telecommunications provider or 464
594+person providing telecommunications services without authorization 465
595+pursuant to sections 16-247f to 16-247h, inclusive, and its officers, agents 466
596+and employees, (4) person, public agency or public utility, as such terms 467
597+are defined in section 16-345, subject to the requirements of chapter 293, 468
598+(5) person subject to the registration requirements under section 16-469
599+258a, (6) cellular mobile telephone carrier, as described in section 16-470
600+250b, (7) Connecticut electric efficiency partner, as defined in section 16-471
601+243v, (8) company, as defined in section 16-49, and (9) entity approved 472
602+to submeter pursuant to section 16-19ff shall obey, observe and comply 473
603+with all applicable provisions of this title and each applicable order 474
604+made or applicable regulations adopted by the Public Utilities 475
605+Regulatory Authority by virtue of this title as long as the same remains 476
606+in force. Any such company, electric supplier, certified 477
607+telecommunications provider, cellular mobile telephone carrier, 478
608+Connecticut electric efficiency partner, entity approved to submeter, 479
609+person, any officer, agent or employee thereof, public agency or public 480
610+utility which the authority finds has failed to obey or comply with any 481
611+such provision of this title, order or regulation shall be fined, ordered to 482
612+pay restitution to customers or ordered to pay a combination of a fine 483
613+and restitution by order of the authority in accordance with the penalty 484
614+prescribed for the violated provision of this title or, if no penalty is 485
615+prescribed, not more than ten thousand dollars for each offense, except 486
616+that the penalty shall be a fine, restitution to customers or a combination 487
617+of a fine and restitution of not more than forty thousand dollars for 488
618+failure to comply with an order of the authority made in accordance 489
619+with the provisions of section 16-19 or 16-247k or within thirty days of 490
620+such order or within any specific time period for compliance specified 491
621+in such order. The authority may direct a portion of any fine levied 492
622+pursuant to this section to be paid to a nonprofit agency engaged in 493
623+energy assistance programs named by the authority in its decision or 494
624+notice of violation. Each distinct violation of any such provision of this 495
625+Bill No.
626+
627+
628+
629+LCO No. 4364 17 of 24
630+
631+title, order or regulation shall be a separate offense and, in case of a 496
632+continued violation, each day thereof shall be deemed a separate 497
633+offense. Each such penalty and any interest charged pursuant to 498
634+subsection (g) or (h) of section 16-49 shall be excluded from operating 499
635+expenses for purposes of rate-making. 500
636+Sec. 14. (NEW) (Effective from passage) Not later than January 15, 2021, 501
637+the Commissioner of Energy and Environmental Protection shall submit 502
638+a report to the joint standing committee of the General Assembly having 503
639+cognizance of matters relating to energy (1) evaluating whether 504
640+Connecticut's reliance on the wholesale energy markets administered by 505
641+the regional independent system operator, as defined in section 16-1 of 506
642+the general statutes, benefits Connecticut ratepayers, and (2) 507
643+recommending alternative approaches to better meet Connecticut's 508
644+need for clean, reliable and affordable electricity generation supply in a 509
645+manner that leverages competition, reduces ratepayer risk and achieves 510
646+the state's public policy goals, including, but not limited to, pursuant to 511
647+section 22a-200a of the general statutes. 512
648+Sec. 15. Section 16-243y of the general statutes is repealed and the 513
649+following is substituted in lieu thereof (Effective from passage): 514
650+(a) As used in this section: 515
651+(1) "Municipality" has the same meaning as provided in section 7-516
652+233b; 517
653+(2) "Critical facility" means any hospital, police station, fire station, 518
654+water treatment plant, sewage treatment plant, public shelter, 519
655+correctional facility or production and transmission facility of a 520
656+television or radio station, whether broadcast, cable or satellite, licensed 521
657+by the Federal Communications Commission, any commercial area of a 522
658+municipality, a municipal center, as identified by the chief elected 523
659+official of any municipality, or any other facility or area identified by the 524
660+Department of Energy and Environmental Protection as critical; 525
661+Bill No.
