Sec. 16-235. Control by local authorities. Orders. Appeals. Except as provided
in section 16-243, the selectmen of any town, the common council of any city and the
warden and burgesses of any borough shall, subject to the provisions of section 16-234,
within their respective jurisdictions, have full direction and control over the placing,
erection and maintenance of any such wires, conductors, fixtures, structures or apparatus, including the relocation or removal of the same and the power of designating the
kind, quality and finish thereof, but no authority granted to any city or borough or a
town planning, zoning, inland wetland, historic district, building, gas, water or electrical
board, commission or committee created under authority of the general statutes or by
virtue of any special act, shall be construed to apply to so much of the operations,
plant, building, structures or equipment of any public service company as is under the
jurisdiction of the Department of Public Utility Control, or the Connecticut Siting Council, but zoning commissions and inland wetland agencies may, within their respective
municipalities, regulate and restrict the proposed location of any steam plant, gas plant,
gas tank or holder, water tank, electric substation, antenna, tower or earth station receiver
of any public service company not subject to the jurisdiction of the Connecticut Siting
Council. Any local body mentioned in this section and the appellate body, if any, may
make all orders necessary to the exercise of such power, direction or control, which
orders shall be made within thirty days of any application and shall be in writing and
recorded in the records of their respective communities, and written notice of any order
shall be given to each party affected thereby. Each such order shall be subject to the
right of appeal within thirty days from the giving of such notice by any party aggrieved
to the Department of Public Utility Control, which, after rehearing, upon notice to all
parties in interest, shall as speedily as possible determine the matter in question and
shall have jurisdiction to affirm or modify or revoke such orders or make any orders in
substitution thereof.
(1949 Rev., S. 5646; 1971, P.A. 575, S. 12; P.A. 73-458, S. 13; P.A. 75-375, S. 10, 12; 75-486, S. 1, 69; P.A. 77-614,
S. 162, 610; P.A. 79-251; P.A. 80-482, S. 103, 348; P.A. 86-187, S. 7, 10; P.A. 87-589, S. 6, 30, 87.)
History: 1971 act added references to power facility evaluation council; P.A. 73-458 clarified jurisdiction of local
boards, commissions etc. over companies "not subject to ... the power facility evaluation council"; P.A. 75-375 included
references to inland wetland and historic district commissions and gave these two types of commission jurisdiction over
companies not subject to power facility evaluation council rather than boards, commissions etc. having power to regulate
location of structures, trades, industries and business; P.A. 75-486 replaced public utilities commission with public utilities
control authority; P.A. 77-614 replaced authority with division of public utility control within the department of business
regulation, effective January 1, 1979; P.A. 79-251 allowed regulation of antennas, towers and earth station receivers; P.A.
80-482 made division of public utility control an independent department and deleted reference to abolished department
of business regulation; P.A. 86-187 replaced power facility evaluation council with Connecticut siting council; P.A. 87-589 made technical change, substituting Connecticut siting council for power facility evaluation council.
Telephone and railway companies may use the same pole for wires. 70 C. 54. Consent of adjoining proprietors need
not precede action by municipal authorities; whether action by municipal authority on petition is mandatory, quaere. 71
C. 381. Charter power to construct underground conduits held to leave power of regulation with local authorities. 71 C.
657. Contract permitting telephone company to use poles belonging to city construed. 74 C. 326. Power of municipalities
to regulate wires and fixtures of street railway; appeal. 80 C. 623. Zoning commission acts as special agency of the state
and is empowered to issue orders regulating and restricting subject to appeal to public utilities commission. Constitutionality
upheld. 140 C. 650; 145 C. 243. If order is on records of zoning commission, it is properly recorded. 145 C. 243. Personal
service need only be made on those under duty to comply with order. Id. Provisions re recording and notice of order are
directory. Id. Standard used by zoning commission should be that used in public utility regulation. Contract commitments
of public utility outside franchise area held valid consideration for public utility commission's finding. Id. Zoning board
of appeals may hear request of public service company for extension of nonconforming use and in such capacity acts as
special agency of state. 147 C. 229. Cited. 149 C. 101, 104. This is not a condemnation statute. 152 C. 688. Claim that,
for the purposes of section 16-236, phrase "anything done" under this section is restricted to case where there has been a
physical invasion of plaintiff's property is without merit. Id., 690. Boards of zoning or selectmen do not have power to
regulate power transmission lines over private property. 161 C. 430. Cited. 162 C. 53. Jurisdiction of water resources
commission over transmission lines above rivers. 162 C. 89. Cited. 162 C. 93. Cited. 206 C. 65, 70.
Cited. 20 CA 474, 486.
Sec. 16-236. Appraisal of damages; costs. Any judge of the Superior Court may,
upon the application of any party interested, and after notice, unless the application
has been unreasonably delayed, appoint three disinterested persons to make a written
appraisal of all damages due any person by reason of anything done under any provision
of section 16-228 or 16-234 or which is in violation of any order made under section
16-235. Such appraisal, when approved by such judge, shall be returned to and recorded
by the clerk of the superior court for the judicial district where the cause of action arose,
and thereupon the sum specified therein shall be paid immediately by the company to
the party entitled to the same, or the judge may order the same to be paid immediately
into the hands of such clerk, to be delivered by him on demand to such party. The costs
of such proceedings shall be taxed by such judge and paid by such company, and he
may issue execution therefor and for such damages.
(1949 Rev., S. 5647; 1963, P.A. 349; P.A. 78-280, S. 2, 127.)
History: 1963 act added "violations of orders under" Sec. 16-235 to first sentence; P.A. 78-280 substituted "judicial
district" for "county".
Section valid; taking of land is not for private purpose. 90 C. 179; 92 C. 635. Cited. 149 C. 100. Legislative history.
Id., 102. Indicates legislative intent to depart from strict eminent domain principles as basis for damages and to provide
for payment, to any party interested, of damages for anything done under or by authority of section 16-235. Id., 104. Claim
that plaintiff asking for damages under this section is required first to appeal to public utilities commission from the granting
of the permit is without merit. 152 C. 690. Claim that phrase "anything done" under section 16-235 is restricted to case
where there has been a physical invasion of plaintiff's property is without merit. Id. Whether plaintiff's application has
been "unreasonably delayed" is an issue of fact, dependent upon the surrounding circumstances. Id., 691.
Sec. 16-237. No prescriptive right. No person or corporation building and maintaining telegraph, telephone or electric light or power wires or fixtures, or electrical
wires, conductors or fixtures of any kind shall, by reason of any occupation or use of
any buildings or lands for the support of the wires of such person or corporation, or by
reason of such wires passing over or through any buildings or lands, acquire by the
continuance of such use or occupation any prescriptive right to so occupy or use the
same. No length of possession, user or occupancy of any buildings or land, or adverse
to any easement therein or right thereto belonging to a telegraph, telephone or electric
light or power corporation, and used or acquired for use for its corporate purposes, shall
create or continue any right in or to such land, or adverse to any such easement.
(1949 Rev., S. 5648.)
Sec. 16-238. Wires may be cut; notice. When it is deemed necessary to cut or
otherwise disconnect the wires or fixtures of any telegraph, telephone, electric light or
power company or other company or association hereinbefore referred to, or to remove
such wires from the poles or fixtures to which they are attached, for the transportation
of any object on the highway or upon any waterway, any person or corporation may do
so, exercising reasonable care therein, after obtaining written consent of the municipality
or other authority having control over such highway or waterway and the public service
company or companies affected, which consent may be granted under such reasonable
conditions as such municipality or other authority having such control and such company
or companies may impose. If such consent cannot be secured, or if any of such conditions
is not acceptable to the person or corporation seeking such consent, the Department of
Public Utility Control shall, upon written application by such person or corporation and
after notice to all parties affected, determine the necessity of such disconnection or
removal and order the terms and conditions under which it shall be made.
(1949 Rev., S. 5649; P.A. 75-486, S. 1, 69; P.A. 77-614, S. 162, 610; P.A. 80-482, S. 104, 348.)
History: P.A. 75-486 replaced public utilities commission with public utilities control authority; P.A. 77-614 replaced
public utilities control authority with division of public utility control within the department of business regulation, effective
January 1, 1979; P.A. 80-482 made division an independent department and deleted reference to abolished department of
business regulation.
Sec. 16-239. Dispatches transmitted in order. Exceptions. Section 16-239 is repealed.
(1949 Rev., S. 5651; P.A. 88-220, S. 8, 11.)
Sec. 16-240. Delivery of messages. Each telegraph company, engaged in the business of dispatching messages for the public, shall, in towns where no free delivery is
maintained, deliver all dispatches to the persons to whom the same are addressed, or
their agents, by messenger, upon prepayment by the person sending such dispatch of
any proper charge for such delivery, provided such persons addressed, or their agents,
reside within one mile of the telegraph station to which the dispatch is sent. For each
failure to deliver a dispatch as required by this section, the person to whom the dispatch
should have been delivered may recover of such company twenty dollars in an action
on this section.
(1949 Rev., S. 5652.)
Sec. 16-241. Mortgage by telegraph company. The mortgage by any telegraph
company, to secure its bonds or other evidences of indebtedness, of all or any part of
its lines, appliances, machines or machinery, whether owned by it at the date of such
mortgage, or thereafter to be acquired by it, or both, shall be valid and effectual as
respects all the property therein included and may be foreclosed in the same manner as
mortgages of real estate; and the record thereof in the office of the Secretary of the
State shall be a sufficient record and notice to protect the title under the mortgage,
notwithstanding such company may remain in possession of all or any part of the mortgaged property.
