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General Assembly Raised Bill No. 966
January Session, 2023
LCO No. 3766
Referred to Committee on ENERGY AND TECHNOLOGY
Introduced by:
(ET)
AN ACT CONCERNING THE PROCUREMENT OF STANDARD
SERVICE ELECTRICITY AND THE REGULATION OF PUBLIC
UTILITIES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (b) of section 16-19tt of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective October 2
1, 2023): 3
(b) In any rate case initiated on or after [July 8, 2013] October 1, 2023, 4
or in a pending rate case for which a final decision has not been issued 5
prior to [July 8, 2013] October 1, 2023, the Public Utilities Regulatory 6
Authority [shall] may order the state's gas and electric distribution 7
companies to decouple distribution revenues from the volume of 8
natural gas and electricity sales. [For electric distribution companies, the 9
decoupling mechanism shall be the adjustment of actual distribution 10
revenues to allowed distribution revenues. For gas distribution 11
companies, the decoupling mechanism shall be a mechanism that does 12
not remove the incentive to support the expansion of natural gas use 13
pursuant to the 2013 Comprehensive Energy Strategy, such as a 14
mechanism that decouples distribution revenue based on a use-per-15
customer basis. In making its determination on this matter, the authority 16 Raised Bill No. 966
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shall consider the impact of decoupling on the gas or electric 17
distribution company's return on equity and make any necessary 18
adjustments thereto.] The authority shall have the discretion to 19
determine the decoupling mechanism and m ethodology used in 20
decoupling orders made pursuant to this subsection, subject to the 21
principles set forth in subsection (m) of section 16-2. 22
Sec. 2. Subsection (b) of section 16-243p of the general statutes is 23
repealed and the following is substituted in lieu thereof (Effective from 24
passage): 25
(b) No [electric distribution] public service company shall recover 26
through rates its costs associated with its attendance [or] in, 27
participation in, preparation for or appeal of any [rate-making hearing] 28
contested proceeding conducted before the authority. Such costs shall 29
include, but need not be limited to, attorneys' fees, fees to engage expert 30
witnesses or consultants and related costs identified by the authority. 31
Sec. 3. (NEW) (Effective from passage) (a) No public service company 32
shall recover through rates any cost associated with membership, dues, 33
sponsorships or contributions to a business or industry trade 34
association, group or related entity incorporated under Section 501 of 35
the Internal Revenue Code of 1986, or any subsequent corresponding 36
internal revenue code of the United States, as amended from time to 37
time. 38
(b) No public service company shall recover through rates any cost 39
associated with lobbying or legislative action, as such terms are defined 40
in section 1-91 of the general statutes. 41
(c) No public service company shall recover through rates any cost 42
associated with advertising, marketing or any other related costs 43
identified by the authority, unless such marketing, advertising or 44
related costs are specifically approved or ordered by the authority. 45
Sec. 4. Section 16-19jj of the general statutes is repealed and the 46
following is substituted in lieu thereof (Effective from passage): 47 Raised Bill No. 966
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The Public Utilities Regulatory Authority shall, whenever it deems 48
appropriate, [encourage] permit the use of proposed settlements 49
produced by alternative dispute resolution mechanisms to resolve 50
contested cases and proceedings. In order to approve a settlement of a 51
proceeding to amend rates under section 16-19, the authority shall 52
determine that the resulting rates and other terms of the settlement 53
conform to the principles set forth in section 16-19. The term of any 54
provision in a settlement of a proceeding to amend rates under section 55
16-19 shall not extend more than three years from such settlement's 56
approval by the authority. The parties proposing the settlement shall 57
provide the proposed settlement to all parties and intervenors not less 58
than three business days before filing the proposed settlement with the 59
authority. The proposed settlement filed with the authority shall be 60
accompanied by testimony from not less than one witness representing 61
each party to the settlement. Any proceeding to amend rates under 62
section 16-19 that is resolved by a settlement shall not constitute a 63
general rate hearing for purposes of the periodic review required under 64
section 16-19a. 65
Sec. 5. Subsection (c) of section 16-19b of the general statutes is 66
repealed and the following is substituted in lieu thereof (Effective from 67
passage): 68
(c) If the authority, after notice and hearing, determines that the 69
adoption of an energy adjustment clause would protect the interests of 70
ratepayers of an electric distribution company, ensure economy and 71
efficiency in energy production and purchase by the electric distribution 72
company and achieve the objectives set forth in subsection (a) of section 73
16-19 and in section 16-19e better than would the continued operation 74
of a fuel adjustment clause and a generation utilization adjustment 75
clause, the authority shall approve an energy adjustment clause to be 76
superimposed upon the existing rate schedule of the electric distribution 77
company. The authority shall design any such energy adjustment clause 78
to reflect cost-efficient energy resource procurement and to recover the 79
costs of energy that are proper for rate-making purposes and for which 80
the authority has not authorized recovery through base rates. These 81 Raised Bill No. 966
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costs, reflecting prudent and efficient management and operations, may 82
include, but are not limited to, the costs of oil, gas, coal, nuclear fuel, 83
wood or other fuels, and energy transactions with other utilities, 84
nonutility generators or power pools [,] and all or part of the cost of 85
conservation and load management. [, and the gross earnings tax 86
imposed by section 12-264 on the revenues from the energy sources 87
subject to the energy adjustment clause] The authority may establish an 88
efficiency factor in the energy adjustment clause of each electric 89
distribution company, that may provide for less than one hundred per 90
cent recovery of the gross earnings tax imposed pursuant to section 12-91
264 on the revenues from such purchased energy. The authority shall 92
