OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ¯ (860) 240-0200
http: //www.cga.ct.gov/ofa
sHB-5689
AN ACT CONCERNING REVISIONS TO PROVISIONS AFFECTING ELECTRIC DISTRIBUTION COMPANIES.
AMENDMENT
LCO No.: 3769
File Copy No.: 220
House Calendar No.: 160
OFA Fiscal Note
Agency Affected |
Fund-Effect |
FY 07 $ |
FY 08 $ |
Department of Revenue Services |
GF - Revenue Loss |
$55 to $60 million |
$55 to $60 million |
Public Utility Control, Dept. |
CC&PUCF - Cost |
See Below |
See Below |
Note: GF=General Fund; CC&PUCF=Consumer Counsel and Public Utility Control Fund
Explanation
The amendment reduces the public utilities gross earning tax on electric and power companies, which is anticipated to result in a General Fund revenue loss of $55 to $60 million beginning in FY 07.
The table below shows the current rates and the new rates proposed by the amendment.
Residential |
Commercial | |
Current Rate |
6.8% |
8.5% |
Proposed Rate |
4.0% |
5.0% |
% Change |
-41.2% |
-41.2% |
The amendment also requires the Department of Public Utility Control (DPUC) to commence a contested case to amend the rate schedule of the electric distribution companies to reflect the companies' gross earning tax savings attributable to the tax changes made by the amendment. It is anticipated that DPUC can perform the contested case within available resources.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either House thereof for any purpose.