662+
663+
664+
665+LCO No. 4364 18 of 24
666+
667+(3) "Distributed energy generation" means the generation of 526
668+electricity from a unit with a rating of not more than sixty-five 527
669+megawatts on the premises of a retail end user within the transmission 528
670+and distribution system; 529
671+(4) "Electric distribution company" and "participating municipal 530
672+electric utility" have the same meanings as provided in section 16-1; 531
673+[and] 532
674+(5) "Microgrid" means a group of interconnected loads and 533
675+distributed energy resources within clearly defined electrical 534
676+boundaries that acts as a single controllable entity with respect to the 535
677+grid and that connects and disconnects from such grid to enable it to 536
678+operate in both grid-connected or island mode; [.] 537
679+(6) "Resilience" means the ability to prepare for and adapt to changing 538
680+conditions and withstand and recover rapidly from deliberate attacks, 539
681+accidents or naturally occurring threats or incidents, including, but not 540
682+limited to, threats or incidents associated with the impacts of climate 541
683+change; and 542
684+(7) "Vulnerable communities" means populations that may be 543
685+disproportionately impacted by the effects of climate change, including, 544
686+but not limited to, low and moderate income communities, 545
687+environmental justice communities pursuant to section 22a-20a, 546
688+communities eligible for community reinvestment pursuant to section 547
689+36a-30 and the Community Reinvestment Act of 1977, 12 USC 2901 et 548
690+seq., as amended from time to time, populations with increased risk and 549
691+limited means to adapt to the effects of climate change, or as further 550
692+defined by the Department of Energy and Environmental Protection in 551
693+consultation with community representatives. 552
694+(b) The Department of Energy and Environmental Protection shall 553
695+establish a microgrid and resilience grant and loan pilot program to 554
696+support local distributed energy generation for critical facilities or 555
697+resilience projects. The department shall develop and issue a request for 556
698+Bill No.
699+
700+
701+
702+LCO No. 4364 19 of 24
703+
704+proposals from municipalities, electric distribution companies, 557
705+participating municipal electric utilities, energy improvement districts, 558
706+and nonprofit, academic and private entities seeking to develop 559
707+microgrid distributed energy generation, or to repurpose existing 560
708+distributed energy generation for use with microgrids, to support 561
709+critical facilities or to develop resilience projects. Any entity eligible to 562
710+submit a proposal pursuant to this section may collaborate with any 563
711+other such entity in submitting such proposal. The department may hire 564
712+a technical consultant to support the implementation of this section 565
713+using any bond funds authorized in support of microgrids or resilience. 566
714+(c) The department shall award grants or loans under the microgrid 567
715+and resilience grant and loan pilot program to any number of recipients. 568
716+The department shall prioritize proposals that benefit vulnerable 569
717+communities. To the extent possible, the amount of loans and grants 570
718+awarded under the program shall be evenly distributed between small, 571
719+medium and large municipalities. Such grants and loans may provide: 572
720+(1) Assistance with community planning that includes, but is not limited 573
721+to, microgrid or resilience project feasibility, including benefit-cost 574
722+analyses, (2) assistance to recipients for the cost of design, engineering 575
723+services and interconnection infrastructure for any such microgrid [, 576
724+and (2)] or resilience project, (3) matching funds or low interest loans for 577
725+an energy storage system or systems, as defined in section 16-1, or 578
726+distributed energy generation projects first placed in service on or after 579
727+July 1, 2016, provided such generation is derived from a Class I 580
728+renewable energy source, as defined in section 16-1, or a Class III energy 581
729+source, as defined in section 16-1, for any such microgrid or resilience 582
730+project, and (4) nonfederal cost share for grant or loan applications for 583
731+projects or programs that include microgrids or resilience. The 584
732+department may establish any financing mechanism to provide or 585
733+leverage additional funding to support the development of 586
734+interconnection infrastructure, distributed energy generation, [and] 587
735+microgrids and resilience projects. 588
736+(d) Not later than January first, annually, for a period of five years 589
737+Bill No.