(1949 Rev., S. 5653.)
Sec. 16-242. Telephone service to telegraph companies. Each person or corporation owning, controlling or operating a telephone exchange or service in this state shall,
on application of any telegraph company, furnish such company with the use of a telephone or telephones and telephone service and connection with their respective exchanges and the subscribers thereto, without discrimination between telegraph companies as to such connections, service or use of instruments furnished, or charges therefor,
for the same class of service. Any court in this state having equity jurisdiction shall,
upon petition of any party in interest, enforce the provisions of this section by any
suitable process or decree in equity.
(1949 Rev., S. 5654.)
Sec. 16-243. Jurisdiction of department over electricity transmission lines.
The Department of Public Utility Control shall have exclusive jurisdiction and direction
over the method of construction or reconstruction in whole or in part of each system
used for the transmission or distribution of electricity, with the kind, quality and finish
of all materials, wires, poles, conductors and fixtures to be used in the construction and
operation thereof, and the method of their use, including all plants and apparatus used
for generating electricity located upon private property upon which there are conductors
capable of transmitting electricity to other premises in such manner as to endanger any
person or property. The department may make any order necessary to the exercise of
such power and direction, which order shall be in writing and entered in the records of
the department. Each person or corporation operating any such system or generating
plant shall, at its expense, comply with such order. Any person violating any provision
of any such order shall be subject to the penalty prescribed in section 16-41.
(1949 Rev., S. 5655; P.A. 75-486, S. 1, 69; P.A. 77-614, S. 162, 610; P.A. 80-482, S. 105, 348; P.A. 98-28, S. 101, 117.)
History: P.A. 75-486 replaced public utilities commission with public utilities control authority; P.A. 77-614 replaced
public utilities control authority with division of public utility control within the department of business regulation, effective
January 1, 1979; P.A. 80-482 made division an independent department and deleted reference to abolished department of
business regulation; P.A. 98-28 added the distribution of electricity, effective July 1, 1998.
See Sec. 16-235 re control of placing, erection and maintenance of wires and other fixtures by local authorities.
Cited. 140 C. 650. Exclusive jurisdiction over direction of power line on private land is within the public utilities
commission. 161 C. 430. Cited. 162 C. 89. Contains constitutionally adequate standards. 165 C. 687. Cited. 168 C. 478.
Sec. 16-243a. Private power producers. Purchase and sale of electricity.
Avoided costs. Small renewable power projects. (a) As used in this section, "avoided
costs" means the incremental costs to an electric public service company, municipal
electric energy cooperative organized under chapter 101a or municipal electric utility
organized under chapter 101, of electric energy or capacity or both which, but for the
purchase from a private power producer, as defined in section 16-243b, such company,
cooperative or utility would generate itself or purchase from another source.
(b) Each electric public service company, municipal electric energy cooperative
and municipal electric utility shall: (1) Purchase any electrical energy and capacity made
available, directly by a private power producer or indirectly under subdivision (4) of
this subsection; (2) sell backup electricity to any private power producer in its service
territory; (3) make such interconnections necessary to accomplish such purchases and
sales; (4) upon approval by the Department of Public Utility Control of an application
filed by a willing private power producer, transmit energy or capacity from the private
power producer to any other such company, cooperative or utility or to another facility
operated by the private power producer; and (5) offer to operate in parallel with a private
power producer. In making a decision on an application filed under subdivision (4) of
this subsection, the department shall consider whether such transmission would (A)
adversely impact the customers of the company, cooperative or utility which would
transmit energy or capacity to the private power producer, (B) result in an uncompensated loss for, or unduly burden, such company, cooperative, utility or private power
producer, (C) impair the reliability of service of such company, cooperative or utility
or (D) impair the ability of the company, cooperative or utility to provide adequate
service to its customers. The department shall issue a decision on such an application not
later than one hundred twenty days after the application is filed, provided, the department
may, before the end of such period and upon notifying all parties and intervenors to the
proceeding, extend the period by thirty days. If the department does not issue a decision
within one hundred twenty days after receiving such an application, or within one hundred fifty days if the department extends the period in accordance with the provisions
of this subsection, the application shall be deemed to have been approved. The requirements under subdivisions (3), (4) and (5) of this subsection shall be subject to reasonable
standards for operating safety and reliability and the nondiscriminatory assessment of
costs against private power producers, approved by the Department of Public Utility
Control with respect to electric public service companies or determined by municipal
electric energy cooperatives and municipal electric utilities.
(c) The Department of Public Utility Control, with respect to electric public service
companies, and each municipal electric energy cooperative and municipal electric utility
shall establish rates and conditions of service for: (1) The purchase of electrical energy
and capacity made available by a private power producer and (2) the sale of backup
electricity to a private power producer. The rates for electricity purchased from a private
power producer shall be based on the full avoided costs of the electric public service
company, municipal electric energy cooperative or municipal electric utility, regardless
of whether the purchaser is simultaneously making sales to the private power producer.
Payment for energy and capacity purchased from a private power producer by any such
company, cooperative or utility shall be pursuant to such rates and conditions or the
terms of a contract between the parties. The rates and conditions of service for the
purchase of energy and capacity established by the department pursuant to this subsection shall include specific schedules for pricing in long-term contracts for the sale of
electricity from small renewable power projects to electric public service companies
by private power producers. Such schedules shall not exceed the present worth of the
projected avoided costs of the electric public service company over the term of the
contract. The department shall apply to a proposed contract filed with the department
after January 1, 1992, by a private power producer for a small renewable power project
the rates and conditions of service, including the pricing schedule, in effect on the date
the private power producer submits its proposed contract to the department, regardless of
the subsequent creation of differing schedules or the subsequent amendment of existing
schedules.
(d) When any person, firm or corporation proposes to enter into a contract to sell
energy and capacity as a private power producer, an electric public service company,
municipal electric energy cooperative or municipal electric utility shall respond
promptly to all requests and offers and negotiate in good faith to arrive at a contract
which fairly reflects the provisions of this section and the anticipated avoided costs over
the life of the contract. Upon application by a private power producer, the department
may approve a contract which provides for payment of less than the anticipated avoided
costs if, considering all of the provisions, the contract is at least as favorable to the
private power producer as a contract providing for the full avoided costs. The contract
may extend for a period of not more than thirty years at the option of the private power
producer if it has a generating facility with a capacity of at least one hundred kilowatts.
(e) The department shall consider generating capacity available from cogeneration
technology and renewable energy resources in its periodic reviews of electric public
service companies and shall require the companies to include the availability of such
capacity in applications for rate relief filed in accordance with section 16-19a.
(f) If a private power producer believes that an electric company has violated any
provision of this section it may submit a written petition alleging such violation to the
department. Upon receipt of the petition, the department shall fix a time and place for
a hearing and mail notice of the hearing to the parties in interest at least one week in
advance. Upon the hearing, the department may, if it finds the company has violated
any such provision, prescribe the manner in which it shall comply.
(g) After January 1, 1992, the department shall approve each proposed contract
submitted by a private power producer for a small renewable power project, with any
modifications agreed to by the parties to the contract, if the filing meets the standards
for exemption from the proposal process and for an approvable contract established
pursuant to section 16-6b, and is consistent with the pricing schedules adopted pursuant
to subsection (c) of this section. Nothing in this section shall preclude a modification
of such a contract if the parties to the contract agree to the modification. Any such
modification shall be approved by the department. The department shall reconsider each
decision issued pursuant to this section between January 1, 1992, and June 29, 1993,
regarding such contracts and shall make any modifications to each such decision necessary to ensure that each such decision conforms with the provisions of this section.
(P.A. 79-214, S. 2; P.A. 80-167, S. 2; 80-482, S. 4, 40, 345, 348; P.A. 81-439, S. 6, 14; P.A. 82-164; P.A. 85-534, S.
4, 5; P.A. 86-289, S. 2, 5; 86-403, S. 111, 132; P.A. 89-43, S. 1, 2; P.A. 93-299, S. 1, 3.)
History: P.A. 80-167 included municipal electric energy cooperatives under provisions of section; P.A. 80-482 made
division of public utility control an independent department and abolished department of business regulation; P.A. 81-439
repealed Subsecs. (a) and (b) and amended and relettered Subsecs. (c) and (d) to make rates and conditions of service
applicable to all electricity generated by private power producer, rather than to excess electricity generated by producer
of more than one megawatt by cogeneration or use of renewable resources, and to all electricity generated by producer of
one megawatt or less by such methods; P.A. 82-164 substantially amended the section, adding provisions concerning
avoided costs, interconnections, wheeling, parallel operations, contracting, and petitioning department of public utility
control; P.A. 85-534 extended, from twenty to thirty years, the maximum contract period where a private power producer
has a generating facility with a capacity of at least one hundred kilowatts; P.A. 86-289 made requirement under Subdiv.
(4) of Subsec. (b) subject to department approval, set forth department considerations and deadlines for such approval
proceedings and made technical revisions, effective June 5, 1986, but not applicable to applications filed under the section
with the public utility control department before March 1, 1986; P.A. 86-403 changed applicable date in effective date of
P.A. 86-289 from March 1 to May 7, 1986; P.A. 89-43 added provision in Subsec. (c) for specific schedules for pricing
in long-term contracts; P.A. 93-299 amended Subsec. (c) by adding provision regarding rates and conditions to be applied
to proposed contracts for small renewable power projects, deleting reference to producers with a capacity of five megawatts
or less and added new Subsec. (g) regarding approval and modification of proposed contracts for small renewable power
projects, effective June 29, 1993.