design the energy adjustment clause to provide for recovery of energy 93
costs prudently incurred by an electric distribution company in 94
accordance with section 16-19e. Notwithstanding the provisions of 95
section 16-19, the authority shall change an energy adjustment clause in 96
accordance with the provisions of subsections (e) and (h) of this section. 97
An energy adjustment clause approved pursuant to this section shall 98
apply to all electric distribution companies similarly affected by the 99
costs which form the basis for the adjustment clause. 100
Sec. 6. Section 16-19yy of the general statutes is repealed and the 101
following is substituted in lieu thereof (Effective from passage): 102
(a) Notwithstanding any provision of the general statutes, in 103
exercising its discretion regarding whether to allow the recovery 104
through rates of any portion of the compensation package for executives 105
or officers or of any portion of any incentive compensation for 106
employees of any electric distribution company, gas company or water 107
company, as defined in section 16-1, the Public Utilities Regulatory 108
Authority shall consider whether to require that any such compensation 109
that is recoverable through rates be dependent upon the achievement of 110
performance targets. [established pursuant to section 16-244aa.] 111
(b) The total amount of compensation for any executives or officers 112
of the parent company of any electric distribution company, gas 113
company or water company, as defined in section 16-1, shall not exceed 114 Raised Bill No. 966
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the base compensation of such executives or officers by five per cent or 115
more. 116
(c) Whenever an increase of more than ten per cent occurs between 117
billing periods of (1) the standard service rate established pursuant to 118
section 16-244c, (2) the energy adjustment clause or purchased gas 119
adjustment clause established pursuant to section 16-19b, or (3) a water 120
company rate adjustment mechanism established pursuant to section 121
16-262w, any public service company with rates incorporating the 122
increase shall provide a monthly bill credit to its customers equal to the 123
total compensation of its executives and officers that is recovered 124
through rates in such monthly bill. Such company or companies shall 125
provide the bill credit for a period of not less than six months. 126
Sec. 7. (NEW) (Effective from passage) On and after January 1, 2024, 127
new electric plant additions shall not be eligible for cost recovery 128
through an on-bill reconciling mechanism first authorized in 2018. 129
Sec. 8. Subsection (b) of section 16-19gg of the general statutes is 130
repealed and the following is substituted in lieu thereof (Effective from 131
passage): 132
(b) [In any rate amendment proposed on and after May 19, 1992, by a 133
public service company, as defined by section 16-1, the Public Utilities 134
Regulatory Authority shall analyze the effect on ratepayers of a public 135
service company's provision of reduced or free utility service to its 136
employees.] During each proceeding on a rate amendment under 137
section 16-19 proposed by an electric distribution company, gas 138
company or water company, the Public Utilities Regulatory Authority 139
shall consider the following factors in determining a reasonable rate of 140
return: (1) Macroeconomic conditions at the time the rate amendment is 141
pending before the authority; (2) the company's compliance with state 142
law, regulations and decisions and the policies of the authority; (3) the 143
burden of energy costs on residential ratepayers, measured as a 144
percentage of household income, under the current and proposed rate; 145
(4) trends in the company's accrual of bad debt; and (5) any other issue 146 Raised Bill No. 966
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deemed relevant by the authority. 147
Sec. 9. Section 16-19 of the general statutes is repealed and the 148
following is substituted in lieu thereof (Effective from passage): 149
(a) No public service company may charge rates in excess of those 150
previously approved by the Public Utilities Control Authority or the 151
Public Utilities Regulatory Authority, except that any rate approved by 152
the Public Utilities Commission, the Public Utilities Control Authority 153
or the Public Utilities Regulatory Authority shall be permitted until 154
amended by the Public Utilities Regulatory Authority, that rates not 155
approved by the Public Utilities Regulatory Authority may be charged 156
pursuant to subsection (b) of this section, and that the hearing 157
requirements with respect to adjustment clauses are as set forth in 158
section 16-19b. For water companies, existing rates shall include the 159
amount of any adjustments approved pursuant to section 16-262w since 160
the company's most recent general rate case, provided any adjustment 161
amount shall be separately identified in any customer bill. Each public 162
service company shall file any proposed amendment of its existing rates 163
with the authority in such form and in accordance with such reasonable 164
regulations as the authority may prescribe. Each electric distribution, 165
gas or telephone company filing a proposed amendment shall also file 166
with the authority an estimate of the effects of the amendment, for 167
various levels of consumption, on the household budgets of high and 168
moderate income customers and customers having household incomes 169
not more than one hundred fifty per cent of the federal poverty level. 170
Each electric distribution company shall also file such an estimate for 171
space heating customers. Each water company, except a water company 172
that provides water to its customers less than six consecutive months in 173
a calendar year, filing a proposed amendment, shall also file with the 174
authority a plan for promoting water conservation by customers in such 175
form and in accordance with a memorandum of understanding entered 176
into by the authority pursuant to section 4-67e. Each public service 177
company shall notify each customer who would be affected by the 178
proposed amendment, by mail, at least one week prior to the first public 179
hearing thereon, but not earlier than six weeks prior to such first public 180 Raised Bill No. 966
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hearing, that an amendment has been or will be requested. Such notice 181
shall also indicate (1) the date, time and location of any scheduled public 182
hearing, (2) a statement that customers may provide written comments 183
regarding the proposed amendment to the Public Utilities Regulatory 184
Authority or appear in person at any scheduled public hearing, (3) the 185