738+
739+
740+
741+LCO No. 4364 20 of 24
742+
743+after receiving a grant or loan under the microgrid and resilience grant 590
744+and loan pilot program, the recipient of such grant or loan shall submit 591
745+a report to the Public Utilities Regulatory Authority, the Office of 592
746+Consumer Counsel and the Department of Energy and Environmental 593
747+Protection and, in accordance with section 11-4a, to the joint standing 594
748+committees of the General Assembly having cognizance of matters 595
749+relating to appropriations and energy. Such report shall include 596
750+information concerning the status of such recipient's microgrid or 597
751+resilience project. 598
752+[(e) On or before January 1, 2013, the department shall file a report, 599
753+in accordance with the provisions of section 11-4a, with the joint 600
754+standing committee of the General Assembly having cognizance of 601
755+matters relating to energy, identifying other funding sources necessary 602
756+to expand the microgrid grant and loan pilot program established 603
757+pursuant to this section and any legislative changes necessary to access 604
758+such funding.] 605
759+[(f)] (e) The Department of Energy and Environmental Protection, in 606
760+consultation with the Connecticut Academy of Science and Engineering, 607
761+shall study the methods of providing reliable electric services to critical 608
762+facilities, taking into consideration the location of such critical facilities. 609
763+Such study shall evaluate the costs and benefits of such methods, 610
764+including, but not limited to, the use of microgrids, undergrounding 611
765+and portable turbine generation, and shall make recommendations 612
766+identifying the most cost-effective and reliable of such methods. Not 613
767+later than January 1, 2013, the department shall submit the findings of 614
768+such study, in accordance with section 11-4a, to the joint standing 615
769+committee of the General Assembly having cognizance of matters 616
770+relating to energy and technology. 617
771+Sec. 16. (NEW) (Effective from passage) (a) As used in this section: 618
772+Bill No.
773+
774+
775+
776+LCO No. 4364 21 of 24
777+
778+(1) "Public service company" and "telecommunications company" 619
779+have the same meanings as provided in section 16-1 of the general 620
780+statutes; 621
781+(2) "Critical infrastructure" means real property and tangible personal 622
782+property, including, but not limited to, buildings, conduits, lines, fiber 623
783+optic cables, poles, pipes, structures and equipment, owned or used by 624
784+a public service company or a telecommunications company to 625
785+generate, transmit or distribute such company's product or service in 626
786+the state; 627
787+(3) "State disaster or emergency" means a disaster or an emergency 628
788+event for which (A) the Governor has issued a proclamation of a disaster 629
789+or an emergency pursuant to chapter 517 of the general statutes, or (B) 630
790+the President of the United States has issued a declaration of the 631
791+existence in the state of a major disaster or an emergency; 632
792+(4) "Disaster-related or emergency-related work" means repairing, 633
793+renovating, installing, constructing or rendering services to critical 634
794+infrastructure in the state that has been damaged, impaired or destroyed 635
795+by a state disaster or emergency; 636
796+(5) "Disaster response period" means the period (A) commencing ten 637
797+calendar days prior to the date of issuance of the proclamation or 638
798+declaration of a state disaster or emergency, and (B) ending sixty 639
799+calendar days after the Governor has proclaimed or the President has 640
800+declared, as applicable, the end of such disaster or emergency; 641
801+(6) (A) "Out-of-state business" means a business entity that, in the 642
802+income or taxable year immediately preceding the income year or 643
803+taxable year in which the state disaster or emergency occurred, (i) was 644
804+not registered with the state or any political subdivision thereof, (ii) did 645
805+not submit any tax filings to the state, and (iii) did not derive income 646
806+from sources within the state. 647
807+Bill No.
808+
809+
810+
811+LCO No. 4364 22 of 24
812+
813+(B) "Out-of-state business" includes a business entity that (i) was 648
814+present in the state or conducted operations in the state, to perform 649
815+disaster-related or emergency-related work, but otherwise satisfies the 650
816+provisions of this subdivision, or (ii) is affiliated with a registered 651
817+business solely through common ownership but otherwise satisfies the 652
818+provisions of this subdivision; 653
819+(7) "Out-of-state employee" means an employee of an out-of-state 654
820+business, who does not work in the state other than performing disaster-655
821+related or emergency-related work during a disaster response period for 656
822+such out-of-state business; 657
823+(8) "Registered business" means a business entity that is registered 658
824+with the Secretary of the State to do business in the state prior to the 659
825+state disaster or emergency; and 660
826+(9) "Business entity" means any person that would be subject to the 661
827+tax under chapter 208, 211, 212, 212b or 228z of the general statutes, if 662
828+such person conducted business in the state or derived income from 663
829+sources within the state. 664
830+(b) Notwithstanding any provision of title 12 of the general statutes 665
831+or subsection (c) of section 14-34a of the general statutes, no out-of-state 666
832+business or out-of-state employee that is present in the state or conducts 667
833+operations in the state, to perform disaster-related or emergency-related 668
834+work during a disaster response period, shall be deemed to have 669
835+established sufficient presence in the state to require such business or 670
836+employee to (1) register with the state or any political subdivision 671
837+thereof; (2) be licensed by the state, provided such business or employee 672
838+is properly registered, licensed or otherwise authorized under the laws 673
839+of another state to perform disaster-related or emergency-related work; 674
840+(3) be subject to property tax, tax on the income derived from the 675
841+performance of disaster-related or emergency-related work during a 676
842+disaster response period or use tax on tangible personal property 677
843+temporarily in the state to aid such employee in the performance of such 678
844+Bill No.