Cited. 210 C. 349, 357, 359.
Subsec. (a):
Cited. 210 C. 349, 354.
Subsec. (b):
Cited. 210 C. 349, 355, 358.
Subsec. (c):
Cited. 210 C. 349, 351. Subdiv. (2) cited. Id., 349, 355, 358.
Sec. 16-243b. Definitions. Jurisdiction. (a) As used in this title:
(1) "Private power production facility" means a facility which generates electricity
in the state (A) solely through the use of cogeneration technology, provided the average
useful thermal energy output of the facility is at least twenty per cent of the total energy
output of the facility, (B) solely through the use of renewable energy sources or (C)
through both only;
(2) "Useful thermal energy output" means the thermal energy made available for
use in any industrial or commercial process, or used in any heating or cooling application;
(3) "Private power producer" means (A) a subsidiary of a gas public service company which is not affiliated with an electric public service company, or a subsidiary of
a holding company controlling, directly or indirectly, a gas public service company
but not an electric public service company, which generates electricity solely through
ownership of fifty per cent or less of a private power production facility or, with the
approval of the Department of Public Utility Control, through ownership of one hundred
per cent of a private power production facility which (i) uses a source of energy other
than gas as the primary energy source of the facility, or (ii) uses gas as the primary
energy source of the facility and uses an improved and innovative technology which
furthers the state energy policy as set forth in section 16a-35k, (B) a subsidiary of any
other public service company or a subsidiary of a holding company controlling, directly
or indirectly, such a public service company, which generates electricity solely through
ownership of fifty per cent or less of a private power production facility, (C) the state,
a political subdivision of the state or any other person, firm or corporation other than a
public service company or any corporation which was a public service company, prior
to July 1, 1981, and which consents to be regulated as a public service company or a
holding company for a public service company, which generates electricity solely
through ownership of one hundred per cent or less of a private power production facility,
or (D) any combination thereof;
(4) "Private power provider" means any person, firm, corporation, nonprofit corporation, limited liability company, governmental entity, or other entity, including any
public service company, holding company, or subsidiary, which provides energy conservation or demand management measures pursuant to section 16-243f and regulations
and orders issued hereunder, which replace the need for electricity generating capacity
that electric public service companies would otherwise require;
(5) "Electricity conservation or demand management measures" means the provision pursuant to this section and section 16-243f and regulations and orders adopted
hereunder by a private power provider to an electric public service company or its customers of equipment or services or both designed to conserve electricity or to manage
electricity load; and
(6) "Small renewable power project" means any private power production facility
which has a capacity of five megawatts or less and is fueled by a renewable resource,
as defined in section 16a-2, other than wood.
(b) No provision of this section shall limit the jurisdiction of the Department of
Public Utility Control with regard to the effects on a public service company of a private
power producer which is an affiliate or a subsidiary of the public service company.
(P.A. 81-439, S. 1, 14; P.A. 85-534, S. 1, 5; P.A. 86-289, S. 1, 5; 86-403, S. 110, 111, 132; P.A. 88-195, S. 1, 3; P.A.
93-299, S. 2, 3; P.A. 95-79, S. 51, 189; P.A. 03-278, S. 50.)
History: P.A. 85-534 added Subsec. (b), enabling utilities to be deemed to be private power producers on limited basis;
P.A. 86-289 replaced entire section with new provisions, effective June 5, 1986, but not applicable to applications filed
under the section with the public utility control department before March 1, 1986; P.A. 86-403 made technical changes in
definition of "private power production facility" enacted by P.A. 86-289 and changed applicable date in effective date
from March 1 to May 7, 1986; P.A. 88-195 redefined "private power producer" to include any corporation which was a
public service company before 1981 and which consents to be regulated and added definitions of "private power provider"
and "electricity conservation or demand management measures"; P.A. 93-299 amended Subsec. (a) by adding Subdiv. (6)
defining "small renewable power project", effective June 29, 1993; P.A. 95-79 redefined "private power provider" to
include a limited liability company, effective May 31, 1995; P.A. 03-278 made technical changes in Subsec. (a)(3), effective
July 9, 2003.
Subsec. (a):
Subdiv. (1) cited. 210 C. 349, 354. Subdiv. (3) cited. Id., 349, 355.
Sec. 16-243c. Electricity transmission and distribution services for electric cooperatives utilizing cogeneration technology and renewable energy resources. The
Department of Public Utility Control may issue orders requiring electric companies to
provide, within their service areas, electricity transmission and distribution services
between a generating facility operated by an electric cooperative under subsection (b)
of section 33-219 and those members of the cooperative operating the facility to whom
the cooperative is authorized to furnish electricity under subsection (d) of section 33-221 and governing the rates for the service. The department may not issue any order
under this subsection which would significantly impair the ability of an electric company
to perform its responsibilities to the public or would otherwise be contrary to the purposes
of this title.
(P.A. 81-439, S. 11, 14; P.A. 84-512, S. 15, 30.)
History: P.A. 84-512 deleted reference to repealed Sec. 16a-35.
Sec. 16-243d. Project by private power producer deemed "industrial project".
A project to be used for the production of electricity by a private power producer, as
defined in section 16-243b, shall be deemed an "industrial project" under chapter 579,
provided that a portion of such electricity is produced for sale to other persons.
(P.A. 81-439, S. 12, 14.)
Sec. 16-243e. Electric company purchase of electricity generated by municipal
resources recovery facilities. (a) Any electric company, as defined in section 16-1,
purchasing electricity generated by a resources recovery facility, as defined in section
22a-260, owned by, or operated by or for the benefit of, a municipality or municipalities,
shall enter into a contract with the owner of such facility requiring the electric company
to purchase all of the electricity generated at such facility from waste which originated
in the franchise area of the electric company, for a period beginning on the date that the
facility begins generating electricity and having a duration of not less than twenty years,
at the same rate that the electric company charges the municipality or municipalities for
electricity.
(b) Not later than April 1, 2000, the department shall determine the rate paid for
electricity generated at the facility from waste that originated within the electric company's franchise area and that was purchased under each contract entered into pursuant
to subsection (a) of this section during calendar year 1999. Not later than October 1,
2000, and annually thereafter, the department shall calculate the difference between
the amount paid by the successor electric distribution company pursuant to each such
contract in effect during the preceding fiscal year for electricity generated at the facility
from waste that originated within such franchise area and the amount that would have
been paid had the company been obligated to pay the rate in effect during calendar year
1999, as determined by the department. The difference, if positive, shall be recovered
through the systems benefits charge established under section 16-245l and remitted to
the regional resource recovery authority acting on behalf of member municipalities.
(P.A. 83-529, S. 1; P.A. 85-297, S. 3, 4; P.A. 94-92, S. 1; P.A. 98-28, S. 61, 117.)
History: P.A. 85-297 required electricity to be purchased by contract where previously electric companies were required
to compensate municipalities for electricity produced by recovery facilities; P.A. 94-92 required purchase of all electricity
generated at such facility from waste which originated in the franchise area of the electric company; P.A. 98-28 designated
existing provisions as Subsec. (a) and added new Subsec. (b) re the maintenance of municipal rates at rate in effect during
calendar year 1999, effective July 1, 1998.
Does not require purchase of all electrical output of Southeastern Conn. Regional Resources Recovery Authority at
"municipal rate". 210 C. 349, 351, 352, 354-359. Provides for exclusive use of the "municipal rate" for purchase by an
electric company from a resource recovery facility of electrical output attributable to franchise waste and that the parties'
agreement unambiguously requires payment of the "municipal rate" for the entire output so attributed. 244 C. 280.
Sec. 16-243f. Private power providers. Regulations concerning the purchase
and sale of electricity. (a) The Department of Public Utility Control shall adopt regulations, in accordance with chapter 54, which establish procedures to determine the manner
in which capacity needs of electric public service companies may be met through the
provision of electricity conservation and demand management measures by private
power providers, in addition to or in lieu of electricity generation facilities and to determine the monitoring and evaluation plans to be employed in documenting the demand
and energy savings achieved, including, where practicable and cost-effective, impact
measurement methods implemented through metering arrangements, with appropriate
adjustment for weather normalization and other factors influencing usage levels. In
adopting and implementing said regulations, the department shall take into account state
energy policy, pursuant to section 16a-35k.
(b) A private power provider may offer to provide electricity conservation or demand management measures to an electric public service company pursuant to section
16-243b and this section and the regulations adopted under subsection (a) of this section.
The department shall review and evaluate such proposals based on the factors specified
in said regulations, and after notice and a hearing, render a determination as to the
feasibility of the proposed electricity conservation and demand management measures.
The department may, in accordance with such regulations, order an electric public service company to enter into an agreement with a private power provider where the private
power provider would furnish electricity conservation or demand management measures
to the electric public service company or its customers.
(P.A. 88-195, S. 2, 3; P.A. 92-122, S. 2.)
History: P.A. 92-122 amended Subsec. (a) to require department to include in its regulations the determination of
monitoring and evaluation plans to be employed in documenting savings.
