Substitute House Bill No. 5005
Substitute House Bill No. 5005
PUBLIC ACT NO. 98-28
AN ACT CONCERNING ELECTRIC RESTRUCTURING.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Subsection (a) of section 16-1 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(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, 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, [or] 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
corporation, company, association, joint stock
association, partnership or person, or lessee
thereof, 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
corporation, company, association, joint stock
association, partnership or person, or lessee
thereof, 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 5 OF THIS ACT,
every corporation, company, association, joint
stock association, partnership or person, or
lessee thereof, 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 corporation,
company, association, joint stock association,
partnership or person, or lessee thereof, 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 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
corporation, company, association, joint stock
association, partnership or person, or lessee
thereof, 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
corporation, company, association, joint stock
association, partnership or person, or lessee
thereof, 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
corporation, company, association, joint stock
association, partnership or person, or lessee
thereof, 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 corporation, company, association,
joint stock association, partnership or person, or
lessee thereof, 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;
(15) "Community antenna television service"
means (1) 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 (2) noncable communications
service;
(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 (1) a facility that serves
only to retransmit the television signals of one
or more television broadcast stations; (2) 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; (3) 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 (4) a facility of an
electric company which is used solely for
operating its electric company systems;
(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
[derived from wind, hydro power, biomass or other
solar resources] SOURCES DESCRIBED IN SUBDIVISIONS
(26) AND (27) OF THIS SECTION;
(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
corporation, limited liability company, company,
association, joint stock association, partnership
or person, or a lessee thereof, which provides
telecommunications service, as defined in section
16-247a, within the state, but shall not mean a
person, firm, corporation, limited liability
company, company, association, joint stock
association or partnership, or a lessee thereof,
which 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
ENERGY DERIVED FROM SOLAR POWER; WIND POWER; A
FUEL CELL; METHANE GAS FROM LANDFILLS; OR A
BIOMASS FACILITY, PROVIDED SUCH FACILITY BEGINS
OPERATING ON OR AFTER JULY 1, 1998, AND SUCH
BIOMASS IS CULTIVATED AND HARVESTED IN A
SUSTAINABLE MANNER;
(27) "CLASS II RENEWABLE ENERGY SOURCE" MEANS
ENERGY DERIVED FROM A TRASH-TO-ENERGY FACILITY; OR
A BIOMASS FACILITY THAT DOES NOT MEET THE CRITERIA
FOR A CLASS I RENEWABLE ENERGY SOURCE OR A
HYDROPOWER FACILITY, PROVIDED SUCH FACILITY HAS A
LICENSE ISSUED BY THE FEDERAL ENERGY REGULATORY
COMMISSION, HAS BEEN EXEMPTED FROM SUCH LICENSURE,
IS THE SUBJECT OF A LICENSE APPLICATION OR NOTICE
OF INTENT TO SEEK A LICENSE FROM SAID COMMISSION,
HAS BEEN FOUND BY THE COMMISSIONER OF
ENVIRONMENTAL PROTECTION TO BE OPERATING IN
COMPLIANCE WITH THE FEDERAL CLEAN WATER ACT, OR
HAS BEEN FOUND BY THE CANADIAN ENVIRONMENTAL
ASSESSMENT AGENCY TO BE OPERATING IN COMPLIANCE
WITH SAID AGENCY'S RESOURCE OBJECTIVES;
(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 5 OF THIS ACT, 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, AS AMENDED BY THIS ACT, 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 20 OF THIS ACT;
(31) "ELECTRIC AGGREGATOR" MEANS (A) A PERSON
OR MUNICIPALITY 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 5 OF THIS ACT, A
SEPARATE DIVISION OF AN ELECTRIC COMPANY AFTER
UNBUNDLING HAS OCCURRED PURSUANT TO SECTION 5 OF
THIS ACT, 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 19 OF THIS
ACT TO PROVIDE ELECTRIC GENERATION SERVICES TO END
USE CUSTOMERS OUTSIDE ITS SERVICE AREA, AS DEFINED
IN SECTION 19 OF THIS ACT;
(36) "PERSON" MEANS AN INDIVIDUAL, BUSINESS,
FIRM, CORPORATION, ASSOCIATION, JOINT STOCK
ASSOCIATION, TRUST, PARTNERSHIP OR LIMITED
LIABILITY COMPANY; AND
(37) "REGIONAL INDEPENDENT SYSTEM OPERATOR"
MEANS THE "ISO -NEW ENGLAND, INC.", OR ITS
SUCCESSOR ORGANIZATION AS APPROVED BY THE FEDERAL
ENERGY REGULATORY COMMISSION.
Sec. 2. Section 16-244 of the general statutes
is repealed and the following is substituted in
lieu thereof:
[Any corporation authorized to sell and
distribute electricity to electric light and power
companies, railroad companies or electric
companies may, within the territory within which
it is authorized to transmit or convey such
electricity for the purposes aforesaid and subject
to the restrictions contained in section 16-245,
sell, transmit, convey and deliver electricity
generated within the state to any person or
corporation desiring to use such electricity for
the purpose of power and for any use incidental to
or connected with manufacturing purposes.]
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.
Sec. 3. (NEW) (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
of the general statutes, 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
of the general statutes, as amended by this act,
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 of
the general statutes. 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 this act, 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 5 of this
act.
Sec. 4. (NEW) All customers of electric
distribution companies, as defined in section 16-1
of the general statutes, as amended by section 1
of this act, 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 of the
general statutes. 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 20 of this act
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 of the
general statutes to implement the phase-in
schedule provided in this subsection.
Sec. 5. (NEW) (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 6 or 7 of this act, are not
sold in accordance with section 16-43 of the
general statutes, 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 6 and 7 of this act.
(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 7 of this act, (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 8 to 14,
inclusive, of this act 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 21 of
this act. Such plan shall include a proposed
modification or elimination to the adjustment
pursuant to section 16-19b of the general
statutes. 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 10 of
this act or the systems benefits charge pursuant
to section 18 of this act, allocable or belonging
to generation functions or facilities to the
electric distribution company, as defined in
section 16-1 of the general statutes, as amended
by section 1 of this act, 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 of the general
statutes. Such plan shall be submitted and such
order issued consistent with the determination and
implementation of the competitive transition
assessment, as provided in section 10 of this act.
(6) Once unbundling is completed to the
satisfaction of the department and consistent with
the provisions of section 16-244 of the general
statutes, as amended by section 2 of this act, 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.
(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 of the general
statutes. 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 3 of
this act.
Sec. 6. (NEW) (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 8 to 14, inclusive, of this act, 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 of the general
statutes, 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 the effective date of this act, 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 of the
general statutes, as amended by section 2 of this
act. 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 of the general
statutes, as amended by this act, 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 8 of this act.
(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 8 of this act.
Sec. 7. (NEW) (a) As used in this section,
"generation assets" means "generation assets", as
defined in section 6 of this act, and "net
proceeds" means "net proceeds", as defined in
section 6 of this act.
(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 of
the general statutes. 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 of the general
statutes, as amended by this act, 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 of the general statutes 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 8 of this act. 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 8 of this act.
(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 8 of this act.
(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 10 of this act.
(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 8 of this act.
(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 8 to 14, inclusive, of this act.
Sec. 8. (NEW) (a) As used in this section and
sections 9 to 14, inclusive, of this act:
(1) "Rate reduction bonds" means bonds, notes,
certificates of participation or beneficial
interest, or other evidences of indebtedness or
ownership, issued pursuant to an executed
indenture or other agreement of a financing
entity, in accordance with this section and
sections 9 to 14, inclusive, of this act, the
proceeds of which are used, directly or
indirectly, to provide, recover, finance, or
refinance stranded costs, and which, directly or
indirectly, are secured by, evidence ownership
interests in, or are payable from, transition
property;
(2) "Competitive transition assessment" means
those non-bypassable rates and other charges, that
are authorized by the department (A) in a
financing order to recover those stranded costs
that are eligible to be funded with the proceeds
of rate reduction bonds pursuant to section 9 of
this act and the costs of providing, recovering,
financing, or refinancing such stranded costs
through a plan approved by the department in the
financing order, including the costs of issuing,
servicing, and retiring rate reduction bonds, (B)
to recover those stranded costs determined under
this section but not eligible to be funded with
the proceeds of rate reduction bonds pursuant to
section 9 of this act, or (C) to recover costs
determined under subdivision (1) of subsection (e)
of section 7 of this act. If requested by the
electric company or electric distribution company,
the department shall include in the competitive
transition assessment non-bypassable rates and
other charges to recover federal and state taxes
whose recovery period is modified by the
transactions contemplated in this section and
sections 9 to 14 of this act;
(3) "Customer" means any individual, business,
firm, corporation, association, tax-exempt
organization, joint stock association, trust,
partnership, limited liability company, the United
States or its agencies, this state, any political
subdivision thereof or state agency that purchases
electric generation or distribution services as a
retail end user in the state from any electric
supplier, electric company or electric
distribution company;
(4) "Finance authority" means the state,
acting through the office of the State Treasurer;
(5) "Net proceeds" means "net proceeds" as
defined in section 6 of this act;
(6) "Stranded costs" means that portion of
generation assets, generation-related regulatory
assets or long-term contract costs determined by
the department in accordance with the provisions
of subsections (e), (f), (g) and (h) of this
section;
(7) "Generation assets" means the total
construction and other capital asset costs of
generation facilities approved for inclusion in
rates before July 1, 1997, but does not include
any costs relating to the decommissioning of any
such facility or any costs which the department
found during a proceeding initiated before July 1,
1998, were incurred because of imprudent
management;
(8) "Generation-related regulatory assets"
means generation-related costs authorized or
mandated before July 1, 1998, by the Department of
Public Utility Control, approved for inclusion in
the rates, and include, but are not limited to,
costs incurred for deferred taxes, conservation
programs, environmental protection programs,
public policy costs and research and development
costs, net of any applicable credits payable to
customers, but does not include any costs which
the department found during a proceeding initiated
before July 1, 1998, were incurred because of
imprudent management;
(9) "Long-term contract costs" mean the
above-market portion of the costs of contractual
obligations approved for inclusion in the rates
that were entered into before January 1, 2000,
arising from independent power producer contracts
required by law or purchased power contracts
approved by the Federal Energy Regulatory
Commission;
(10) "Department" means the Department of
Public Utility Control;
(11) "Financing entity" means the finance
authority or any special purpose trust or other
entity that is authorized by the finance authority
to issue rate reduction bonds or acquire
transition property pursuant to such terms and
conditions as the finance authority may specify,
or both;
(12) "Financing order" means an order of the
department adopted in accordance with this section
and sections 9 to 14, inclusive, of this act; and
(13) "Transition property" means the property
right created pursuant to this section and
sections 9 to 14, inclusive, of this act, in
respect of those stranded costs that are eligible
to be funded with the proceeds of rate reduction
bonds pursuant to section 9 of this act,
including, without limitation, the right, title,
and interest of an electric company or electric
distribution company or its transferee (A) in and
to the rates and charges established pursuant to a
financing order, as adjusted from time to time in
accordance with subdivision (2) of subsection (b)
of section 12 of this act and the financing order,
(B) to be paid the amount that is determined in a
financing order to be the amount that the electric
company or electric distribution company or its
transferee is lawfully entitled to receive
pursuant to the provisions of this section and
sections 9 to 14, inclusive, of this act, and the
proceeds thereof, and in and to all revenues,
collections, claims, payments, money, or proceeds
of or arising from the rates and charges or
constituting the competitive transition assessment
that is the subject of a financing order including
those non-bypassable rates and other charges
referred to in subdivision (2) of this subsection,
and (C) in and to all rights to obtain adjustments
to the rates and charges pursuant to the terms of
subdivision (2) of subsection (b) of section 12 of
this act and the financing order. "Transition
property" shall constitute a current property
right notwithstanding the fact that the value of
the property right will depend on consumers using
electricity or, in those instances where consumers
are customers of a particular electric company or
electric distribution company, the electric
company or electric distribution company
performing certain services.
(b) The department shall, in accordance with
the provisions of this section, identify and
calculate, upon application by an electric
company, those stranded costs that may be
collected through the competitive transition
assessment which shall be calculated and collected
in accordance with the provisions of section 10 of
this act. No electric distribution company shall
be eligible to claim stranded costs unless a
public auction has been held to divest itself of
all nonnuclear generation assets in accordance
with subsection (b) of section 6 of this act or
the electric company has sold its nonnuclear
generation assets in accordance with section 16-43
of the general statutes.
(c) (1) Notwithstanding subdivision (1) of
subsection (e) of section 7 of this act, any
electric company seeking to claim stranded costs
shall, in accordance with this subsection,
mitigate such costs to the fullest extent
possible. Prior to the approval by the department
of any stranded costs, the electric company shall
show to the satisfaction of the department that
the electric company has taken all reasonable
steps to mitigate to the maximum extent possible
the total amount of stranded costs that it seeks
to claim and to minimize the cost to be recovered
from customers. Mitigation shall include: (A)
Except to the extent provided in collective
bargaining agreements or agreements to purchase
generation assets entered into prior to July 1,
1998, the obtaining of written commitments from
purchasers of generation facilities divested
pursuant to sections 6 and 7 of this act, that the
purchasers will offer employment to persons who
were employed in nonmanagerial positions by a
divested generation facility at any time during
the three-month period prior to the divestiture,
at levels of wages and overall compensation not
lower than the employees' lowest level during the
six-month period prior to the date the contract to
divest the asset was entered into; (B) good faith
efforts to negotiate the buyout, buydown or
renegotiation of independent power producer
contracts and purchased power contracts approved
by the Federal Energy Regulatory Commission
provided the fixed present value of any contract
to which a political subdivision of the state is a
party shall be calculated using the political
subdivision's tax exempt borrowing rate as the
discount rate; and (C) the reasonable costs of the
consultants appointed to conduct the auctions of
generation assets pursuant to sections 6 and 7 of
this act. Mitigation may include, but is not
limited to, reallocation of depreciation reserves
to existing generation assets to the extent
consistent with generally accepted accounting
principles; reduction of book assets by
application of net proceeds of any sale of
existing assets; maximization of market revenues
from existing generation assets; efforts to
maximize current and future operating efficiency,
including appropriate and timely maintenance,
trouble shooting, aggressive identification and
correction of potential problem areas; voluntary
write-offs of above-market generation assets; the
decision to retire uneconomical generation assets
and efforts to divest generating sites at market
prices reflective of best use of sites. Mitigation
shall not include any expenditures to restart a
nuclear generation asset that was not operating
for reasons other than scheduled maintenance or
refueling at the time such expenditure was made.
Any mitigation efforts and associated costs shall
be subject to approval by the department.
(2) The department shall allow the cost of
such mitigation efforts to be included in the
calculation of stranded costs to the extent that
such mitigation costs are reasonable relative to
the amount of the reduction in stranded costs
resulting from the mitigation.
(d) An electric company shall submit to the
department an application for recovery of that
portion of generation-related regulatory assets,
long-term contract costs, generation assets and
mitigation costs which are determined by the
department in accordance with subsections (c),
(e), (f) and (g) of this section and subdivision
(1) of subsection (e) of section 7 of this act.
The application shall include a description of
mitigation efforts and a request for recovery
through the competitive transition assessment and
may include a request for a financing order. The
department shall hold a hearing for each electric
company and issue a finding of the calculation of
stranded costs in a time frame that allows for
collection of the competitive transition
assessment to begin on January 1, 2000. Any
hearing shall be conducted as a contested case in
accordance with chapter 54 of the general
statutes.
(e) The department shall calculate the
stranded costs for generation-related regulatory
assets to be their book value as of January 1,
2000. In calculating the value of
generation-related regulatory assets that are
being provided in a lump sum as the result of a
funding with the proceeds of rate reduction bonds,
the department shall adjust the value of each such
asset to reflect the time value of such lump sum,
if any.
(f) (1) The department shall calculate the
stranded costs for long-term contract costs that
have been reduced to a fixed present value through
the buyout, buydown, or renegotiation of
independent power producer contracts and purchased
power contracts approved by the Federal Energy
Regulatory Commission as such present value. In
making such calculation, the department shall net
purchased power contracts approved by the Federal
Energy Regulatory Commission that are below market
value against any such contracts that are
above-market value.
(2) The department shall calculate the
stranded costs for any portion of a long-term
contract cost that has not been reduced to a fixed
present value by comparing the contract price to
the market price at least annually. In making such
calculation, the department shall net purchased
power contracts approved by the Federal Energy
Regulatory Commission that are below market value
against any such contracts that are above-market
value. The costs described in this subdivision
shall be included in the competitive transition
assessment pursuant to section 10 of this act but
shall not be included in any funding with the
proceeds of rate reduction bonds.
(g) The department shall calculate the
stranded cost for each generation asset described
in subdivision (7) of subsection (b) of section 6
of this act to be the difference between its book
value and the market value of a prudently and
efficiently managed nonnuclear generating facility
of comparable size, age and technical
characteristics in a competitive market. In
determining the market value of any such asset,
the department may consider (A) the dollars per
kilowatt received from the sale of similar
generation facilities, if any, (B) income
capitalization based on the operating history and
capacity of the facility, the market rates for
power, and any existing long-term contracts for
the sale of power or capacity, (C) independent
market appraisals, or (D) other relevant factors.
The department shall calculate the stranded costs
for generation assets described in subdivision (7)
of subsection (b) of section 6 of this act at
least every three years. The costs described in
this subsection shall be included in the
competitive transition assessment pursuant to
section 10 of this act but shall not be included
in any funding with the proceeds of rate reduction
bonds.
(h) (1) On or before January 1, 2004, an
electric company may submit to the department an
application for recovery of that portion of
nuclear generation assets which is determined by
the department in accordance with this subsection,
which application shall include a request for
recovery through the competitive transition
assessment. The department shall hold a hearing
for each electric company and issue a finding of
the calculation of such nuclear generation assets
in accordance with the provisions of this
subsection. Any hearing shall be conducted as a
contested case proceeding in accordance with
chapter 54 of the general statutes. The costs
described in this subsection shall be included in
the competitive transition assessment pursuant to
section 10 of this act but shall not be included
in any funding with proceeds of rate reduction
bonds.
(2) The department shall calculate the
stranded costs for each nuclear generation asset
that was divested at a price less than book value
as described in subdivision (5) of subsection (c)
of section 7 of this act as the difference between
the book value of this asset and the final bid
price of the asset. The department's calculation
of stranded costs pursuant to this subdivision
shall be final and shall not be subject to further
adjustment by the department.
(3) The department shall calculate the
stranded costs for each nondivested nuclear
generation asset described in subdivision (1) of
subsection (d) of section 7 of this act to be the
difference between its book value and the market
value of a prudently and efficiently managed
nuclear generating facility of comparable size,
age and technical characteristics in a competitive
market. In determining the market value of any
such asset, the department may consider (A) the
dollars per kilowatt received from the sale of
similar generation facilities, if any, (B) income
capitalization based on the operating history and
capacity of the facility, the market rates for
power, and any existing long-term contracts for
the sale of power or capacity, (C) the provision
for decommissioning and related costs to be paid
from the systems benefits charge provided in
section 18 of this act, (D) independent market
appraisals, or (E) other relevant factors. At
least every four years after the date when the
department issues an initial finding of the
calculation of the stranded costs for such
nondivested nuclear generation assets as provided
in this subdivision until the earlier of (i) the
expiration of the collection of the competitive
transition assessment, or (ii) the date when such
an asset is divested, the department shall hold a
hearing and issue a finding to adjust the stranded
cost calculation of each such asset and to adjust
the competitive transition assessment accordingly
to true up the stranded cost recovery for the
difference between the market value projected in
such initial finding and the actual market value
of a prudently and efficiently managed nuclear
generating facility of comparable size, age and
technical characteristics during the time period
between the initial finding and the adjustment
date, provided the second and subsequent
adjustments shall reflect the difference during
the time period since the most recent true-up. The
department shall calculate the value of each such
asset in accordance with the methodology provided
in this subdivision. Any hearing shall be
conducted as a contested case in accordance with
chapter 54 of the general statutes.
