OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6777
AN ACT CONCERNING WATER UTILITY SYSTEMS AND WATER
QUALITY AND TREATMENT SURCHARGES.
Primary Analyst: SB 3/31/25
Contributing Analyst(s): NB
Reviewer: PR
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
DEEP/PURA
1
CC&PUCF - Cost 395,841 395,841
Note: CC&PUCF=Consumer Counsel and Public Utility Control Fund
Municipal Impact: None
Explanation
The bill results in an additional annual cost to the Public Utilities
Regulatory Authority (PURA), beginning in FY 26, of approximately
$395,841, associated with the establishment of a process and approval of
various water companies to recover expenses for certain projects that
meet state or federal drinking water regulations.
PURA would require two additional full-time staff to complete the
requirements contained within the bill. The new positions would
include: one full-time Utilities Examiner 2, with an approximate annual
salary of $113,000 (plus 94,083 in fringe benefits) and one full-time
Associate Research Analyst, with an approximate annual salary of
$103,000 ($85,758 in fringe benefits). The new staff would be responsible
for assisting with the establishment of the approval process, assisting
with the water quality and treatment assessment reports, and surcharge
1
The fringe benefit costs for employees funded out of other appropriated funds are
budgeted within the fringe benefit account of those funds, as opposed to the fringe
benefit accounts within the Office of the State Comptroller. The estimated active
employee fringe benefit cost associated with most personnel changes for other
appropriated fund employees is 83.26% of payroll in FY 26. 2025HB-06777-R000345-FN.DOCX Page 2 of 2
calculations.
Rate Payer Impact Statement
The bill authorizes a specific mechanism for cost recovery outside of
a rate case and allows a surcharge up to 15% of the water company’s
annual retail water revenues to be collected. This could result in
increased costs for rate payers, as it is anticipated that water companies
will recover costs for eligible projects. Based on an average monthly
residential bill (of approximately 6,000 gallons per month) and the
currently authorized revenue requirement of the largest existing water
companies, (assuming the companies max out the 15% surcharge) a
monthly rate payer increase of approximately $5 to $12 would be
incurred. However, if the full 15% surcharge is not realized, the monthly
increase to rate payers would be less.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.