Sec. 16-243g. Assignment of electricity purchase agreements. Notwithstanding
any provision of the general statutes or of any special act to the contrary, no electric
company, as defined in section 16-1, municipal electric energy cooperative established
under chapter 101a or municipal electric utility established under chapter 101 which
has entered into a contract to purchase electricity from a private power producer, as
defined in section 16-243b, shall refuse or neglect to execute an assignment of an electricity purchase agreement or contract to a trustee as security for or protection of bonds
issued to refinance outstanding bonds originally issued or reissued to finance the major
portion of the costs of the acquisition, construction and installation of a private power
production facility, as defined in section 16-243b.
(P.A. 94-92, S. 2.)
Sec. 16-243h. Credit to residential customers who generate electricity; metering. On and after January 1, 2000, each electric supplier or any electric distribution
company providing standard offer, transitional standard offer, standard service or back-up electric generation service, pursuant to section 16-244c, shall give a credit for any
electricity generated by a residential customer from a Class I renewable energy source or
a hydropower facility. The electric distribution company providing electric distribution
services to such a customer shall make such interconnections necessary to accomplish
such purpose. An electric distribution company, at the request of any residential customer served by such company and if necessary to implement the provisions of this
section, shall provide for the installation of metering equipment that (1) measures electricity consumed by such customer from the facilities of the electric distribution company, (2) deducts from the measurement the amount of electricity produced by the customer and not consumed by the customer, and (3) registers, for each billing period, the
net amount of electricity either (A) consumed and produced by the customer, or (B) the
net amount of electricity produced by the customer. A residential customer who generates electricity from a generating unit with a name plate capacity of more than ten
kilowatts of electricity pursuant to the provisions of this section shall be assessed for the
competitive transition assessment, pursuant to section 16-245g and the systems benefits
charge, pursuant to section 16-245l based on the amount of electricity consumed by the
customer from the facilities of the electric distribution company without netting any
electricity produced by the customer. For purposes of this section, "residential customer"
means a customer of a single-family dwelling or multifamily dwelling consisting of two
to four units.
(P.A. 98-28, S. 43, 117; P.A. 03-135, S. 3.)
History: P.A. 98-28 effective July 1, 1998 (Revisor's note: In codifying this section, incorrect references to "section
11 of this act" and "section 16 of this act" were deemed by the Revisors to be references to "section 10" and "section 18"
and codified as section 16-245g and section 16-245l, respectively); P.A. 03-135 made technical changes, made the section
applicable to electric distribution companies providing standard offer, transitional standard offer, standard service or back-up electric generation service, and added "electricity from a generating unit with a name plate capacity of more than ten
kilowatts of", effective July 1, 2003.
Sec. 16-244. Electric deregulation; findings and declarations. The General Assembly finds and declares that:
(1) The provision of affordable, safe and reliable electricity is key to the continuing
growth of this state and to the health, safety and general welfare of its residents;
(2) Rates for electricity in this state and in the region are higher than the national
average;
(3) Changes in generating technology now enable the provision of electric service
at much lower rates than are currently being charged in Connecticut and competitive
market forces can play a role in the reduction of Connecticut rates;
(4) It is in the best interest of the state to reduce rates for electricity to all customer
classes, to prevent cross subsidization among customer classes and to allow for the
competitive generation of electricity while retaining a regulated distribution system to
ensure reliability;
(5) A competitive generation market should allow customers to choose among alternative generation services and allow customers a reasonable and fair opportunity to self-generate and interconnect;
(6) Those public policy measures under current law, including, but not limited to,
those protecting customers under the winter moratorium and hardship provisions as well
as conservation measures and incentives for using renewable energy sources, should be
preserved;
(7) State regulations should encourage and allow for a sufficient number of in-state
generating facilities to ensure an adequate and reliable power supply within the state
and ensure development of a truly competitive generation market;
(8) The assurance of safe, reliable and available electric service to all customers in
a uniform and equitable manner is an essential governmental objective and a restructured
electric market must provide adequate safeguards to assure universal service and customer service protections;
(9) The generation of electricity must be achieved in a manner that does not endanger
the public health or safety and that minimizes negative environmental impacts;
(10) The restructuring of the electric industry may result in a reduction in staffing
levels at Connecticut generation facilities and those workers adversely affected by such
restructuring should be protected;
(11) The current method of providing electric service has involved a balancing of
costs, risks and rewards for electric utilities and their customers, and therefore the transition to a competitive generation market, including the determination of stranded costs,
should be based on the principles of fairness and reasonableness and the result of a
balance of the interests of electric customers, electric utilities and the public at large; and
(12) It is in the best interest of the state for all customers to use electricity as efficiently as possible.
(1949 Rev., S. 5656; P.A. 98-28, S. 2.)
History: P.A. 98-28 replaced existing provisions re authority of corporations to sell, transmit, convey and deliver
electricity with declarations concerning deregulation of electric industry, effective July 1, 1998.
Cited. 145 C. 243.
Sec. 16-244a. Rate freeze for electric service. (a) For purposes of this section,
"base rates" means the total amount charged by an electric company to each end use
customer class, as defined in its rate order in effect on July 1, 1998, for the fully bundled
costs of electricity, including any customer service charge and any demand charge.
(b) Notwithstanding sections 16-19 and 16-19a for the period from July 1, 1998,
until December 31, 1999, the base rates paid to an electric company by any customer
in the state for electric services, other than a customer receiving electric services under
a special contract, shall not exceed the base rates that have been approved by the Department of Public Utility Control for that electric company as of December 31, 1996. Base
rates shall be adjusted to the extent of any increase or decrease in state taxes attributable
to sections 12-264 and 12-265 and any other increase or decrease in state or federal
taxes resulting from a change in state or federal law and shall continue to be adjusted
during such period pursuant to section 16-19b. Base rates may be adjusted, by an increase
or decrease, to the extent approved by the department, in the event that the revenue
requirements of the company are affected as the result of changes in legislative enactments other than public act 98-28*, administrative requirements or accounting standards
occurring after July 1, 1998, provided such accounting standards are adopted by entities
independent of the company that have authority to issue such standards. Savings attributable to a reduction in taxes shall not be shifted between customer classes. The calculation
of base rates for purposes of this section shall not be affected by the change in billing
format provided in subsection (b) of section 16-244e.
(P.A. 98-28, S. 3, 117.)
*Public act 98-28 is entitled "An Act Concerning Electric Restructuring". (See Reference Table captioned "Public Acts
of 1998" in Volume 16 which lists the sections amended, created or repealed by the act.)
History: P.A. 98-28 effective July 1, 1998.
Sec. 16-244b. Electric customers to choose electric suppliers. Phase-in of electric deregulation. All customers of electric distribution companies, as defined in section
16-1, shall have the opportunity to purchase electric generation services from their
choice of electric suppliers, as defined in said section 16-1, in a competitive generation
market in accordance with the schedule provided in this section. On and after January
1, 2000, up to thirty-five per cent of the peak load of each rate class of an electric
company or electric distribution company, as the case may be, may choose an electric
supplier to provide their electric generation services, provided such customers shall be
located in distressed municipalities, as defined in section 32-9p. In the event that the
number of customers exceeds thirty-five per cent of such load, preference shall be given
to customers located in distressed municipalities with a population greater than one
hundred thousand persons. Participation shall be determined on a first-come, first-served
basis. As of July 1, 2000, all customers shall have the opportunity to choose an electric
supplier. On and after January 1, 2000, electric generation services shall be provided
in accordance with section 16-244c to any customer who has not chosen an electric
supplier or has declined, failed or been unable to enter into or maintain a contract for
electric generation services with an electric supplier. The Department of Public Utility
Control may adopt regulations in accordance with chapter 54 to implement the phase-in schedule provided in this subsection.
(P.A. 98-28, S. 4, 117.)
History: P.A. 98-28 effective July 1, 1998.
Sec. 16-244c. Standard offer. Transitional standard offer. Standard service.
Alternative transitional standard offer and standard service. Supplier of last resort. Back-up generation service. (a)(1) On and after January 1, 2000, each electric
distribution company shall make available to all customers in its service area, the provision of electric generation and distribution services through a standard offer. Under the
standard offer, a customer shall receive electric services at a rate established by the
Department of Public Utility Control pursuant to subdivision (2) of this subsection. Each
electric distribution company shall provide electric generation services in accordance
with such option to any customer who affirmatively chooses to receive electric generation services pursuant to the standard offer or does not or is unable to arrange for or
maintain electric generation services with an electric supplier. The standard offer shall
automatically terminate on January 1, 2004. While providing electric generation services
under the standard offer, an electric distribution company may provide electric generation services through any of its generation entities or affiliates, provided such entities
or affiliates are licensed pursuant to section 16-245.
(2) Not later than October 1, 1999, the Department of Public Utility Control shall
establish the standard offer for each electric distribution company, effective January 1,
2000, which shall allocate the costs of such company among electric transmission and
distribution services, electric generation services, the competitive transition assessment
and the systems benefits charge. The department shall hold a hearing that shall be conducted as a contested case in accordance with chapter 54 to establish the standard offer.
