LCO No. 5214 1 of 10 General Assembly Raised Bill No. 6852 January Session, 2023 LCO No. 5214 Referred to Committee on ENERGY AND TECHNOLOGY Introduced by: (ET) AN ACT CONCERNING THE AFFORDABILITY OF UTILITIES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (a) of section 16-41 of the general statutes is 1 repealed and the following is substituted in lieu thereof (Effective October 2 1, 2023): 3 (a) Each (1) public service company and its officers, agents and 4 employees, (2) electric supplier or person providing electric generation 5 services without a license in violation of section 16-245, and its officers, 6 agents and employees, (3) certified telecommunications provider or 7 person providing telecommunications services without authorization 8 pursuant to sections 16-247f to 16-247h, inclusive, and its officers, agents 9 and employees, (4) person, public agency or public utility, as such terms 10 are defined in section 16-345, subject to the requirements of chapter 293, 11 (5) person subject to the registration requirements under section 16-12 258a, (6) cellular mobile telephone carrier, as described in section 16-13 250b, (7) Connecticut electric efficiency partner, as defined in section 16-14 243v, (8) company, as defined in section 16-49, (9) entity approved to 15 submeter pursuant to section 16-19ff, and (10) person involved in the 16 Raised Bill No. 6852 LCO No. 5214 2 of 10 transportation of gas, as such terms are defined in section 16-280a, shall 17 obey, observe and comply with all applicable provisions of this title and 18 each applicable order made or applicable regulations adopted by the 19 Public Utilities Regulatory Authority by virtue of this title as long as the 20 same remains in force. Any such company, electric supplier, certified 21 telecommunications provider, cellular mobile telephone carrier, 22 Connecticut electric efficiency partner, entity approved to submeter, 23 person, any officer, agent or employee thereof, public agency or public 24 utility which the authority finds has failed to obey or comply with any 25 such provision of this title, order or regulation shall be fined, ordered to 26 pay restitution to customers or ordered to pay a combination of a fine 27 and restitution by order of the authority in accordance with the penalty 28 prescribed for the violated provision of this title or, if no penalty is 29 prescribed, not more than ten thousand dollars for each offense, except 30 that the penalty shall be a fine, restitution to customers or a combination 31 of a fine and restitution of not more than forty thousand dollars for 32 failure to comply with an order of the authority made in accordance 33 with the provisions of section 16-19 or 16-247k or within thirty days of 34 such order or within any specific time period for compliance specified 35 in such order. The authority may direct a portion of any fine levied 36 pursuant to this section to be paid to a nonprofit agency engaged in 37 energy assistance programs named by the authority in its decision or 38 notice of violation and may direct a portion of any fine levied pursuant 39 to this section against a certified telecommunications provider, person 40 providing telecommunications services without authorization or 41 cellular mobile telephone carrier, to be deposited in the educational 42 technology account established pursuant to section 4d-81, as amended 43 by this act. Any such nonprofit agency that receives a portion of a fine 44 pursuant to this subsection shall administer such funds as directed by 45 the authority and submit an annual report to the authority, at the end of 46 each fiscal year and in a form determined by the authority, that details 47 the expenditure of such funding. No such nonprofit agency shall use 48 more than ten per cent of such funding for administrative purposes. 49 [For] Notwithstanding any provision of this subsection, for the fiscal 50 years ending June 30, 2023, and June 30, 2024, the authority shall direct 51 Raised Bill No. 6852 LCO No. 5214 3 of 10 not less than ninety-five per cent of any fine levied pursuant to this 52 section to nonprofit agencies engaged in energy assistance programs. 53 Each distinct violation of any such provision of this title, order or 54 regulation shall be a separate offense and, in case of a continued 55 violation, each day thereof shall be deemed a separate offense. Each 56 such penalty and any interest charged pursuant to subsection (g) or (h) 57 of section 16-49 shall be excluded from operating expenses for purposes 58 of rate-making. 59 Sec. 2. Section 4d-81 of the general statutes is repealed and the 60 following is substituted in lieu thereof (Effective October 1, 2023): 61 There is established an [educational technology] account to be known 62 as the "educational technology account", which shall be a separate, 63 nonlapsing account within the General Fund. The account shall contain 64 any moneys required by law to be deposited in the account. The 65 Commission for Educational Technology shall deposit in said account 66 any private donation, bequest or devise made to it to assist in the 67 attainment of the state-wide technology goals established pursuant to 68 subdivision (2) of subsection (c) of section 4d-80. Said account is 69 [intended to be] in addition to those resources that are appropriated by 70 the state for technology purposes. The commission shall use the 71 resources of the account for activities related to the attainment of such 72 goals. 