(4) After the department has calculated the
total value of stranded costs for all nuclear
generation assets, the department shall (A) reduce
such amount by the net proceeds that are above
book value realized by an electric company from
the sale of nonnuclear generation assets pursuant
to subdivision (6) of subsection (b) of section 6
of this act, (B) reduce such valuation to reflect
the total net proceeds that are above book value
realized by an electric distribution company from
the sale of any nuclear generation assets pursuant
to subsection (c) of section 7 of this act, and
(C) reduce such amount by the net proceeds that
are above book value received by an electric
company for the sale or lease of any real property
after July 1, 1998.
(i) If any net proceeds described in
subdivision (4) of subsection (h) of this section
remain after the reduction in the calculation of
nuclear generation assets pursuant to said
subdivision (4) or are realized after said
reduction is calculated, the additional amount of
such net proceeds shall be netted against
long-term contract costs described in subdivision
(2) of subsection (f) of this section, and the
competitive transition assessment shall be
adjusted accordingly.
(j) (1) No electric company shall be eligible
to claim any stranded costs for a nuclear
generation asset or for any generation-related
regulatory asset related to such generation asset,
if the generation asset is not operating as a
result of an order issued by the United States
Nuclear Regulatory Commission that applies
specifically to such asset. Any such asset that is
not eligible to be claimed as a stranded cost
shall be eligible after it is permitted to and has
resumed operation and is selling power.
(2) Any asset with a Nuclear Regulatory
Commission capacity rating of 641 megawatts that
does not resume operation after such order is no
longer in effect shall not be eligible to be
claimed as a stranded cost. An electric company or
electric distribution company may apply to the
department for retirement of such unit for
economic reasons pursuant to section 16-19 of the
general statutes. The department shall include any
recovery ordered in such proceeding in the
competitive transition assessment but shall not
include any costs relating to the decommissioning
of any such facility or any costs which the
department found during a proceeding initiated
before July 1, 1998, were incurred because of
imprudent management. Notwithstanding the
provisions of this subdivision, nothing herein
shall modify or supersede any statute or
regulation in effect on the effective date of this
act pertaining to applications for retirement of
nuclear generating facilities.
(k) If an electric company elected to transfer
any of its nuclear generation assets and related
operations and functions to a separate corporate
affiliate or to a division that is functionally
separate from the electric distribution company
pursuant to section 7 of this act and subsequently
sold any such assets in an arm's length
transaction to an unrelated entity prior to
January 1, 2012, the net proceeds realized from
such sale that exceed book value for such assets
shall be netted against the total amount of
stranded costs, and the competitive transition
assessment shall be adjusted accordingly and, if
appropriate, other reimbursement shall be ordered
by the department.
Sec. 9. (NEW) An electric company or electric
distribution company may submit to the department
an application for a financing order with respect
to the following stranded costs: (1) The cost of
mitigation efforts, as calculated pursuant to
subsection (c) of section 8 of this act; (2)
generation-related regulatory assets, as
calculated pursuant to subsection (e) of section 8
of this act; and (3) those long-term contract
costs that have been reduced to a fixed present
value through the buyout, buydown, or
renegotiation of such contracts, as calculated
pursuant to subsection (f) of section 8 of this
act. No stranded costs shall be funded with the
proceeds of rate reduction bonds unless (A) the
electric company or electric distribution company
proves to the satisfaction of the department that
the savings attributable to such funding will be
directly passed on to customers through lower
rates, and (B) the department determines such
funding will not result in giving the electric
distribution company or any generation entities or
affiliates an unfair competitive advantage. The
department shall hold a hearing for each such
electric distribution company to determine the
portion of stranded costs that may be included in
such funding and thereby constitute transition
property. Any hearing shall be conducted as a
contested case in accordance with chapter 54 of
the general statutes.
Sec. 10. (NEW) (a) The Department of Public
Utility Control shall assess and beginning January
1, 2000, impose the competitive transition
assessment which shall be imposed on all customers
of each electric distribution company to provide
funds for the purposes described in subsection (d)
of this section. The department shall hold a
hearing that shall be conducted as a contested
case in accordance with chapter 54 of the general
statutes to determine the amount of the
competitive transition assessment.
(b) The department shall consider the effect
on all customer rates and other factors relevant
to reducing rates in determining the amount of the
competitive transition assessment and the manner
in which and the period over which it shall be
imposed in any decision of the department to set
or adjust the competitive transition assessment.
(c) The competitive transition assessment
shall be determined by the department in a general
and equitable manner and shall be imposed on all
customers at a rate that is applied equally to all
customers of the same class in accordance with
methods of allocation in effect on July 1, 1998,
provided the competitive transition assessment
shall not be imposed on customers receiving
services under a special contract which is in
effect on the effective date of this act until
such special contract expires. The competitive
transition assessment shall be imposed beginning
on January 1, 2000, on all customers receiving
services under a special contract which is entered
into or renewed after the effective date of this
act. The competitive transition assessment shall
have a generally applicable manner of
determination that may be measured on the basis of
percentages of total costs of retail sales of
electric generation services. The competitive
transition assessment shall be payable by
customers on an equal basis on the same payment
terms and shall be eligible or subject to
prepayment on an equal basis. Any exemption of the
competitive transition assessment by customers
under a special contract shall not result in an
increase in rates to any customer.
(d) The department shall establish, fix and
revise the competitive transition assessment in an
amount sufficient at all times to: (1) Pay the
principal of and the interest on rate reduction
bonds as the same shall become due and payable;
(2) to pay all reasonable and necessary expenses
relating to the financing; and (3) to pay an
electric company stranded costs that are not
funded with the proceeds of rate reduction bonds
and interim capital costs determined under
subdivision (1) of subsection (e) of section 7 of
this act.
(e) The competitive transition assessment
shall be charged to customers until the rate
reduction bonds are paid in full by the financing
entity and stranded costs not funded with the
proceeds of rate reduction bonds are fully
recovered by the electric company or electric
distribution company. Amounts collected from a
customer shall be allocated on a pro rata basis
among (1) rates and charges described in
subparagraph (A) of subdivision (2) of subsection
(a) of section 8 of this act, (2) rates and
charges described in subparagraph (B) of
subdivision (2) of subsection (a) of section 8 of
this act, and (3) other charges. To the extent
that the department, when issuing a financing
order, determines that special treatment on
customers' bills is necessary or desirable to
distinguish rates and charges described in
subparagraph (A) of subdivision (2) of subsection
(a) of section 8 of this act from rates and
charges described in subparagraph (B) of
subdivision (2) of subsection (a) of section 8 of
this act in order to facilitate the successful
issuance and sale of rate reduction bonds, it may
so provide as part of such financing order.
Sec. 11. (NEW) (a) The competitive transition
assessment described in subparagraph (A) of
subdivision (2) of subsection (a) of section 8 of
this act shall constitute transition property
when, and to the extent that, a financing order
authorizing such portion of the competitive
transition assessment has become effective in
accordance with sections 8 to 14, inclusive, of
this act, and the transition property shall
thereafter continuously exist as property for all
purposes with all of the rights and privileges of
sections 8 to 14, inclusive, of this act for the
period and to the extent provided in the financing
order, but in any event until the rate reduction
bonds are paid in full, including all principal,
interest, premium, costs, and arrearages on such
bonds. Prior to its sale or other transfer by the
electric company or electric distribution company
pursuant to sections 8 to 14, inclusive, of this
act, transition property shall be a vested
contract right of the electric company or electric
distribution company, notwithstanding any contrary
treatment thereof for accounting, tax, or other
purpose.
(b) Any surplus competitive transition
assessment described in subparagraph (A) of
subdivision (2) of subsection (a) of section 8 of
this act in excess of the amounts necessary to pay
principal, premium, if any, interest and expenses
of the issuance of the rate reduction bonds shall
be remitted to the financing entity and may be
used to benefit customers if this would not result
in a recharacterization of the tax, accounting,
and other intended characteristics of the
financing, including, but not limited to, the
following:
(1) Avoiding the recognition of debt on the
electric company's or the electric distribution
company's balance sheet for financial accounting
and regulatory purposes;
(2) Treating the rate reduction bonds as debt
of the electric company or electric distribution
company or its affiliates for federal income tax
purposes;
(3) Treating the transfer of the transition
property by the electric company or electric
distribution company as a true sale for bankruptcy
purposes; or
(4) Avoiding any adverse impact of the
financing on the credit rating of the rate
reduction bonds or the electric company or
electric distribution company.
(c) Electric companies and electric
distribution companies may sell and assign all or
portions of their interest in transition property
to an affiliate. Electric companies and electric
distribution companies or their affiliates may
sell or assign their interests to one or more
financing entities that make that property the
basis for issuance of rate reduction bonds to the
extent approved in the pertinent financing orders.
Electric companies, electric distribution
companies, their affiliates, or financing entities
may pledge transition property as collateral,
directly or indirectly, for rate reduction bonds
to the extent approved in the pertinent financing
orders providing for a security interest in the
transition property, in the manner as set forth in
section 14 of this act. In addition, transition
property may be sold or assigned by (1) the
financing entity or a trustee for the holders of
rate reduction bonds in connection with the
exercise of remedies upon a default, or (2) any
person acquiring the transition property after a
sale or assignment pursuant to this subsection.
(d) To the extent that any interest in
transition property is so sold or assigned, or is
so pledged as collateral, the department shall
authorize the electric company or electric
distribution company to contract with the
financing entity that it will continue to operate
its system to provide service to its customers,
will collect amounts in respect of the competitive
transition assessment for the benefit and account
of the financing entity, and will account for and
remit these amounts to or for the account of the
financing entity. Contracting with the financing
entity in accordance with that authorization shall
not impair or negate the characterization of the
sale, assignment, or pledge as an absolute
transfer, a true sale, or security interest, as
applicable.
Sec. 12. (NEW) (a) The department may issue
financing orders in accordance with sections 8 to
14, inclusive, of this act, to facilitate the
provision, recovery, financing, or refinancing of
stranded costs. A financing order may be adopted
only upon the application of an electric company
or electric distribution company, pursuant to
section 9 of this act and shall become effective
in accordance with its terms only after the
electric company or electric distribution company
files with the department the electric company's
or the electric distribution company's written
consent to all terms and conditions of the
financing order.
(b) (1) Notwithstanding any general or special
law, rule, or regulation to the contrary, except
as otherwise provided in this subsection with
respect to transition property that has been made
the basis for the issuance of rate reduction
bonds, the financing orders and the competitive
transition assessment shall be irrevocable and the
department shall not have authority either by
rescinding, altering, or amending the financing
order or otherwise, to revalue or revise for
ratemaking purposes the stranded costs, or the
costs of providing, recovering, financing, or
refinancing the stranded costs, determine that the
competitive transition assessment is unjust or
unreasonable, or in any way reduce or impair the
value of transition property either directly or
indirectly by taking the competitive transition
assessment into account when setting other rates
for the electric company or electric distribution
company; nor shall the amount of revenues arising
with respect thereto be subject to reduction,
impairment, postponement, or termination. (2)
Notwithstanding any other provision of this
section, the department shall approve the
adjustments to the competitive transition
assessment as may be necessary to ensure timely
recovery of all stranded costs that are the
subject of the pertinent financing order, and the
costs of capital associated with the provision,
recovery, financing, or refinancing thereof,
including the costs of issuing, servicing, and
retiring the rate reduction bonds contemplated by
the financing order. (3) Notwithstanding any
general or special law, rule, or regulation to the
contrary, any requirement under sections 8 to 14,
inclusive, of this act or a financing order that
the department take action with respect to the
subject matter of a financing order shall be
binding upon the department, as it may be
constituted from time to time, and any successor
agency exercising functions similar to the
department and the department shall have no
authority to rescind, alter, or amend that
requirement in a financing order. Section 16-43 of
the general statutes shall not apply to any sale,
assignment, or other transfer of or grant of a
security interest in any transition property or
the issuance of rate reduction bonds under
sections 8 to 14, inclusive, of this act.
(c) The department shall provide in any
financing order for a procedure for the timely
approval by the department of periodic adjustments
to the competitive transition assessment that is
the subject of the pertinent financing order, as
required by subdivision (2) of subsection (b) of
this section. The procedure shall require the
department to determine whether the adjustments
are required on each anniversary of the issuance
of the financing order, and at the additional
intervals as may be provided for in the financing
order, and for the adjustments, if required, to be
approved within 90 days of each anniversary of the
issuance of the financing order, or of each
additional interval provided for in the financing
order.
Sec. 13. (NEW) (a) A financing entity may
issue rate reduction bonds upon approval by the
department in the pertinent financing order. Rate
reduction bonds shall be nonrecourse to the credit
or any assets of the electric company or electric
distribution company, other than the transition
property as specified in the pertinent financing
order.
(b) Except as otherwise provided in this
subsection, the state of Connecticut does hereby
pledge and agree with the owners of transition
property and holders of rate reduction bonds that
the state shall neither limit nor alter the
competitive transition assessment, transition
property, financing orders, and all rights
thereunder until the obligations, together with
the interest thereon, are fully met and
discharged, provided nothing contained in this
subsection shall preclude the limitation or
alteration if and when adequate provision shall be
made by law for the protection of the owners and
holders. The finance authority as agent for the
state is authorized to include this pledge and
undertaking for the state in these obligations.
(c) (1) Financing orders and rate reduction
bonds shall not be deemed to constitute a debt or
liability of the state or of any political
subdivision thereof, other than the financing
entity, shall not constitute a pledge of the full
faith and credit of the state or any of its
political subdivisions, other than the financing
entity, but shall be payable solely from the funds
provided under sections 8 to 14, inclusive, of
this act, and shall not constitute an indebtedness
of the state within the meaning of any
constitutional or statutory debt limitation or
restriction and, accordingly, shall not be subject
to any statutory limitation on the indebtedness of
the state and shall not be included in computing
the aggregate indebtedness of the state in respect
to and to the extent of any such limitation. This
subsection shall in no way preclude bond
guarantees or enhancements pursuant to sections 8
to 14, inclusive, of this act. All rate reduction
bonds shall contain on the face thereof a
statement to the following effect: "Neither the
full faith and credit nor the taxing power of the
State of Connecticut is pledged to the payment of
the principal of, or interest on, this bond."
(2) The issuance of rate reduction bonds under
sections 8 to 14, inclusive, of this act shall not
directly, indirectly, or contingently obligate the
state or any political subdivision thereof to levy
or to pledge any form of taxation therefor or to
make any appropriation for their payment.
(3) The exercise of the powers granted by
sections 8 to 14, inclusive, of this act shall be
in all respects for the benefit of the people of
this state, for the increase of their commerce,
welfare, and prosperity, and as the exercise of
such powers shall constitute the performance of an
essential public function, neither the finance
authority, any electric company or electric
distribution company, any affiliate of any
electric company or electric distribution company,
any financing entity, or any collection or other
agent of any of the foregoing shall be required to
pay any taxes or assessments upon or in respect of
any revenues or property received, acquired,
transferred, or used by the finance authority, any
electric company or electric distribution company,
any affiliate of any electric company or electric
distribution company, any financing entity, or any
collection or other agent of any of the foregoing
under the provisions of sections 8 to 14,
inclusive, of this act or upon or in respect of
the income therefrom, and any rate reduction bonds
shall be treated as issued by or on behalf of a
public instrumentality created under the laws of
the state for purposes of chapter 229 of the
general statutes.
(4) The proceeds of any rate reduction bonds
shall be used for the purposes approved by the
department in the financing order, including but
not limited to, the costs of refinancing or
retiring of debt of the electric company or
electric distribution company, and associated
federal and state tax liabilities; provided such
proceeds shall not be applied to purchase
generation assets or to purchase or redeem stock
or to pay dividends to shareholders or operating
expenses other than taxes resulting from the
receipt of such proceeds.
(5) Rate reduction bonds are made and declared
(A) securities in which all public officers and
public bodies of the state and its political
subdivisions, all insurance companies, state banks
and trust companies, national banking
associations, savings banks, savings and loan
associations, investment companies, executors,
administrators, trustees and other fiduciaries may
properly and legally invest funds, including
capital in their control or belonging to them, and
(B) securities which may properly and legally be
deposited with and received by any state or
municipal officer or any agency or political
subdivision of the state for any purpose for which
the deposit of bonds or obligations of the state
is now or may be authorized.
(6) Rate reduction bonds shall mature at such
time or times approved by the department in the
financing order; provided that such maturity shall
not be later than December 31, 2011.
(7) Rate reduction bonds issued and at any
time outstanding may, if and to the extent
permitted under the indenture or other agreement
pursuant to which they are issued, be refunded by
other rate reduction bonds.
(d) Any rate reduction bonds issued or sold
pursuant to or in reliance on and in accordance
with any financing order issued by the department
pursuant to sections 8 to 14, inclusive, of this
act shall be valid and binding in accordance with
their terms notwithstanding such financing order
is later vacated, modified, or otherwise held to
be wholly or partly invalid, unless operation of
such financing order has been enjoined, stayed, or
suspended by the department or a court of
competent jurisdiction prior to such issuance.
Sec. 14. (NEW) (a) A security interest in
transition property is valid, is enforceable
against the pledgor and third parties, subject to
the rights of any third parties holding security
interests in the transition property perfected in
the manner described in this section, and attaches
when all of the following have taken place:
(1) The department has issued the financing
order authorizing the competitive transition
assessment included in the transition property.
(2) Value has been given by the pledgees of
the transition property.
(3) The pledgor has signed a security
agreement covering the transition property.
(b) A valid and enforceable security interest
in transition property is perfected when it has
attached and when a financing statement has been
filed in accordance with part 4 of article 9 of
title 42a of the general statutes naming the
pledgor of the transition property as "debtor" and
identifying the transition property. Any
description of the transition property shall be
sufficient if it refers to the financing order
creating the transition property. A copy of the
financing statement shall be filed with the
department by the electric company or electric
distribution company that is the pledgor or
transferor of the transition property, and the
department may require the electric company or
electric distribution company to make other
filings with respect to the security interest in
accordance with procedures it may establish,
provided that the filings shall not affect the
perfection of the security interest.
(c) A perfected security interest in
transition property is a continuously perfected
security interest in all revenues and proceeds
arising with respect thereto, whether or not the
revenues or proceeds have accrued. Conflicting
security interests shall rank according to
priority in time of perfection. Transition
property shall constitute property for all
purposes, including for contracts securing rate
reduction bonds, whether or not the revenues and
proceeds arising with respect thereto have
accrued.