845+
846+
847+
848+LCO No. 4364 23 of 24
849+
850+work; or (4) submit any tax filing to the state; except that, with respect 679
851+to out-of-state employees, the provisions of subdivisions (3) and (4) of 680
852+this subsection shall apply only to an out-of-state employee who is a 681
853+resident of a state that has a law substantially similar to the provisions 682
854+of this subsection and subsection (c) of this section or that does not 683
855+impose a personal income tax. 684
856+(c) The activities associated with disaster-related or emergency-685
857+related work performed in the state by an out-of-state business that is 686
858+present in the state or conducts operations in the state solely to perform 687
859+such work shall be disregarded for purposes of any filing required for a 688
860+tax imposed on income or gross receipts, including, but not limited to, a 689
861+combined unitary tax return. 690
862+(d) Except as specified under subsections (b) and (c) of this section, 691
863+any out-of-state business or out-of-state employee that is present in the 692
864+state or conducts operations in the state, to perform disaster-related or 693
865+emergency-related work during a disaster response period, shall be 694
866+subject to all other applicable state taxes and fees during such period. 695
867+(e) (1) Any out-of-state business that is present in the state or 696
868+conducts operations in the state, to perform disaster-related or 697
869+emergency-related work during a disaster response period, shall 698
870+provide, upon request by the Secretary of the State, a written statement 699
871+that such business is in the state for purposes of responding to the state 700
872+disaster or emergency. Such statement shall include the out-of-state 701
873+business's name, state of domicile, principal business address, telephone 702
874+number, electronic mail address, federal tax identification number and 703
875+date of entry into the state, and may be provided electronically. 704
876+(2) The Secretary of the State may request a registered business that 705
877+is an affiliate of such out-of-state business to provide the written 706
878+statement and information set forth in subdivision (1) of this subsection. 707
879+Such registered business shall also include the registered business's 708
880+Bill No.
881+
882+
883+
884+LCO No. 4364 24 of 24
885+
886+name, principal business address, telephone number and electronic mail 709
887+address. 710
888+(3) No out-of-state business that has received a request from the 711
889+Secretary of the State for a written statement or is an affiliate of a 712
890+registered business that has received such request shall be prevented 713
891+from commencing disaster-related or emergency-related work in the 714
892+state prior to the provision of the written statement. 715
893+(f) Any out-of-state business or out-of-state employee who remains 716
894+in the state after the disaster response period shall be subject to all other 717
895+laws that provide standards to establish presence in the state and shall 718
896+comply with any provision of the general statutes that becomes 719
897+applicable to such business or employee due to such presence. 720
898+This act shall take effect as follows and shall amend the following
899+sections:
900+
901+Section 1 from passage New section
902+Sec. 2 from passage 16-19(a) and (b)
903+Sec. 3 November 1, 2020 16-19a(a) and (b)
904+Sec. 4 from passage New section
905+Sec. 5 from passage New section
906+Sec. 6 November 1, 2020 16-43(b)
907+Sec. 7 January 1, 2021 16-47(d)
908+Sec. 8 November 1, 2020 16-243p
909+Sec. 9 from passage 16-32i
910+Sec. 10 from passage New section
911+Sec. 11 from passage New section
912+Sec. 12 from passage New section
913+Sec. 13 from passage 16-41(a)
914+Sec. 14 from passage New section
915+Sec. 15 from passage 16-243y
916+Sec. 16 from passage New section
917+