73 Sec. 3. Subsection (b) of section 16-262c of the general statutes is 74 repealed and the following is substituted in lieu thereof (Effective October 75 1, 2023): 76 (b) (1) From November first to May first, inclusive, no electric 77 distribution company, as defined in section 16-1, no electric supplier and 78 no municipal utility furnishing electricity shall terminate, deny or refuse 79 to reinstate residential electric service in hardship cases where the 80 customer lacks the financial resources to pay his or her entire account. 81 From November first to May first, inclusive, no gas company and no 82 municipal utility furnishing gas shall terminate, deny or refuse to 83 Raised Bill No. 6852 LCO No. 5214 4 of 10 reinstate residential gas service in hardship cases where the customer 84 uses such gas for heat and lacks the financial resources to pay his or her 85 entire account, except a gas company that, between May second and 86 October thirty-first, terminated gas service to a residential customer 87 who uses gas for heat and who, during the previous period of 88 November first to May first, had gas service maintained because of 89 hardship status, may refuse to reinstate the gas service from November 90 first to May first, inclusive, only if the customer has failed to pay, since 91 the preceding November first, the lesser of: (A) Twenty per cent of the 92 outstanding principal balance owed the gas company as of the date of 93 termination, (B) one hundred dollars, or (C) the minimum payments 94 due under the customer's amortization agreement. Notwithstanding 95 any other provision of the general statutes to the contrary, no electric 96 distribution or gas company, no electric supplier and no municipal 97 utility furnishing electricity or gas shall terminate, deny or refuse to 98 reinstate residential electric or gas service where the customer lacks the 99 financial resources to pay his or her entire account and for which 100 customer or a member of the customer's household the termination, 101 denial of or failure to reinstate such service would create a life-102 threatening situation. No electric distribution or gas company, no 103 electric supplier and no municipal utility furnishing electricity or gas 104 shall terminate, deny or refuse to reinstate residential electric or gas 105 service where the customer is a hardship case and lacks the financial 106 resources to pay his or her entire account and a child not more than 107 twenty-four months old resides in the customer's household and such 108 child has been admitted to the hospital and received discharge papers 109 on which the attending physician, physician assistant or an advanced 110 practice registered nurse has indicated such service is a necessity for the 111 health and well-being of such child. In hardship cases where the 112 customer lacks the financial resources to pay such customer's entire 113 account, no electric distribution company or municipality utility may 114 charge more than one hundred dollars to reinstate residential electric 115 service to such customer. Such one-hundred-dollar limit shall include 116 any reconnection fee and any payment of an outstanding balance that 117 such company or utility requires as a condition of reinstating residential 118 Raised Bill No. 6852 LCO No. 5214 5 of 10 electric service to such customer. 119 (2) During any period in which a residential customer is subject to 120 termination, an electric distribution or gas company, an electric supplier 121 or a municipal utility furnishing electricity or gas shall provide such 122 residential customer whose account is delinquent an opportunity to 123 enter into a reasonable amortization agreement with such company, 124 electric supplier or utility to pay such delinquent account and to avoid 125 termination of service. Such amortization agreement shall allow such 126 customer adequate opportunity to apply for and receive the benefits of 127 any available energy assistance program. An amortization agreement 128 shall be subject to amendment on customer request if there is a change 129 in the customer's financial circumstances. 130 (3) As used in this section, (A) "household income" means the 131 combined income over a twelve-month period of the customer and all 132 adults, except children of the customer, who are and have been 133 members of the household for six months or more, and (B) "hardship 134 case" includes, but is not limited to: (i) A customer receiving local, state 135 or federal public assistance; (ii) a customer whose sole source of 136 financial support is Social Security, United States Department of 137 Veterans Affairs or unemployment compensation benefits; (iii) a 138 customer who is head of the household and is unemployed, and the 139 household income is less than three hundred per cent of the poverty 140 level determined by the federal government; (iv) a customer who is 141 seriously ill or who has a household member who is seriously ill; (v) a 142 customer whose income falls below one hundred twenty-five per cent 143 of the poverty level determined by the federal government; and (vi) a 144 customer whose circumstances threaten a deprivation of food and the 145 necessities of life for himself or dependent children if payment of a 146 delinquent bill is required. 