(d) Subject to the terms of the security
agreement covering the transition property and the
rights of any third parties holding security
interests in the transition property perfected in
the manner described in this section, the validity
and relative priority of a security interest
created under this section are not defeated or
adversely affected by the commingling of revenues
arising with respect to the transition property
with other funds of the electric company or
electric distribution company that is the pledgor
or transferor of the transition property, or by
any security interest in a deposit account of that
electric company or electric distribution company
into which the revenues are deposited or in such
revenues themselves perfected under article 9 of
title 42a of the general statutes or otherwise.
Subject to the terms of the security agreement,
the pledgees of the transition property shall have
a perfected security interest in all cash and
deposit accounts of the electric company or
electric distribution company in which revenues
arising with respect to the transition property
have been commingled with other funds, but the
perfected security interest shall be limited to an
amount not greater than the amount of the revenues
with respect to the transition property received
by the electric company or electric distribution
company within twelve months before (1) any
default under the security agreement or (2) the
institution of insolvency proceedings by or
against the electric company or electric
distribution company, less payments from the
revenues to the pledgees during that twelve-month
period.
(e) If an event of default occurs under the
security agreement covering the transition
property, the pledgees of the transition property,
subject to the terms of the security agreement,
shall have all rights and remedies of a secured
party upon default under article 9 of title 42a of
the general statutes, and shall be entitled to
foreclose or otherwise enforce their security
interest in the transition property, subject to
the rights of any third parties holding prior
security interests in the transition property
perfected in the manner provided in this section.
In addition, the department may require, in the
financing order creating the transition property,
that, in the event of default by the electric
company or electric distribution company in
payment of revenues arising with respect to the
transition property, the department and any
successor thereto, upon the application by the
pledgees or transferees, including transferees
under this section, of the transition property,
and without limiting any other remedies available
to the pledgees or transferees by reason of the
default, shall order the sequestration and payment
to the pledgees or transferees of revenues arising
with respect to the transition property. Any order
shall remain in full force and effect
notwithstanding any bankruptcy, reorganization, or
other insolvency proceedings with respect to the
debtor, pledgor, or transferor of the transition
property. Any surplus in excess of amounts
necessary to pay principal, premium, if any,
interest, costs, and arrearages on the rate
reduction bonds, and other costs arising under the
security agreement, shall be remitted to the
debtor or to the pledgor or transferor.
(f) Sections 42a-9-204 and 42a-9-205 of the
general statutes shall apply to a pledge of
transition property by an electric company or
electric distribution company, an affiliate of an
electric company or electric distribution company,
or a financing entity.
(g) This section sets forth the terms by which
a consensual security interest can be created and
perfected in the transition property. Unless
otherwise ordered by the department with respect
to any series of rate reduction bonds on or prior
to the issuance of the series, there shall exist a
statutory lien as provided in this subsection.
Upon the effective date of the financing order,
there shall exist a first priority lien on all
transition property then existing or thereafter
arising pursuant to the terms of the financing
order. This lien shall arise by operation of this
section automatically without any action on the
part of the electric company or electric
distribution company, any affiliate thereof, the
financing entity, or any other person. This lien
shall secure all obligations, then existing or
subsequently arising, to the holders of the rate
reduction bonds issued pursuant to the financing
order, the trustee or representative for the
holders, and any other entity specified in the
financing order. The persons for whose benefit
this lien is established shall, upon the
occurrence of any defaults specified in the
financing order, have all rights and remedies of a
secured party upon default under article 9 of
title 42a of the general statutes, and shall be
entitled to foreclose or otherwise enforce this
statutory lien in the transition property. This
lien shall attach to the transition property
regardless of who shall own, or shall subsequently
be determined to own, the transition property
including any electric company or electric
distribution company, any affiliate thereof, the
financing entity, or any other person. This lien
shall be valid, perfected, and enforceable against
the owner of the transition property and all third
parties upon the effectiveness of the financing
order without any further public notice; provided,
however, that any person may, but shall not be
required to, file a financing statement in
accordance with subsection (b) of this section.
Financing statements so filed may be "protective
filings" and shall not be evidence of the
ownership of the transition property. A perfected
statutory lien in transition property is a
continuously perfected lien in all revenues and
proceeds arising with respect thereto, whether or
not the revenues or proceeds have accrued.
Conflicting liens shall rank according to priority
in time of perfection. Transition property shall
constitute property for all purposes, including
for contracts securing rate reduction bonds,
whether or not the revenues and proceeds arising
with respect thereto have accrued. In addition,
the department may require, in the financing order
creating the transition property, that, in the
event of default by the electric company or
electric distribution company in payment of
revenues arising with respect to transition
property, the department and any successor
thereto, upon the application by the beneficiaries
of the statutory lien, and without limiting any
other remedies available to the beneficiaries by
reason of the default, shall order the
sequestration and payment to the beneficiaries of
revenues arising with respect to the transition
property. Any order shall remain in full force and
effect notwithstanding any bankruptcy,
reorganization, or other insolvency proceedings
with respect to the debtor, pledgor, or transferor
of the transition property. Any surplus in excess
of amounts necessary to pay principal, premium, if
any, interest, costs, and arrearages on the rate
reduction bonds, and other costs arising in
connection with the documents governing the rate
reduction bonds, shall be remitted to the debtor
or to the pledgor or transferor.
(h) A transfer of transition property by an
electric company or electric distribution company
to an affiliate or to a financing entity, or by an
affiliate of an electric company or electric
distribution company or a financing entity to
another financing entity, which the parties have
in the governing documentation expressly stated to
be a sale or other absolute transfer, in a
transaction approved in a financing order, shall
be treated as an absolute transfer of all of the
transferor's right, title, and interest, as in a
true sale, and not as a pledge or other financing,
of the transition property, in each case
notwithstanding any contrary treatment of such
transfer for accounting, tax, or other purposes.
Granting to holders of rate reduction bonds a
preferred right to revenues of the electric
company or electric distribution company, or the
provision by the company of other credit
enhancement with respect to rate reduction bonds,
shall not impair or negate the characterization of
any transfer as a true sale, in each case
notwithstanding any contrary treatment of such
transfer for accounting, tax or other purposes.
(i) A transfer of transition property shall be
deemed perfected as against third persons when
both of the following have taken place:
(1) The department has issued the financing
order authorizing the competitive transition
assessment included in the transition property.
(2) An assignment of the transition property
in writing has been executed and delivered to the
transferee.
(j) As between bona fide assignees of the same
right for value without notice, the assignee first
filing a financing statement in accordance with
part 4 of article 9 of title 42a of the general
statutes naming the assignor of the transition
property as debtor and identifying the transition
property has priority. Any description of the
transition property shall be sufficient if it
refers to the financing order creating the
transition property. A copy of the financing
statement shall be filed by the assignee with the
department, and the department may require the
assignor or the assignee to make other filings
with respect to the transfer in accordance with
procedures it may establish, but these filings
shall not affect the perfection of the transfer.
(k) Any successor to the electric company or
electric distribution company, whether pursuant to
any bankruptcy, reorganization, or other
insolvency proceeding, or pursuant to any merger,
sale, or transfer, by operation of law, or
otherwise, shall perform and satisfy all
obligations of the electric company or electric
distribution company pursuant to sections 8 to 14,
inclusive, of this act in the same manner and to
the same extent as the electric company or
electric distribution company, including, but not
limited to, collecting and paying to the holders
of rate reduction bonds or their representatives
or the applicable financing entity revenues
arising with respect to the transition property
sold to the applicable financing entity or pledged
to secure rate reduction bonds.
(l) The authority of the department to issue
financing orders pursuant to sections 8 to 14,
inclusive, of this act shall expire on December
31, 2008. The expiration of the authority shall
have no effect upon financing orders adopted by
the department pursuant to sections 8 to 14,
inclusive, of this act or any transition property
arising therefrom, or upon the charges authorized
to be levied thereunder, or the rights, interests,
and obligations of the electric company or
electric distribution company or a financing
entity or holders of rate reduction bonds pursuant
to the financing order, or the authority of the
department to monitor, supervise, or take further
action with respect to the financing order in
accordance with the terms of sections 8 to 14,
inclusive, of this act and of the financing order.
Sec. 15. (NEW) (a) Not later than January 1,
1999, the Department of Public Utility Control
shall, by regulations adopted pursuant to chapter
54 of the general statutes, establish a code of
conduct which shall apply to electric distribution
companies, as defined in section 16-1 of the
general statutes, as amended by section 1 of this
act, their generation entities or affiliates and
electric suppliers. The code of conduct shall
become effective upon the completion of unbundling
but not later than July 1, 1999.
(b) The code of conduct shall include: (1)
Measures to ensure information, revenues,
expenses, costs, assets, liabilities or other
resources derived from or associated with
providing electric transmission or distribution
services by an electric distribution company are
not used to subsidize any generation entity or
affiliate; (2) safeguards to assure fair dealing
between electric distribution companies and all
other electric suppliers, as defined in section
16-1 of the general statutes, as amended by
section 1 of this act, including any generation
entities or affiliates of the electric company;
(3) procedures for ensuring electric suppliers
nondiscriminatory access to the transmission and
distribution facilities of the electric
distribution company; and (4) measures to ensure
that an electric distribution company provides
transmission and distribution service, applies
tariffs to generation entities or affiliates and
to unaffiliated electric suppliers in a
nondiscriminatory manner and enforces such tariff
provisions. The code of conduct shall, at a
minimum, (A) prohibit any employee of a generation
entity or affiliate from conducting distribution
system operations or having access to system
control centers or similar facilities used by
distribution operations in any way that differs
from the access available to employees of
unaffiliated electric suppliers, (B) prohibit an
employee of a generation entity or affiliate from
having preferential access to any information
concerning the electric distribution company's
customers or distribution system that is not
available on an equivalent basis to unaffiliated
electric suppliers, (C) prohibit an employee of an
electric distribution company from disclosing to
an employee of a generation entity or affiliate
information concerning its customers, the
distribution system or other market information
through nonpublic communications that is not
available on an equivalent basis to all
unaffiliated electric suppliers, (D) require
employees of electric distribution companies to
apply all tariff provisions relating to the sale
or purchase of any retail access distribution
service in a fair, impartial and nondiscriminatory
manner, and (E) prohibit joint marketing
activities between an electric distribution
company and its generation entity or affiliate.
The code of conduct shall not prohibit
communications necessary for standard offer
service pursuant to section 19 of this act or when
necessary to restore service or to prevent or
respond to emergency conditions. Each electric
distribution company shall annually submit to the
department such information as the department may
require in order to evaluate the actual
effectiveness of the code of conduct in fulfilling
the purposes of this section. The department shall
consult with the independent system operator on a
regular basis regarding issues raised under this
section. The department may, upon its own motion
or upon receipt of a complaint from any person
alleging a violation of the code of conduct,
investigate an electric distribution company's
compliance with the code of conduct, and any such
investigation shall be considered a contested case
as defined in section 4-166 of the general
statutes. The department may enter into
appropriate orders to enforce the code, including
cease and desist orders, and it may levy civil
penalties against these entities subject to the
code after notice and hearing pursuant to section
16-41 of the general statutes. Any person
aggrieved by a violation of the code of conduct
shall also have a private right of action for
damages against the electric distribution company
or generation entity or affiliate, as the case may
be.
Sec. 16. (NEW) (a) The Department of Public
Utility Control shall continue to regulate
electric distribution companies, as defined in
section 16-1 of the general statutes, as amended
by section 1 of this act, in accordance with the
provisions of section 16-19 and subsection (a) of
section 16-19e of the general statutes and in
accordance with existing rate orders except for
assets for which funds have been received by the
company pursuant to sections 10 to 14, inclusive,
of this act. Each electric distribution company
shall maintain the integrity of the distribution
system in conformity with the National Electric
Safety Code and such other standards found
applicable by the department that are practiced by
the electric distribution industry, in a manner
sufficient to provide safe and reliable service,
regardless of whether or not its generation entity
or affiliate is the electric supplier, to all
customers connected to the system consistent with
title 16 of the general statutes and regulations
adopted thereunder. Each electric distribution
company shall provide nondiscriminatory access of
its distribution facilities to every electric
supplier, as defined in said section 16-1,
provided no electric distribution company shall
provide access of its distribution facilities to
an entity that is not licensed as an electric
supplier pursuant to section 16-245 of the general
statutes, as amended by this act, except as
provided under federal law.
(b) Each electric distribution company shall
have the obligation to connect all customers to
the company's distribution system, subject to
rates, terms and conditions as may be approved by
the Department of Public Utility Control in
accordance with section 16-19 of the general
statutes and the principles in subsection (a) of
section 16-19e of the general statutes.
(c) Each electric distribution company shall
continue to provide metering, billing and
collection services. The department shall
determine billing and metering protocols and any
appropriate cost-sharing allocations among
electric distribution companies and electric
suppliers.
(d) The department shall oversee quality and
reliability of service for each electric
distribution company and ensure that quality and
reliability are the same as or better than levels
that existed on July 1, 1998.
Sec. 17. (NEW) (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 of
the general statutes, as amended by section 1 of
this act. 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 20 of this act. 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 of the general
statutes, as amended by this act, 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 20 of this act.
(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 of the general
statutes, as amended by this act, to assist in
developing and implementing the public education
outreach program, provided the authorization to
retain such consultant shall expire December 31,
2000. 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 of the general
statutes, as amended by this act.
(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.
Sec. 18. (NEW) (a) The Department of Public
Utility Control shall establish and each electric
distribution company shall collect a systems
benefits charge to be imposed against all end use
customers of each electric distribution company
beginning January 1, 2000. The department shall
hold a hearing that shall be conducted as a
contested case in accordance with chapter 54 of
the general statutes to establish the amount of
the systems benefits charge. The department may
revise the systems benefits charge or any element
of said charge as the need arises. The systems
benefits charge shall be used to fund (1) the
expenses of the public education outreach program
developed under subsection (a) of section 17 of
this act other than expenses for department staff,
(2) the reasonable and proper expenses of the
education outreach consultant pursuant to
subsection (d) of section 17 of this act, (3) the
cost of hardship protection measures under
sections 16-262c and 16-262d of the general
statutes, as amended by this act, and other
hardship protections, including but not limited
to, electric service bill payment programs,
funding and technical support for energy
assistance, fuel bank and weatherization programs
and weatherization services, (4) the payment
program to offset tax losses described in section
48 of this act, (5) any sums paid to a resource
recovery authority pursuant to subsection (b) of
section 16-243e, as amended by this act, (6) low
income conservation programs approved by the
Department of Public Utility Control, (7)
displaced worker protection costs, (8) unfunded
storage and disposal costs for spent nuclear fuel
generated before January 1, 2000, approved by the
appropriate regulatory agencies, (9)
postretirement safe shutdown and site protection
costs that are incurred in preparation for
decommissioning, and (10) decommissioning fund
contributions. As used in this subsection,
"displaced worker protection costs" means the
reasonable costs incurred, prior to January 1,
2006, by an electric company or a generation
entity or affiliate arising from the dislocation
of any employee other than an officer, provided
such dislocation is a result of restructuring of
the electric generation market and such
dislocation occurs on or after July 1, 1998; and
provided further such costs result from either the
execution of agreements reached through collective
bargaining for union employees or from the
company's or entity's or affiliate's programs and
policies for nonunion employees. "Displaced worker
protection costs" includes costs incurred or
projected for severance, retraining, early
retirement, outplacement and related expenses.
"Displaced worker protection costs" does not
include those costs included in determining a tax
credit pursuant to section 47 of this act.
(b) The amount of the systems benefits charge
shall be determined by the department in a general
and equitable manner and shall be imposed on all
end use customers of each electric distribution
company at a rate that is applied equally to all
customers of the same class in accordance with
methods of allocation in effect on July 1, 1998,
provided the system benefits charge shall not be
imposed on customers receiving services under a
special contract which is in effect on the
effective date of this act until such special
contracts expire. The system benefits charge shall
be imposed beginning on January 1, 2000, on all
customers receiving services under a special
contract which are entered into or renewed after
the effective date of this act. The systems
benefits charge shall have a generally applicable
manner of determination that may be measured on
the basis of percentages of total costs of retail
sales of generation services. The systems benefits
charge shall be payable on an equal basis on the
same payment terms and shall be eligible or
subject to prepayment on an equal basis. Any
exemption of the systems benefits charge by
customers under a special contract shall not
result in an increase in rates to any customer.
Sec. 19. (NEW) (a) As used in this section,
"service area" means the geographic area in which
a municipal electric utility is authorized to
provide electric generation or distribution
services to an end use customer pursuant to
section 7-214 of the general statutes or special
act.
(b) No municipal electric utility established
under chapter 101 of the general statutes shall
use the transmission or distribution system or
facilities of an electric distribution company, as
defined in section 16-1 of the general statutes,
as amended by section 1 of this act, for the
purpose of providing electric generation services
to an end use customer outside its service area,
unless the municipal electric utility is
authorized to do so by the Department of Public
Utility Control, in which case it shall be
considered a participating municipal electric
utility.
(c) As of the date that a municipal electric
utility is authorized to be a participating
municipal electric utility, the participating
municipal electric utility may provide electric
generation services to customers outside of its
service area. Each participating municipal
electric utility shall provide open and
nondiscriminatory access of all distribution
facilities it owns or operates to all electric
suppliers, as defined in section 16-1 of the
general statutes, as amended by section 1 of this
act, and shall allow customers within its service
area to choose among electric suppliers for
electric generation services in a manner
comparable to all other end use customers of an
electric distribution company.
(d) Each participating municipal electric
utility that provides electric generation services
shall be licensed by the department as an electric
supplier in accordance with section 16-245 of the
general statutes, as amended by this act.
Notwithstanding the provisions of any municipal
charter or special act to the contrary, no such
license shall be granted unless, in addition to
the requirements set forth in section 16-245 of
the general statutes, as amended by this act, the
participating municipal electric utility has (1)
unbundled and separated all of its generation
assets and all generation-related operations and
functions by (A) sale or transfer to an unrelated
entity, (B) transfer on a functional basis to one
or more separate divisions of the participating
municipal electric utility that are structurally
separate from the participating municipal electric
utility's transmission and distribution assets and
all related operations and functions, or (C) such
other substantially equivalent measure deemed
appropriate by the department, after taking into
account the size of the participating municipal
electric utility and its existing structure and
operations; and (2) the buyer or transferee of
each such asset proves to the satisfaction of the
department that the buyer or transferee will
preserve labor agreements in effect at the time of
the sale or transfer.
(e) Any municipal electric utility created on
or after July 1, 1998, pursuant to section 7-214
of the general statutes or a special act and any
municipal electric utility that expands its
service area on or after July 1, 1998, shall
collect from its new customers the competitive
transition assessment imposed pursuant to section
10 of this act, the systems benefits charge
imposed pursuant to section 18 of this act and the
assessments charged under sections 33 and 44 of
this act in such manner and at such rate as the
department prescribes, provided the department
shall order the collection of said assessment and
said charge in a manner and rate equal to that to
which the customers would have been subject had
the municipal electric utility not been created or
expanded.
(f) The department shall, within a period of
time to ensure that any municipal electric utility
that intends to become a participating municipal
electric utility can do so in a timely manner,
establish procedures by regulations adopted in
accordance with chapter 54 of the general
statutes, to authorize a municipal electric
utility to become a participating municipal
electric utility. Such procedures shall include
those measures the department determines are
necessary for the participating municipal electric
utilities to function in a competitive
environment.
