Connecticut House Bill HB06840

Connecticut 2019 Regular Session

• Introduced: 1/30/19
• Refer: 1/30/19

Caption

An Act Prohibiting Gas Companies From Recovering Costs For The Construction Of New Natural Gas Pipelines From Their Ratepayers.

Impact

If enacted, HB 06840 would significantly impact existing state laws regarding utility regulation and cost recovery mechanisms for gas companies. It would mandate a change in the way gas companies finance new pipeline projects, potentially altering their strategies for expansion and infrastructure development. The bill intends to encourage gas companies to assess the viability and necessity of new pipelines more critically before undertaking construction, which may, in turn, lead to more responsible planning and investment in energy infrastructure in the state.

Summary

House Bill 06840 aims to prohibit gas companies from recovering the costs associated with the construction of new natural gas pipelines from their ratepayers. The primary intent behind this legislation is to protect consumers from bearing the financial burden of new infrastructure investments made by gas utilities. Currently, gas companies may pass on such costs to consumers, which can lead to increased utility bills, especially in cases where the pipelines are not proven to be economically beneficial or necessary. This bill seeks to shift the financial risk of such projects back to the companies themselves, holding them accountable for their investment decisions without penalizing ratepayers.

Contention

While proponents of HB 06840 argue that it creates a fairer financial landscape for consumers and encourages gas companies to make more prudent investment decisions, opponents may raise concerns about its potential implications for infrastructure development. Some may argue that restricting cost recovery could deter gas companies from investing in necessary pipeline improvements and expansions, leading to shortages or reliability issues in gas supply. This tension underscores a broader debate about consumer protection versus the financial viability of energy utilities, demanding careful consideration in the legislative process.