The standard offer shall provide that the total rate charged under the standard offer,
including electric transmission and distribution services, the conservation and load management program charge described in section 16-245m, the renewable energy investment charge described in section 16-245n, electric generation services, the competitive
transition assessment and the systems benefits charge shall be at least ten per cent less
than the base rates, as defined in section 16-244a, in effect on December 31, 1996. The
standard offer shall be adjusted to the extent of any increase or decrease in state taxes
attributable to sections 12-264 and 12-265 and any other increase or decrease in state
or federal taxes resulting from a change in state or federal law and shall continue to be
adjusted during such period pursuant to section 16-19b. Notwithstanding the provisions
of section 16-19b, the provisions of said section 16-19b shall apply to electric distribution companies. The standard offer may be adjusted, by an increase or decrease, to the
extent approved by the department, in the event that (A) the revenue requirements of
the company are affected as the result of changes in (i) legislative enactments other
than public act 98-28*, (ii) administrative requirements, or (iii) accounting standards
occurring after July 1, 1998, provided such accounting standards are adopted by entities
independent of the company that have authority to issue such standards, or (B) an electric
distribution company incurs extraordinary and unanticipated expenses required for the
provision of safe and reliable electric service to the extent necessary to provide such
service. Savings attributable to a reduction in taxes shall not be shifted between customer
classes.
(3) The price reduction provided in subdivision (2) of this subsection shall not apply
to customers who, on or after July 1, 1998, are purchasing electric services from an
electric company or electric distribution company, as the case may be, under a special
contract or flexible rate tariff, and the company's filed standard offer tariffs shall reflect
that such customers shall not receive the standard offer price reduction.
(b) (1) On and after January 1, 2004, each electric distribution company shall make
available to all customers in its service area, the provision of electric generation and
distribution services through a transitional standard offer. Under the transitional standard offer, a customer shall receive electric services at a rate established by the Department of Public Utility Control pursuant to subdivision (2) of this subsection. Each electric distribution company shall provide electric generation services in accordance with
such option to any customer who affirmatively chooses to receive electric generation
services pursuant to the transitional standard offer or does not or is unable to arrange
for or maintain electric generation services with an electric supplier. The transitional
standard offer shall terminate on December 31, 2006. While providing electric generation services under the transitional standard offer, an electric distribution company may
provide electric generation services through any of its generation entities or affiliates,
provided such entities or affiliates are licensed pursuant to section 16-245.
(2) (A) Not later than December 15, 2003, the Department of Public Utility Control
shall establish the transitional standard offer for each electric distribution company,
effective January 1, 2004.
(B) The department shall hold a hearing that shall be conducted as a contested case
in accordance with chapter 54 to establish the transitional standard offer. The transitional
standard offer shall provide that the total rate charged under the transitional standard
offer, including electric transmission and distribution services, the conservation and
load management program charge described in section 16-245m, the renewable energy
investment charge described in section 16-245n, electric generation services, the competitive transition assessment and the systems benefits charge, and excluding federally
mandated congestion costs, shall not exceed the base rates, as defined in section 16-244a, in effect on December 31, 1996, excluding any rate reduction ordered by the
department on September 26, 2002.
(C) (i) Each electric distribution company shall, on or before January 1, 2004, file
with the department an application for an amendment of rates pursuant to section 16-19, which application shall include a four-year plan for the provision of electric transmission and distribution services. The department shall conduct a contested case proceeding
pursuant to sections 16-19 and 16-19e to approve, reject or modify the application and
plan. Upon the approval of such plan, as filed or as modified by the department, the
department shall order that such plan shall establish the electric transmission and distribution services component of the transitional standard offer.
(ii) Notwithstanding the provisions of this subparagraph, an electric distribution
company that, on or after September 1, 2002, completed a proceeding pursuant to sections 16-19 and 16-19e, shall not be required to file an application for an amendment
of rates as required by this subparagraph. The department shall establish the electric
transmission and distribution services component of the transitional standard offer for
any such company equal to the electric transmission and distribution services component
of the standard offer established pursuant to subsection (a) of this section in effect on
July 1, 2003, for such company. If such electric distribution company applies to the
department, pursuant to section 16-19, for an amendment of its rates on or before December 31, 2006, the application of the electric distribution company shall include a four-year plan.
(D) The transitional standard offer shall be adjusted to the extent of any increase
or decrease in state taxes attributable to sections 12-264 and 12-265 and any other increase or decrease in state or federal taxes resulting from a change in state or federal
law and shall continue to be adjusted during such period pursuant to section 16-19b.
Savings attributable to a reduction in taxes shall not be shifted between customer classes.
Notwithstanding the provisions of section 16-19b, the provisions of section 16-19b shall
apply to electric distribution companies.
(E) The transitional standard offer may be adjusted, by an increase or decrease, to
the extent approved by the department, in the event that (i) the revenue requirements
of the company are affected as the result of changes in (I) legislative enactments other
than public act 03-135* or public act 98-28*, (II) administrative requirements, or (III)
accounting standards adopted after July 1, 2003, provided such accounting standards
are adopted by entities that are independent of the company and have authority to issue
such standards, or (ii) an electric distribution company incurs extraordinary and unanticipated expenses required for the provision of safe and reliable electric service to the
extent necessary to provide such service.
(3) The price provided in subdivision (2) of this subsection shall not apply to customers who, on or after July 1, 2003, purchase electric services from an electric company
or electric distribution company, as the case may be, under a special contract or flexible
rate tariff, provided the company's filed transitional standard offer tariffs shall reflect
that such customers shall not receive the transitional standard offer price during the term
of said contract or tariff.
(4) (A) In addition to its costs received pursuant to subsection (h) of this section, as
compensation for providing transitional standard offer service, each electric distribution
company shall receive an amount equal to five-tenths of one mill per kilowatt hour.
Revenues from such compensation shall not be included in calculating the electric distribution company's earnings for purposes of, or in determining whether its rates are just
and reasonable under, sections 16-19, 16-19a and 16-19e, including an earnings sharing
mechanism. In addition, each electric distribution company may earn compensation for
mitigating the prices of the contracts for the provision of electric generation services,
as provided in subdivision (2) of this subsection.
(B) The department shall conduct a contested case proceeding pursuant to the provisions of chapter 54 to establish an incentive plan for the procurement of long-term
contracts for transitional standard offer service by an electric distribution company.
The incentive plan shall be based upon a comparison of the actual average firm full
requirements service contract price for electricity obtained by the electric distribution
company compared to the regional average firm full requirements service contract price
for electricity, adjusted for such variables as the department deems appropriate, including, but not limited to, differences in locational marginal pricing. If the actual average
firm full requirements service contract price obtained by the electric distribution company is less than the actual regional average firm full requirements service contract price
for the previous year, the department shall split five-tenths of one mill per kilowatt hour
equally between ratepayers and the company. Revenues from such incentive plan shall
not be included in calculating the electric distribution company's earnings for purposes
of, or in determining whether its rates are just and reasonable under sections 16-19, 16-19a and 16-19e. The department may, as it deems necessary, retain a third party entity
with expertise in energy procurement to assist with the development of such incentive plan.
(c) (1) On and after January 1, 2007, each electric distribution company shall provide electric generation services through standard service to any customer who (A) does
not arrange for or is not receiving electric generation services from an electric supplier,
and (B) does not use a demand meter or has a maximum demand of less than five hundred
kilowatts.
(2) Not later than October 1, 2006, and periodically as required by subdivision (3)
of this subsection, but not more often than every calendar quarter, the Department of
Public Utility Control shall establish the standard service price for such customers pursuant to subdivision (3) of this subsection. Each electric distribution company shall recover
the actual net costs of procuring and providing electric generation services pursuant to
this subsection, provided such company mitigates the costs it incurs for the procurement
of electric generation services for customers who are no longer receiving service pursuant to this subsection.
(3) An electric distribution company providing electric generation services pursuant
to this subsection shall mitigate the variation of the price of the service offered to its
customers by procuring electric generation services contracts in the manner prescribed
in a plan approved by the department. Such plan shall require the procurement of a
portfolio of service contracts sufficient to meet the projected load of the electric distribution company. Such plan shall require that the portfolio of service contracts be procured
in an overlapping pattern of fixed periods at such times and in such manner and duration
as the department determines to be most likely to produce just, reasonable and reasonably
stable retail rates while reflecting underlying wholesale market prices over time. The
portfolio of contracts shall be assembled in such manner as to invite competition; guard
against favoritism, improvidence, extravagance, fraud and corruption; and secure a reliable electricity supply while avoiding unusual, anomalous or excessive pricing. The
portfolio of contracts procured under such plan shall be for terms of not less than six
months, provided contracts for shorter periods may be procured under such conditions
as the department shall prescribe to (A) ensure the lowest rates possible for end-use
customers; (B) ensure reliable service under extraordinary circumstances; and (C) ensure the prudent management of the contract portfolio. An electric distribution company
may receive a bid for an electric generation services contract from any of its generation
entities or affiliates, provided such generation entity or affiliate submits its bid the business day preceding the first day on which an unaffiliated electric supplier may submit
its bid and further provided the electric distribution company and the generation entity
or affiliate are in compliance with the code of conduct established in section 16-244h.
(4) The department, in consultation with the Office of Consumer Counsel, shall
retain the services of a third-party entity with expertise in the area of energy procurement
to oversee the initial development of the request for proposals and the procurement of
contracts by an electric distribution company for the provision of electric generation
services offered pursuant to this subsection. Costs associated with the retention of such
third-party entity shall be included in the cost of electric generation services that is
included in such price.
(5) Each bidder for a standard service contract shall submit its bid to the electric
distribution company and the third-party entity who shall jointly review the bids and
submit an overview of all bids together with a joint recommendation to the department
as to the preferred bidders. The department may, within ten business days of submission
of the overview, reject the recommendation regarding preferred bidders. In the event
that the department rejects the preferred bids, the electric distribution company and the
third-party entity shall rebid the service pursuant to this subdivision.