(g) No municipal electric energy cooperative
shall be allowed to be an electric supplier or to
request authorization to provide electric
generation services to any end use customers.
Sec. 20. (NEW) (a) (1) On and after January 1,
2000, each electric distribution company, as
defined in section 16-1 of the general statutes,
as amended by section 1 of this act, 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, as defined in
said section 16-1. The standard offer shall
automatically terminate on January 1, 2004, unless
extended by the General Assembly pursuant to
section 74 of this act. 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
of the general statutes, as amended by this act.
(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 of the general
statutes 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 33 of this act, the
renewable energy investment charge described in
section 44 of this act, 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 3 of this act, 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
of the general statutes, as amended by this act,
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 of
the general statutes. Notwithstanding the
provisions of section 16-19b of the general
statutes, 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 legislative enactments other
than this act, 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, 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) On and after January 1, 2004, each
electric distribution company shall serve any
customer who does not or is unable to arrange for
or maintain electric generation services with an
electric supplier. The electric distribution
company shall procure electric generation services
for such customers through a competitive bidding
process. An electric distribution 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
of the general statutes, as amended by this act.
(c) 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, 2003, 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, 2004, such company shall procure
electric generation services through a competitive
bidding process. 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 of the general
statutes, as amended by this act.
(d) An electric distribution company is not
required to be licensed pursuant to section 16-245
of the general statutes, as amended by this act,
to provide standard offer electric generation
services in accordance with subsection (a) of this
section or back-up electric generation services
prior to January 1, 2004, in accordance with
subsection (c) of this section.
(e) 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, the default
service pursuant to subsection (b) of this section
or the back-up electric generation services
pursuant to subsection (c) of this section. The
provisions of this section and section 3 of this
act shall satisfy the requirements of section
16-19a of the general statutes until January 1,
2004.
(f) The Department of Public Utility Control
shall establish, by regulations adopted pursuant
to chapter 54 of the general statutes, standards
or procedures for an electric distribution
company's procuring power and competitive bidding
for purposes of subsections (b) and (c) of this
section in a commercially reasonable manner and
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.
Sec. 21. (NEW) (a) The Department of Public
Utility Control shall, by regulations adopted
pursuant to chapter 54 of the general statutes,
develop a standard billing format that enables
customers to compare pricing policies and charges
among electric suppliers, as defined in section
16-1 of the general statutes, as amended by
section 1 of this act. On and after January 1,
2000, each electric company or electric
distribution company, as defined in said section
16-1, as the case may be, shall, in accordance
with the billing format developed by the
department, include at a minimum the following
information in each customer's bill: (1) The total
amount owed by the customer, which shall be
itemized to show, (A) the electric generation
services component and any additional charges
imposed by the electric supplier, if applicable,
(B) the electric transmission and distribution
charge, including all applicable taxes and the
systems benefits charge, as provided in section 18
of this act, (C) the competitive transition
assessment, as provided in section 10 of this act,
and (D) the conservation and renewable energy
charge, consisting of the conservation and load
management program charge, as provided in section
33 of this act and the renewable energy investment
charge, as provided in section 44 of this act; (2)
any unpaid amounts from previous bills which shall
be listed separately from current charges; (3)
except for customers subject to a demand charge,
the rate and usage for the current month and each
of the previous twelve months in the form of a bar
graph or other visual form; (4) the payment due
date; (5) the interest rate applicable to any
unpaid amount; (6) the toll-free telephone number
of the electric distribution company to report
power losses; (7) the toll-free telephone number
of the Department of Public Utility Control for
questions or complaints; (8) the toll-free
telephone number and address of the electric
supplier; and (9) a statement about the
availability of information concerning electric
suppliers pursuant to section 27 of this act.
(b) The regulations shall provide guidelines
for determining the billing relationship between
the electric distribution company and electric
suppliers, including but not limited to, the
allocation of partial bill payments and late
payments between the electric distribution company
and the electric supplier. The electric
distribution company shall be entitled to recover
from the electric supplier all reasonable
transaction costs to provide such billing services
as well as a reasonable rate of return, in
accordance with the principles in subsection (a)
of section 16-19e of the general statutes.
Sec. 22. Section 16-245 of the general
statutes is repealed and the following is
substituted in lieu thereof:
[No such corporation shall exercise the
privileges conferred by section 16-244, within the
territory where any corporation organized under
any special act of the General Assembly is engaged
in the business of selling and distributing
electricity for light, heat and power, until it
has given notice of such intention to the
Department of Public Utility Control, with the
names and location of the persons and corporations
to whom it proposes to sell such electricity. The
department shall, upon receipt of such notice,
assign a hearing thereon, giving reasonable notice
thereof to any such corporation which is engaged
in the business of supplying electricity for
light, heat and power within the territory where
the corporation giving such notice proposes to
sell the same, and to the municipality wherein
such territory is located, and the corporation
giving such notice shall exercise within such
territory the privileges conferred by section
16-244 except in cases where said department then
finds that the proposed action will materially
impair the public service or subject the public to
any material inconvenience by reason of the
erection of additional lines, poles, equipment or
fixtures, or by reason of opening the highways or
public places for the purpose of laying its wires,
cables or conduits, or impair the financial
condition of the corporation engaged in business
therein so that it will be unable to furnish
adequate service to the customers at such time
being supplied by it and pay a reasonable dividend
upon its investment within the state.]
(a) NO PERSON SHALL EXECUTE ANY CONTRACT
RELATING TO THE SALE OF ELECTRIC GENERATION
SERVICES TO BE RENDERED AFTER JANUARY 1, 2000, TO
END USE CUSTOMERS LOCATED IN THE STATE UNLESS SUCH
PERSON HAS BEEN ISSUED A LICENSE BY THE DEPARTMENT
IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
NO LICENSE SHALL BE VALID BEFORE JULY 1, 1999.
(b) ON AND AFTER JANUARY 1, 2000, NO PERSON
AND NO MUNICIPALITY SHALL SELL OR ATTEMPT TO SELL
ELECTRIC GENERATION SERVICES TO END USE CUSTOMERS
LOCATED IN THE STATE USING THE TRANSMISSION OR
DISTRIBUTION FACILITIES OF AN ELECTRIC
DISTRIBUTION COMPANY, AS DEFINED IN SECTION 16-1,
AS AMENDED BY SECTION 1 OF THIS ACT, AND NO
MUNICIPALITY OR THE CONNECTICUT RESOURCES RECOVERY
AUTHORITY EXCEPT AS PROVIDED IN SECTION 23 OF THIS
ACT AND NO PERSON SHALL AGGREGATE, BROKER OR
MARKET THE SALE OF ELECTRIC GENERATION SERVICES TO
END USE CUSTOMERS USING THE TRANSMISSION OR
DISTRIBUTION FACILITIES OF AN ELECTRIC
DISTRIBUTION COMPANY UNLESS THE PERSON HAS BEEN
ISSUED A LICENSE BY THE DEPARTMENT OF PUBLIC
UTILITY CONTROL IN ACCORDANCE WITH THE PROVISIONS
OF THIS SECTION, PROVIDED AN ELECTRIC DISTRIBUTION
COMPANY IS NOT REQUIRED TO BE LICENSED PURSUANT TO
THIS SECTION TO PROVIDE ELECTRIC GENERATION
SERVICES PURSUANT TO SUBSECTION (a) OR, PRIOR TO
JANUARY 1, 2004, SUBSECTION (c) OF SECTION 20 OF
THIS ACT. NOT LATER THAN JANUARY 1, 1999, THE
DEPARTMENT SHALL, BY REGULATIONS ADOPTED PURSUANT
TO CHAPTER 54, DEVELOP LICENSING PROCEDURES. THE
LICENSING PROCESS SHALL BEGIN NOT LATER THAN APRIL
1, 1999.
(c) TO ENSURE THE SAFETY AND RELIABILITY OF
THE SUPPLY OF ELECTRICITY IN THIS STATE, THE
DEPARTMENT OF PUBLIC UTILITY CONTROL SHALL NOT
ISSUE A LICENSE UNLESS THE PERSON CAN DEMONSTRATE
TO THE SATISFACTION OF THE DEPARTMENT THAT: (1)
THE PERSON HAS THE TECHNICAL, MANAGERIAL AND
FINANCIAL CAPABILITY TO PROVIDE ELECTRIC
GENERATION SERVICES AND PROVIDES AND MAINTAINS A
BOND OR OTHER SECURITY IN AMOUNT AND FORM APPROVED
BY THE DEPARTMENT, TO ENSURE ITS FINANCIAL
RESPONSIBILITY AND ITS SUPPLY OF ELECTRICITY TO
END USE CUSTOMERS IN ACCORDANCE WITH CONTRACTS,
AGREEMENTS OR ARRANGEMENTS; (2) THE PERSON OR THE
ENTITY OR ENTITIES WITH WHOM THE PERSON HAS A
CONTRACTUAL RELATIONSHIP TO PURCHASE POWER IS IN
COMPLIANCE WITH ALL APPLICABLE LICENSING
REQUIREMENTS OF THE FEDERAL ENERGY REGULATORY
COMMISSION; (3) THE PERSON IS REGISTERED WITH OR
CERTIFIED BY THE REGIONAL INDEPENDENT SYSTEMS
OPERATOR OR HAS A CONTRACTURAL RELATIONSHIP WITH
ONE OR MORE ENTITIES WHO ARE REGISTERED WITH OR
CERTIFIED BY THE REGIONAL INDEPENDENT SYSTEMS
OPERATOR AND IS IN COMPLIANCE WITH ALL SYSTEM
RULES AND STANDARDS ESTABLISHED BY THE REGIONAL
INDEPENDENT SYSTEMS OPERATOR; (4) THE PERSON OWNS
OR PURCHASES SUCH CAPACITY AND RESERVES AS MAY BE
REQUIRED BY THE REGIONAL INDEPENDENT SYSTEM
OPERATOR, TO PROVIDE ADEQUATE ELECTRICITY TO ALL
THE PERSON'S CUSTOMERS; (5) THE PERSON'S
GENERATION FACILITIES LOCATED IN NORTH AMERICA ARE
IN COMPLIANCE WITH REGULATIONS ADOPTED BY THE
COMMISSIONER OF ENVIRONMENTAL PROTECTION PURSUANT
TO SECTION 24 OF THIS ACT; AND (6) FOR ANY
GENERATION FACILITY WITHIN THIS STATE, THE
FACILITY IS IN COMPLIANCE WITH CHAPTER 277a AND
STATE ENVIRONMENTAL LAWS AND REGULATIONS. A
LICENSE SHALL BE SUBJECT TO PERIODIC REVIEW ON A
SCHEDULE TO BE ESTABLISHED BY THE DEPARTMENT.
(d) AN APPLICATION FOR A LICENSE SHALL BE
FILED WITH THE DEPARTMENT OF PUBLIC UTILITY
CONTROL, ACCOMPANIED BY A FEE PURSUANT TO
SUBSECTION (e) OF THIS SECTION. THE APPLICATION
SHALL CONTAIN SUCH INFORMATION AS THE DEPARTMENT
MAY DEEM RELEVANT, INCLUDING, BUT NOT LIMITED TO,
THE FOLLOWING: (1) THE ADDRESS OF THE APPLICANT'S
HEADQUARTERS AND THE ARTICLES OF INCORPORATION, AS
FILED WITH THE STATE IN WHICH THE APPLICANT IS
INCORPORATED; (2) THE ADDRESS OF THE APPLICANT'S
PRINCIPAL OFFICE IN THE STATE AND THE ADDRESS OF
THE APPLICANT'S AGENT FOR SERVICE IN THE STATE;
(3) THE TOLL-FREE TELEPHONE NUMBER FOR CUSTOMER
SERVICE; (4) INFORMATION ABOUT THE APPLICANT'S
CORPORATE STRUCTURE, INCLUDING NAMES AND FINANCIAL
STATEMENTS, AS APPROPRIATE, CONCERNING CORPORATE
AFFILIATES; (5) A DISCLOSURE WHETHER THE APPLICANT
IS CURRENTLY UNDER INVESTIGATION FOR VIOLATION OF
ANY CONSUMER PROTECTION LAW OR REGULATION TO WHICH
IT IS SUBJECT, EITHER IN THIS STATE OR IN ANOTHER
STATE; (6) A COPY OF ITS STANDARD SERVICE
CONTRACT; (7) AN ATTESTATION THAT IT IS SUBJECT TO
CHAPTERS 208, 212, 212a AND 219, AS APPLICABLE,
AND THAT IT SHALL PAY ALL TAXES IT IS SUBJECT TO
IN THIS STATE; AND (8) A SCOPE OF SERVICE PLAN
WHICH SETS FORTH, AMONG OTHER THINGS, A
DESCRIPTION OF THE GEOGRAPHIC AREA THE APPLICANT
PLANS TO SERVE.
(e) THE APPLICATION FEE SHALL INCLUDE THE
COSTS TO INVESTIGATE AND ADMINISTER THE LICENSING
PROCEDURE AND SHALL BE COMMENSURATE WITH THE LEVEL
OF INVESTIGATION NECESSARY, AS DETERMINED BY
REGULATIONS ADOPTED BY THE DEPARTMENT OF PUBLIC
UTILITY CONTROL.
(f) NOT MORE THAN THIRTY DAYS AFTER RECEIVING
AN APPLICATION, THE DEPARTMENT OF PUBLIC UTILITY
CONTROL SHALL NOTIFY THE APPLICANT WHETHER THE
APPLICATION IS COMPLETE OR WHETHER THE APPLICANT
MUST SUBMIT ADDITIONAL INFORMATION. THE DEPARTMENT
SHALL GRANT OR DENY A LICENSE APPLICATION, AFTER
NOTICE AND A HEARING, NOT MORE THAN NINETY DAYS
AFTER RECEIVING ALL INFORMATION REQUIRED OF AN
APPLICANT. ANY HEARING SHALL BE CONDUCTED AS A
CONTESTED CASE IN ACCORDANCE WITH CHAPTER 54 OF
THE GENERAL STATUTES.
(g) THE DEPARTMENT OF PUBLIC UTILITY CONTROL
SHALL REQUIRE, AS CONDITIONS OF A LICENSE, THAT:
(1) THE SUPPLIER COMPLIES WITH THE NATIONAL LABOR
RELATIONS ACT AND REGULATIONS, IF APPLICABLE; (2)
THE SUPPLIER COMPLIES WITH THE CONNECTICUT UNFAIR
TRADE PRACTICES ACT AND APPLICABLE REGULATIONS;
(3) EACH GENERATING FACILITY OPERATED BY OR UNDER
LONG-TERM CONTRACT TO THE SUPPLIER COMPLIES WITH
REGULATIONS ADOPTED BY THE COMMISSIONER OF
ENVIRONMENTAL PROTECTION, PURSUANT TO SECTION 24
OF THIS ACT; (4) THE SUPPLIER COMPLIES WITH THE
PORTFOLIO STANDARDS, PURSUANT TO SECTION 25 OF
THIS ACT; (5) THE SUPPLIER COMPLIES WITH THE
SYSTEM RULES AND STANDARDS AND ANY OTHER
RELIABILITY GUIDELINES OF THE REGIONAL INDEPENDENT
SYSTEMS OPERATOR; (6) THE SUPPLIER AGREES TO
COOPERATE WITH THE DEPARTMENT AND OTHER ELECTRIC
SUPPLIERS, AS DEFINED IN SECTION 16-1, AS AMENDED
BY SECTION 1 OF THIS ACT, IN THE EVENT OF AN
EMERGENCY CONDITION THAT MAY JEOPARDIZE THE SAFETY
AND RELIABILITY OF ELECTRIC SERVICE; (7) THE
SUPPLIER COMPLIES WITH THE CODE OF CONDUCT
ESTABLISHED PURSUANT TO SECTION 15 OF THIS ACT;
AND (8) FOR A LICENSE TO A PARTICIPATING MUNICIPAL
ELECTRIC UTILITY, THE SUPPLIER PROVIDES OPEN AND
NONDISCRIMINATORY ACCESS OF ITS DISTRIBUTION
FACILITIES TO OTHER LICENSED ELECTRIC SUPPLIERS.
ALSO AS A CONDITION OF A LICENSE, THE DEPARTMENT
SHALL PROHIBIT EACH SUPPLIER FROM DECLINING TO
PROVIDE SERVICE TO CUSTOMERS FOR THE REASON THAT
THE CUSTOMERS ARE LOCATED IN ECONOMICALLY
DISTRESSED AREAS. THE DEPARTMENT MAY ESTABLISH
ADDITIONAL REASONABLE CONDITIONS TO ASSURE THAT
ALL RETAIL CUSTOMERS WILL CONTINUE TO HAVE ACCESS
TO ELECTRIC GENERATION SERVICES.
(h) THE DEPARTMENT SHALL MAINTAIN REGULAR
COMMUNICATIONS WITH THE REGIONAL INDEPENDENT
SYSTEM OPERATOR TO EFFECTUATE THE PROVISIONS OF
THIS SECTION AND TO ENSURE THAT AN ADEQUATE, SAFE
AND RELIABLE SUPPLY OF ELECTRICITY IS AVAILABLE.
(i) EACH LICENSEE SHALL, AT SUCH TIMES AS THE
DEPARTMENT REQUIRES BUT NOT LESS THAN ANNUALLY,
SUBMIT TO THE DEPARTMENT OF PUBLIC UTILITY
CONTROL, ON A FORM PRESCRIBED BY THE DEPARTMENT,
AN UPDATE OF INFORMATION THE DEPARTMENT DEEMS
RELEVANT. EACH LICENSEE SHALL NOTIFY THE
DEPARTMENT AT LEAST TEN DAYS BEFORE: (1) A CHANGE
IN CORPORATE STRUCTURE THAT AFFECTS THE LICENSEE;
(2) A CHANGE IN THE SCOPE OF SERVICE, AS PROVIDED
IN THE SUPPLIER'S SCOPE OF SERVICE PLAN SUBMITTED
TO THE DEPARTMENT AS PART OF THE APPLICATION
PROCESS; AND (3) ANY OTHER CHANGE THE DEPARTMENT
DEEMS RELEVANT.
(j) NO LICENSE MAY BE TRANSFERRED WITHOUT THE
PRIOR APPROVAL OF THE DEPARTMENT. THE DEPARTMENT
MAY ASSESS ADDITIONAL LICENSING FEES TO PAY THE
ADMINISTRATIVE COSTS OF REVIEWING A REQUEST FOR
SUCH TRANSFER.
(k) AN ELECTRIC AGGREGATOR SHALL NOT BE
SUBJECT TO THE PROVISIONS OF SUBDIVISIONS (2) TO
(6), INCLUSIVE, OF SUBSECTION (c) OF THIS SECTION
AND SUBDIVISIONS (4) AND (5) OF SUBSECTION (g) OF
THIS SECTION.
(l) ANY PERSON WHO FAILS TO COMPLY WITH A
LICENSE CONDITION OR WHO VIOLATES ANY PROVISION OF
THIS SECTION SHALL BE SUBJECT TO SANCTIONS BY THE
DEPARTMENT OF PUBLIC UTILITY CONTROL IN ACCORDANCE
WITH SECTION 16-41, AS AMENDED BY THIS ACT, WHICH
MAY INCLUDE, BUT ARE NOT LIMITED TO, THE
SUSPENSION OR REVOCATION OF SUCH LICENSE OR A
PROHIBITION ON ACCEPTING NEW CUSTOMERS.