147 (4) In order for a residential customer of a gas or electric distribution 148 company using gas or electricity for heat to be eligible to have any 149 moneys due and owing deducted from the customer's delinquent 150 account pursuant to this subdivision, the company furnishing gas or 151 Raised Bill No. 6852 LCO No. 5214 6 of 10 electricity shall require that the customer (A) apply and be eligible for 152 benefits available under the Connecticut energy assistance program or 153 state appropriated fuel assistance program; (B) authorize the company 154 to send a copy of the customer's monthly bill directly to any energy 155 assistance agency for payment; (C) enter into and comply with an 156 amortization agreement, which agreement is consistent with decisions 157 and policies of the Public Utilities Regulatory Authority. Such an 158 amortization agreement shall reduce a customer's payment by the 159 amount of the benefits reasonably anticipated from the Connecticut 160 energy assistance program, state appropriated fuel assistance program 161 or other energy assistance sources. Unless the customer requests 162 otherwise, the company shall budget a customer's payments over a 163 twelve-month period with an affordable increment to be applied to any 164 arrearage, provided such payment plan will not result in loss of any 165 energy assistance benefits to the customer. If a customer authorizes the 166 company to send a copy of his monthly bill directly to any energy 167 assistance agency for payment, the energy assistance agency shall make 168 payments directly to the company. If, on April thirtieth, a customer has 169 been in compliance with the requirements of subparagraphs (A) to (C), 170 inclusive, of this subdivision, during the period starting on the 171 preceding November first, or from such time as the customer's account 172 becomes delinquent, the company shall deduct from such customer's 173 delinquent account an additional amount equal to the amount of money 174 paid by the customer between the preceding November first and April 175 thirtieth and paid on behalf of the customer through the Connecticut 176 energy assistance program and state appropriated fuel assistance 177 program. Any customer in compliance with the requirements of 178 subparagraphs (A) to (C), inclusive, of this subdivision, on April 179 thirtieth who continues to comply with an amortization agreement 180 through the succeeding October thirty-first, shall also have an amount 181 equal to the amount paid pursuant to such agreement and any amount 182 paid on behalf of such customer between May first and the succeeding 183 October thirty-first deducted from the customer's delinquent account. 184 In no event shall the deduction of any amounts pursuant to this 185 subdivision result in a credit balance to the customer's account. No 186 Raised Bill No. 6852 LCO No. 5214 7 of 10 customer shall be denied the benefits of this subdivision due to an error 187 by the company. The Public Utilities Regulatory Authority shall allow 188 the amounts deducted from the customer's account pursuant to the 189 implementation plan, described in subdivision (5) of this subsection, to 190 be recovered by the company in its rates as an operating expense, 191 pursuant to said implementation plan. If the customer fails to comply 192 with the terms of the amortization agreement or any decision of the 193 authority rendered in lieu of such agreement and the requirements of 194 subparagraphs (A) to (C), inclusive, of this subdivision, the company 195 may terminate service to the customer, pursuant to all applicable 196 regulations, provided such termination shall not occur between 197 November first and May first. 198 (5) Each gas and electric distribution company shall submit to the 199 Public Utilities Regulatory Authority annually, on or before July first, 200 an implementation plan which shall include information concerning 201 amortization agreements, counseling, reinstatement of eligibility, rate 202 impacts and any other information deemed relevant by the authority. 203 The Public Utilities Regulatory Authority may, in consultation with the 204 Office of Policy and Management, approve or modify such plan within 205 ninety days of receipt of the plan. If the authority does not take any 206 action on such plan within ninety days of its receipt, the plan shall 207 automatically take effect at the end of the ninety-day period, provided 208 the authority may extend such period for an additional thirty days by 209 notifying the company before the end of the ninety-day period. Any 210 amount recovered by a company in its rates pursuant to this subsection 211 shall not include any amount approved by the Public Utilities 212 Regulatory Authority as an uncollectible expense. The authority may 213 deny all or part of the recovery required by this subsection if it 214 determines that the company seeking recovery has been imprudent, 215 inefficient or acting in violation of statutes or regulations regarding 216 amortization agreements. 217 (6) On or after January 1, 1993, the Public Utilities Regulatory 218 Authority may require gas companies to expand the provisions of 219 subdivisions (4) and (5) of this subsection to all hardship customers. Any 220 Raised Bill No. 6852 LCO No. 5214 8 of 10 such requirement shall not be effective until November 1, 1993. 