(d) (1) Notwithstanding the provisions of this section regarding the electric generation services component of the transitional standard offer or the procurement of electric
generation services under standard service, section 16-244h or 16-245o, the Department
of Public Utility Control may, from time to time, direct an electric distribution company
to offer, through an electric supplier or electric suppliers, before January 1, 2007, one
or more alternative transitional standard offer options or, on or after January 1, 2007,
one or more alternative standard service options. Such alternative options shall include,
but not be limited to, an option that consists of the provision of electric generation
services that exceed the renewable portfolio standards established in section 16-245a
and may include an option that utilizes strategies or technologies that reduce the overall
consumption of electricity of the customer.
(2) (A) The department shall develop such alternative option or options in a contested case conducted in accordance with the provisions of chapter 54. The department
shall determine the terms and conditions of such alternative option or options, including,
but not limited to, (i) the minimum contract terms, including pricing, length and termination of the contract, and (ii) the minimum percentage of electricity derived from Class
I or Class II renewable energy sources, if applicable. The electric distribution company
shall, under the supervision of the department, subsequently conduct a bidding process
in order to solicit electric suppliers to provide such alternative option or options.
(B) The department may reject some or all of the bids received pursuant to the
bidding process.
(3) The department may require an electric supplier to provide forms of assurance
to satisfy the department that the contracts resulting from the bidding process will be
fulfilled.
(4) An electric supplier who fails to fulfill its contractual obligations resulting from
this subdivision shall be subject to civil penalties, in accordance with the provisions of
section 16-41, or the suspension or revocation of such supplier's license or a prohibition
on the acceptance of new customers, following a hearing that is conducted as a contested
case, in accordance with the provisions of chapter 54.
(e) (1) On and after January 1, 2007, an electric distribution company shall serve
customers that are not eligible to receive standard service pursuant to subsection (c) of
this section as the supplier of last resort. This subsection shall not apply to customers
purchasing power under contracts entered into pursuant to section 16-19hh. Any customer previously receiving electric generation services from an electric supplier shall
not be eligible to receive supplier of last resort service pursuant to this subsection unless
such customer agrees to receive supplier of last resort service for a period of not less
than one year.
(2) An electric distribution company shall procure electricity to provide electric
generation services to customers pursuant to this subsection. The Department of Public
Utility Control shall determine a price for such customers that reflects the full cost of
providing the electricity on a monthly basis. Each electric distribution company shall
recover the actual net costs of procuring and providing electric generation services pursuant to this subsection, provided such company mitigates the costs it incurs for the
procurement of electric generation services for customers that are no longer receiving
service pursuant to this subsection.
(f) On and after January 1, 2000, and until such time the regional independent system
operator implements procedures for the provision of back-up power to the satisfaction
of the Department of Public Utility Control, each electric distribution company shall
provide electric generation services to any customer who has entered into a service
contract with an electric supplier that fails to provide electric generation services for
reasons other than the customer's failure to pay for such services. Between January 1,
2000, and December 31, 2006, an electric distribution company may procure electric
generation services through a competitive bidding process or through any of its generation entities or affiliates. On and after January 1, 2007, such company shall procure
electric generation services through a competitive bidding process pursuant to a plan
submitted by the electric distribution company and approved by the department. Such
company may procure electric generation services through any of its generation entities
or affiliates, provided such entity or affiliate is the lowest qualified bidder and provided
further any such entity or affiliate is licensed pursuant to section 16-245.
(g) An electric distribution company is not required to be licensed pursuant to section 16-245 to provide standard offer electric generation services in accordance with
subsection (a) of this section, transitional standard offer service pursuant to subsection
(b) of this section, standard service pursuant to subsection (c) of this section, supplier of
last resort service pursuant to subsection (e) of this section or back-up electric generation
service pursuant to subsection (f) of this section.
(h) The electric distribution company shall be entitled to recover reasonable costs
incurred as a result of providing standard offer electric generation services pursuant to
the provisions of subsection (a) of this section, transitional standard offer service pursuant to subsection (b) of this section, standard service pursuant to subsection (c) of this
section or back-up electric generation service pursuant to subsection (f) of this section.
The provisions of this section and section 16-244a shall satisfy the requirements of
section 16-19a until January 1, 2007.
(i) The Department of Public Utility Control shall establish, by regulations adopted
pursuant to chapter 54, procedures for when and how a customer is notified that his
electric supplier has defaulted and of the need for the customer to choose a new electric
supplier within a reasonable period of time.
(j) (1) Notwithstanding the provisions of subsection (d) of this section regarding
an alternative transitional standard offer option or an alternative standard service option,
an electric distribution company providing transitional standard offer service, standard
service, supplier of last resort service or back-up electric generation service in accordance with this section shall contract with its wholesale suppliers to comply with the
renewable portfolio standards. The Department of Public Utility Control shall annually
conduct a contested case, in accordance with the provisions of chapter 54, in order
to determine whether the electric distribution company's wholesale suppliers met the
renewable portfolio standards during the preceding year. An electric distribution company shall include a provision in its contract with each wholesale supplier that requires
the wholesale supplier to pay the electric distribution company an amount of five and
one-half cents per kilowatt hour if the wholesale supplier fails to comply with the renewable portfolio standards during the subject annual period. The electric distribution company shall promptly transfer any payment received from the wholesale supplier for the
failure to meet the renewable portfolio standards to the Renewable Energy Investment
Fund for the development of Class I renewable energy sources. Any payment made
pursuant to this section shall not be considered revenue or income to the electric distribution company.
(2) Notwithstanding the provisions of subsection (d) of this section regarding an
alternative transitional standard offer option or an alternative standard service option,
an electric distribution company providing transitional standard offer service, standard
service, supplier of last resort service or back-up electric generation service in accordance with this section shall, not later than July 1, 2007, file with the Department of
Public Utility Control for its approval one or more long-term power purchase contracts
from Class I renewable energy source projects that receive funding from the Renewable
Energy Investment Fund and that are not less than one megawatt in size, at a price that
is not more than the total of the comparable wholesale market price for generation plus
five and one-half cents per kilowatt hour. In its approval of such contracts, the department
shall give preference to purchase contracts from those projects that would provide a
financial benefit to ratepayers or would enhance the reliability of the electric transmission system of the state. Such contracts shall be comprised of not less than a total,
apportioned among each electric distribution company, of one hundred megawatts. The
cost of such contracts and the administrative costs for the procurement of such contracts
directly incurred shall be eligible for inclusion in the generation services charge component of rates, provided that such contracts are for a period of time sufficient to provide
financing for such projects, but not less than ten years and are for projects which began
operation on or after July 1, 2003. The amount from Class I renewable energy sources
contracted under such contracts shall be applied to reduce the applicable Class I renewable energy source portfolio standards. For purposes of this subdivision, the department's determination of the comparable wholesale market price for generation shall be
based upon a reasonable estimate.
(P.A. 98-28, S. 20, 117; P.A. 03-135, S. 4; 03-221, S. 3, 4; P.A. 04-236, S. 9; 04-247, S. 2.)
*Note: Public act 98-28 is entitled "An Act Concerning Electric Restructuring". (See Reference Table captioned "Public
Acts of 1998" in Volume 16 which lists the sections amended, created or repealed by the act.)
Public act 03-135 is entitled "An Act Concerning Revisions to the Electric Restructuring Legislation". (See Reference
Table captioned "Public Acts of 2003" in Volume 16 which lists the sections amended, created or repealed by the act.)
History: P.A. 98-28 effective July 1, 1998; P.A. 03-135 made technical changes, deleted provision in Subsec. (a) re
extension of the standard offer by the General Assembly, deleted former Subsec. (b) re service to customers on and after
January 1, 2004, who do not or are unable to arrange for services, added new Subsec. (b) re transitional standard offer,
added new Subsec. (c) re standard service, added new Subsec. (d) re alternative transitional standard offer and standard
service, added new Subsec. (e) re supplier of last resort, redesignated existing Subsec. (c) as Subsec. (f) and amended said
Subsec. to change "2003" to "2006" and "2004" to "2007" and to add "pursuant to a plan submitted by the electric
distribution company and approved by the department", redesignated existing Subsec. (d) as Subsec. (g) and amended said
Subsec. to add reference to transitional standard offer service, standard service, and supplier of last resort service and to
delete reference to January 1, 2004, redesignated existing Subsec. (e) as Subsec. (h) and amended said Subsec. to delete
reference to default service and back-up electrical generation services, to add reference to transitional standard offer service,
standard service and back-up electric generation service and to change "2004" to "2007", redesignated existing Subsec. (f)
as Subsec. (i) and amended said Subsec. to delete provision re standards or procedures for procuring power and competitive
bidding, and added new Subsec. (j) re compliance with renewable portfolio standards and purchase of long-term power
purchase contracts from Class I renewable energy source projects, effective July 1, 2003; P.A. 03-221 amended Subsec.
(h) to make a technical change and amended Subsec. (j)(1) to revise provisions re contracting with suppliers to comply
with the renewable portfolio standards, responsibility for payment for failure to meet such standards, and treatment of such
payment, effective July 1, 2003; P.A. 04-236 amended Subsec. (b)(2)(E) to make a technical change, effective June 8,
2004; P.A. 04-247 amended Subsec. (j)(2) to add "for its approval", to add requirement for projects to be not less than one
megawatt in size, and to add requirement for a preference for projects that provide financial benefit to ratepayers or enhance
reliability of the electric transmission system.