Public Utilities Regulatory Authority telephone number for obtaining 186
information concerning the schedule for public hearings on the 187
proposed amendment, and (4) whether the proposed amendment 188
would, in the company's best estimate, increase any rate or charge by 189
[twenty] five per cent or more, and, if so, describe in general terms any 190
such rate or charge and the amount of the proposed increase. [, provided 191
no such company shall be required to provide more than one form of 192
the notice to each class of its customers.] The costs of providing such 193
notice shall not be recoverable in rates. If a company fails to provide 194
adequate notice, the authority shall consider the effective filing date of 195
such company's proposed amendment to be the date that the company 196
provides adequate notice to customers, as determined by the authority. 197
Until the effective filing date, no days shall count toward the time limit 198
in this subsection. In the case of a proposed amendment to the rates of 199
any public service company, the authority shall hold one or more public 200
hearings thereon, except as permitted with respect to interim rate 201
amendments by subsections (d) and (g) of this section, and shall make 202
such investigation of such proposed amendment of rates as is necessary 203
to determine whether such rates conform to the principles and 204
guidelines set forth in section 16-19e, or are unreasonably 205
discriminatory or more or less than just, reasonable and adequate, or 206
that the service furnished by such company is inadequate to or in excess 207
of public necessity and convenience, provided the authority may (A) 208
evaluate the reasonableness and adequacy of the performance or service 209
of the public service company using any applicable metrics or standards 210
adopted by the authority pursuant to section 16-244aa, and (B) 211
determine the reasonableness of the allowed rate of return of the public 212
service company based on such performance evaluation. The authority, 213
if in its opinion such action appears necessary or suitable in the public 214
interest may, and, upon written petition or complaint of the state, under 215 Raised Bill No. 966
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direction of the Governor, shall, make the aforesaid investigation of any 216
such proposed amendment which does not involve an alteration in 217
rates. If the authority finds any proposed amendment of rates to not 218
conform to the principles and guidelines set forth in section 16-19e, or 219
to be unreasonably discriminatory or more or less than just, reasonable 220
and adequate to enable such company to provide properly for the public 221
convenience, necessity and welfare, or the service to be inadequate or 222
excessive, it shall determine and prescribe, as appropriate, an adequate 223
service to be furnished or just and reasonable maximum rates and 224
charges to be made by such company. In the case of a proposed 225
amendment filed by an electric distribution, gas or telephone company, 226
the authority shall also adjust the estimate filed under this subsection of 227
the effects of the amendment on the household budgets of the 228
company's customers, in accordance with the rates and charges 229
approved by the authority. The authority shall issue a final decision on 230
[each electric distribution or gas company] any public service company 231
rate filing within three hundred fifty days from the [proposed] effective 232
filing date [thereof. The authority shall issue a final decision on all public 233
service company rate filings, except electric distribution or gas company 234
rate filings, within two hundred days from the proposed effective date 235
thereof] of the proposed amendment. 236
(b) If the authority has not made its finding respecting an amendment 237
of any [electric distribution or gas] public service company rate within 238
three hundred fifty days from the proposed effective date of such 239
amendment thereof, [or if the authority has not made its finding 240
respecting an amendment of any public service company rate, except an 241
electric distribution or a gas company rate, within two hundred days 242
from the proposed effective date of such amendment thereof,] such 243
amendment may become effective pending the authority's finding with 244
respect to such amendment upon the filing by the company with the 245
authority of assurance satisfactory to the authority, which may include 246
a bond with surety, of the company's ability and willingness to refund 247
to its customers with interest such amounts as the company may collect 248
from them in excess of the rates fixed by the authority in its finding or 249 Raised Bill No. 966
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fixed at the conclusion of any appeal taken as a result of a finding by the 250
authority. 251
(c) Upon conclusion of its investigation of the reasonableness of any 252
proposed increase of rates, the authority shall order the company to 253
refund to its customers with interest any amounts the company may 254
have collected from them during the period that any amendment 255
permitted by subsection (b) of this section was in force, which amounts 256
the authority may find to have been in excess of the rates fixed by the 257
authority in its finding or fixed at the conclusion of any appeal taken as 258
a result of a finding by the authority. Any such refund ordered by the 259
authority shall be paid by the company, under direction of the authority, 260
to its customers in such amounts as are determined by the authority. 261
(d) Nothing in this section shall be construed to prevent the authority 262
from approving an interim rate increase, if the authority finds that such 263
an interim rate increase is necessary to prevent substantial and material 264
deterioration of the financial condition of a public service company, to 265
prevent substantial deterioration of the adequacy and reliability of 266
service to its customers or to conform to the applicable principles and 267
guidelines set forth in section 16-19e, provided the authority shall first 268
hold a special public hearing on the need for such interim rate increase 269
and the company, at least one week prior to such hearing, notifies each 270
customer who would be affected by the interim rate increase that such 271
an increase is being requested. The company shall include the notice in 272
a mailing of customer bills, unless such a mailing would not provide 273
timely notice, in which case the authority shall authorize an alternative 274
manner of providing such notice. Any such interim rate increase shall 275
only be permitted if the public service company submits an assurance 276
satisfactory to the authority, which may include a bond with surety, of 277