Sec. 23. (NEW) Notwithstanding the provisions
of subsection (a) of section 16-245 of the general
statutes, as amended by this act, the provisions
of said section shall not apply to any
municipality that aggregates the sale of electric
generation services, or to the Connecticut
Resources Recovery Authority if such authority
aggregates the sale of electric generation
services, for end use customers located within the
boundaries of such municipality or to any
municipality that joins together with other
municipalities to aggregate the sale of electric
generation services for end use customers located
within the boundaries of such municipalities or to
aggregate the purchase of electric generation
services for municipal facilities, street
lighting, boards of education and other
publicly-owned facilities within the municipality
for which the municipality is financially
responsible, provided the municipality shall
register not less than annually with the
Department of Public Utility Control on a form
prescribed by the department.
Sec. 24. (NEW) Not later than January 1, 1999,
the Commissioner of Environmental Protection
shall, by regulations adopted in accordance with
chapter 54 of the general statutes, establish
uniform performance standards for electricity
generation facilities supplying power to end use
customers in this state. Such standards shall, to
the greatest extent possible, be designed to
improve air quality in this state and to further
the attainment of the National Ambient Air Quality
Standards promulgated by the United States
Environmental Protection Agency. Such performance
standards shall be based on the fuel used for
generation of electricity and shall apply to
electric suppliers' generation facilities located
in North America and shall limit the amount of air
pollutants, including, but not limited to,
nitrogen oxides, sulfur oxides, carbon dioxide,
carbon monoxide and mercury, emitted per megawatt
hour of electricity produced. Such performance
standards may provide for a program for purchase
of offsetting reductions in emissions and trading
of emission credits. A performance standard
established by the Department of Environmental
Protection for an individual pollutant pursuant to
this section shall go into effect when three of
the states participating in the northeastern
states' Ozone Transport Commission as of July 1,
1997, with a total population of not less than
twenty-seven million at that time, have adopted
such standard.
Sec. 25. (NEW) (a) To be licensed under
section 16-245 of the general statutes, as amended
by this act, an applicant for a license shall
demonstrate to the satisfaction of the Department
of Public Utility Control that not less than
one-half of one per cent of its total electricity
output shall be generated from Class I renewable
energy sources and an additional five and one-half
per cent of the total output shall be from Class I
or Class II renewable energy sources. On and after
July 1, 2001, not less than three-fourths of one
per cent of the total output of any such supplier
shall be generated from Class I renewable energy
sources and an additional five and one-half per
cent of the total output shall be from Class I or
Class II renewable energy sources. On and after
July 1, 2002, not less than one per cent of such
output shall be generated from Class I renewable
energy sources and an additional five and one-half
per cent of the total output shall be from Class I
or Class II renewable energy sources. On and after
July 1, 2003, not less than one and one-half per
cent of such output shall be generated from Class
I renewable energy sources and an additional five
and one-half per cent of the total output shall be
from Class I or Class II renewable energy sources.
On and after July 1, 2004, not less than two per
cent of the total output of any such supplier
shall be generated from Class I renewable energy
sources and an additional six per cent of the
total output shall be from Class I or Class II
renewable energy sources. On and after July 1,
2005, not less than two and one-half per cent of
the total output of any such supplier shall be
generated from Class I renewable energy sources
and an additional six per cent of the total output
shall be from Class I or Class II renewable energy
sources. On and after July 1, 2006, not less than
three per cent of the total output of any such
supplier shall be generated from Class I renewable
energy sources and an additional six per cent of
the total output shall be from Class I or Class II
renewable energy sources. On and after July 1,
2007, not less than four per cent of the total
output of any such supplier shall be generated
from Class I renewable energy sources and an
additional six per cent of the total output shall
be from Class I or Class II renewable energy
sources. On and after July 1, 2008, not less than
five per cent of the total output of any such
supplier shall be generated from Class I renewable
energy sources and an additional six per cent of
the total output shall be from Class I or Class II
renewable energy sources. On and after July 1,
2009, not less than six per cent of the total
output of any such supplier shall be generated
from Class I renewable energy sources and an
additional seven per cent of the total output
shall be from Class I or Class II renewable energy
sources. An electric supplier may satisfy the
requirements of this subsection by participating
in a renewable energy trading program approved by
the state. Any supplier who provides electric
generation services solely from a Class II
renewable energy source shall not be required to
comply with the provisions of this section.
(b) An applicant's demonstration of generation
sources, as required under subsection (a) of this
section, shall be based on historical data, which
may consist of data filed with the regional
independent system operator.
(c) The department may adopt regulations
pursuant to chapter 54 of the general statutes to
implement the provisions of this section.
Sec. 26. (NEW) (a) To protect a customer's
right to privacy from unwanted solicitation, each
electric company or electric distribution company,
as defined in section 16-1 of the general
statutes, as amended by section 1 of this act, as
the case may be, shall distribute to each customer
a form approved by the Department of Public
Utility Control which the customer shall submit to
his electric or electric distribution company in a
timely manner if he does not want his name,
address, telephone number and rate class to be
released to electric suppliers, as defined in said
section 16-1. On and after July 1, 1999, each
electric or electric distribution company, as the
case may be, shall make available to all electric
suppliers customer names, addresses, telephone
numbers, if known, and rate class, unless the
electric company or electric distribution company
has received a form from a customer requesting
that such information not be released. Additional
information about a customer for marketing
purposes shall not be released to any electric
supplier unless a customer signs a release which
shall be made available by the department.
(b) All electric suppliers shall have equal
access to customer information required to be
disclosed under subsection (a) of this section. No
electric supplier shall have preferential access
to historical distribution company customer usage
data.
(c) No electric or electric distribution
company shall include in any bill or bill insert
anything that directly or indirectly promotes a
generation entity or affiliate of the electric
distribution company. No electric supplier shall
include a bill insert in an electric bill of an
electric distribution company.
(d) All marketing information provided
pursuant to the provisions of this section shall
be formatted electronically by the electric
company or electric distribution company, as the
case may be, in a form that is readily usable by
standard commercial software packages. Updated
lists shall be made available within a reasonable
time, as determined by the department, following a
request by an electric supplier. Each electric
supplier seeking the information shall pay a fee
to the electric company or electric distribution
company, as the case may be, which reflects the
incremental costs of formatting, sorting and
distributing this information, together with
related software changes. Customers shall be
entitled to any available individual information
about their loads or usage at no cost.
(e) Each electric supplier shall, prior to the
initiation of electric generation services,
provide the potential customer with a written
notice describing the rates, information on air
emissions and resource mix of generation
facilities operated by and under long-term
contract to the supplier, terms and conditions of
the service, and a notice describing the
customer's right to cancel the service, as
provided in this section. No electric supplier
shall provide electric generation services unless
the customer has signed a service contract or
consents to such services pursuant to section 30
of this act. A customer shall, until midnight of
the third business day after the day on which the
customer enters into a service agreement, have the
right to cancel a contract for electric generation
services entered into with an electric supplier.
(f) An electric supplier shall not advertise
or disclose the price of electricity in such a
manner as to mislead a reasonable person into
believing that the electric generation services
portion of the bill will be the total bill amount
for the delivery of electricity to the customer's
location. When advertising or disclosing the price
for electricity, the electric supplier shall also
disclose the electric distribution company's
average current charges, including the competitive
transition assessment and the systems benefits
charge, for that customer class.
(g) Each electric supplier shall comply with
the provisions of the telemarketing regulations
adopted pursuant to 15 USC 6102.
(h) Any violation of this section shall be
deemed an unfair or deceptive trade practice under
subsection (a) of section 42-110b of the general
statutes.
Sec. 27. (NEW) (a) Upon being issued a license
pursuant to section 16-245, as amended by this
act, an electric supplier shall submit information
to the Department of Public Utility Control that
the department, after consultation with the
Consumer Education Advisory Council, established
under section 17 of this act, determines will
assist customers in making informed decisions when
choosing an electric supplier, including, but not
limited to, the information provided in subsection
(b) of this section. Each supplier shall submit,
on a form prescribed by the department, quarterly
reports containing information on rates and any
other information the department deems relevant,
including, but not limited to, any change in the
information as required by the department. After
the department has received the information
required pursuant to this subsection, the supplier
shall be eligible to receive customer marketing
information from electric or electric distribution
companies, as provided in section 26 of this act.
(b) The Department of Public Utility Control
shall maintain and make available to customers
upon request, a list of electric aggregators and
the following information about each electric
supplier, as defined in section 16-1 of the
general statutes, as amended by section 1 of this
act: (1) Rates and charges provided by an electric
supplier; (2) applicable terms and conditions of a
contract for electric generation services provided
by an electric supplier; (3) the percentage of
each supplier's total electric output derived from
each of the categories of energy sources provided
in subsection (e) of section 17 of this act, the
rates at which each facility operated by or under
long-term contract to the electric supplier emits
nitrogen oxides, sulfur oxides, carbon dioxide,
carbon monoxide, particulates, heavy metals and
other wastes the disposal of which is regulated
under state or federal law, and the analysis of
the environmental characteristics of each such
category of energy source prepared pursuant to
subsection (e) of said section 17 and to the
extent such information is unknown, the estimated
percentage of the electric supplier's total
electric output for which such information is
unknown, along with the word "unknown" for that
percentage; (4) a record of customer complaints
and the disposition of each complaint; and (5) any
other information the department determines will
assist customers in making informed decisions when
choosing an electric supplier. The department
shall update the information at least quarterly.
The department shall put such information in a
standard format so that a customer can readily
understand and compare the services provided by
each electric supplier.
Sec. 28. (NEW) A customer may change his
electric supplier, as defined in section 16-1 of
the general statutes, as amended by section 1 of
this act, at any time. The electric distribution
company, as defined in said section 16-1, and
electric supplier may each charge a reasonable
fee, as approved by the Department of Public
Utility Control, to make a change in the
customer's supplier to reflect the actual cost to
read the customer's meter and make changes in its
billing records, except that every customer may
seek a change in his electric supplier without
charge once in any twelve-month period if the
change occurs at the end of the customer's
regularly scheduled meter reading and billing
cycle.
Sec. 29. (NEW) No electric supplier, as
defined in section 16-1 of the general statutes,
as amended by section 1 of this act, shall refuse
to provide electric generation services to, or
refuse to negotiate to provide such services to
any customer because of age, race, creed, color,
national origin, ancestry, sex, marital status,
sexual orientation, lawful source of income,
disability or familial status. No electric
supplier shall decline to provide electric
generation services to a customer for the sole
reason that the customer is located in an
economically distressed geographic area or the
customer qualifies for hardship status under
section 16-262c of the general statutes, as
amended by this act. No electric supplier shall
terminate or refuse to reinstate electric
generation services except in accordance with the
provisions of title 16 of the general statutes.
Sec. 30. (NEW) (a) No electric distribution
company shall submit or execute a change in a
customer's selection of an electric supplier
unless the change has been confirmed by one of the
following: (1) An independent third-party
telephone verification; (2) receipt of a written
confirmation received in the mail from the
customer after the customer has received an
information package confirming any telephone
agreement; (3) the customer signs a document fully
explaining the nature and effect of the change in
service; or (4) the customer's consent is obtained
through electronic means, including, but not
limited to, a computer transaction.
(b) Third-party telephone verification shall
be in accordance with the following procedures:
(1) The electric supplier seeking to verify the
change shall do so by connecting the customer by
telephone to the third-party verification company
or by arranging for the third-party verification
company to call the resident to confirm the sale;
and (2) the third-party verification company shall
obtain the customer's oral confirmation regarding
the change, and shall record that confirmation by
obtaining appropriate verification data. The
record shall be available to the customer upon
request. Information obtained from the customer
through confirmation shall not be used for
marketing purposes. The verification procedure in
this subsection shall not apply when a residential
customer directly calls an electric distribution
company to make changes in electric supplier
service, provided an electric supplier shall not
avoid the verification procedure by asking a
residential customer to contact an electric
distribution company directly to make changes in
electric supplier service. For purposes of this
section, "third-party verification company" means
a company that: (A) Is independent from the
electric supplier that seeks to provide the new
service; (B) is not directly or indirectly
managed, controlled or directed or owned wholly or
in part by (i) an electric supplier that seeks to
provide the new service, or (ii) any corporation,
firm or person who directly or indirectly manages,
controls or directs or owns more than five per
cent of such supplier; (C) operates from
facilities physically separate from those of the
electric supplier that seeks to provide the new
service; and (D) does not derive commissions or
compensation based upon the number of sales
confirmed.
(c) Any violation of this section shall be
deemed an unfair or deceptive trade practice under
subsection (a) of section 42-110b of the general
statutes.
Sec. 31. (NEW) (a) The Department of Public
Utility Control shall be responsible for receiving
and acting upon customer inquiries and complaints
regarding electric suppliers, as defined in
section 16-1 of the general statutes, as amended
by section 1 of this act. The department shall
establish a toll-free telephone number for such
purposes. Customers of any electric supplier
having complaints regarding disputed bills,
terminations of service or adequacy of service may
bring their complaints to the department pursuant
to any provision in section 16-20, sections
16-262c to 16-262j, inclusive, of the general
statutes, as amended by this act, or the
regulations adopted to implement those sections.
(b) Nothing contained in this section shall be
construed so as to restrict the right of any
person to pursue any other remedy available to the
person under law.
Sec. 32. (NEW) (a) The Department of Public
Utility Control shall monitor the market for
electric generation services and electric
distribution services to end use customers and
take actions to prevent unfair or deceptive trade
practices, anticompetitive or discriminatory
conduct, and the unlawful exercise of market
power.
(b) (1) Upon complaint or upon its own motion,
for cause shown, the department shall conduct an
investigation of any possible anticompetitive or
discriminatory conduct affecting the retail sale
of electricity or any unfair or deceptive trade
practices. Such investigations may include, but
are not limited to, the effect of mergers,
consolidations, acquisition and disposition of
assets or securities of electric suppliers, as
defined in section 16-1 of the general statutes,
as amended by section 1 of this act, or
transmission congestion on the proper functioning
of a fully competitive market.
(2) The department may require an electric
supplier to provide information, including
documents and testimony, in accordance with the
procedures contained in subsection (a) of section
16-8 and section 16-8c of the general statutes.
(3) Confidential, proprietary or trade secret
information provided under this section may be
submitted under a duly granted protective order.
Any hearings that may be held during the course of
the investigation may also be conducted in camera
to prevent the inadvertent revelation of such
confidential information.
(4) The Office of the Attorney General and the
Office of Consumer Counsel shall have the right to
participate in such investigations under
appropriate nondisclosure agreements.
(5) At the conclusion of the investigation,
and notwithstanding any previously granted
protective orders, if the department finds that
facts exist that indicate any violation of state
or federal law, it shall transmit such written
findings along with supporting information
gathered in its investigation to appropriate
enforcement officials. Such referrals may
recommend that further investigation be made or
that immediate enforcement procedures be
initiated. Such referrals may be made to the
Office of the Attorney General, the Department of
Consumer Protection, the United States Department
of Justice, the Securities and Exchange
Commission, the Federal Energy Regulatory
Commission, or any other appropriate enforcement
agency. The department may intervene as permitted
by law in any proceeding initiated under this
subsection. The results of such investigations may
also serve as a basis for department sanctions,
after notice and hearing, under subsection (l) of
section 16-245 of the general statutes, as amended
by this act.
(c) Nothing contained in this section shall be
construed so as to restrict the right of any
person to pursue any other remedy available to the
person under law.
Sec. 33. (NEW) (a) On and after January 1,
2000, the Department of Public Utility Control
shall assess or cause to be assessed a charge of
three mills per kilowatt hour of electricity sold
to each end use customer of an electric
distribution company to be used to implement the
program as provided in this section for
conservation and load management programs but not
for the amortization of costs incurred prior to
July 1, 1997, for such conservation and load
management programs.
(b) The electric distribution company shall
establish an Energy Conservation and Load
Management Fund which shall be held separate and
apart from all other funds or accounts. Receipts
from the charge imposed under subsection (a) of
this section shall be deposited into the fund. Any
balance remaining in the fund at the end of any
fiscal year shall be carried forward in the fiscal
year next succeeding. Disbursements from the fund
by electric distribution companies to carry out
the plan developed under subsection (d) of this
section shall be authorized by the Department of
Public Utility Control upon its approval of such
plan.
(c) The Department of Public Utility Control
shall appoint and convene an Energy Conservation
Management Board which shall include
representatives of: (1) An environmental group
knowledgeable in energy conservation program
collaboratives; (2) the Office of Consumer
Counsel; (3) the Attorney General; (4) the
Department of Environmental Protection; (5) the
electric distribution companies in whose
territories the activities take place for such
programs; (6) a state-wide manufacturing
association; (7) a chamber of commerce; (8) a
state-wide business association; (9) a state-wide
retail organization; and (10) residential
customers. Such members shall serve for a period
of five years and may be reappointed.
(d) The Energy Conservation Management Board
shall advise and assist the electric distribution
companies in the development and implementation of
a comprehensive plan, which plan shall be approved
by the Department of Public Utility Control, to
implement cost-effective energy conservation
programs and market transformation initiatives.
Programs included in the plan shall be screened
through cost-effectiveness testing which compares
the value and payback period of program benefits
to program costs to ensure that programs are
designed to obtain energy savings whose value is
greater than the costs of the programs. Program
cost-effectiveness shall be reviewed annually, or
otherwise as is practicable. If a program is
determined to fail the cost-effectiveness test as
part of the review process, it shall either be
modified to meet the test or shall be terminated.
On or before January 31, 2001, and annually
thereafter until January 31, 2006, the board shall
provide a report to the joint standing committees
of the General Assembly having cognizance of
matters relating to energy and the environment
which documents expenditures, fund balances and
evaluates the cost-effectiveness of such programs
conducted in the preceding year. Such programs may
include, but not be limited to: (1) Conservation
and load management programs; (2) research,
development and commercialization of products or
processes which are more energy-efficient than
those generally available; (3) development of
markets for such products and processes; (4)
support for energy use assessment, engineering
studies and services related to new construction
or major building renovation; (5) the design,
manufacture, commercialization and purchase of
energy-efficient appliances and heating, air
conditioning and lighting devices; (6) program
planning and evaluation and (7) public education
regarding conservation. Such support may be by
direct funding, manufacturers' rebates, sale price
and loan subsidies, leases and promotional and
educational activities. Any other expenditure by
the collaborative shall be limited to retention of
expert consultants and reasonable administrative
costs provided such consultants shall not be
employed by, or have any contractual relationship
with, an electric distribution company. Such costs
shall not exceed five per cent of the total
revenue collected from the assessment.
