Sec. 16-1. Definitions. (a) Terms used in this title and in chapters 244, 244a, 244b,
245, 245a and 245b shall be construed as follows, unless another meaning is expressed
or is clearly apparent from the language or context:
(1) "Authority" means the Public Utilities Control Authority and "department"
means the Department of Public Utility Control;
(2) "Commissioner" means a member of said authority;
(3) "Commissioner of Transportation" means the Commissioner of Transportation
appointed under section 13b-3;
(4) "Public service company" includes electric, electric distribution, gas, telephone,
telegraph, pipeline, sewage, water and community antenna television companies and
holders of a certificate of cable franchise authority, owning, leasing, maintaining, operating, managing or controlling plants or parts of plants or equipment, and all express
companies having special privileges on railroads within this state, but shall not include
telegraph company functions concerning intrastate money order service, towns, cities,
boroughs, any municipal corporation or department thereof, whether separately incorporated or not, a private power producer, as defined in section 16-243b, or an exempt
wholesale generator, as defined in 15 USC 79z-5a;
(5) "Plant" includes all real estate, buildings, tracks, pipes, mains, poles, wires and
other fixed or stationary construction and equipment, wherever located, used in the
conduct of the business of the company;
(6) "Railroad company" includes every person owning, leasing, maintaining, operating, managing or controlling any railroad, or any cars or other equipment employed
thereon or in connection therewith, for public or general use within this state;
(7) "Street railway company" includes every person owning, leasing, maintaining,
operating, managing or controlling any street railway, or any cars or other equipment
employed thereon or in connection therewith, for public or general use within this state;
(8) "Electric company" includes, until an electric company has been unbundled
in accordance with the provisions of section 16-244e, every person owning, leasing,
maintaining, operating, managing or controlling poles, wires, conduits or other fixtures,
along public highways or streets, for the transmission or distribution of electric current
for sale for light, heat or power within this state, or, engaged in generating electricity
to be so transmitted or distributed for such purpose, but shall not include (A) a private
power producer, as defined in section 16-243b, (B) an exempt wholesale generator, as
defined in 15 USC 79z-5a, (C) a municipal electric utility established under chapter
101, (D) a municipal electric energy cooperative established under chapter 101a, (E)
an electric cooperative established under chapter 597, or (F) any other electric utility
owned, leased, maintained, operated, managed or controlled by any unit of local government under any general statute or any public or special act;
(9) "Gas company" includes every person owning, leasing, maintaining, operating,
managing or controlling mains, pipes or other fixtures, in public highways or streets,
for the transmission or distribution of gas for sale for heat or power within this state, or
engaged in the manufacture of gas to be so transmitted or distributed for such purpose,
but shall not include a person manufacturing gas through the use of a biomass gasification
plant provided such person does not own, lease, maintain, operate, manage or control
mains, pipes or other fixtures in public highways or streets, a municipal gas utility
established under chapter 101 or any other gas utility owned, leased, maintained, operated, managed or controlled by any unit of local government under any general statute
or any public or special act;
(10) "Water company" includes every person owning, leasing, maintaining, operating, managing or controlling any pond, lake, reservoir, stream, well or distributing
plant or system employed for the purpose of supplying water to fifty or more consumers.
A water company does not include homeowners, condominium associations providing
water only to their members, homeowners associations providing water to customers at
least eighty per cent of whom are members of such associations, a municipal waterworks
system established under chapter 102, a district, metropolitan district, municipal district
or special services district established under chapter 105, chapter 105a or any other
general statute or any public or special act which is authorized to supply water, or any
other waterworks system owned, leased, maintained, operated, managed or controlled
by any unit of local government under any general statute or any public or special act;
(11) "Consumer" means any private dwelling, boardinghouse, apartment, store, office building, institution, mechanical or manufacturing establishment or other place of
business or industry to which water is supplied by a water company;
(12) "Sewage company" includes every person owning, leasing, maintaining, operating, managing or controlling, for general use in any town, city or borough, or portion
thereof, in this state, sewage disposal facilities which discharge treated effluent into any
waterway of this state;
(13) "Pipeline company" includes every person owning, leasing, maintaining, operating, managing or controlling mains, pipes or other fixtures through, over, across
or under any public land, water, parkways, highways, parks or public grounds for the
transportation, transmission or distribution of petroleum products for hire within this
state;
(14) "Community antenna television company" includes every person owning,
leasing, maintaining, operating, managing or controlling a community antenna television system, in, under or over any public street or highway, for the purpose of providing
community antenna television service for hire and shall include any municipality which
owns or operates one or more plants for the manufacture or distribution of electricity
pursuant to section 7-213 or any special act and seeks to obtain or obtains a certificate of
public convenience and necessity to construct or operate a community antenna television
system pursuant to section 16-331 or a certificate of cable franchise authority pursuant to
section 16-331q. "Community antenna television company" does not include a certified
competitive video service provider;
(15) "Community antenna television service" means (A) the one-way transmission
to subscribers of video programming or information that a community antenna television
company makes available to all subscribers generally, and subscriber interaction, if any,
which is required for the selection of such video programming or information, and (B)
noncable communications service. "Community antenna television service" does not
include video service provided by a certified competitive video service provider;