the company's ability and willingness to refund to its customers with 278
interest such amounts as the company may collect from such interim 279
rates in excess of the rates approved by the authority in accordance with 280
subsection (a) of this section. The authority shall order a refund in an 281
amount equal to the excess, if any, of the amount collected pursuant to 282
the interim rates over the amount which would have been collected 283 Raised Bill No. 966
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pursuant to the rates finally approved by the authority in accordance 284
with subsection (a) of this section or fixed at the conclusion of any 285
appeal taken as a result of any finding by the authority. Such refund 286
ordered by the authority shall be paid by the company to its customers 287
in such amounts and by such procedure as ordered by the authority. 288
(e) If the authority finds that the imposition of any increase in rates 289
would create a hardship for a municipality, because such increase is not 290
reflected in its then current budget, or cannot be included in the budget 291
of its fiscal year which begins less than five months after the effective 292
date of such increase, the authority may defer the applicability of such 293
increase with respect to services furnished to such municipality until the 294
fiscal year of such municipality beginning not less than five months 295
following the effective date of such increase; provided the revenues lost 296
to the public service company through such deferral shall be paid to the 297
public service company by the municipality in its first fiscal year 298
following the period of such deferral. 299
(f) [Any] No public service company, as defined in section 16-1, may 300
[filing] file an application with the Public Utilities Regulatory Authority 301
to reopen a rate proceeding under this section. [, which application 302
proposes to increase the company's revenues or any rate or charge of the 303
company by five per cent or more, shall, not later than one week prior 304
to the hearing under the reopened proceeding, notify each customer 305
who would be affected thereby that such an application is being filed. 306
Such notice shall indicate the rate increases proposed in the application. 307
The company shall include the notice in a mailing of customer bills, 308
unless such a mailing would not provide timely notice to customers of 309
the reopening of the proceeding, in which case the authority shall 310
authorize an alternative manner of providing such notice.] 311
(g) The authority shall hold either a special public hearing or combine 312
an investigation with an ongoing four-year review conducted in 313
accordance with section 16-19a or with a general rate hearing conducted 314
in accordance with subsection (a) of this section on the need for an 315
interim rate decrease (1) when a public service company has, for the 316 Raised Bill No. 966
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rolling twelve-month period ending with the two most recent 317
consecutive financial quarters, earned a return on equity which exceeds 318
the return authorized by the authority by at least [one] one-half of one 319
percentage point, (2) if it finds that any change in municipal, state or 320
federal tax law creates a significant increase in a company's rate of 321
return, or (3) if it [finds] provides appropriate notice that a public service 322
company may be collecting rates or may have an authorized rate of 323
return which is or are more than just, reasonable and adequate, as 324
determined by the authority, provided the authority shall require 325
appropriate notice of hearing to the company and its customers who 326
would be affected by an interim rate decrease in such form as the 327
authority deems reasonable. The company shall be required to 328
demonstrate to the satisfaction of the authority that earning such a 329
return on equity, having an authorized rate of return or collecting rates 330
which are more than just, reasonable and adequate is directly beneficial 331
to its customers. At the completion of the proceeding, the authority may 332
order an interim rate decrease if it finds that such return on equity or 333
rates exceeds a reasonable rate of return or is more than just, reasonable 334
and adequate as determined by the authority. Any such interim rate 335
decrease shall be subject to a customer surcharge if the interim rates 336
collected by the company are less than the rates finally approved by the 337
authority or fixed at the conclusion of any appeal taken as a result of any 338
finding by the authority. Such surcharge shall be assessed against 339
customers in such amounts and by such procedure as ordered by the 340
authority. 341
(h) The provisions of this section shall not apply to the regulation of 342
a telecommunications service which is a competitive service, as defined 343
in section 16-247a, or to a telecommunications service to which an 344
approved plan for an alternative form of regulation applies, pursuant to 345
section 16-247k. 346
(i) No public service company may file an application to amend its 347
rates pursuant to this section or section 16-19e if, at the time of the 348
company's filing, another public service company with the same parent 349
company has an application to amend its rates pending before the 350 Raised Bill No. 966
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authority. The authority may waive this provision upon a showing of 351
good cause or at the authority's discretion. 352
Sec. 10. Subsection (a) of section 16-19a of the general statutes is 353
repealed and the following is substituted in lieu thereof (Effective from 354
passage): 355
(a) (1) The Public Utilities Regulatory Authority shall, at intervals of 356
not more than four years from the last previous general rate hearing of 357
each gas [and] company, electric distribution company or water 358
company having more than seventy-five thousand customers, conduct 359
a complete review and investigation of the financial and operating 360
records of each such company and hold a public hearing to determine 361
whether the rates of each such company are unreas onably 362
discriminatory or more or less than just, reasonable and adequate, or 363
that the service furnished by such company is inadequate to or in excess 364
of public necessity and convenience or that the rates do not conform to 365
the principles and guidelines set forth in section 16-19e. In making such 366
determination, the authority shall consider the gross and net earnings 367
of such company since its last previous general rate hearing, its retained 368
earnings, its actual and proposed capital expenditures, its advertising 369