221 (7) (A) All electric distribution and gas companies, electric suppliers 222 and municipal utilities furnishing electricity or gas shall collaborate in 223 developing, subject to approval by the Public Utilities Regulatory 224 Authority, standard provisions for the notice of delinquency and 225 impending termination under subsection (a) of section 16-262d. Each 226 such company and utility shall place on the front of such notice a 227 provision that the company, electric supplier or utility shall not effect 228 termination of service to a residential dwelling for nonpayment of 229 disputed bills during the pendency of any complaint. In addition, the 230 notice shall state that the customer must pay current and undisputed 231 bill amounts during the pendency of the complaint. (B) At the beginning 232 of any discussion with a customer concerning a reasonable amortization 233 agreement, any such company or utility shall inform the customer (i) of 234 the availability of a process for resolving disputes over what constitutes 235 a reasonable amortization agreement, (ii) that the company, electric 236 supplier or utility will refer such a dispute to one of its review officers 237 as the first step in attempting to resolve the dispute, and (iii) that the 238 company, electric supplier or utility shall not effect termination of 239 service to a residential dwelling for nonpayment of a delinquent account 240 during the pendency of any complaint, investigation, hearing or appeal 241 initiated by the customer, unless the customer fails to pay undisputed 242 bills, or undisputed portions of bills, for service received during such 243 period. (C) Each such company, electric supplier and utility shall inform 244 and counsel all customers who are hardship cases as to the availability 245 of all public and private energy conservation programs, including 246 programs sponsored or subsidized by such companies and utilities, 247 eligibility criteria, where to apply, and the circumstances under which 248 such programs are available without cost. 249 (8) The Public Utilities Regulatory Authority shall adopt regulations 250 in accordance with chapter 54 to carry out the provisions of this 251 subsection. Such regulations shall include, but not be limited to, criteria 252 for determining hardship cases and for reasonable amortization 253 agreements, including appeal of such agreements, for categories of 254 Raised Bill No. 6852 LCO No. 5214 9 of 10 customers. Such regulations may include the establishment of a 255 reasonable rate of interest which a company may charge on the unpaid 256 balance of a customer's delinquent bill and a description of the 257 relationship and responsibilities of electric suppliers to customers. 258 Sec. 4. (NEW) (Effective October 1, 2023) Not later than November 1, 259 2023, the Public Utilities Regulatory Authority shall initiate a 260 proceeding to establish a procedure that prohibits any electric supplier 261 or electric distribution company, as such terms are defined in section 16-262 1 of the general statutes, from terminating, denying or refusing to 263 reinstate service to any customer identified as a hardship case pursuant 264 to section 16-262c of the general statutes, as amended by this act, on any 265 day for which the heat index temperature is forecast to be at or above 266 ninety degrees Fahrenheit at any point on such day, in a weather 267 forecast issued on or before eight o'clock a.m. In the proceeding, the 268 authority shall determine the method for determining what forecasts of 269 heat index temperature such procedure shall use and the applicable 270 location or locations of such forecasts. 271 Sec. 5. (NEW) (Effective October 1, 2023) At the next general rate 272 proceeding of each gas company and water company, as such terms are 273 defined in section 16-1 of the general statutes, commencing on or after 274 October 1, 2023, and conducted pursuant to section 16-19 of the general 275 statutes, the Public Utilities Regulatory Authority shall investigate and 276 determine whether to implement low-income rates for such company's 277 customers. During such proceedings, the authority may implement low-278 income rates for customers of all gas companies and water companies, 279 for customers of gas companies and water companies of a certain size or 280 for no customers of any gas companies or water companies. Any low-281 income rates adopted pursuant to this section in a general rate 282 proceeding shall apply only to the rate plan that is the subject of such 283 proceeding. 284 Sec. 6. Section 16-24a of the general statutes is repealed. (Effective 285 October 1, 2023) 286 Raised Bill No. 6852 LCO No. 5214 10 of 10 Statement of Purpose: To (1) use funds from fines levied against telecommunications companies for educational technology, (2) prohibit electric utilities from charging hardship customers more than one hundred dollars to reconnect service, (3) prohibit electric service disconnections on hot days, and (4) require the Public Utilities Regulatory Authority to consider discount rates for low-income customers of gas and water companies. This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2023 16-41(a) Sec. 2 October 1, 2023 4d-81 Sec. 3 October 1, 2023 16-262c(b) Sec. 4 October 1, 2023 New section Sec. 5 October 1, 2023 New section Sec. 6 October 1, 2023 Repealer section [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]