(16) "Community antenna television system" means a facility, consisting of a set
of closed transmission paths and associated signal generation, reception and control
equipment that is designed to provide community antenna television service which includes video programming and which is provided in, under or over any public street or
highway, for hire, to multiple subscribers within a franchise, but such term does not
include (A) a facility that serves only to retransmit the television signals of one or more
television broadcast stations; (B) a facility that serves only subscribers in one or more
multiple unit dwellings under common ownership, control or management, unless such
facility is located in, under or over a public street or highway; (C) a facility of a common
carrier which is subject, in whole or in part, to the provisions of Subchapter II of Chapter
5 of the Communications Act of 1934, 47 USC 201 et seq., as amended, except that
such facility shall be considered a community antenna television system and the carrier
shall be considered a public service company to the extent such facility is used in the
transmission of video programming directly to subscribers; or (D) a facility of an electric
company which is used solely for operating its electric company systems. "Community
antenna television system" does not include a facility used by a certified competitive
video service provider to provide video service;
(17) "Video programming" means programming provided by, or generally considered comparable to programming provided by, a television broadcast station;
(18) "Noncable communications service" means any telecommunications service,
as defined in section 16-247a, and which is not included in the definition of "cable
service" in the Communications Act of 1934, 47 USC 522, as amended. Nothing in this
definition shall be construed to affect service which is both authorized and preempted
pursuant to federal law;
(19) "Public service motor vehicle" includes all motor vehicles used for the transportation of passengers for hire;
(20) "Motor bus" includes any public service motor vehicle operated in whole or
in part upon any street or highway, by indiscriminately receiving or discharging passengers, or operated on a regular route or over any portion thereof, or operated between
fixed termini, and any public service motor vehicle operated over highways within this
state between points outside this state or between points within this state and points
outside this state;
(21) "Cogeneration technology" means the use for the generation of electricity of
exhaust steam, waste steam, heat or resultant energy from an industrial, commercial or
manufacturing plant or process, or the use of exhaust steam, waste steam or heat from
a thermal power plant for an industrial, commercial or manufacturing plant or process,
but shall not include steam or heat developed solely for electrical power generation;
(22) "Renewable fuel resources" means energy sources described in subdivisions
(26) and (27) of this subsection;
(23) "Telephone company" means a telecommunications company that provides
one or more noncompetitive or emerging competitive services, as defined in section
16-247a;
(24) "Domestic telephone company" includes any telephone company which has
been chartered by or organized or constituted within or under the laws of this state;
(25) "Telecommunications company" means a person that provides telecommunications service, as defined in section 16-247a, within the state, but shall not mean a
person that provides only (A) private telecommunications service, as defined in section
16-247a, (B) the one-way transmission of video programming or other programming
services to subscribers, (C) subscriber interaction, if any, which is required for the selection of such video programming or other programming services, (D) the two-way transmission of educational or instructional programming to a public or private elementary
or secondary school, or a public or independent institution of higher education, as required by the department pursuant to a community antenna television company franchise
agreement, or provided pursuant to a contract with such a school or institution which
contract has been filed with the department, or (E) a combination of the services set
forth in subparagraphs (B) to (D), inclusive, of this subdivision;
(26) "Class I renewable energy source" means (A) energy derived from solar power,
wind power, a fuel cell, methane gas from landfills, ocean thermal power, wave or tidal
power, low emission advanced renewable energy conversion technologies, a run-of-the-river hydropower facility provided such facility has a generating capacity of not
more than five megawatts, does not cause an appreciable change in the river flow, and
began operation after July 1, 2003, or a sustainable biomass facility with an average
emission rate of equal to or less than .075 pounds of nitrogen oxides per million BTU
of heat input for the previous calendar quarter, except that energy derived from a sustainable biomass facility with a capacity of less than five hundred kilowatts that began
construction before July 1, 2003, may be considered a Class I renewable energy source,
or (B) any electrical generation, including distributed generation, generated from a Class
I renewable energy source;
(27) "Class II renewable energy source" means energy derived from a trash-to-energy facility, a biomass facility that began operation before July 1, 1998, provided
the average emission rate for such facility is equal to or less than .2 pounds of nitrogen
oxides per million BTU of heat input for the previous calendar quarter, or a run-of-the-river hydropower facility provided such facility has a generating capacity of not more
than five megawatts, does not cause an appreciable change in the riverflow, and began
operation prior to July 1, 2003;
(28) "Electric distribution services" means the owning, leasing, maintaining, operating, managing or controlling of poles, wires, conduits or other fixtures along public
highways or streets for the distribution of electricity, or electric distribution-related
services;
(29) "Electric distribution company" or "distribution company" means any person
providing electric transmission or distribution services within the state, including an
electric company, subject to subparagraph (F) of this subdivision, but does not include:
(A) A private power producer, as defined in section 16-243b; (B) a municipal electric
utility established under chapter 101, other than a participating municipal electric utility;
(C) a municipal electric energy cooperative established under chapter 101a; (D) an
electric cooperative established under chapter 597; (E) any other electric utility owned,
leased, maintained, operated, managed or controlled by any unit of local government
under any general statute or special act; (F) after an electric company has been unbundled