expenses, the dividends paid to its stockholders, the rate of return paid 370
on its preferred stock, bonds, debentures and other obligations, its credit 371
rating, and such other financial and operating information as the 372
authority may deem pertinent. 373
(2) The authority may conduct a general rate hearing in accordance 374
with subsection (a) of section 16-19, in lieu of the periodic review and 375
investigation proceedings required under subdivision (1) of this 376
subsection. The authority may convene such general rate hearing at an 377
interval of less than four years at the discretion of the authority. 378
Sec. 11. Subdivision (4) of subsection (b) of section 16-8 of the general 379
statutes is repealed and the following is substituted in lieu thereof 380
(Effective from passage): 381
(4) A complete audit of each portion of each gas company, [or] electric 382 Raised Bill No. 966
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distribution company or water company having more than seventy-five 383
thousand customers shall begin no less frequently than every six years, 384
so that a complete audit of such a company's operations shall be 385
performed every six years. Such an audit of each such company having 386
more than seventy-five thousand customers shall be updated as 387
required by the authority. 388
Sec. 12. Subdivision (6) of subsection (b) of section 16-8 of the general 389
statutes is repealed and the following is substituted in lieu thereof 390
(Effective from passage): 391
(6) [All reasonable and proper] No costs and expenses [, as 392
determined by the authority,] of complying with any order of the 393
authority pursuant to this subsection shall be recognized by the 394
authority [for all purposes] as proper business expenses of the affected 395
company or person. 396
Sec. 13. Section 16-19bb of the general statutes is repealed and the 397
following is substituted in lieu thereof (Effective from passage): 398
The Public Utilities Regulatory Authority shall require that any funds 399
held by an electric distribution company in excess of the company's 400
authorized return on equity, which funds are intended by the authority 401
to offset future rate increases in lieu of a present rate decrease, shall be 402
applied to such rate increases or shall be refunded to the company's 403
customers, [within one year of receipt] in a manner determined by the 404
authority, not later than the conclusion of the company's next 405
proceeding conducted pursuant to section 16-19a. 406
Sec. 14. Section 16-35 of the general statutes is amended by adding 407
subsection (d) as follows (Effective from passage): 408
(NEW) (d) In an appeal, the Public Utilities Regulatory Authority 409
may only stay enforcement of a civil penalty if the person appealing the 410
order, authorization or decision that imposed the penalty provides an 411
escrow deposit, bond or other surety equal to the total amount of the 412
penalty. To obtain a stay of enforcement of any other order, 413 Raised Bill No. 966
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authorization or decision of the authority, the person appealing such 414
order, authorization or decision bears the burden of demonstrating that: 415
(1) There is a strong likelihood that the appeal will succeed; (2) the 416
person appealing will suffer substantial and irreparable harm absent a 417
stay; and (3) the stay will not be harmful to the public interest. 418
Sec. 15. Section 16-16 of the general statutes is repealed and the 419
following is substituted in lieu thereof (Effective from passage): 420
(a) Each public service company, person involved in the 421
transportation of gas, as such terms are defined in section 16-280a, and 422
electric supplier subject to regulation by the Public Utilities Regulatory 423
Authority shall, in the event of any accident attended with personal 424
injury or involving public safety, which was or may have been 425
connected with or due to the operation of its property, or caused by 426
contact with the wires of any public service company or electric 427
supplier, notify the authority thereof, by contacting the chairperson of 428
the authority or the chairperson's designee by telephone or otherwise, 429
as soon as may be reasonably possible after the occurrence of such 430
accident, but not later than twelve hours after the occurrence, unless 431
such accident is a minor accident. [, as defined by regulations of the 432
authority.] Each such person, company or electric supplier shall report 433
such minor accidents to the authority in writing, in summary form, once 434
each month. If notice of such accident, other than a minor accident, is 435
given otherwise than in writing, it shall be confirmed in writing within 436
five days after the occurrence of such accident. [Any person, company 437
or electric supplier failing to comply with the provisions of this section 438
shall be fined not more than five hundred dollars for each offense.] 439
(b) The monthly report required pursuant to subsection (a) of this 440
section shall incorporate the information described in section 16-19ee. 441
(c) Any person, company or electric supplier failing to comply with 442
the provisions of this section shall be fined not more than one thousand 443
dollars for each offense. A violation of this section shall constitute a 444
continued violation, pursuant to section 16-41, for the period from the 445 Raised Bill No. 966
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date the person, company or electric supplier is required to notify the 446
authority of the accident until the date the authority receives such 447
notification in writing. 448
(d) Any restitution ordered by the authority pursuant to section 16-449
41 for customer equipment or customer property damaged in a major or 450
minor accident shall equal the replacement value of such equipment or 451
property. The fines imposed in accordance with subsection (c) of this 452
section shall not reduce or limit the amount of any restitution. 453
(e) Any costs incurred by an electric distribution company pursuant 454
to this section shall not be recoverable through rates. 455
Sec. 16. Section 16-19ee of the general statutes is repealed and the 456
following is substituted in lieu thereof (Effective from passage): 457
Each electric distribution company shall, in its [periodic] monthly 458
report to the Public Utilities Regulatory Authority [,] required pursuant 459
to section 16-16, provide information concerning the primary cause of 460
all planned and unplanned electrical outages [,] affecting fifty or more 461
customers in the preceding month that is the subject of such report and 462
shall indicate which outages resulted from a power surge. 463
Sec. 17. Subsection (b) of section 16-49 of the general statutes is 464
