PA 17-35—SB 899

Energy and Technology Committee

AN ACT CONCERNING PUBLIC UTILITIES REGULATORY AUTHORITY ADMINISTRATIVE HEARINGS FOR PURCHASED GAS ADJUSTMENTS, ENERGY ADJUSTMENT CHARGES OR CREDITS AND TRANSMISSION RATES

SUMMARY: This act eliminates a requirement that the Public Utilities Regulatory Authority (PURA) hold an administrative proceeding to approve certain charges for electric distribution and gas companies. The act instead allows PURA to hold a hearing on the charges and only requires it to do so if requested by an electric distribution company, gas company, interested person, or member of the public. The act's provisions apply to purchased gas adjustments, energy adjustment charges or credits, and transmission rate changes (see BACKGROUND).

The act requires PURA to publish notice of an application for such a charge and any hearing five days before the hearing and allows, rather than requires, PURA to publish the notice in a newspaper that circulates in the company's service area.

By law, if PURA does not approve or deny these charges within a certain amount of time, the company may make the charges effective pending PURA's finding, or PURA can require the company to file an assurance and make the charges effective upon that filing. The act changes this time period from five days after the administrative proceeding to 15 days after PURA receives the application.

EFFECTIVE DATE: October 1, 2017

BACKGROUND

Adjustment Clauses and Transmission Rates

By law, PURA can approve an energy adjustment clause for electric companies and a purchased gas adjustment clause for gas companies. Among other things, these clauses adjust rates to account for changes in the cost of purchased power and natural gas.

The law requires PURA to design the retail transmission rate to provide for recovery of all Federal Energy Regulatory Commission-approved transmission costs, rates, tariffs, and charges and other transmission costs prudently incurred by an electric distribution company (CGS 16-19b).