in accordance with the provisions of section 16-244e, a generation entity or affiliate of
the former electric company; or (G) an electric supplier;
(30) "Electric supplier" means any person, including an electric aggregator or participating municipal electric utility that is licensed by the Department of Public Utility
Control in accordance with section 16-245, that provides electric generation services
to end use customers in the state using the transmission or distribution facilities of an
electric distribution company, regardless of whether or not such person takes title to
such generation services, but does not include: (A) A municipal electric utility established under chapter 101, other than a participating municipal electric utility; (B) a
municipal electric energy cooperative established under chapter 101a; (C) an electric
cooperative established under chapter 597; (D) any other electric utility owned, leased,
maintained, operated, managed or controlled by any unit of local government under any
general statute or special act; or (E) an electric distribution company in its provision of
electric generation services in accordance with subsection (a) or, prior to January 1,
2004, subsection (c) of section 16-244c;
(31) "Electric aggregator" means (A) a person, municipality or regional water authority that gathers together electric customers for the purpose of negotiating the purchase of electric generation services from an electric supplier, or (B) the Connecticut
Resources Recovery Authority, if it gathers together electric customers for the purpose
of negotiating the purchase of electric generation services from an electric supplier,
provided such person, municipality or authority is not engaged in the purchase or resale
of electric generation services, and provided further such customers contract for electric
generation services directly with an electric supplier, and may include an electric cooperative established pursuant to chapter 597;
(32) "Electric generation services" means electric energy, electric capacity or generation-related services;
(33) "Electric transmission services" means electric transmission or transmission-related services;
(34) "Generation entity or affiliate" means a corporate affiliate or, as provided in
subdivision (3) of subsection (a) of section 16-244e, a separate division of an electric
company after unbundling has occurred pursuant to section 16-244e, that provides electric generation services;
(35) "Participating municipal electric utility" means a municipal electric utility established under chapter 101 or any other electric utility owned, leased, maintained,
operated, managed or controlled by any unit of local government under any general
statute or any public or special act, that is authorized by the department in accordance
with section 16-245c to provide electric generation services to end use customers outside
its service area, as defined in section 16-245c;
(36) "Person" means an individual, business, firm, corporation, association, joint
stock association, trust, partnership or limited liability company;
(37) "Regional independent system operator" means the "ISO - New England, Inc.",
or its successor organization as approved by the Federal Energy Regulatory Commission;
(38) "Certified telecommunications provider" means a person certified by the department to provide intrastate telecommunications services, as defined in section 16-247a, pursuant to sections 16-247f to 16-247h, inclusive;
(39) "Gas registrant" means a person registered to sell natural gas pursuant to section
16-258a;
(40) "Customer-side distributed resources" means (A) the generation of electricity
from a unit with a rating of not more than sixty-five megawatts on the premises of a
retail end user within the transmission and distribution system including, but not limited
to, fuel cells, photovoltaic systems or small wind turbines, or (B) a reduction in the
demand for electricity on the premises of a retail end user in the distribution system
through methods of conservation and load management, including, but not limited to,
peak reduction systems and demand response systems;
(41) "Federally mandated congestion charges" means any cost approved by the
Federal Energy Regulatory Commission as part of New England Standard Market Design including, but not limited to, locational marginal pricing, locational installed capacity payments, any cost approved by the Department of Public Utility Control to reduce
federally mandated congestion charges in accordance with section 7-233y, this section,
sections 16-19ss, 16-32f, 16-50i, 16-50k, 16-50x, 16-243i to 16-243q, inclusive, 16-244c, 16-244e, 16-245m, 16-245n and 16-245z, and section 21 of public act 05-1 of the
June special session* and reliability must run contracts;
(42) "Combined heat and power system" means a system that produces, from a
single source, both electric power and thermal energy used in any process that results
in an aggregate reduction in electricity use;
(43) "Grid-side distributed resources" means the generation of electricity from a
unit with a rating of not more than sixty-five megawatts that is connected to the transmission or distribution system, which units may include, but are not limited to, units used
primarily to generate electricity to meet peak demand;
(44) "Class III source" means the electricity output from combined heat and power
systems with an operating efficiency level of no less than fifty per cent that are part of
customer-side distributed resources developed at commercial and industrial facilities
in this state on or after January 1, 2006, a waste heat recovery system installed on or
after April 1, 2007, that produces electrical or thermal energy by capturing preexisting
waste heat or pressure from industrial or commercial processes, or the electricity savings
created in this state from conservation and load management programs begun on or after
January 1, 2006;
(45) "Sustainable biomass" means biomass that is cultivated and harvested in a
sustainable manner. "Sustainable biomass" does not mean construction and demolition
waste, as defined in section 22a-208x, finished biomass products from sawmills, paper
mills or stud mills, organic refuse fuel derived separately from municipal solid waste,
or biomass from old growth timber stands, except where (A) such biomass is used in a
biomass gasification plant that received funding prior to May 1, 2006, from the Renewable Energy Investment Fund established pursuant to section 16-245n, or (B) the energy
derived from such biomass is subject to a long-term power purchase contract pursuant
to subdivision (2) of subsection (j) of section 16-244c entered into prior to May 1, 2006,
(C) such biomass is used in a renewable energy facility that is certified as a Class I
renewable energy source by the department until such time as the department certifies
