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Substitute House Bill No. 6400

Public Act No. 03-27

AN ACT CONCERNING REGISTRATION OF NATURAL GAS SELLERS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 16-258a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2003):

(a) Each person that sells natural gas to an end user in the state and is not (1) a gas company, as defined in section 16-1, (2) a municipal gas utility established under chapter 101 or any other gas utility owned, leased, maintained, operated, managed or controlled by any unit of local government under any general statute or any public or special act, or (3) a gas pipeline or gas transmission company subject to the provisions of chapter 208, shall register with the Department of Public Utility Control prior to making any such sale by filing a form supplied by said department. The registration period shall be for a one-year term from October first to September thirtieth of the following year.

(b) Each person registered with the department shall: (1) Maintain a bond or other security for at least the registration period or longer in amount and form approved by the department, to ensure the person's financial responsibility and its supply of natural gas to end-use customers in accordance with contracts, agreements or arrangements; (2) have a contractual relationship with an entity or entities to purchase natural gas supply; (3) comply with the National Labor Relations Act and regulations, if applicable; (4) comply with the Connecticut Unfair Trade Practices Act and applicable regulations; and (5) agree to cooperate with (A) each gas company, (B) each municipal gas utility established under chapter 101 or any other gas utility owned, leased, maintained, operated, managed or controlled by any unit of local government under any general statute or special act, (C) each gas pipeline or gas transmission company subject to the provisions of chapter 208, (D) the department, and (E) all other gas suppliers in the event of an emergency condition that may jeopardize the safety and reliability of the state's natural gas system.

(c) Each person registered with the department shall [, at such times as the department requires but not less than annually,] submit to the department by July fifteenth of each year, on a form prescribed by the department, an update of information the department deems relevant. [A registered person shall notify the department at least ten days before a change in corporate structure that affects the person. ] Each registered person shall pay an annual registration fee to be determined by the department which shall not exceed the actual administrative costs of the department and provide a bond or other security as described in subdivision (1) of subsection (b) of this section. If the department determines that a person registered with the department has not complied with the requirements of subsection (b) or (c) of this section, the department shall notify such person that their registration expires on September thirtieth of that year and such person shall no longer be authorized to sell natural gas to an end user in the state.

(d) A registered person shall notify the department at least ten days before a change in corporate structure that affects the person. No registration may be transferred without the prior approval of the department. The department may assess additional registration fees to pay the administrative costs of reviewing a request for such transfer.

(e) Any person who violates any provision of this section shall be subject to sanctions by the department in accordance with section 16-41, which may include, but are not limited to, the suspension or revocation of such registration or a prohibition on accepting new customers.

Approved May 12, 2003