Sec. 34. Section 16-18a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) In the performance of their duties the
Department of Public Utility Control and the
Office of Consumer Counsel may retain consultants
to assist their staff in proceedings before the
department by providing expertise in areas in
which staff expertise does not currently exist or
when necessary to supplement existing staff
expertise. In any case where the department or
Office of Consumer Counsel determines that the
services of a consultant are necessary or
desirable, the department shall (1) allow
opportunity for the parties and participants to
the proceeding for which the services of a
consultant are being considered to comment
regarding the necessity or desirability of such
services, (2) upon the request of a party or
participant to the proceeding for which the
services of a consultant are being considered,
hold a hearing, and (3) limit the reasonable and
proper expenses for such services to not more than
two hundred thousand dollars for each agency per
proceeding involving a public service company, [as
defined in section 16-1,] telecommunications
company, [as defined in section 16-1, or] ELECTRIC
SUPPLIER, AS DEFINED IN SECTION 16-1, AS AMENDED
BY SECTION 1 OF THIS ACT, person, firm or
corporation seeking certification to provide
telecommunications service pursuant to chapter
283, with more than fifteen thousand customers,
and to not more than fifty thousand dollars for
each agency per proceeding involving such a
company, ELECTRIC SUPPLIER, person, firm or
corporation with less than fifteen thousand
customers, provided the department or the Office
of Consumer Counsel may exceed such limits for
good cause. In the case of multiple proceedings
conducted to implement the provisions of this
section and sections 16-1, AS AMENDED BY SECTION 1
OF THIS ACT, 16-19, 16-19e, 16-22, 16-247a to
16-247c, inclusive, 16-247e to 16-247i, inclusive,
16-247k and subsection (e) of 16-331, the
department or the Office of Consumer Counsel may
exceed such limits, but the total amount for all
such proceedings shall not exceed the aggregate
amount which would be available pursuant to this
section. All reasonable and proper expenses, as
defined in subdivision (3) of this section, shall
be borne by the affected company, ELECTRIC
SUPPLIER, person, firm or corporation and shall be
paid by such company, ELECTRIC SUPPLIER, person,
firm or corporation at such times and in such
manner as the department or the Office of Consumer
Counsel directs. All reasonable and proper costs
and expenses, as defined in subdivision (3) of
this section, shall be recognized by the
department for all purposes as proper business
expenses of the affected company, ELECTRIC
SUPPLIER, person, firm or corporation. The
providers of consultant services shall be selected
by the department or the Office of Consumer
Counsel and shall submit written findings and
recommendations to the department or the Office of
Consumer Counsel, as the case may be, which shall
be made part of the public record.
(b) THE DEPARTMENT OF PUBLIC UTILITY CONTROL
MAY RETAIN CONSULTANTS TO ASSIST IN DEVELOPING AND
IMPLEMENTING THE PUBLIC EDUCATION OUTREACH PROGRAM
PURSUANT TO SECTION 17 OF THIS ACT, PROVIDED THE
AUTHORIZATION TO RETAIN SUCH CONSULTANTS SHALL
EXPIRE DECEMBER 31, 2000, AND PROVIDED FURTHER THE
REASONABLE AND PROPER EXPENSES FOR SUCH SERVICES
SHALL NOT EXCEED THREE HUNDRED FIFTY THOUSAND
DOLLARS IN THE AGGREGATE. ALL REASONABLE AND
PROPER EXPENSES ACCRUED PRIOR TO JANUARY 1, 2000,
SHALL BE BORNE BY ELECTRIC COMPANIES OR ELECTRIC
DISTRIBUTION COMPANIES, AS THE CASE MAY BE. AFTER
THE SYSTEMS BENEFITS CHARGE BEGINS TO BE COLLECTED
ON JANUARY 1, 2000, PURSUANT TO SECTION 18 OF THIS
ACT, SUCH COMPANIES SHALL RECOVER THOSE EXPENSES
THAT HAVE BEEN ACCRUED BY THE COMPANIES UP UNTIL
SAID DATE THROUGH THE SYSTEMS BENEFITS CHARGE. ON
AND AFTER JANUARY 1, 2000, ALL REASONABLE AND
PROPER EXPENSES SHALL BE ASSESSED DIRECTLY THROUGH
THE SYSTEMS BENEFITS CHARGE.
Sec. 35. Subsection (a) of section 16-41 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) Each public service company, its officers,
agents and employees, EACH ELECTRIC SUPPLIER, AS
DEFINED IN SECTION 16-1, AS AMENDED BY SECTION 1
OF THIS ACT, OR PERSON PROVIDING ELECTRIC
GENERATION SERVICES WITHOUT A LICENSE IN VIOLATION
OF SECTION 16-245, AS AMENDED BY THIS ACT, ITS
OFFICERS, AGENTS AND EMPLOYEES, and each person,
public agency or public utility as defined in
section 16-345, subject to the requirements of
chapter 293, shall obey, observe and comply with
all applicable provisions of this title and each
applicable order made or applicable regulations
adopted by the Department of Public Utility
Control by virtue of this title so long as the
same remains in force. Any such company, ELECTRIC
SUPPLIER, PERSON, any officer, agent or employee
thereof, or any such person, public agency or
public utility which the department finds has
failed to obey or comply with any such provision
of this title, order or regulation shall be fined
by order of the department in accordance with the
penalty prescribed for the violated provision of
this title or, if no penalty is prescribed, not
more than five thousand dollars for each offense
except that the penalty shall be a fine of not
more than twenty thousand dollars for failure to
comply with an order of the department made in
accordance with the provisions of section 16-19
within thirty days of such order or within any
specific time period for compliance specified in
such order. Each distinct violation of any such
provision of this title, order or regulation shall
be a separate offense and, in case of a continued
violation, each day thereof shall be deemed a
separate offense. Each such penalty and any
interest charged pursuant to subsection (g) of
section 16-49 shall be excluded from operating
expenses for purposes of rate-making.
Sec. 36. Subsection (a) of section 16-49 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) As used in this section, "company" means:
(1) A company included within the term "public
service company" by section 16-1, AS AMENDED BY
SECTION 1 OF THIS ACT, except any company not
providing service at retail directly to consumers
in the state and any company [which] THAT had less
than one hundred thousand dollars of gross
revenues taxable under chapter 211 or chapters 212
and 212a, or in the case of any telephone company,
as defined in SAID section 16-1, had less than one
hundred thousand dollars of gross revenues from
telecommunications services, as defined in
subdivision (26) of section 12-407, included in
the amount of gross revenues reportable under
chapter 219, in the calendar year preceding the
assessment year under this section; [and] (2) any
person, firm or corporation certified by the
Department of Public Utility Control to provide
intrastate telecommunications services, pursuant
to sections 16-247f to 16-247h, inclusive, and
applicable regulations, [which] THAT had more than
one hundred thousand dollars of gross revenues
taxable under chapter 211, or which had more than
one hundred thousand dollars of gross revenues
reportable under chapter 219, or both, in the
calendar year preceding the assessment year under
this section, except any such person, firm or
corporation not providing service at retail
directly to consumers in the state; AND (3) ANY
ELECTRIC SUPPLIER, AS DEFINED IN SAID SECTION
16-1, THAT HAD MORE THAN ONE HUNDRED THOUSAND
DOLLARS OF GROSS REVENUES IN THE STATE IN THE
CALENDAR YEAR PRECEDING THE ASSESSMENT YEAR UNDER
THIS SECTION, EXCEPT ANY SUCH SUPPLIER NOT
PROVIDING ELECTRIC GENERATION SERVICES TO RETAIL
CUSTOMERS IN THE STATE.
Sec. 37. Section 16-259a of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) No electric, ELECTRIC DISTRIBUTION, gas
[,] or water company, as defined in section 16-1,
AS AMENDED BY SECTION 1 OF THIS ACT, OR ELECTRIC
SUPPLIER, which inaccurately bills a retail
customer for service may bill or otherwise hold
the customer financially liable for more than one
year after the customer receives such service,
unless the customer, either alone or with [a
person] AN INDIVIDUAL other than an employee of
the company, by an affirmative act, is responsible
for the inaccurate billing or fails to provide for
reasonable access to the premises where the
company's meter is located by an employee of the
company during business hours for the purpose of
reading the meter.
(b) Any such electric, ELECTRIC DISTRIBUTION,
gas [,] or water company OR ELECTRIC SUPPLIER
which inaccurately bills a retail customer for
service may bill or otherwise hold the customer
financially liable for not more than one year
after the customer receives such service, unless a
delayed bill for the service (1) would deprive the
customer of the opportunity to apply for or
receive energy assistance or (2) is the result of
the customer's meter erroneously registering
another customer's consumption, in which case the
company may not bill or otherwise hold the
customer liable for the service provided to
another customer.
(c) No telephone company or person, firm or
corporation certified to provide intrastate
telecommunications services pursuant to sections
16-247f to 16-247h, inclusive, which inaccurately
bills a retail customer for service may bill or
otherwise hold the customer financially liable for
more than two years or the time provided in
federal law, whichever is longer, after the
customer receives such service, unless the
customer, either alone or with a person other than
an employee of the company, person, firm or
corporation, by an affirmative act, is responsible
for the inaccurate billing.
(d) Any company, ELECTRIC SUPPLIER, person,
firm or corporation that holds a customer
financially liable under subsection (a), (b) or
(c) of this section shall establish a payment plan
which prorates all arrearages for service the
customer owes over a period of time that is no
shorter than the period for which the customer is
being held financially liable by such company,
ELECTRIC SUPPLIER, person, firm or corporation.
The payment plan shall provide that no payment
charged to a customer under such plan shall exceed
fifty per cent of the average amount that the
company charged such customer for each billing
period over the previous twelve-month period for
services received during that period.
Notwithstanding the provisions of this subsection,
a company, ELECTRIC SUPPLIER, person, firm or
corporation may require immediate payment of the
full amount due under subsection (a), (b) or (c)
of this section if such customer fails to make
timely payments in accordance with the payment
plan established by such company, person, firm or
corporation.
Sec. 38. Section 16-262c of the general
statutes, as amended by section 1 of public act
97-9, section 1 of public act 97-20 and section 32
of public act 97-47, is repealed and the following
is substituted in lieu thereof:
(a) Notwithstanding any other provision of the
general statutes no electric, ELECTRIC
DISTRIBUTION, gas, telephone or water company, NO
ELECTRIC SUPPLIER, AS DEFINED IN SECTION 16-1, AS
AMENDED BY SECTION 1 OF THIS ACT, and no municipal
utility furnishing electric, gas, telephone or
water service shall cause cessation of any such
service by reason of delinquency in payment for
such service (1) on any Friday, Saturday, Sunday,
legal holiday or day before any legal holiday,
provided such a company, ELECTRIC SUPPLIER or
municipal utility may cause cessation of such
service to a nonresidential account on a Friday
which is not a legal holiday or the day before a
legal holiday when the business offices of the
company, ELECTRIC SUPPLIER or municipal utility
are open to the public the succeeding Saturday,
(2) at any time during which the business offices
of said company, ELECTRIC SUPPLIER or municipal
utility are not open to the public, or (3) within
one hour before the closing of the business
offices of said company, ELECTRIC SUPPLIER or
municipal utility.
(b) (1) From November first to April
fifteenth, inclusive, no electric OR ELECTRIC
DISTRIBUTION company, AS DEFINED IN SECTION 16-1,
AS AMENDED BY SECTION 1 OF THIS ACT, NO ELECTRIC
SUPPLIER and no municipal utility furnishing
electricity shall terminate or refuse to reinstate
residential electric service in hardship cases
where the customer lacks the financial resources
to pay his or her entire account. From November
first to April fifteenth, inclusive, no gas
company and no municipal utility furnishing gas
shall terminate or refuse to reinstate residential
gas service in hardship cases where the customer
uses such gas for heat and lacks the financial
resources to pay his or her entire account, except
a gas company that, between April sixteenth and
October thirty-first, terminated gas service to a
residential customer who uses gas for heat and
who, during the previous period of November first
to April fifteenth, had gas service maintained
because of hardship status, may refuse to
reinstate the gas service from November first to
April fifteenth, inclusive, only if the customer
has failed to pay, since the preceding November
first, the lesser of: (A) Twenty per cent of the
outstanding principal balance owed the gas company
as of the date of termination, (B) one hundred
dollars, or (C) the minimum payments due under the
customer's amortization agreement. Notwithstanding
any other provision of the general statutes to the
contrary, no electric, ELECTRIC DISTRIBUTION or
gas company, NO ELECTRIC SUPPLIER and no municipal
utility furnishing electricity or gas shall
terminate or refuse to reinstate residential
electric or gas service where the customer lacks
the financial resources to pay his or her entire
account and for which customer or a member of the
customer's household the termination or failure to
reinstate such service would create a
life-threatening situation.
(2) During any period in which a residential
customer is subject to termination, an electric,
ELECTRIC DISTRIBUTION or gas company, AN ELECTRIC
SUPPLIER or a municipal utility furnishing
electricity or gas shall provide such residential
customer whose account is delinquent an
opportunity to enter into a reasonable
amortization agreement with such company, ELECTRIC
SUPPLIER or utility to pay such delinquent account
and to avoid termination of service. Such
amortization agreement shall [permit] ALLOW such
customer adequate opportunity to apply for and
receive the benefits of any available energy
assistance program. An amortization agreement
shall be subject to amendment on customer request
if there is a change in the customer's financial
circumstances.
(3) As used in this section, (A) "household
income" means the combined income over a
twelve-month period of the customer and all
adults, except children of the customer, who are
and have been members of the household for six
months or more, and (B) "hardship case" includes,
but is not limited to: (i) A customer receiving
local, state or federal public assistance; (ii) a
customer whose sole source of financial support is
Social Security, Veterans' Administration or
unemployment compensation benefits; (iii) a
customer who is head of the household and is
unemployed, and the household income is less than
three hundred per cent of the poverty level
determined by the federal government; (iv) a
customer who is seriously ill or who has a
household member who is seriously ill; (v) a
customer whose income falls below one hundred
twenty-five per cent of the poverty level
determined by the federal government; and (vi) a
customer whose circumstances threaten a
deprivation of food and the necessities of life
for himself or dependent children if payment of a
delinquent bill is required.
(4) In order for a residential customer of a
gas [public service] company using gas for heat to
be eligible to have any moneys due and owing
deducted from the customer's delinquent account
pursuant to this subdivision, the company
furnishing gas shall require that the customer (A)
apply and be eligible for benefits available under
the Connecticut energy assistance program or state
appropriated fuel assistance program; (B)
authorize the company to send a copy of the
customer's monthly bill directly to any energy
assistance agency for payment; (C) enter into and
comply with an amortization agreement, which
agreement is consistent with decisions and
policies of the Department of Public Utility
Control. Such an amortization agreement shall
reduce a customer's payment by the amount of the
benefits reasonably anticipated from the
Connecticut energy assistance program, state
appropriated fuel assistance program or other
energy assistance sources. Unless the customer
requests otherwise, the company shall budget a
customer's payments over a twelve-month period
with an affordable increment to be applied to any
arrearage, provided such payment plan will not
result in loss of any energy assistance benefits
to the customer. If a customer authorizes the
company to send a copy of his monthly bill
directly to any energy assistance agency for
payment, the energy assistance agency shall make
payments directly to the company. If, on April
thirtieth, a customer has been in compliance with
the requirements of subparagraphs (A) to (C),
inclusive, of this subdivision, during the period
starting on the preceding November first, or from
such time as the customer's account becomes
delinquent, the company shall deduct from such
customer's delinquent account an additional amount
equal to the amount of money paid by the customer
between the preceding November first and April
thirtieth and paid on behalf of the customer
through the Connecticut energy assistance program
and state appropriated fuel assistance program.
Any customer in compliance with the requirements
of subparagraphs (A) to (C), inclusive, of this
subdivision, on April thirtieth who continues to
comply with an amortization agreement through the
succeeding October thirty-first, shall also have
an amount equal to the amount paid pursuant to
such agreement and any amount paid on behalf of
such customer between May first and the succeeding
October thirty-first deducted from the customer's
delinquent account. In no event shall the
deduction of any amounts pursuant to this
subdivision result in a credit balance to the
customer's account. No customer shall be denied
the benefits of this subdivision due to an error
by the gas [public service] company. The
Department of Public Utility Control shall allow
the amounts deducted from the customer's account
pursuant to the implementation plan, described in
subdivision (5) of this subsection, to be
recovered by the company in its rates as an
operating expense, pursuant to said implementation
plan. If the customer fails to comply with the
terms of the amortization agreement or any
decision of the department rendered in lieu of
such agreement and the requirements of
subparagraphs (A) to (C), inclusive, of this
subdivision, the company may terminate service to
the customer, pursuant to all applicable
regulations, provided such termination shall not
occur between November first and April fifteenth.
(5) Each gas [public service] company shall
submit to the Department of Public Utility Control
annually, on or before July first, an
implementation plan which shall include
information concerning amortization agreements,
counseling, reinstatement of eligibility, rate
impacts and any other information deemed relevant
by the department. The Department of Public
Utility Control may, in consultation with the
Office of Policy and Management, approve or modify
such plan within ninety days of receipt of the
plan. If the department does not take any action
on such plan within ninety days of its receipt,
the plan shall automatically take effect at the
end of the ninety-day period, provided the
department may extend such period for an
additional thirty days by notifying the gas
[public service] company before the end of the
ninety-day period. Any amount recovered by a
company in its rates pursuant to this subsection
shall not include any amount approved by the
Department of Public Utility Control as an
uncollectible expense. The department may deny all
or part of the recovery required by this
subsection if it determines that the company
seeking recovery has been imprudent, inefficient
or acting in violation of statutes or regulations
regarding amortization agreements.
(6) On or after January 1, 1993, the
Department of Public Utility Control may require
gas [public service] companies to expand the
provisions of subdivisions (4) and (5) of this
subsection to all hardship customers. Any such
requirement shall not be effective until November
1, 1993.
(7) (A) All electric, ELECTRIC DISTRIBUTION
and gas companies, ELECTRIC SUPPLIERS and
municipal utilities furnishing electricity or gas
shall collaborate in developing, subject to
approval by the Department of Public Utility
Control, standard provisions for the notice of
delinquency and impending termination under
subsection (a) of section 16-262d, AS AMENDED BY
THIS ACT. Each such company and utility shall
place on the front of such notice a provision that
the company, ELECTRIC SUPPLIER or utility [may]
SHALL not effect termination of service to a
residential dwelling for nonpayment of disputed
bills during the pendency of any complaint. In
addition, the notice shall state that the customer
must pay current and undisputed bill amounts
during the pendency of the complaint. (B) At the
beginning of any discussion with a customer
concerning a reasonable amortization agreement,
any such company or utility shall inform the
customer (i) of the availability of a process for
resolving disputes over what constitutes a
reasonable amortization agreement, (ii) that the
company, ELECTRIC SUPPLIER or utility will refer
such a dispute to one of its review officers as
the first step in attempting to resolve the
dispute and (iii) that the company, ELECTRIC
SUPPLIER or utility [may] SHALL not effect
termination of service to a residential dwelling
for nonpayment of a delinquent account during the
pendency of any complaint, investigation, hearing
or appeal initiated by the customer, unless the
customer fails to pay undisputed bills, or
undisputed portions of bills, for service received
during such period. (C) Each such company,
ELECTRIC SUPPLIER and utility shall inform and
counsel all customers who are hardship cases as to
the availability of all public and private energy
conservation programs, including programs
sponsored or subsidized by such companies and
utilities, eligibility criteria, where to apply,
and the circumstances under which such programs
are available without cost.
(8) The Department of Public Utility Control
shall adopt regulations in accordance with chapter
54 to carry out the provisions of this subsection.