that any biomass gasification plant, as defined in subparagraph (A) of this subdivision,
is operational and accepting such biomass, in an amount not to exceed one hundred
forty thousand tons annually, is used in a renewable energy facility that was certified
as a Class I renewable energy source by the department prior to December 31, 2007,
and uses biomass, including construction and demolition waste as defined in section
22a-208x, from a Connecticut-sited transfer station and volume-reduction facility that
generated biomass during calendar year 2007 that was used during calendar year 2007
to generate Class I renewable energy certificates, or (D) in the event there is no facility
as described in subparagraph (A) or (C) of this subdivision accepting such biomass, in
an amount not to exceed one hundred forty thousand tons annually, is used in one or
more other renewable energy facilities certified either as a Class I or Class II renewable
energy source by the department, provided such facilities use biomass, including construction and demolition waste as defined in said section 22a-208x, from a Connecticut-sited transfer station and volume-reduction facility that generated biomass during calendar year 2007 that was used during calendar year 2007 to generate Class I renewable
energy certificates. Notwithstanding the provisions of subparagraphs (C) and (D) of this
subdivision, the amount of biomass specified in said subparagraphs shall not apply to
a biomass gasification plant, as defined in subparagraph (A) of this subdivision;
(46) "Video service" means video programming services provided through wireline
facilities, a portion of which are located in the public right-of-way, without regard to
delivery technology, including Internet protocol technology. "Video service" does not
include any video programming provided by a commercial mobile service provider, as
defined in 47 USC 332(d), any video programming provided as part of community
antenna television service in a franchise area as of October 1, 2007, any video programming provided as part of and via a service that enables users to access content, information, electronic mail or other services over the public Internet;
(47) "Certified competitive video service provider" means an entity providing video
service pursuant to a certificate of video franchise authority issued by the department
in accordance with section 16-331e. "Certified competitive video service provider" does
not mean an entity issued a certificate of public convenience and necessity in accordance
with section 16-331 or the affiliates, successors and assigns of such entity or an entity
issued a certificate of cable franchise authority in accordance with section 16-331p or
the affiliates, successors and assignees of such entity;
(48) "Certificate of video franchise authority" means an authorization issued by the
Department of Public Utility Control conferring the right to an entity or person to own,
lease, maintain, operate, manage or control facilities in, under or over any public highway to offer video service to any subscribers in the state;
(49) "Certificate of cable franchise authority" means an authorization issued by the
Department of Public Utility Control pursuant to section 16-331q conferring the right
to a community antenna television company to own, lease, maintain, operate, manage
or control a community antenna television system in, under or over any public highway
to (A) offer community antenna television service in a community antenna television
company's designated franchise area, or (B) use the public rights-of-way to offer video
service in a designated franchise area. The certificate of cable franchise authority shall
be issued as an alternative to a certificate of public convenience and necessity pursuant
to section 16-331 and shall only be available to a community antenna television company
under the terms specified in sections 16-331q to 16-331aa, inclusive;
(50) "Thermal energy transportation company" means any person authorized under
any provision of the general statutes or special act to furnish heat or air conditioning or
both, by means of steam, heated or chilled water or other medium, to lay and maintain
mains, pipes or other conduits, and to erect such other fixtures necessary or convenient
in and on the streets, highways and public grounds of any municipality to carry steam,
heated or chilled water or other medium from such plant to the location to be served
and to return the same; and
(51) "The Connecticut Television Network" means the General Assembly's state-wide twenty-four-hour state public affairs programming service, separate and distinct
from community access channels.
(b) Notwithstanding any provision of the general statutes, the terms "utility", "public utility" and "public service company" shall be deemed to include a community antenna television company and a holder of a certificate of cable franchise authority, except
(1) as otherwise provided in sections 16-8, 16-27, 16-28 and 16-43, (2) that no provision
of the general statutes, including but not limited to, the provisions of sections 16-6b and
16-19, shall subject a community antenna television company to regulation as a common
carrier or utility by reason of providing community antenna television service, other
than noncable communications service, as provided in Subchapter V-A of Chapter 5 of
the Communications Act of 1934, 47 USC 521 et seq., as amended, and (3) that no
provision of the general statutes, including but not limited to, sections 16-6b and 16-19, shall apply to community antenna television companies to the extent any such provision is preempted pursuant to any other provision of the Communications Act of 1934, 47
USC 151 et seq., as amended, any other federal act or any regulation adopted thereunder.
(1949 Rev., S. 5390; February, 1965, P.A. 175, S. 1; 1967, P.A. 546, S. 1; 691, S. 1; 1969, P.A. 768, S. 208; P.A. 73-267; P.A. 75-486, S. 2, 69; P.A. 77-614, S. 162, 587, 610; P.A. 78-303, S. 85, 136; P.A. 79-214, S. 1; 79-610, S. 7; P.A.
80-482, S. 39, 348; 80-483, S. 65, 186; P.A. 81-297, S. 3; 81-329, S. 1, 11; 81-358, S. 2; 81-439, S. 2, 14; P.A. 85-246, S.
8; 85-509, S. 1, 11; P.A. 86-403, S. 33, 132; P.A. 87-323, S. 4; 87-415, S. 7, 13; P.A. 91-310, S. 3; P.A. 92-137, S. 2; P.A.
93-149; P.A. 94-83, S. 1, 16; P.A. 95-79, S. 47, 189; P.A. 98-28, S. 1, 117; P.A. 99-222, S. 1, 19; 99-286, S. 1, 19; P.A.
00-53, S. 11, 12; P.A. 01-49, S. 1; 01-204, S. 7, 29; June Sp. Sess. P.A. 01-9, S. 73, 131; P.A. 03-135, S. 1, 2; 03-163, S.
2; 03-221, S. 1, 2; June Sp. Sess. P.A. 05-1, S. 1, 2; P.A. 06-74, S. 1, 2; P.A. 07-242, S. 44; 07-253, S. 1; June Sp. Sess.
P.A. 07-5, S. 58; P.A. 08-77, S. 1; 08-185, S. 4; Sept. Sp. Sess. P.A. 09-7, S. 186.)
*Note: Section 21 of public act 05-1 of the June special session is special in nature and therefore has not been codified
but remains in full force and effect according to its terms.
