Connecticut Senate Bill SB00961

Connecticut 2019 Regular Session

• Introduced: 2/28/19
• Refer: 2/28/19
• Report Pass: 3/19/19
• Refer: 3/29/19
• Report Pass: 4/4/19
• Refer: 5/8/19
• Report Pass: 5/13/19
• Report Pass: 5/14/19

Caption

An Act Concerning The Audit Of Municipal Electric Energy Cooperatives By The Auditors Of Public Accounts, The Municipal Electric Consumer Advocate And Recommendations From A Municipal Electric Energy Cooperative Forensic Examination.

Impact

The legislation is set to impact the structure and oversight of municipal electric energy cooperatives, likely leading to greater transparency and accountability in their financial dealings. The bill establishes a Municipal Electric Consumer Advocate to represent consumer interests, particularly regarding electric rates and cooperative operations. This move can potentially empower consumers by giving them a voice in administrative matters affecting their energy services.

Summary

SB00961 aims to enhance oversight of municipal electric energy cooperatives by mandating regular audits conducted by the Auditors of Public Accounts. The bill specifies that these audits should occur biennially, with the first round of audits required by October 2020 and another by October 2023. Additionally, the bill introduces provisions for a forensic examination of municipal electric energy cooperatives, focusing on their revenue and expenditures over the previous five years. This examination will assess compliance with relevant statutes and bylaws and will provide recommendations for corrective actions if necessary.

Sentiment

The sentiment surrounding SB00961 appears to be generally positive, particularly among advocates for consumer rights and oversight accountability. Supporters argue that the measures included in the bill will ensure better financial practices within municipal cooperatives, ultimately protecting consumers. However, there may also be concerns from cooperatives about the increased regulations and the administrative burden associated with fulfilling the audit requirements.

Contention

Some contention may arise regarding the costs associated with carrying out these audits, which are to be funded by the municipal electric energy cooperatives themselves. Critics might point out that this could lead to increased operational costs for these entities, potentially affecting electric rates for consumers. Additionally, ensuring that the audits and subsequent actions are fair and effective without overburdening smaller cooperatives remains an essential point of discussion.