repealed and the following is substituted in lieu thereof (Effective July 1, 465
2023): 466
(b) On or before July 15, 1999, and on or before May first, annually 467
thereafter, each company shall report its intrastate gross revenues of the 468
preceding calendar year to the Public Utilities Regulatory Authority, 469
which amount shall be subject to audit by the authority. For each fiscal 470
year, each company shall pay the authority the company's share of all 471
expenses of the department's Bureau of Energy and Technology, the 472
Office of Consumer Counsel, the Office of Policy and Management's 473
expenses related to the duties under sections 16-330b and 16-330c and 474
the operations of the Public Utilities Regulatory Authority for such fiscal 475
year. The authority shall not recognize such assessments as normal 476 Raised Bill No. 966
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operating costs of each company and the assessments shall not be 477
recoverable through rates. On or before September first, annually, the 478
authority shall give to each company a statement which shall include: 479
(1) The amount appropriated to the department's Bureau of Energy and 480
Technology, the Office of Consumer Counsel, the Office of Policy and 481
Management's expenses related to the duties under sections 16-330b and 482
16-330c, [and] the operations of the Public Utilities Regulatory 483
Authority and the operations of any nonprofit agency engaged in 484
energy assistance programs for the fiscal year beginning July first of the 485
same year; (2) the total gross revenues of all companies; and (3) the 486
proposed assessment against the company for the fiscal year beginning 487
on July first of the same year, adjusted to reflect the estimated payment 488
required under subdivision (1) of subsection (c) of this section. Such 489
proposed assessment shall be calculated by multiplying the company's 490
percentage share of the total gross revenues as specified in subdivision 491
(2) of this subsection by the total revenue appropriated to the 492
department's Bureau of Energy and Technology, the Office of Consumer 493
Counsel, the Office of Policy and Management's expenses related to the 494
duties under sections 16-330b and 16-330c, [and] the operations of the 495
Public [Utility] Utilities Regulatory Authority and the operations of any 496
nonprofit agency engaged in energy assistance programs, as specified 497
in subdivision (1) of this subsection. 498
Sec. 18. Subsection (d) of section 16-49 of the general statutes is 499
repealed and the following is substituted in lieu thereof (Effective July 1, 500
2023): 501
(d) Immediately following the close of each fiscal year, the authority 502
shall recalculate the proposed assessment of each company, based on 503
the expenses, as determined by the Comptroller, of the department's 504
Bureau of Energy and Technology, the Office of Consumer Counsel, the 505
Office of Policy and Management's expenses related to the duties under 506
sections 16-330b and 16-330c, [and] the operations of the Public Utilities 507
Regulatory Authority and the operations of any nonprofit agency 508
engaged in energy assistance programs for such fiscal year. On or before 509
September first, annually, the authority shall give to each company a 510 Raised Bill No. 966
LCO No. 3766 17 of 25
statement showing the difference between its recalculated assessment 511
and the amount previously paid by the company. 512
Sec. 19. (NEW) (Effective from passage) (a) As used in this section: 513
(1) "Compensation" means payment by any public service company 514
that is a party to a proceeding before the Public Utilities Regulatory 515
Authority for all or part, as determined by the authority, of a 516
stakeholder group's reasonable attorneys' fees, reasonable expert 517
witness fees and other reasonable costs for preparation and 518
participation in such proceeding before the authority. Such 519
compensation shall be limited to not more than two hundred thousand 520
dollars for each stakeholder group, and not more than six hundred 521
thousand dollars for all stakeholder groups in each proceeding. 522
(2) "Stakeholder group" means (A) a group of persons designated an 523
intervenor pursuant to section 4-177a of the general statutes or 524
designated a participant pursuant to section 16-1-135 of the regulations 525
of Connecticut state agencies that applies jointly for an award of 526
compensation under this section and represents the interests of more 527
than one (i) residential utility customer residing in an environmental 528
justice community, as defined in section 22a-20a of the general statutes, 529
or (ii) small business customer; or (B) a nonprofit organization in the 530
state authorized to represent the interests of (i) residential utility 531
customers residing in an environmental justice community, as defined 532
in section 22a-20a of the general statutes, or (ii) small business 533
customers. "Stakeholder group" does not include any nonprofit or other 534
organization whose principal interests are the welfare of a public service 535
company or its investors or employees, or the welfare of one or more 536
businesses or industries which receive utility service primarily for use 537
in connection with the manufacture, sale or distribution of goods or 538
services for profit. 539
(3) "Other reasonable costs" means reasonable out-of-pocket expenses 540
incurred by the stakeholder group that are directly related to the group's 541
preparation for or participation in the proceeding before the authority 542 Raised Bill No. 966
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that resulted in a substantial contribution. 543
(4) "Proceeding" means a contested case, investigation, rulemaking or 544
other formal proceeding before the authority, or alternative dispute 545
resolution ordered by the authority. 546
(5) "Significant financial hardship" means that a stakeholder group is 547
unable to afford to pay the costs of effectively participating in the 548
proceeding, including attorneys' fees, expert witness fees and other 549
reasonable costs, without undue hardship. 550
(6) "Small business customer" means a commercial or industrial 551
electric customer with less than a two hundred kilowatt peak load. 552
(7) "Substantial contribution" means participation by a stakeholder 553
group in a proceeding that, in the judgment of the chairman of the 554
authority, may substantially assist the authority in making its decision 555
or part of its decision because the authority may adopt one or more 556
factual contentions, legal contentions or policy or procedural 557
recommendations that the stakeholder group presents. 558
(b) A stakeholder group who seeks designation as an intervenor 559