Such regulations shall include, but not be limited
to, criteria for determining hardship cases and
for reasonable amortization agreements, including
appeal of such agreements, for categories of
customers. Such regulations may include the
establishment of a reasonable rate of interest
which a company may charge on the unpaid balance
of a customer's delinquent bill AND A DESCRIPTION
OF THE RELATIONSHIP AND RESPONSIBILITIES OF
ELECTRIC SUPPLIERS TO CUSTOMERS.
(c) Each electric, ELECTRIC DISTRIBUTION and
gas [public service] company, ELECTRIC SUPPLIER
and municipal utility shall, not later than
December first, annually, submit a report to the
department and the General Assembly indicating (1)
the number of customers in each of the following
categories and the total delinquent balances for
such customers as of the preceding April
fifteenth: (A) Customers who are hardship cases
and (i) who made arrangements for reasonable
amortization agreements, (ii) who did not make
such arrangements and (B) customers who are
nonhardship cases and who made arrangements for
reasonable amortization, (2) (A) the number of
heating customers receiving energy assistance
during the preceding heating season and the total
amount of such assistance and (B) the total
balance of the accounts of such customers after
all energy assistance is applied to the accounts,
(3) the number of hardship cases reinstated
between November first of the preceding year and
April fifteenth of the same year, the number of
hardship cases terminated between April fifteenth
of the same year and November first and the number
of hardship cases reinstated during each month
from April to November, inclusive, of the same
year, (4) the number of reasonable amortization
agreements executed and the number breached during
the same year by (A) hardship cases and (B)
nonhardship cases and (5) the number of accounts
of (A) hardship cases and (B) nonhardship cases
for which part or all of the outstanding balance
is written off as uncollectible during the
preceding year and the total amount of such
uncollectibles.
(d) Nothing in this section shall (1) prohibit
a public service company, ELECTRIC SUPPLIER or
municipal utility from terminating residential
utility service upon request of [a] THE customer
or in accordance with section 16-262d, AS AMENDED
BY THIS ACT, upon default by [a] THE customer on
an amortization agreement or collecting delinquent
accounts through legal processes, including the
processes authorized by section 16-262f, AS
AMENDED BY THIS ACT, or (2) relieve such company,
ELECTRIC SUPPLIER or municipal utility of its
responsibilities set forth in sections 16-262d and
16-262e, AS AMENDED BY THIS ACT, to occupants of
residential dwellings or, with respect to a public
service company OR ELECTRIC SUPPLIER, the
responsibilities set forth in section 19a-109.
(e) No provision of the Freedom of Information
Act, as defined in section 1-18a, shall be
construed to require or permit a municipal utility
furnishing electric, gas or water service, a
municipality furnishing water or sewer service, a
district established by special act or pursuant to
chapter 105 and furnishing water or sewer service
or a regional authority established by special act
to furnish water or sewer service to disclose
records under the Freedom of Information Act, as
defined in section 1-18a, which identify or could
lead to identification of the utility usage or
billing information of individual customers, to
the extent such disclosure would constitute an
invasion of privacy.
(f) IF AN ELECTRIC SUPPLIER SUFFERS A LOSS OF
REVENUE BY OPERATION OF THIS SECTION, THE SUPPLIER
MAY MAKE A CLAIM FOR SUCH REVENUE TO THE
DEPARTMENT. THE ELECTRIC DISTRIBUTION COMPANY
SHALL REIMBURSE THE ELECTRIC SUPPLIER FOR SUCH
LOSSES FOUND TO BE REASONABLE BY THE DEPARTMENT AT
THE LOWER OF (1) THE PRICE OF THE CONTRACT BETWEEN
THE SUPPLIER AND THE CUSTOMER, OR (2) THE ELECTRIC
DISTRIBUTION COMPANY'S PRICE TO CUSTOMERS FOR
DEFAULT SERVICE, AS DETERMINED BY THE DEPARTMENT.
THE ELECTRIC DISTRIBUTION COMPANY MAY RECOVER SUCH
REIMBURSEMENT, ALONG WITH TRANSACTION COSTS,
THROUGH THE SYSTEMS BENEFITS CHARGE.
Sec. 39. Section 16-262d of the general
statutes, as amended by public act 97-11, is
repealed and the following is substituted in lieu
thereof:
(a) No electric, ELECTRIC DISTRIBUTION, gas,
telephone or water [public service] company, NO
ELECTRIC SUPPLIER and no municipal utility
furnishing electric, gas or water service may
terminate such service to a residential dwelling
on account of nonpayment of a delinquent account
unless such company, ELECTRIC SUPPLIER or
municipal utility first gives notice of such
delinquency and impending termination by first
class mail addressed to the customer to which such
service is billed, at least thirteen calendar days
prior to the proposed termination, except that if
an electric, ELECTRIC DISTRIBUTION or gas [public
service] company, ELECTRIC SUPPLIER or municipal
utility furnishing electric or gas service has
issued a notice under this subsection but has not
terminated service prior to issuing a new bill to
the customer, such company, ELECTRIC SUPPLIER or
municipal utility may terminate such service only
after mailing the customer an additional notice of
the impending termination, addressed to the
customer to which such service is billed either
(1) by first class mail at least thirteen calendar
days prior to the proposed termination or (2) by
certified mail, at least seven calendar days prior
to the proposed termination. In the event that
multiple dates of proposed termination are
provided to a customer, no such company, ELECTRIC
SUPPLIER or municipal utility shall terminate
service prior to the latest of such dates. For
purposes of this subsection, the thirteen-day
periods and seven-day period shall commence on the
date such notice is mailed. If such company,
ELECTRIC SUPPLIER or municipal utility does not
terminate service within one hundred twenty days
after mailing the initial notice of termination,
such company, ELECTRIC SUPPLIER or municipal
utility shall give the customer a new notice at
least thirteen days prior to termination. Every
termination notice issued by a public service
company, ELECTRIC SUPPLIER or municipal utility
shall contain or be accompanied by an explanation
of the rights of the customer provided in
subsection (c) of this section.
(b) No such company, ELECTRIC SUPPLIER or
municipal utility shall effect termination of
service for nonpayment during such time as any
resident of a dwelling to which such service is
furnished is seriously ill, if the fact of such
serious illness is certified to such company,
ELECTRIC SUPPLIER or municipal utility by a
registered physician within such period of time
after the mailing of a termination notice pursuant
to subsection (a) of this section as the
Department of Public Utility Control may by
regulation establish, provided the customer agrees
to amortize the unpaid balance of his account over
a reasonable period of time and keeps current his
account for utility service as charges accrue in
each subsequent billing period.
(c) No such company, ELECTRIC SUPPLIER or
municipal utility shall effect termination of
service to a residential dwelling for nonpayment
during the pendency of any complaint,
investigation, hearing or appeal, initiated by a
customer within such period of time after the
mailing of a termination notice pursuant to
subsection (a) of this section as said Department
of Public Utility Control may by regulation
establish; provided, any telephone company during
the pendency of any complaint, investigation,
hearing or appeal may terminate telephone service
if the amount of charges accruing and outstanding
subsequent to the initiation of any complaint,
investigation, hearing or appeal exceeds on a
monthly basis the average monthly bill for the
previous three months or if the customer fails to
keep current his telephone account for all
undisputed charges or fails to comply with any
amortization agreement as hereafter provided.
(d) Any customer who has initiated a complaint
or investigation under subsection (c) of this
section shall be given an opportunity for review
of such complaint or investigation by a review
officer of the company, ELECTRIC SUPPLIER or
municipal utility other than a member of such
company's, ELECTRIC SUPPLIER'S or municipal
utility's credit department, provided the
Department of Public Utility Control may waive
this requirement for any company, ELECTRIC
SUPPLIER or municipal utility employing fewer than
twenty-five full-time employees, which review
shall include consideration of whether the
customer should be permitted to amortize the
unpaid balance of his account over a reasonable
period of time. No termination shall be effected
for any customer complying with any such
amortization agreement, provided such customer
also keeps current his account for utility service
as charges accrue in each subsequent billing
period.
(e) Any customer whose complaint or request
for an investigation has resulted in a
determination by a company, ELECTRIC SUPPLIER or
municipal utility which is adverse to him may
appeal such determination to the Department of
Public Utility Control or a hearing officer
appointed by the department.
(f) If, following the receipt of a termination
notice or the entering into of an amortization
agreement, the customer makes a payment or
payments amounting to twenty per cent of the
balance due, the public service company OR
ELECTRIC SUPPLIER shall not terminate service
without giving notice to the customer, in
accordance with the provisions of this section, of
the conditions the customer must meet to avoid
termination, but such subsequent notice shall not
entitle such customer to further investigation,
review or appeal by the company, ELECTRIC
SUPPLIER, municipal utility or department.
Sec. 40. Section 16-262e of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Notwithstanding the provisions of section
16-262d, AS AMENDED BY THIS ACT, wherever an
owner, agent, lessor or manager of a residential
dwelling is billed directly by an electric,
ELECTRIC DISTRIBUTION, gas, telephone or water
[public service] company or by a municipal utility
for utility service furnished to such building not
occupied exclusively by such owner, agent, lessor,
or manager, and such company or municipal utility
OR THE ELECTRIC SUPPLIER PROVIDING ELECTRIC
GENERATION SERVICES has actual or constructive
knowledge that the occupants of such dwelling are
not the [persons] INDIVIDUALS to whom the company
or municipal utility usually sends its bills, such
company, ELECTRIC SUPPLIER or municipal utility
shall not terminate such service for nonpayment of
a delinquent account owed to such company,
ELECTRIC SUPPLIER or municipal utility by such
owner, agent, lessor or manager unless: (1) Such
company, ELECTRIC SUPPLIER or municipal utility
makes a good faith effort to notify the occupants
of such building of the proposed termination by
the means most practicable under the circumstances
and best designed to provide actual notice; and
(2) such company, ELECTRIC SUPPLIER or municipal
utility provides an opportunity, where
practicable, for such occupants to receive service
in their own names without any liability for the
amount due while service was billed directly to
the lessor, owner, agent or manager and without
the necessity for a security deposit; provided, if
it is not practicable for such occupants to
receive service in their own names, the company,
ELECTRIC SUPPLIER or municipal utility shall not
terminate service to such residential dwelling but
may pursue the remedy provided in section 16-262f,
AS AMENDED BY THIS ACT.
(b) Whenever a company, ELECTRIC SUPPLIER or
municipal utility has terminated service to a
residential dwelling whose occupants are not the
[persons] INDIVIDUALS to whom it usually sends its
bills, such company, ELECTRIC SUPPLIER or
municipal utility shall, upon obtaining knowledge
of such occupancy, immediately reinstate service
and thereafter not effect termination unless it
first complies with the provisions of subsection
(a) OF THIS SECTION.
(c) The owner, agent, lessor or manager of a
residential dwelling shall be liable for the costs
of all electricity, gas, water or heating fuel
furnished by a public service company, ELECTRIC
SUPPLIER, municipal utility or heating fuel dealer
to the building, except for any service furnished
to any dwelling unit of the building on an
individually metered or billed basis for the
exclusive use of the occupants of that dwelling
unit. If service is not provided on an
individually metered or billed basis and the
owner, agent, lessor or manager fails to pay for
such service, any occupant who receives service in
his own name may deduct, in accordance with the
provisions of subsection (d) of this section, a
reasonable estimate of the cost of any portion of
such service which is for the use of occupants of
dwelling units other than such occupant's dwelling
unit.
(d) Any payments made by the occupants of any
residential dwelling pursuant to subsection (a) or
(c) of this section shall be deemed to be in lieu
of an equal amount of rent or payment for use and
occupancy and each occupant shall be permitted to
deduct such amounts from any sum of rent or
payment for use and occupancy due and owing or to
become due and owing to the owner, agent, lessor
or manager.
(e) Wherever a company, ELECTRIC SUPPLIER or
municipal utility provides service pursuant to
subdivision (2) of subsection (a), the company,
ELECTRIC SUPPLIER or municipal utility shall
notify each occupant of such building in writing
that service will be provided in the occupant's
own name. Such writing shall contain a conspicuous
notice in boldface type stating,
"NOTICE TO OCCUPANT. YOU MAY DEDUCT THE FULL
AMOUNT YOU PAY (name of company or municipal
utility) FOR (type of service) FROM THE MONEY YOU
PAY YOUR LANDLORD OR HIS AGENT."
(f) The owner, agent, lessor or manager shall
not increase the amount paid by such occupant for
rent or for use and occupancy in order to collect
all or part of that amount lawfully deducted by
the occupant pursuant to this section.
(g) Nothing in this section shall be construed
to prevent the company, ELECTRIC SUPPLIER,
municipal utility, heating fuel dealer or occupant
from pursuing any other action or remedy at law or
equity that it may have against the owner, agent,
lessor, or manager.
Sec. 41. Subsection (a) of section 16-262f of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) Upon default of the owner, agent, lessor
or manager of a residential dwelling who is billed
directly by an electric, ELECTRIC DISTRIBUTION,
gas, telephone or water company or by a municipal
utility for utility service furnished to such
building, such company or municipal utility OR
ELECTRIC SUPPLIER PROVIDING ELECTRIC GENERATION
SERVICES may petition the Superior Court or a
judge thereof, for appointment of a receiver of
the rents or payments for use and occupancy for
any dwelling for which the owner, agent, lessor or
manager is in default. The court or judge shall
forthwith issue an order to show cause why a
receiver should not be appointed, which shall be
served upon the owner, agent, lessor or manager or
his agent in a manner most reasonably calculated
to give notice to such owner, agent, lessor or
manager as determined by such court or judge,
including, but not limited to, a posting of such
order on the premises in question. A hearing shall
be had on such order no later than seventy-two
hours after its issuance or the first court day
thereafter. The sole purpose of such a hearing
shall be to determine whether there is an amount
due and owing between the owner, agent, lessor or
manager and the company, ELECTRIC SUPPLIER or
municipal utility. The court shall make a
determination of any amount due and owing and any
amount so determined shall constitute a lien upon
the real property of such owner. A certificate of
such amount may be recorded in the land records of
the town in which such property is located
describing the amount of the lien and the name of
the party in default. When the amount due and
owing has been paid the company, ELECTRIC SUPPLIER
or municipality shall issue a certificate
discharging the lien and shall file the
certificate in the land records of the town in
which such lien was recorded. The receiver
appointed by the court shall collect all rents or
payments for use and occupancy forthcoming from
the occupants of the building in question in place
of the owner, agent, lessor or manager. The
receiver shall pay the petitioner or other
supplier, from such rents or payments for use and
occupancy, for electric, gas, telephone, water or
heating oil supplied on and after the date of his
appointment. The owner, agent, lessor or manager
shall be liable for such reasonable fees and costs
determined by the court to be due the receiver,
which fees and costs may be recovered from the
rents or payments for use and occupancy under the
control of the receiver, provided no such fees or
costs shall be recovered until after payment for
current electric, gas, telephone and water service
and heating oil deliveries has been made. The
owner, agent, lessor or manager shall be liable to
the petitioner for reasonable attorney's fees and
costs incurred by the petitioner, provided no such
fees or costs shall be recovered until after
payment for current electric, gas, telephone and
water service and heating oil deliveries has been
made and after payments of reasonable fees and
costs to the receiver. Any moneys from rental
payments or payments for use and occupancy
remaining after payment for current electric, gas,
telephone and water service or heating oil
deliveries, and after payment for reasonable costs
and fees to the receiver, and after payment to the
petitioner for reasonable attorney's fees and
costs, shall be applied to any arrearage found by
the court to be due and owing the company,
ELECTRIC SUPPLIER or municipal utility from the
owner, agent, lessor or manager for service
provided such building. Any moneys remaining
thereafter shall be turned over to the owner,
agent, lessor or manager. The court may order an
accounting to be made at such times as it
determines to be just, reasonable, and necessary.
Sec. 42. Section 16-262i of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The Department of Public Utility Control
shall adopt regulations necessary to carry out the
purposes of sections 16-262c to 16-262h,
inclusive, AS AMENDED BY THIS ACT.
(b) The department may adopt regulations in
accordance with the provisions of chapter 54,
setting forth the terms and conditions under which
electric, ELECTRIC DISTRIBUTION, gas, telephone
and water [public service] companies, ELECTRIC
SUPPLIERS and municipal utilities furnishing
electric, gas or water service may be prohibited
from terminating service to a residential dwelling
on account of nonpayment of a delinquent account
in the name of the former spouse or spouse of the
[person] INDIVIDUAL who occupies the dwelling, if
the marriage of such [persons] INDIVIDUALS has
been dissolved or annulled or such [persons]
INDIVIDUALS are legally separated or have an
action for dissolution or annulment of a marriage
or for legal separation pending, pursuant to
chapter 815j.
Sec. 43. (NEW) On and after January 1, 2000,
each electric supplier, as defined in section 16-1
of the general statutes, as amended by section 1
of this act, shall give a credit for any
electricity generated by a residential customer
from a Class I renewable energy source or a
hydropower facility as described in subdivision
(27) of section 16-1, as amended by section 1 of
this act. 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 (i)
consumed and produced by the customer, or (ii) the
net amount of electricity produced by the
customer. A residential customer who generates
electricity pursuant to the provisions of this
section shall be assessed for the competitive
transition assessment, pursuant to section 11 of
this act, and the systems benefits charge,
pursuant to section 16 of this act, 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.
Sec. 44. (NEW) (a) For purposes of this
section, "renewable energy" means solar energy,
wind, ocean thermal energy, wave or tidal energy,
fuel cells, landfill gas and low emission advanced
biomass conversion technologies and other energy
resources and emerging technologies which have
significant potential for commercialization and
which do not involve the combustion of coal,
petroleum or petroleum products, municipal solid
waste or nuclear fission.
(b) On and after January 1, 2000, the
Department of Public Utility Control shall assess
or cause to be assessed a charge of not less than
one-half of one mill per kilowatt hour charged to
each end use customer of electric services in this
state which shall be deposited into the Renewable
Energy Investment Fund established under
subsection (b) of this section. On and after July
1, 2002, such charge shall be three-quarters of
one mill and on and after July 1, 2004, such
charge shall be one mill.
(c) There is hereby created a Renewable Energy
Investment Fund which shall be administered by
Connecticut Innovations, Incorporated. The fund
may receive any amount required by law to be
deposited into the fund and may receive any
federal funds as may become available to the state
for renewable energy investments. Connecticut
Innovations, Incorporated, may use any amount in
said fund for expenditures which promote
investment in renewable energy sources in
accordance with a comprehensive plan developed by
it to foster the growth, development and
commercialization of renewable energy sources,
related enterprises and stimulate demand for
renewable energy and deployment of renewable
energy sources which serve end use customers in
this state. Such expenditures may include, but not
be limited to, grants, direct or equity
investments, contracts or other actions which
support research, development, manufacture,
commercialization, deployment and installation of
renewable energy technologies, and actions which
expand the expertise of individuals, businesses
and lending institutions with regard to renewable
energy technologies.