Sec. 16-244d. Education outreach program for electric deregulation. Consumer Education Advisory Council established. Determination of environmental
costs and benefits of energy sources. (a) Not later than December 1, 1998, the Department of Public Utility Control shall develop a comprehensive public education outreach
program to educate customers about the implementation of retail competition among
electric suppliers, as defined in section 16-1. The goals of the program shall be to maximize public information, minimize customer confusion and equip all customers to participate in a restructured generation market. The program shall include, but not be limited
to: (1) The dissemination of information through mass media, interactive approaches
and written materials with the goal of reaching every electric customer; (2) the conduct
of public forums in different geographical areas of the state to foster public input and
provide opportunities for an exchange of questions and answers; (3) involvement of
community-based organizations in developing messages and in devising and implementing education strategies; (4) targeted efforts to reach rural, low income, elderly,
foreign language, disabled, ethnic minority and other traditionally underserved populations; and (5) periodic evaluations of the effectiveness of educational efforts. The department shall assign one individual within the department to coordinate the outreach program and oversee the education process. The department shall begin to implement the
outreach program not later than January 1, 1999.
(b) There shall be established a Consumer Education Advisory Council which shall
advise the outreach program coordinator on the development and implementation of
the outreach program until the termination of the standard offer under section 16-244c.
Membership of the advisory council shall be established by the Consumer Counsel not
later than December 1, 1998, and shall include, but not be limited to, representatives of
the Department of Public Utility Control, the Office of Consumer Counsel, the Office
of the Attorney General, the Office of Policy and Management, the Department of Environmental Protection, community and business organizations, consumer groups, including, but not limited to, a group that represents hardship customers, as defined in section
16-262c, electric distribution companies and electric suppliers. The advisory council
shall determine the information to be distributed to customers as part of the education
effort such as customers' rights and obligations in a restructured environment, how
customers can exercise their right to participate in retail access, the types of electric
suppliers expected to be licensed including the possibility of load aggregation, electric
generation services options that will be available, the environmental characteristics of
different types of generation facilities and other information determined by the advisory
council to be necessary for customers. The advisory council shall advise the outreach
program coordinator on the methods of distributing information in accordance with
subsection (a) of this section and the timing of such distribution. The advisory council
shall meet on a regular basis and report to the outreach program coordinator as it deems
appropriate until termination of the advisory council's role upon the termination of the
standard offer under section 16-244c.
(c) Not later than December 1, 1998, the Department of Public Utility Control shall
submit a report to the joint standing committee of the General Assembly having cognizance of matters relating to energy, outlining the scope of the education outreach program developed by the department and identifying the individual acting as outreach
program coordinator and the membership of the advisory council.
(d) The department may retain a consultant in accordance with section 16-18a to
assist in developing and implementing the public education outreach program, provided
the authorization to retain such consultant shall expire December 31, 2005. The reasonable and proper expenses for retaining the consultant and implementing the outreach
program shall be reimbursed through the systems benefits charge as provided in subsection (b) of said section 16-18a.
(e) The advisory council shall, in consultation with the Connecticut Academy of
Science and Engineering and the New England Conference of Public Utility Commissioners, analyze the environmental costs and benefits of the following categories of
energy sources: (1) Class I renewable energy sources by type; (2) Class II renewable
energy sources by type; (3) facilities using coal, natural gas, oil or other petroleum
products as fuel which facilities are subject to the New Source Performance Standards
in the federal Clean Air Act for such facilities; (4) facilities using coal, natural gas, oil
or other petroleum products as fuel which facilities are not subject to the New Source
Performance Standards; (5) nuclear power generating facilities; and (6) hydropower
that does not meet the criteria for a Class II renewable energy source. The advisory
council shall establish uniform standards for the disclosure of information to allow
customers to easily compare rates of air pollutant emissions and the resource mix of
various energy sources of electric suppliers.
(f) The Department of Public Utility Control, in consultation with the Office of
Consumer Counsel, shall establish a program for the dissemination of information regarding electric suppliers. Such program shall require electric distribution companies
to distribute an informational summary on electric suppliers to any new customer and
to existing customers beginning on January 1, 2004, and semiannually thereafter. Such
informational summary shall be developed by the department and shall include, but not
be limited to, the name of each licensed electric supplier, the state where the supplier
is based, information on whether the supplier has active offerings for either residential
or commercial and industrial consumers, the telephone number and Internet address of
the supplier, and information as to whether the supplier offers electric generation services from renewable energy sources in excess of the portfolio standards established
pursuant to section 16-245a. The department shall include pricing information in the
informational summary to the extent the department determines feasible. The department shall post the informational summary in a conspicuous place on its website and
provide electronic links to the website of each supplier. The department shall update
the informational summary on its website on at least a quarterly basis.
(g) The Department of Public Utility Control, in consultation with the Office of
Consumer Counsel and the Consumer Education Advisory Council, shall, not later than
October 1, 2003, develop a plan for the restart of the education outreach program on or
before October 1, 2004, and submit, in accordance with the provisions of section 11-4a, such plan to the joint standing committee of the General Assembly having cognizance
of matters relating to energy and technology.
(P.A. 98-28, S. 17, 117; June Sp. Sess. P.A. 01-9, S. 18, 131; P.A. 03-135, S. 5.)
History: P.A. 98-28 effective July 1, 1998; June Sp. Sess. P.A. 01-9 extended the authority of the Department of Public
Utility Control to retain consultants for implementing the public education outreach program from December 31, 2000,
to December 31, 2005, effective July 1, 2001; P.A. 03-135 added new Subsec. (f) re program for the dissemination of
information re electric suppliers and added new Subsec. (e) re the restart of the education outreach program, effective July
1, 2003.
Sec. 16-244e. Unbundling by electric companies of generation functions from
transmission and distribution functions. Plan. (a)(1) Not later than October 1, 1998,
each electric company shall submit an unbundling plan to the department to unbundle
and separate, by October 1, 1999, all the company's generation assets that (A) prior to
the date when the department approves a divestiture plan pursuant to section 16-244f
or 16-244g, are not sold in accordance with section 16-43, and (B) on and after the date
when the department approves such plan, will not be divested as of January 1, 2000, in
accordance with sections 16-244f and 16-244g.
(2) For any nonnuclear generation asset that will not be divested by January 1, 2000,
unbundling and separation shall occur by transfer on a functional basis to one or more
corporate affiliates that are legally separate from the company's transmission and distribution assets and all related operations and functions, in which case, no stranded costs
shall be recovered.
(3) For any nuclear generation asset that will not be sold by January 1, 2000, unbundling and separation shall occur by (A) divestiture pursuant to section 16-244g, (B)
transfer on a functional basis to one or more corporate affiliates that are legally separate
from the company's transmission and distribution assets and all related operations and
functions, or (C) if required to comply with rules, regulations or licensing requirements
of the United States Nuclear Regulatory Commission, transfer on a functional basis
to one or more divisions that are structurally separate from the electric distribution
company.
(4) The unbundling plan and order shall provide for the allocation of the rights and
responsibilities pursuant to sections 16-245e to 16-245k, inclusive, between the electric
distribution company and any generation entities or affiliates and shall provide for the
allocation of revenue under a special contract among those components of a customer's
bill specified in subdivision (1) of subsection (a) of section 16-245d. Such plan shall
include a proposed modification or elimination to the adjustment pursuant to section 16-19b. Such plan shall not allow the transfer of assets or liabilities allocable or belonging to
transmission or distribution functions or facilities to the generation entity or affiliate of
an electric company, nor allow the transfer of assets or liabilities, other than financial
assets or liabilities to be funded by the competitive transition assessment pursuant to
section 16-245g or the systems benefits charge pursuant to section 16-245l, allocable
or belonging to generation functions or facilities to the electric distribution company,
as defined in section 16-1, unless federal law or regulation requires such a transfer with
regard to nuclear generation assets. All entitlements and obligations from any purchased
power contract or independent power producer contract entered into before July 1, 1998,
by the predecessor electric company which are not bought out shall succeed to the
electric distribution company. Such plan shall include a discussion of the impacts of the
proposed plan on the company's employees and plans for mitigating such impact.
(5) The department shall hold a hearing and issue a final order approving or modifying the plan in a time frame that will allow unbundling to be accomplished by October
1, 1999. Any hearing shall be conducted as a contested case in accordance with chapter
54. Such plan shall be submitted and such order issued consistent with the determination
and implementation of the competitive transition assessment, as provided in section
16-245g.
(6) Once unbundling is completed to the satisfaction of the department and consistent with the provisions of section 16-244, (A) any corporate affiliate or separate division
that provides electric generation services as a result of unbundling pursuant to this subsection shall be considered a generation entity or affiliate of the electric company, and
the division or corporate affiliate of the electric company that provides transmission
and distribution services shall be considered an electric distribution company, and (B)
an electric distribution company shall not own or operate generation assets.
(b) Not later than August 1, 1998, the Department of Public Utility Control shall
hold a hearing and issue a final order that unbundles prices or rates for electric generation
services for each electric company from all other charges. Any hearing shall be conducted as a contested case in accordance with chapter 54. On and after July 1, 1999,
each electric company or electric distribution company, as the case may be, shall provide
all customers with a bill that separates the electric generation services component of
those charges. Any unbundling of charges for electric generation services under this
subsection shall not affect the calculation of base rates under section 16-244a.