History: 1965 act added definition of community antenna television company; 1967 acts included sewage plants in
definition of "public service company" and defined "sewage company", redefined "water company" to include companies
owning, controlling etc. streams and wells and to delete phrase "for general domestic use in any town, city or borough ...
within this state" and defined "consumer"; 1969 act defined "commissioner of transportation"; P.A. 73-267 included motor
bus companies in definition of "public service company"; P.A. 75-486 replaced definition of "commission" with definition
of "authority"; P.A. 77-614 and P.A. 78-303 included definition of division of public utility control, effective January 1,
1979; P.A. 79-214 defined "cogeneration technology" and excluded persons owning or operating facilities producing one
or less megawatt from definition of "public service company"; P.A. 79-610 defined "department", deleted railroad and
motor bus companies from definition of "public service company" and added reference to leasing in definitions of "railroad
company" and "water company"; P.A. 80-482 replaced definition of "division" with definition of "department" re public
utility control, deleting previous definition of "department" as "department of transportation"; P.A. 80-483 added reference
to leasing in definitions of "street railway company" and "sewage company"; P.A. 81-297 excluded telegraph company
functions concerning intrastate money order service from definition of public service company; P.A. 81-329 added definitions of "telephone company" and "domestic telephone company"; P.A. 81-358 excluded homeowners and condominium
associations providing water to members only from definition of water company; P.A. 81-439 excluded private power
producers from definitions of public service company and electric company; P.A. 85-246 redefined "public service company" to omit references to street railway companies and deleted a reference to street railway companies in definition of
"motor bus"; P.A. 85-509 made existing section Subsec. (a), added definitions of "community antenna television service",
"community antenna television system", "video programming" and "noncable communications service" in Subsec. (a),
clarified definition of "community antenna television company" to apply to an antenna television system and added Subsec.
(b) re the meaning of the terms "utility", "public utility" and "public service company"; P.A. 86-403 made a technical
change to Subsec. (a); (Revisor's note: In 1987 the definitions in Subsec. (a) were numbered editorially by the Revisors
for ease of reference); P.A. 87-323 redefined "water company" to specifically exclude certain homeowners associations;
P.A. 87-415 redefined "telephone company" to exclude entities which provide only those telecommunications services
authorized under Secs. 16-247f to 16-247h, inclusive; P.A. 91-310 redefined "electric company", "gas company" and "water
company" to specifically exclude municipal utilities; P.A. 92-137 redefined "community antenna television company" to
include municipalities which own or operate electric plants; P.A. 93-149 redefined "community antenna television system"
to include municipalities which own or operate electric plants only if they obtain a certificate of public convenience and
necessity for a community antenna television system; P.A. 94-83 amended Subsec. (a) by clarifying reference to the
Communications Act of 1934 in Subdivs. (16) and (18), redefined "telephone company" in Subdiv. (23) and adding new
Subdiv. (25) defining "telecommunications company", and amended Subsec. (b) by clarifying reference to the Communications Act of 1934, effective July 1, 1994; P.A. 95-79 redefined "telecommunications company" to include a limited liability
company, effective May 31, 1995; P.A. 98-28 amended Subsec. (a), redefining "public service company" by adding electric
distribution companies and exempting wholesale generators, by making minor changes in definitions of "electric company"
and "renewable fuel resources" and added new Subdivs. (26) to (37), defining "class I renewable energy source", "class
II renewable energy source", "electric distribution services", "electric distribution company", "electric supplier", "electric
aggregator", "electric generation services", "electric transmission services", "generation entity or affiliate", "participating
municipal electric utility", "person" and "regional independent system operator", effective July 1, 1998 (Revisor's note:
In Subdiv. (22) the Revisors editorially changed the phrase "... subdivisions (26) and (27) of this section" to "... subdivisions
(26) and (27) of this subsection"); P.A. 99-222 amended Subsec. (a) by inserting new Subdiv. (38) defining "certified
telecommunications provider", effective June 29, 1999; P.A. 99-286 amended Subsec. (a) by making technical changes
and by defining "certified telecommunications provider" in words identical to those in P.A. 99-222, effective July 19, 1999;
P.A. 00-53 amended Subsec. (a) by redefining "electric aggregator" in Subdiv. (31) to include regional water authorities, and
by adding a new Subdiv., designated as (39), defining "gas registrant"; P.A. 01-49 amended Subsec. (a) by making technical
changes in Subdivs. (15) and (16); P.A. 01-204 amended Subsec. (a) by redefining "Class I renewable energy source" in
Subdiv. (26) to include biomass gasification plants, effective July 11, 2001; June Sp. Sess. P.A. 01-9 revised effective date
of P.A. 01-204 but without affecting this section; P.A. 03-135 redefined "Class I renewable energy source" in Subdiv. (26)
to include "ocean thermal power, wave or tidal power, low emission advanced renewable energy conversion technologies"
and certain run-of-the-river hydropower facilities, to revise the type of biomass that falls under the definition and include,
as an exception, "energy derived from a biomass facility that began operation before July 1, 1998" provided "the average
emission rate for such facility is equal to or less than .075 pounds of nitrogen oxides per million BTU of heat input for the
previous calendar quarter", and to include "any electrical generation, including distributed generation, generated from a
Class I renewable energy source", redefined "Class II renewable energy source" in Subdiv. (27) to limit the type of biomass
facility included in the definition to a facility "that began operation before July 1, 1998, provided the average emission
rate for such facility is equal to or less than .2 pounds of nitrogen oxides per million BTU of heat input for the previous
