Connecticut Seal

General Assembly


Raised Bill No. 5410

February Session, 2014


LCO No. 1743



Referred to Committee on ENERGY AND TECHNOLOGY


Introduced by:





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

Section 1. Section 16-19b of the 2014 supplement to the general statutes is amended by adding subsection (m) as follows (Effective from passage):

(NEW) (m) The authority shall adopt regulations, in accordance with chapter 54, to specify the manner in which a gas company calculates lost and unaccounted for gas in establishing the purchased gas adjustment clause. The authority shall establish a fixed factor of adjustment to allow a gas company to recover the cost of lost and unaccounted for gas based on the amount of gas sales, regardless of gas purchases, in a manner that incentivizes a gas company to (1) significantly reduce the disparity between the sum of all gas received by such company and the gas output by such company, and (2) minimize actual gas losses. Such factor of adjustment shall be established in the gas company's next general rate case and applied in subsequent purchased gas adjustment clause proceedings. If the allowed gas output exceeds the actual gas output, the gas company shall keep the gas cost recovery for those purchases that were not necessary. If the actual gas output exceeds the allowed gas output, the gas company shall (A) absorb the cost and shall not be allowed to recover above the fixed factor of adjustment, and (B) submit a report to the authority that (i) identifies factors impacting lost and unaccounted for gas, and (ii) develops, prioritizes and implements cost-effective solutions.

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage


Statement of Purpose:

To limit the amount of lost and unaccounted for gas that a gas company can recover from ratepayers.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]