Connecticut Senate Bill SB00276

Connecticut 2022 Regular Session

• Introduced: 3/3/22
• Refer: 3/3/22

Caption

An Act Concerning The Regulation Of Water Companies.

Impact

The act will specifically affect water companies by adjusting the approval process for loans and securities. It allows for a loan not exceeding five percent of a water company's long-term debt to bypass the strict formal review process typically required by PURA. Additionally, the act mandates that PURA conduct a thorough review of the financial records of larger water companies at least every four years to ascertain adherence to established rate-setting guidelines. This could lead to more frequent and efficient adjustments in rates charged to customers based on the actual operational costs of water companies.

Summary

SB00276, titled 'An Act Concerning The Regulation Of Water Companies', seeks to amend various statutes governing the financial and operational practices of water companies. The bill primarily introduces guidelines for the Public Utilities Regulatory Authority (PURA) regarding the approval of rate adjustments, issuance of securities, and mechanisms for earnings sharing between utility companies and their ratepayers. Through these amendments, the bill aims to ensure that the rates charged to customers are just, reasonable, and adequate, promoting transparency in rate-setting procedures.

Contention

Discussion around the bill may focus on concerns regarding the balance of authority between state regulation and the operational needs of utility companies. Advocates of the bill suggest that easing some regulatory burdens will help water companies operate more efficiently and pass savings onto consumers. On the other hand, critics may worry that less stringent regulations could result in higher costs for consumers if utility companies choose to take advantage of the relaxed oversight and increase their rates without adequate justification.