calendar quarter" and to change the type of hydropower facility included in the definition to certain run-of-the-river
hydropower facilities, and added new Subdivs. (40) and (41), defining "distributed generation" and "federally mandated
congestion costs", effective July 1, 2003; P.A. 03-163 redefined "gas company" in Subdiv. (9) to exclude a person manufacturing gas through the use of a biomass gasification plant, effective June 26, 2003; P.A. 03-221 redefined "Class I renewable
energy source" in Subdiv. (26) to delete provisions re the date that a biomass facility began operation, to make the emission
rate applicable to all biomass facilities, and to add an exception for biomass facilities with a capacity of less than five
hundred kilowatts, and redefined "federally mandated congestion costs" in Subdiv. (41) by replacing "imposed" with
"approved" and adding "including, but not limited to, locational marginal pricing and reliability must run contracts",
effective July 1, 2003; June Sp. Sess. P.A. 05-1 amended Subsec. (a) by amending Subdiv. (40) to change the definition
of "distributed generation" to "customer-side distributed resources", to designate existing language as Subpara. (A), to
add a unit rating limit in Subpara. (A), and to add Subpara. (B) re reduction in demand, by amending Subdiv. (41) to change
the definition of "federally mandated congestion costs" to "federally mandated congestion charges" and to add additional
qualifying payments and costs, and by adding Subdivs. (42) to (44), inclusive, defining "combined heat and power system",
"grid-side distributed resources" and "Class III renewable energy source", effective July 21, 2005; P.A. 06-74 amended
Subsec. (a)(26) to insert "sustainable" prior to each occurrence of "biomass facility", to delete language re biomass gasification plants, to make conforming changes, and to delete language within exception for biomass facilities re biomass cultivated
and harvested in a sustainable manner, and added new Subdiv. (45) in Subsec. (a) defining "sustainable biomass"; P.A.
07-242 amended Subsec. (a)(44) to change term from "Class III renewable energy source" to "Class III source" and
redefine the term, effective June 4, 2007; P.A. 07-253 redefined "public service company", "community antenna television
company", "community antenna television service" and "community antenna television system", defined "video service",
"certified competitive video service provider", "certificate of video franchise authority" and "certificate of cable franchise
authority" and made technical changes in Subsec. (a), and added holder of a certificate of cable franchise authority and
made technical changes in Subsec. (b); June Sp. Sess. P.A. 07-5 amended Subsec. (a)(45)(C) to change exception from
biomass used in a facility approved before October 1, 2005, to biomass used in a facility certified as a Class I renewable
energy source until department certifies that a biomass gasification plant is operational, effective October 6, 2007; P.A.
08-77 added Subsec. (a)(50) defining "thermal energy transportation company", effective April 30, 2008; P.A. 08-185
redefined "sustainable biomass" in Subsec. (a)(45) by adding as exception renewable energy facilities certified prior to
December 31, 2007, and volume-reduction facilities in Subpara. (C), adding Subpara. (D) re certain other renewable energy
facilities, and adding provision re amount of biomass shall not apply to a biomass gasification plant, effective June 12,
2008; Sept. Sp. Sess. P.A. 09-7 added Subsec. (a)(51) defining "the Connecticut Television Network", effective October
5, 2009.
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Sec. 16-47. Holding companies. Approval of department re exercise of control.
Investigation and hearing. Annual reports. Injunctive relief. (a) As used in this
section and section 16-47a, (1) "holding company" means any corporation, association,
partnership, trust or similar organization, or person which, either alone or in conjunction
and pursuant to an arrangement or understanding with one or more other corporations,
associations, partnerships, trusts or similar organizations, or persons, directly or indirectly, controls a gas, electric, electric distribution, water, telephone or community antenna television company, and (2) "control" means the possession of the power to direct
or cause the direction of the management and policies of a gas, electric, electric distribution, water, telephone or community antenna television company or a holding company,
whether through the ownership of its voting securities, the ability to effect a change in
the composition of its board of directors or otherwise, provided, control shall not be
deemed to arise solely from a revocable proxy or consent given to a person in response
to a public proxy or consent solicitation made pursuant to and in accordance with the
applicable rules and regulations of the Securities Exchange Act of 1934 unless a participant in said solicitation has announced an intention to effect a merger or consolidation
with, reorganization, or other business combination or extraordinary transaction involving the gas, electric, electric distribution, water, telephone or community antenna television company or the holding company. Control shall be presumed to exist if a person
directly or indirectly owns ten per cent or more of the voting securities of a gas, electric,
electric distribution, water, telephone or community antenna television company or a
holding company, provided the department may determine, after conducting a hearing,
that said presumption of control has been rebutted by a showing that such ownership
does not in fact confer control.
(b) No gas, electric, electric distribution, water, telephone or community antenna
television company, or holding company, or any official, board or commission purporting to act under any governmental authority other than that of this state or of its
divisions, municipal corporations or courts, shall interfere or attempt to interfere with
or, directly or indirectly, exercise or attempt to exercise authority or control over any
gas, electric, electric distribution, water, telephone or community antenna television
company engaged in the business of supplying service within this state, or with or over
any holding company doing the principal part of its business within this state, without
first making written application to and obtaining the approval of the Department of
Public Utility Control, except as the United States may properly regulate actual transactions in interstate commerce.