(P.A. 98-28, S. 5, 117; P.A. 03-135, S. 18.)
History: P.A. 98-28 effective July 1, 1998; P.A. 03-135 amended Subsec. (a)(6) to designate existing provisions as
Subpara. (A) and to add Subpara. (B) re ownership or operation of generation assets by an electric distribution company,
effective July 1, 2003.
Sec. 16-244f. Divestiture of nonnuclear electric generation facilities. Plan. Approval of sale by department. (a) As used in this section:
(1) "Generation assets" means electric generation facilities and generation-related
operations and functions owned by an electric company and includes associated contractual obligations for energy or capacity from such generation assets; and
(2) "Net proceeds" means the book income from the sale or divestiture of assets,
consisting of sales price less reasonable expenses of sale, related income and other taxes.
(b) (1) No electric company shall be eligible to claim any stranded costs as provided
in sections 16-245e to 16-245k, inclusive, unless the electric company (A) prior to the
date when the department approves a divestiture plan, has sold its nonnuclear generation
assets in accordance with section 16-43, and (B) on and after the date when the department approves such plan, has submitted all of its nonnuclear generation assets owned
or held as of April 29, 1998, to a public auction held in a commercially reasonable
manner in accordance with this subsection.
(2) Each electric company that elects to divest itself of nonnuclear generation assets
shall, not later than October 1, 1998, submit a divestiture plan to the Department of
Public Utility Control. The divestiture plan shall include (A) any documentation the
department determines is reasonably necessary to approve the auction procedure, including a copy of the request for proposal and a description of the solicitation process, (B)
a detailed description of the process for the sale and transfer of nonnuclear generation
assets, and (C) the book value of all assets the electric company intends to make available
for sale. In structuring the divestiture plan, the electric company shall take into account
the findings set forth in section 16-244. The department shall issue a final order approving or modifying the plan in a time frame that will allow divestiture to be accomplished
by January 1, 2000. The department shall, after consultation with the Office of Consumer
Counsel, appoint a consultant who shall be an entity unrelated to said company that
meets qualifications set by the department, to conduct the auction process.
(3) The department shall not approve a sale unless (A) the sale price of an asset or
assets equals or exceeds book value for the asset or assets, except for any dual-fueled
nonnuclear generation unit that began operation between 1974 and 1976 and has a capacity of not less than four hundred twenty megawatts, in which case the sale price for that
specific unit equals or exceeds the minimum bid established by the department for the
unit, (B) the department determines the bidder meets all applicable qualifications established by federal law and regulation, (C) the sale is conducted in accordance with the
divestiture plan as approved by the department, (D) the bidder proves to the satisfaction
of the department that the bidder will preserve labor agreements in effect at the time of
the sale, and (E) the sale will result in a net benefit to ratepayers, as determined by the
department. Transfer in ownership of any asset shall not occur until the department
determines the purchaser is fully qualified to provide electric generation services pursuant to section 16-245 or pursuant to applicable federal law and regulation. If the department approves a sale in accordance with the provisions of this section, no further proceedings under section 16-43 shall be required.
(4) The department shall determine the minimum bid price for a dual-fueled nonnuclear generation unit that began operation between 1974 and 1976 and has a capacity
of not less than four hundred twenty megawatts, by determining the future net cash flow
that a nonnuclear generation unit of comparable size, age and technical characteristics
that is prudently and efficiently managed would be expected to produce over its expected
remaining useful life, discounted to a present value.
(5) A generation entity or affiliate of an electric company may bid on any nonnuclear
generation asset, provided such entity or affiliate is qualified to bid, as provided in this
subsection.
(6) All net proceeds realized by an electric company from the sale of assets pursuant
to this subsection that exceed the total book value of all the assets sold pursuant to this
section shall be netted against the amount of stranded costs as provided in subdivision
(4) of subsection (h) and subsection (i) of section 16-245e.
(7) If an electric company complies with the provisions of this subsection but does
not receive any bids for an asset by a qualified bidder that equal or exceed the minimum
bid as provided in this subsection, the department shall calculate the value of stranded
costs for each such asset in accordance with the provisions of subsection (g) of section
16-245e.
(P.A. 98-28, S. 6, 117.)
History: P.A. 98-28 effective April 29, 1998.
Subsec. (a):
Because first use of "sale" in Subdiv. (2) clearly refers to actual sale, and not to previous unsuccessful sale attempts,
second use is presumed to have same meaning. 266 C. 108. Only reasonable expenses incurred in connection with transaction
that resulted in the actual sale may be deducted from sales price. Id.
Sec. 16-244g. Divestiture of nuclear electric generation facilities. Plan. Approval of sale by department. (a) As used in this section, "generation assets" means
"generation assets", as defined in section 16-244f, and "net proceeds" means "net proceeds", as defined in section 16-244f.
(b) Not later than January 1, 2004, each electric distribution company shall either (1)
submit its nuclear generation assets to a public auction held in a commercially reasonable
manner, in accordance with subsection (c) of this section in order to divest itself of
remaining nuclear generation assets, or (2) transfer remaining nuclear generation assets
to one or more legally separate corporate affiliates at their book value, in which case
no stranded costs shall be recovered.
(c) (1) Each electric distribution company that elects to divest itself of its nuclear
generation assets shall, in a time frame that will allow divestiture to occur by January
1, 2004, submit a divestiture plan to the Department of Public Utility Control. The
divestiture plan shall include (A) any documentation the department determines is reasonably necessary to approve the auction procedure, including a copy of the request for
proposal and a description of the solicitation process, (B) a detailed description of the
process for the sale and transfer of nuclear generation assets, and (C) information the
department determines is necessary for the department to determine the value of the
minimum bid for each nuclear generation asset, as provided in subdivision (3) of this
subsection. The department shall hold a hearing and issue a final order approving or
modifying the plan in a time frame that will allow divestiture to be accomplished by
January 1, 2004. Any hearing shall be conducted as a contested case in accordance
with chapter 54. The department shall, after consultation with the Office of Consumer
Counsel, appoint a consultant who shall be an entity unrelated to the said company that
meets qualifications set by the department, to conduct the auction process.
(2) The department shall not approve a sale unless (A) the sale price equals or
exceeds the minimum bid established by the department for the asset, (B) the department
determines the bidder meets all applicable qualifications established by federal law and
regulation, (C) the sale is conducted in accordance with the divestiture plan as approved
by the department, (D) the bidder proves to the satisfaction of the department that the
bidder will preserve labor agreements in effect at the time of the sale, and (E) the sale
will result in a net benefit to ratepayers, as determined by the department. Transfer in
ownership of any asset shall not occur until the department determines the purchaser is
fully qualified to provide electric generation services pursuant to section 16-245 or
pursuant to applicable federal law and regulation. If the department approves a sale in
accordance with the provisions of this section, no further proceedings under section 16-43 shall be required.
(3) The department shall determine the minimum bid price for each nuclear generation asset by determining the future net cash flow that a nuclear generation asset of
comparable size, age and technical characteristics that is prudently and efficiently managed would be expected to produce over its expected remaining useful life, discounted
to a present value.
(4) A generation entity or affiliate of an electric distribution company may bid on
any nuclear generation asset, provided such entity or affiliate is qualified to bid, as
provided in this subsection.
(5) If a final bid is less than book value for an asset, the electric distribution company
shall be entitled to recover the difference between the bid price and the book value as
stranded costs pursuant to subdivision (2) of subsection (h) of section 16-245e. If a final
bid exceeds book value for an asset, the net proceeds realized by the electric distribution
company that are above book value shall be netted against the amount of stranded costs
as provided in subdivision (4) of subsection (h) of section 16-245e.
(d) (1) If an electric distribution company elects to sell all its remaining nuclear
generation assets by public auction and complies with the provisions of subsection (c)
of this section but does not receive any bids for an asset by a qualified bidder that equal
or exceed the minimum bid price, as determined by the department in accordance with
the provisions of subsection (c) of this section, the department shall calculate the value
of stranded costs for each such asset in accordance with subdivision (3) of subsection
(h) of section 16-245e.
(2) Not later than January 1, 2004, the electric distribution company shall transfer
the nuclear generation assets described in subdivision (1) of this subsection to one or
more legally separate corporate affiliates. If in order to comply with rules, regulations or
licensing requirements of the United States Nuclear Regulatory Commission an electric
distribution company is unable to legally separate its nuclear assets to one or more
corporate affiliates, the generation assets may remain in separate divisions of the electric
distribution company.
(e) (1) On and after January 1, 2000, and prior to the date when a nuclear generation
asset is sold at public auction or transferred to a corporate affiliate, the difference between the return of and on capital costs allowed in rates for the nuclear generation asset
and the income capitalization value established for such asset for such interim period
pursuant to the methodology described in subdivision (3) of subsection (c) of this section
shall be collected through the competitive transition assessment in accordance with
section 16-245g.
(2) On or after the date when a nuclear generation asset is sold at public auction or
transferred to a corporate affiliate, the department shall calculate the stranded costs for
nuclear generation assets in accordance with subsection (h) of section 16-245e.
(3) In no event shall any costs described in this subsection be funded at any time
with the proceeds of rate reduction bonds pursuant to sections 16-245e to 16-245k,
inclusive.
(P.A. 98-28, S. 7, 117.)
History: P.A. 98-28 effective July 1, 1998.