pursuant to section 4-177a of the general statutes or a participant 560
pursuant to section 16-1-135 of the regulations of Connecticut state 561
agencies may apply for an award of compensation under this section in 562
a proceeding. At the same time or before filing its application, the 563
stakeholder group shall serve on every party, intervenor or participant 564
to the proceeding notice of intent to apply for an award of 565
compensation. The authority shall determine appropriate procedures 566
for accepting and responding to such applications, and may require that 567
applicants attend educational trainings sponsored or recommended by 568
the authority as a condition of receiving an award of compensation. Any 569
such trainings shall be designed to support public participation and 570
public understanding of authority decisions and rulings, and general 571
education and awareness regarding public service company regulation 572
and operations, and shall include resources for the public that explain 573
the role and function of the authority and the Office of Consumer 574 Raised Bill No. 966
LCO No. 3766 19 of 25
Counsel. In its performance of duties pursuant to this subsection, the 575
authority may retain consultants to provide training in areas in which 576
staff expertise does not currently exist or when necessary to supplement 577
existing staff expertise, and may incur other reasonable costs, provided 578
the total costs incurred by the authority under this subsection do not 579
exceed one million dollars per year. 580
(c) An application shall include: 581
(1) A statement of the nature and extent and the factual and legal 582
basis of the stakeholder's planned participation, to the extent it is 583
possible to describe such participation with reasonable specificity at the 584
time the application is filed. 585
(2) A detailed description of anticipated attorneys' and expert witness 586
fees and other costs of preparation for and participation in the 587
proceeding. 588
(3) If participation will impose a significant financial hardship and 589
the stakeholder group seeks advance payment of an award of 590
compensation in order to initiate, continue or complete participation in 591
the proceeding, the stakeholder group shall include evidence of 592
significant financial hardship in its application. 593
(4) Any other requirements, as determined by the authority. 594
(d) (1) Not later than thirty days after receiving a stakeholder group's 595
application, the authority shall decide if the stakeholder group's 596
participation constitutes a substantial contribution. If the authority finds 597
that such participation is a substantial contribution, the authority shall 598
describe this substantial contribution and determine the amount of 599
compensation pursuant to subdivision (2) of this subsection. 600
(2) Notwithstanding subsection (e) of this section, if the authority 601
finds that the stakeholder group has significant financial hardship, the 602
authority may direct the public service company or companies subject 603
to the proceeding to pay all or part of the expected compensation, as 604 Raised Bill No. 966
LCO No. 3766 20 of 25
determined by the authority, to the stakeholder group before the end of 605
the proceeding. If the stakeholder group discontinues its participation 606
in the proceeding without the consent of the authority, the authority 607
may recover all or part of any payments made to such stakeholder and 608
refund such payments to the public service company or companies that 609
made the payments. 610
(3) The calculation of compensation pursuant to subdivision (2) of 611
this subsection shall take into consideration the compensation paid to 612
attorneys, expert witnesses and other persons of comparable training 613
and experience who offer similar services as the services relevant to the 614
stakeholder group's application and compensation. 615
(4) Each stakeholder group shall return any unused compensation to 616
the authority, which the authority shall refund to the public service 617
company or companies that provided the compensation. 618
(5) The authority shall require that every stakeholder group maintain 619
an itemized record of all expenditures incurred as a result of the 620
proceeding. The authority may use the record to verify the stakeholder 621
group's claim of financial hardship and to determine if any unused 622
funds remain at the completion of a proceeding. 623
(6) If the authority determines that two or more stakeholder groups 624
have substantially similar interests, the authority may require such 625
stakeholder groups to apply jointly in order to receive compensation. 626
(e) Any compensation shall be paid at the conclusion of the 627
proceeding by the public service company, in a manner determined by 628
the authority. Compensation shall be paid by all relevant public service 629
companies in proportion to such companies' relative annual load, 630
number of customers or revenue, as determined by the authority. 631
(f) The authority shall not award compensation to any stakeholder 632
group that delays or obstructs, or attempts to delay or obstruct, the 633
orderly and timely fulfillment of the authority's duties under this title. 634 Raised Bill No. 966
LCO No. 3766 21 of 25
Sec. 20. (NEW) (Effective from passage) The Public Utilities Regulatory 635
Authority shall study the procurement processes, policies, procedures 636
and timelines associated with the procurement of standard service and 637
supplier of last resort service and shall submit a report on its findings 638
and recommendations to the joint standing committee of the General 639
Assembly having cognizance of matters relating to energy, in 640
accordance with the provisions of section 11-4a of the general statutes. 641
Sec. 21. Subsection (a) of section 16-32l of the general statutes is 642
repealed and the following is substituted in lieu thereof (Effective October 643
1, 2023): 644
(a) For the purposes of this section: [, "emergency" has the same 645
meaning as provided in subdivision (1) of subsection (a) of section 16-646
32e and "electric distribution company"] 647
(1) "Emergency" means any hurricane, tornado, storm, flood, high 648
water, wind-driven water, tidal wave, earthquake, landslide, mudslide, 649
snowstorm, drought or fire explosion that results in sixty-nine per cent 650
or less of the electric distribution company's customers experiencing an 651
outage at the period of peak electrical demand; 652
(2) "Electric distribution company" has the same meaning as 653
provided in section 16-1; and 654
(3) "After the occurrence of an emergency" means the conclusion of 655
the emergency, as determined by the authority in its sole discretion, 656
through a review of the following: (A) The time when the electric 657