(c) No corporation, association, partnership, trust or similar organization, or person
shall take any action that causes it to become a holding company with control over a
gas, electric, electric distribution, water, telephone or community antenna television
company engaged in the business of supplying service within this state, or acquire,
directly or indirectly, control over such a holding company, or take any action that would
if successful cause it to become or to acquire control over such a holding company,
without first making written application to and obtaining the approval of the department.
Any such corporation, association, partnership, trust or similar organization, or person
applying to the department for such approval shall pay the reasonable expenses incurred
by the department in carrying out its duties under this subsection, and accordingly, shall
deposit with the department a bond, executed by a surety company authorized to do
business in this state, in the amount of fifty thousand dollars, conditioned to indemnify
the department for such expenses.
(d) The Department of Public Utility Control shall investigate and hold a public
hearing on the question of granting its approval with respect to any application made
under subsection (b) or (c) of this section and thereafter may approve or disapprove any
such application in whole or in part and upon such terms and conditions as it deems
necessary or appropriate. In connection with its investigation, the department may request the views of the gas, electric, electric distribution, water, telephone or community
antenna television company or holding company which is the subject of the application
with respect to the proposed acquisition. After the filing of an application satisfying the
requirements of such regulations as the department may adopt in accordance with the
provisions of chapter 54, but not later than thirty business days after the filing of such
application, the department shall give prompt notice of the public hearing to the person
required to file the application and to the subject company or holding company. Such
hearing shall be commenced as promptly as practicable after the filing of the application,
but not later than thirty business days after the filing, and the department shall make its
determination as soon as practicable, but not later than one hundred twenty days after
the filing of the application unless the person required to file the application agrees to
an extension of time. The department may, in its discretion, grant the subject company
or holding company the opportunity to participate in the hearing by presenting evidence
and oral and written argument. If the department fails to give notice of its determination
to hold a hearing, commence the hearing, or render its determination after the hearing
within the time limits specified in this subdivision, the proposed acquisition shall be
deemed approved. In each proceeding on a written application submitted under said
subsection (b) or (c), the department shall, in a manner which treats all parties to the
proceeding on an equal basis, take into consideration (1) the financial, technological
and managerial suitability and responsibility of the applicant, (2) the ability of the gas,
electric, electric distribution, water, telephone or community antenna television company or holding company which is the subject of the application to provide safe, adequate
and reliable service to the public through the company's plant, equipment and manner
of operation if the application were to be approved, and (3) for an application concerning
a telephone company, the effect of approval on the location and accessibility of management and operations and on the proportion and number of state resident employees.
(e) During any proceeding under subsection (b) or (c) of this section, the department
may order any party to such proceeding and the officers, directors, employees and agents
of such party to refrain for a specific time period from communicating, directly or indirectly, with the record and beneficial owners of securities of the gas, electric, electric
distribution, water, telephone or community antenna television company or holding
company which is the subject of such proceedings, in regard to the matters submitted
to the department for its approval under said subsection (b) or (c). If the department
issues such an order, it shall also order all other parties to the proceeding and the officers,
directors, employees and agents of such parties to refrain for the same time period from
communicating, directly or indirectly, with such record and beneficial owners of such
securities, in regard to such matters. No order issued pursuant to this subsection shall
prohibit any party from complying with disclosure and reporting obligations under any
other provision of the general statutes or under federal law.
(f) Each holding company shall, not later than three months after the close of its
fiscal year, annually, file with the department a copy of its annual report to stockholders
for such fiscal year. If the holding company does not print such an annual report, it shall
file instead, not later than the same date, a comprehensive audit and report of its accounts
and operations prepared by an independent public accounting firm approved by the
department. The provisions of this subsection shall not apply to any holding company
in the form of a person.
(g) Any action contrary to the provisions of subsections (b) or (c) of this section
shall be voidable on order of the department.
(h) Whenever any corporation, association, partnership, trust or similar organization, or person takes or engages in any action which may or would violate subsection
(b) or (c) of this section or any order adopted pursuant to said subsection (b) or (c), the
Superior Court, upon application of the department or any holding company or gas,
electric, electric distribution, water, telephone or community antenna television company affected by such action, may enjoin any such corporation, association, partnership,
trust or similar organization, or person from continuing or doing any act in violation of
said subsection (b) or (c) or may otherwise enforce compliance with said subsection (b)
or (c), including but not limited to, the reinstatement of authority or control over the
holding company or gas, electric, electric distribution, water, telephone or community
antenna television company or holding company to those persons who exercised authority or control over such company before such action.
(i) The provisions of this section shall not be construed to require any person to
make written application to or obtain the approval of the department with respect to any
telephone company or holding company of a telephone company over which such person
exercises authority or control or operates as a holding company on June 30, 1987.
(1949 Rev., S. 5438; P.A. 75-486, S. 1, 69; P.A. 77-614, S. 162, 610; P.A. 80-482, S. 80, 348; P.A. 82-252, S. 4, 6; 82-472, S. 176, 183; P.A. 85-549, S. 1, 3; P.A. 86-40, S. 1, 2; P.A. 87-446, S. 1, 3; P.A. 94-74, S. 10, 11; P.A. 98-28, S. 98,
117; P.A. 09-218, S. 1.)
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. 82-252 divided section into Subsecs., included trusts and similar organizations in definition of
"holding company", applied section provisions to community antenna television companies, added Subsecs. (c), (d) and
(f), respectively prohibiting any corporation, association, trust or similar organization, or person from taking action to
become a holding company without department approval, requiring holding companies to file annual reports and authorizing
injunctive relief for violations of Subsec. (c); P.A. 82-472 made a technical change in Subsecs. (a) and (c) by clarifying
that partnerships are included in the definition of "holding company"; P.A. 85-549 amended Subsecs. (b) and (c) to eliminate
provisions limiting protection under said Subsecs. to companies incorporated by this state, added new Subsec. (d) re time
limit on department approval or disapproval of application and added new Subsec. (e) re department orders restricting
communications with owners of securities of company which is subject to proceedings, relettered former Subsecs. (d), (e)
and (f) as (f), (g) and (h), respectively, and applied provisions of Subsec. (h) to violations of Subsec. (b); P.A. 86-40 added
provisions in Subsec. (d) re department considerations in proceedings on written applications; P.A. 87-446 made section
applicable to telephone companies, added definition of "control" and provisions re presumption of control, made technical
changes re application and approval process, and added Subsec. (i); P.A. 94-74 amended Subsec. (d) by requiring investigation and hearing, changing hearing notice deadline from 20 to 30 days, hearing commencement deadline from 20 to 30
days and determination deadline from 90 to 120 days, adding "financial, technological and managerial" to Subdiv. (1),
and adding Subdiv. (3) re applications concerning a telephone company, effective July 1, 1994; P.A. 98-28 added electric
distribution companies, effective July 1, 1998; P.A. 09-218 amended Subsec. (a) by designating existing definitions as
Subdivs. (1) and (2) and adding reference to Sec. 16-47a, effective July 8, 2009.
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Sec. 16-47a. Code of conduct for gas company transactions with affiliates. (a)
As used in this section, "affiliate" means a person, as defined in section 16-1, or class
of persons that, with a gas company, as defined in said section 16-1, is under the control
of the same holding company, or a person or class of persons that the Department of
Public Utility Control may, after notice and hearing, find has such a relation to a gas
company conducting business and financial transactions that involve cross-subsidization or preferential treatment between the company and such person or class of persons
as to make it necessary to protect ratepayers.
(b) The Department of Public Utility Control shall establish a code of conduct that
sets minimum standards for gas company transactions with affiliates to achieve, at a
minimum, the following goals, provided such code shall not interfere with interactions
with regulated affiliates that are consistent with appropriate and efficient business practice or the public interest:
(1) Provide rules for when the purchases or sales of goods or services between a
gas company and an affiliate should be by written contract based on such factors as the
nature, value and term of the purchase or sale;
(2) Provide rules with respect to sharing or giving access to certain types of customer
identifying or commercially sensitive information to affiliates that may differ between
regulated and unregulated affiliates;
(3) Provide for a system of records and reporting for transactions between a gas
company and its affiliates;
(4) Establish standards to ensure that any payment by a gas company to any affiliate
or from any affiliate to a gas company is appropriate and reasonable;
(5) Provide a standard for avoidance of conflict of interest between a gas company
and affiliates;
(6) Ensure that any such transactions shall not have an improper and adverse impact
on the costs or revenues of the gas company, on the rates and charges paid by gas
company customers or on the quality of service provided by the gas company;
(7) Ensure that gas company ratepayers do not subsidize affiliate operations;
(8) Ensure fair, appropriate and equitable standards for purchases, sales, leases,
asset transfers and cost or profit-sharing transactions or any type of financing or encumbrance involving a gas company and its affiliates; and
(9) Ensure that gas supply and distribution services are provided by a gas company
in an appropriate manner to affiliates and nonaffiliates alike.
(c) In addition to the powers granted to the department in section 16-8c, during a
rate proceeding under 16-19, the department may summon witnesses from an affiliate
with which a gas company has had direct or indirect transactions, examine the affiliate
under oath and order production, inspect and audit the books, records or other information relevant to any transaction that the department has reason to believe has or will have
an adverse impact on the costs and revenues of the affiliated gas company. Proprietary
commercial and proprietary financial information of an affiliate provided pursuant to
this section shall be confidential and protected by the department as the department
deems appropriate, subject to the provisions of section 1-210.
(d) Each gas company shall submit to the department records and such information
as the department may require, at intervals determined by the department and in such
form as the department may order regarding affiliate transactions.
(e) The department may, upon its own motion, investigate a gas company's compliance with the code of conduct, and any such investigation shall be a contested case, as
defined in section 4-166.
(f) The department may make orders to enforce the code of conduct, including, but
not limited to, cease and desist orders and may levy civil penalties pursuant to section
16-41 against entities subject to the code of conduct.
(g) The code of conduct shall not prohibit communications necessary to restore gas
company service or to prevent or respond to emergency conditions.
(h) On or before November 1, 2010, the department shall adopt regulations, in accordance with the provisions of chapter 54, to establish the code of conduct in accordance
with subsection (b) of this section, related accounting and reporting requirements and
procedures for gas company and affiliate compliance with this section.
(i) Any methodology for the allocation of costs between a gas company and other
companies under the control of the same holding company currently approved by, or
under current orders issued by, the Securities and Exchange Commission under the
Public Utility Holding Company Act of 1935 or the Federal Energy Regulatory Commission under the Public Utility Holding Company Act of 2005, shall be entitled to a rebuttable presumption of reasonableness. Charges rendered to a gas company by an affiliate
that is a traditional centralized service company shall be at cost and entitled to a rebuttable presumption of reasonableness.
(P.A. 09-218, S. 2.)
History: P.A. 09-218 effective July 8, 2009.
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