distribution company could first deploy resources safely in its service 658
territory; (B) the first of any official declarations concerning the end of 659
the emergency; or (C) the expiration of the first of any National Weather 660
Service warning applicable to the service territory. 661
Sec. 22. Subsection (d) of section 16-32l of the general statutes is 662
repealed and the following is substituted in lieu thereof (Effective October 663
1, 2023): 664 Raised Bill No. 966
LCO No. 3766 22 of 25
(d) Not later than fourteen calendar days after the occurrence of an 665
emergency, an electric distribution company may petition the authority 666
for a waiver of the requirements of this section, provided the authority 667
shall not grant a waiver for any emergency that results in less than ten 668
per cent of the electric distribution company's customers experiencing 669
an outage at the period of peak electrical demand. Any petition for a 670
waiver made under this subsection shall include the severity of the 671
emergency, [employee] line and restoration crew safety issues and 672
conditions on the ground, and shall be conducted as a contested case 673
proceeding. The burden of proving that such waiver is reasonable and 674
warranted shall be on the electric distribution company. In determining 675
whether to grant such waiver, the authority shall consider whether the 676
electric distribution company received approval and reasonable 677
funding allowances, as determined by the authority, to meet 678
infrastructure resiliency efforts to improve such company's 679
performance. 680
Sec. 23. Subsection (a) of section 16-32m of the general statutes is 681
repealed and the following is substituted in lieu thereof (Effective October 682
1, 2023): 683
(a) For the purposes of this section: [, "emergency" has the same 684
meaning as provided in subdivision (1) of subsection (a) of section 16-685
32e and "electric distribution company"] 686
(1) "Emergency" means any hurricane, tornado, storm, flood, high 687
water, wind-driven water, tidal wave, earthquake, landslide, mudslide, 688
snowstorm, drought or fire explosion that results in sixty-nine per cent 689
or less of the electric distribution company's customers experiencing an 690
outage at the period of peak electrical demand; 691
(2) "Electric distribution company" has the same meaning as 692
provided in section 16-1; and 693
(3) "After the occurrence of an emergency" means the conclusion of 694
the emergency, as determined by the authority in its sole discretion, 695
through a review of the following: (A) The time when the electric 696 Raised Bill No. 966
LCO No. 3766 23 of 25
distribution company could first deploy resources safely in its service 697
territory; (B) the first of any official declarations concerning the end of 698
the emergency; or (C) the expiration of the first of any National Weather 699
Service warning applicable to the service territory. 700
Sec. 24. Subsection (d) of section 16-32m of the general statutes is 701
repealed and the following is substituted in lieu thereof (Effective October 702
1, 2023): 703
(d) Not later than fourteen calendar days after the occurrence of an 704
emergency, an electric distribution company may petition the authority 705
for a waiver of the requirements of this section, provided the authority 706
shall not grant a waiver for any emergency that results in less than ten 707
per cent of the electric distribution company's customers experiencing 708
an outage at the period of peak electrical demand. Any petition for a 709
waiver made under this subsection shall include the severity of the 710
emergency, [employee] line and restoration crew safety issues and 711
conditions on the ground, and shall be conducted as a contested case 712
proceeding. The burden of proving that such waiver is reasonable and 713
warranted shall be on the electric distribution company. In determining 714
whether to grant such waiver, the authority shall consider whether the 715
electric distribution company received approval and reasonable 716
funding allowances, as determined by the authority, to meet 717
infrastructure resiliency efforts to improve such company's 718
performance. 719
Sec. 25. (Effective July 1, 2023) The sum of five million dollars is 720
appropriated to the Department of Energy and Environmental 721
Protection from the Consumer Counsel and Public Utility Control Fund, 722
for the fiscal year ending June 30, 2024, for the Public Utilities 723
Regulatory Authority to expand its regulatory operations over each 724
electric distribution company, gas company and water company, and to 725
hire or recruit any staff necessary for such expanded operations. 726
Sec. 26. (Effective July 1, 2023) The sum of two million dollars is 727
appropriated to the Department of Energy and Environmental 728 Raised Bill No. 966
LCO No. 3766 24 of 25
Protection from the Consumer Counsel and Public Utility Control Fund, 729
for the fiscal year ending June 30, 2024, for the Public Utilities 730
Regulatory Authority to investigate the preparation for and response to 731
storms or other emergency events by public service companies, and to 732
hire or recruit any staff necessary for such investigation. 733
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2023 16-19tt(b)
Sec. 2 from passage 16-243p(b)
Sec. 3 from passage New section
Sec. 4 from passage 16-19jj
Sec. 5 from passage 16-19b(c)
Sec. 6 from passage 16-19yy
Sec. 7 from passage New section
Sec. 8 from passage 16-19gg(b)
Sec. 9 from passage 16-19
Sec. 10 from passage 16-19a(a)
Sec. 11 from passage 16-8(b)(4)
Sec. 12 from passage 16-8(b)(6)
Sec. 13 from passage 16-19bb
Sec. 14 from passage 16-35(d)
Sec. 15 from passage 16-16
Sec. 16 from passage 16-19ee
Sec. 17 July 1, 2023 16-49(b)
Sec. 18 July 1, 2023 16-49(d)
Sec. 19 from passage New section
Sec. 20 from passage New section
Sec. 21 October 1, 2023 16-32l(a)
Sec. 22 October 1, 2023 16-32l(d)
Sec. 23 October 1, 2023 16-32m(a)
Sec. 24 October 1, 2023 16-32m(d)
Sec. 25 July 1, 2023 New section
Sec. 26 July 1, 2023 New section
Statement of Purpose:
To (1) require the Public Utilities Regulatory Authority to study
standard service procurement, (2) prohibit recovery by public utilities
of certain costs in rates, (3) amend ratemaking procedures and rate case Raised Bill No. 966
LCO No. 3766 25 of 25
regulations, including by placing limits on the use of settlements and
requiring utilities to fund certain stakeholder groups' participation in
rate cases, (4) regulate the compensation of executives and officers at
public utility companies or parent companies, (5) change accident
reporting rules, (6) change the rules applicable to utility outages, and (7)
appropriate additional funding for the Authority.
[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.]