(d) The chairperson of the board of directors
of Connecticut Innovations, Incorporated, shall
convene a Renewable Energy Investments Advisory
Committee to assist Connecticut Innovations,
Incorporated, in matters related to the Renewable
Energy Investment Fund, including, but not limited
to, development of a comprehensive plan and
expenditure of funds. The advisory committee shall
include not more than twelve individuals with
knowledge and experience in matters related to the
purpose and activities of said fund. The advisory
committee shall consist of the following members:
(1) One person with expertise regarding renewable
energy resources appointed by the speaker of the
House of Representatives; (2) one person
representing a state or regional organization
primarily concerned with environmental protection
appointed by the president pro tempore of the
Senate; (3) one person with experience in business
or commercial investments appointed by the
majority leader of the House of Representatives;
(4) one person representing a state or regional
organization primarily concerned with
environmental protection appointed by the majority
leader of the Senate; (5) one person with
experience in business or commercial investments
appointed by the minority leader of the House of
Representatives; (6) one person with experience in
business or commercial investments appointed by
the minority leader of the Senate; (7) two state
officials with experience in matters relating to
energy policy and one person with expertise
regarding renewable energy resources appointed by
the Governor; and (8) three persons with
experience in business or commercial investments
appointed by the board of directors of Connecticut
Innovations, Incorporated. The advisory committee
shall issue annually a report to such chairperson
reviewing the activities of the fund in detail and
shall provide a copy of such report to the joint
standing committee of the General Assembly having
cognizance of matters relating to energy.
Sec. 45. Subdivision (57) of section 12-81 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(57) (a) Subject to authorization of the
exemption by ordinance in any municipality, any
[solar energy electricity generating system] CLASS
I RENEWABLE ENERGY SOURCE, AS DEFINED IN SECTION
16-1, AS AMENDED BY SECTION 1 OF THIS ACT, OR ANY
HYDROPOWER FACILITY DESCRIBED IN SUBDIVISION (27)
OF SAID SECTION 16-1, installed for the generation
of electricity for private residential use,
provided such installation occurs on or after
October 1, 1977, AND FURTHER PROVIDED SUCH
INSTALLATION IS FOR A SINGLE FAMILY DWELLING OR
MULTIFAMILY DWELLING CONSISTING OF TWO TO FOUR
UNITS; [, and before October 1, 2006. This
exemption shall only be applicable in the first
fifteen assessment years following the
installation of such system;
(b) As used in this subdivision, "solar energy
electricity generating system" means equipment
which is designed, operated and installed as a
system at any private residential location, which
utilizes solar energy to produce electricity for
consumption at such location and which meets
standards established by regulation, in accordance
with the provisions of chapter 54, by the
Secretary of the Office of Policy and Management;]
[(c)] (b) Any person claiming the exemption
provided in this subdivision for any assessment
year shall, on or before the first day of November
in such assessment year, file with the assessor or
board of assessors in the town in which such
[solar energy electricity generating system] CLASS
I RENEWABLE ENERGY SOURCE is located, written
application claiming such exemption. Failure to
file such application in the manner and form as
provided by such assessor or board within the time
limit prescribed shall constitute a waiver of the
right to such exemption for such assessment year.
Such application shall not be required for any
assessment year following that for which the
initial application is filed, provided if such
[solar energy electricity generating system] CLASS
I RENEWABLE ENERGY SOURCE is altered in a manner
which would require a building permit, such
alteration shall be deemed a waiver of the right
to such exemption until a new application,
applicable with respect to such altered [system]
SOURCE, is filed and the right to such exemption
is established as required initially.
Sec. 46. (NEW) (a) Each electric company, as
defined in section 16-1 of the general statutes,
as amended by section 1 of this act, electric
distribution company, as defined in said section
16-1, and generation entity or affiliate shall
maintain and update regularly a roster of
employees terminated as a direct result of
restructuring of the electric industry. Such
roster shall include each such employee's name,
address, job title and job description at the time
of termination. At the time of termination, the
employer shall ask the employee if the employee
wants to be included in the roster. After
obtaining the permission of each such employee,
the company shall provide the Department of Public
Utility Control with a copy of the roster. In no
event shall the information concerning any
employee be added to the roster without the
permission of the employee.
(b) The Department of Public Utility Control
shall forward the roster to each electric company,
electric distribution company, generation entity
or affiliate and electric supplier, as defined in
section 16-1 of the general statutes, as amended
by section 1 of this act. Such roster may be used
by each such company or supplier in mitigating
costs.
(c) The Department of Public Utility Control
shall forward to each employee whose name appears
on a roster submitted pursuant to subsection (a)
of this section a list containing the name and
business address of each electric supplier.
Sec. 47. (NEW) (a) On and after July 1, 1998,
there shall be allowed a credit against the tax
imposed under chapter 208 of the general statutes
on any electric supplier in the state other than a
generation entity or affiliate of an electric
company in an amount as provided in subsection (b)
of this section with respect to each displaced
worker hired by such electric supplier.
(b) The amount of the credit shall be one
thousand five hundred dollars with respect to each
displaced worker and shall be allowed in the
income year in which such displaced worker first
completes six full months of full-time employment
with the taxpayer.
(c) The amount of credit allowed any taxpayer
under this section for any income year shall not
exceed the amount of tax due from such taxpayer
under this chapter with respect to such income
year. The credit allowed under this section shall
be taken only once with respect to any displaced
worker.
(d) For the purposes of this section (1)
"displaced worker" means any Connecticut employee,
other than an officer or a director, of an
electric company, as defined in section 16-1 of
the general statutes, as amended by section 1 of
this act, or a generation entity or affiliate who
has been terminated as a direct result of
restructuring of the electric industry, and (2)
"electric supplier" means a facility that provides
electric generation services, as defined in said
section 16-1.
Sec. 48. (NEW) (a) As used in this section:
(1) "Municipality" means each town, city,
borough, consolidated town and city and
consolidated town and borough and each district,
as defined in section 7-324 of the general
statutes; and
(2) "Next succeeding" means the second such
date.
(b) For a period of ten years beginning with
the assessment year during which the value of an
electric generation facility decreases as a direct
result of restructuring of the electric industry,
but in no event later than October 1, 2005, the
municipality in which the facility is located
shall be entitled, in addition to the amount of
tax for which the owner of an electric generation
facility is liable under chapter 203 of the
general statutes with respect to such facility, to
an amount as computed in subsection (c) of this
section.
(c) (1) The additional amount shall be a
percentage of (A) the difference between the value
of an electric generation facility as it would
have been assessed were it not for said
restructuring taking into account depreciation and
the assessed value of such facility (B) multiplied
by the mill rate of the municipality in which the
facility is located for the applicable assessment
year, (C) minus the amount of any increase in
property tax revenues to such municipality as a
result of any increase in value of the facility or
an additional electric generation facility in the
municipality.
(2) The assessor or board of assessors shall
calculate the additional amount as follows: (A)
For the assessment year during which the value of
such facility decreased as a direct result of said
restructuring, ninety per cent of the amount
computed under subdivision (1) of this subsection;
and (B) for each assessment year thereafter, ten
per cent less for each succeeding year until the
percentage is zero.
(d) On or before June fifteenth, annually,
following the assessment year during which the
value of an electric generation facility decreases
as a direct result of restructuring of the
electric industry, the assessor or board of
assessors of a municipality in which such a
facility is located shall certify to the Secretary
of the Office of Policy and Management, on a form
furnished by the secretary, the amount as computed
in subsection (c) of this section together with
supporting information as the secretary may
require. The secretary may reevaluate any such
facility when, in his judgment, the valuation is
inaccurate. The secretary shall review each claim
and modify the value of any facility included
therein when, in his judgment, the value is
inaccurate or the facility did not decrease in
value as a direct result of restructuring of the
electric industry. Not later than December first
next succeeding the conclusion of the assessment
year for which the amount was approved by the
assessor or assessors, the secretary shall notify
the municipality in which the facility is located
of the modification, in accordance with the
procedure set forth in subsection (e) of this
section. The secretary shall, on or before
December fifteenth, annually, certify to the
Department of Public Utility Control the amount
due the municipality under the provisions of this
section, including any modification of such amount
made prior to December first, and the department
shall order the payment of such amount by the
appropriate electric distribution company to the
municipality in which the facility is located on
or before the thirty-first day of the December
immediately following. The amount paid shall be
recovered by the electric distribution company
through the systems benefits charge established
pursuant to section 18 of this act. If any
modification is made as the result of the
provisions of this section on or after the
December fifteenth following the date on which the
assessor has provided the amount in question, any
adjustments to the amount due to a municipality
for the period for which such modification was
made shall be made in the next payment the
electric distribution company shall make to such
municipality pursuant to this section.
(e) If the Secretary of the Office of Policy
and Management modifies the amount calculated by
the assessor or board of assessors pursuant to
subsection (c) of this section, the secretary
shall send written notice of such modification to
the appropriate municipality. Not later than
thirty days after the date the municipality
receives such notice, the municipality may make
application for a hearing before said secretary,
or his designee. Such application shall be in
writing and shall set forth the reasons why the
amount in question should not be modified. The
secretary shall grant or deny such hearing request
by written notice to the municipality. If a
request for hearing is denied by the secretary
such notice shall contain a statement of the
reason for said denial. Not later than sixty days
after the date on which a hearing is held, said
secretary shall send notice of his decision
concerning such appeal to the municipality. If the
municipality is aggrieved by the secretary's
decision concerning the disposition of the
municipality's appeal or the secretary's decision
not to hold a hearing, such municipality may, not
later than thirty days after receiving a notice
related thereto from the secretary, make
application in the nature of an appeal to the
superior court of the judicial district in which
the electric generation facility is located. Such
application shall be accompanied by a citation to
the secretary to appear before said court, and
shall be served and returned in the same manner as
is required in the case of a summons in a civil
action. Said court may grant such relief as may be
equitable.
Sec. 49. Subsection (a) of section 16-50k of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) Except as provided in subsection (b) of
section 16-50z, no person shall exercise any right
of eminent domain in contemplation of, commence
the preparation of the site for, or commence the
construction or supplying of a facility, or any
modification of a facility, that may, as
determined by the council, have a substantial
adverse environmental effect, in the state without
having first obtained a certificate of
environmental compatibility and public need,
hereinafter referred to as a "certificate", issued
with respect to such facility or modification by
the council. Any facility with respect to which a
certificate is required shall thereafter be built,
maintained and operated in conformity with such
certificate and any terms, limitations or
conditions contained therein. NOTWITHSTANDING THE
PROVISIONS OF THIS SUBSECTION, THE COUNCIL SHALL,
IN THE EXERCISE OF ITS JURISDICTION OVER THE
SITING OF GENERATING FACILITIES, APPROVE BY
DECLARATORY RULING THE CONSTRUCTION OF A FACILITY
SOLELY FOR THE PURPOSE OF GENERATING ELECTRICITY
OTHER THAN AN ELECTRIC GENERATING FACILITY THAT
USES NUCLEAR MATERIALS OR COAL AS FUEL, AT A SITE
WHERE AN ELECTRIC GENERATING FACILITY OPERATED
PRIOR TO JULY 1, 1998, UNLESS THE COUNCIL FINDS A
SUBSTANTIAL ADVERSE ENVIRONMENTAL EFFECT.
Sec. 50. Section 16-50p of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) In a certification proceeding, the council
shall render a decision upon the record either
granting or denying the application as filed, or
granting it upon such terms, conditions,
limitations or modifications of the construction
or operation of the facility as the council may
deem appropriate. The council's decision shall be
rendered within twelve months of the filing of an
application concerning a facility described in
[subdivisions (1) to (3), inclusive,] SUBDIVISION
(1) OR (2) of subsection (a) of section 16-50i or
subdivision (4) of said subsection (a) if the
application was incorporated in an application
concerning a facility described in subdivision (1)
of said subsection (a), and within one hundred
eighty days of the filing of any other application
concerning a facility described in subdivision (4)
of said subsection (a) and an application
concerning a facility described in [subdivisions
(5) and] SUBDIVISION (3), (5) OR (6) of said
subsection (a), provided such time periods may be
extended by the council by not more than one
hundred eighty days with the consent of the
applicant. The council shall file, with its order,
an opinion stating in full its reasons for the
decision. [The] EXCEPT AS PROVIDED IN SUBSECTION
(c) OF THIS SECTION, THE council shall not grant a
certificate, either as proposed or as modified by
the council, unless it shall find and determine:
(1) A public need for the facility and the basis
of the need; (2) the nature of the probable
environmental impact, including a specification of
every significant adverse effect, whether alone or
cumulatively with other effects, on, and conflict
with the policies of the state concerning, the
natural environment, ecological balance, public
health and safety, scenic, historic and
recreational values, forests and parks, air and
water purity and fish and wildlife; (3) why the
adverse effects or conflicts referred to in
subdivision (2) of this subsection are not
sufficient reason to deny the application; (4) in
the case of an electric transmission line, (A)
what part, if any, of the facility shall be
located overhead, (B) that the facility conforms
to a long-range plan for expansion of the electric
power grid of the electric systems serving the
state and interconnected utility systems and will
serve the interests of electric system economy and
reliability, and (C) that the overhead portions of
the facility, if any, are cost effective and the
most appropriate alternative based on a life-cycle
cost analysis of the facility and underground
alternatives to such facility, and are consistent
with the purposes of this chapter, with such
regulations as the council may adopt pursuant to
subsection (a) of section 16-50t, and with the
Federal Power Commission "Guidelines for the
Protection of Natural Historic Scenic and
Recreational Values in the Design and Location of
Rights-of-Way and Transmission Facilities" or any
successor guidelines and any other applicable
federal guidelines; (5) in the case of an electric
or fuel transmission line, that the location of
the line will not pose an undue hazard to persons
or property along the area traversed by the line.
(b) (1) Prior to granting an applicant's
certificate for a facility described in
subdivision (5) or (6) of section 16-50i, the
council shall examine, in addition to its
consideration of subdivisions (1) to (5),
inclusive, of subsection (a) of this section: (A)
The feasibility of requiring an applicant to share
an existing facility, as defined in subsection (b)
of section 16-50aa, within a technically derived
search area of the site of the proposed facility,
provided such shared use is technically, legally,
environmentally and economically feasible and
meets public safety concerns, (B) whether such
facility, if constructed, may be shared with any
public or private entity which provides
telecommunications or community antenna television
service to the public, provided such shared use is
technically, legally, environmentally and
economically feasible at fair market rates, meets
public safety concerns, and the parties' interests
have been considered and (C) whether the proposed
facility would be located in an area of the state
which the council, in consultation with the
Department of Environmental Protection and any
affected municipalities, finds to be a relatively
undisturbed area that possesses scenic quality of
local, regional or state-wide significance. The
council may deny an application for a certificate
if it determines that (i) shared use under the
provisions of subparagraph (A) of this subdivision
is feasible, (ii) the applicant would not
cooperate relative to the future shared use of the
proposed facility, or (iii) the proposed facility
would substantially affect the scenic quality of
its location and no public safety concerns require
that the proposed facility be constructed in such
a location.
(2) When issuing a certificate for a facility
described in subdivision (5) or (6) of subsection
(a) of section 16-50i, the council may impose such
reasonable conditions as it deems necessary to
promote immediate and future shared use of such
facilities and avoid the unnecessary proliferation
of such facilities in the state. The council
shall, prior to issuing a certificate, provide
notice of the proposed facility to the
municipality in which the facility is to be
located. Upon motion of the council, written
request by a public or private entity which
provides telecommunications or community antenna
television service to the public or upon written
request by an interested party, the council may
conduct a preliminary investigation to determine
whether the holder of a certificate for such a
facility is in compliance with the certificate.
Following its investigation, the council may
initiate a certificate review proceeding, which
shall include a hearing, to determine whether the
holder of a certificate for such a facility is in
compliance with the certificate. In such
proceeding, the council shall render a decision
and may issue orders which it deems necessary to
compel compliance with the certificate, which
orders may include, but not be limited to,
revocation of the certificate. Such orders may be
enforced in accordance with the provisions of
section 16-50u.
(c) (1) THE COUNCIL SHALL NOT GRANT A
CERTIFICATE FOR A FACILITY DESCRIBED IN
SUBDIVISION (3) OF SUBSECTION (a) OF SECTION
16-50i, EITHER AS PROPOSED OR AS MODIFIED BY THE
COUNCIL, UNLESS IT FINDS AND DETERMINES: (A) A
PUBLIC BENEFIT FOR THE FACILITY; (B) THE NATURE OF
THE PROBABLE ENVIRONMENTAL IMPACT, INCLUDING A
SPECIFICATION OF EVERY SIGNIFICANT ADVERSE AND
BENEFICIAL EFFECT THAT, WHETHER ALONE OR
CUMULATIVELY WITH OTHER EFFECTS, CONFLICTS WITH
THE POLICIES OF THE STATE CONCERNING THE NATURAL
ENVIRONMENT, ECOLOGICAL BALANCE, PUBLIC HEALTH AND
SAFETY, SCENIC, HISTORIC AND RECREATIONAL VALUES,
FORESTS AND PARKS, AIR AND WATER PURITY AND FISH
AND WILDLIFE; AND (C) WHY THE ADVERSE EFFECTS OR
CONFLICTS REFERRED TO IN SUBPARAGRAPH (B) OF THIS
SUBDIVISION ARE NOT SUFFICIENT REASON TO DENY THE
APPLICATION. FOR PURPOSES OF SUBPARAGRAPH (A) OF
THIS SUBDIVISION, A PUBLIC BENEFIT EXISTS IF SUCH
A FACILITY IS NECESSARY FOR THE RELIABILITY OF THE
ELECTRIC POWER SUPPLY OF THE STATE OR FOR A
COMPETITIVE MARKET FOR ELECTRICITY.
(2) THE COUNCIL SHALL NOT GRANT A CERTIFICATE
FOR A FACILITY DESCRIBED IN SUBDIVISION (1) OF
SUBSECTION (a) OF SECTION 16-50i WHICH IS
SUBSTANTIALLY UNDERGROUND OR UNDERWATER EXCEPT
WHERE SUCH FACILITIES INTERCONNECT WITH EXISTING
OVERHEAD FACILITIES, EITHER AS PROPOSED OR AS
MODIFIED BY THE COUNCIL, UNLESS IT FINDS AND
DETERMINES: (A) A PUBLIC BENEFIT FOR THE FACILITY;
(B) THE NATURE OF THE PROBABLE ENVIRONMENTAL
IMPACT, INCLUDING A SPECIFICATION OF EVERY SINGLE
ADVERSE AND BENEFICIAL EFFECT THAT, WHETHER ALONE
OR CUMULATIVELY WITH OTHER EFFECTS, CONFLICT WITH
THE POLICIES OF THE STATE CONCERNING THE NATURAL
ENVIRONMENT, ECOLOGICAL BALANCE, PUBLIC HEALTH AND
SAFETY, SCENIC, HISTORIC AND RECREATIONAL VALUES,
FORESTS AND PARKS, AIR AND PURITY AND FISH AND
WILDLIFE; (C) WHY THE ADVERSE EFFECTS OR CONFLICTS
REFERRED TO IN SUBPARAGRAPH (B) OF THIS
SUBDIVISION ARE NOT SUFFICIENT REASON TO DENY THE
APPLICATION; (D) IN THE CASE OF A NEW ELECTRIC
TRANSMISSION LINE, (i) WHAT PART, IF ANY, OF THE
FACILITY SHALL BE LOCATED OVERHEAD, (ii) THAT THE
FACILITY CONFORMS TO A LONG-RANGE PLAN FOR
EXPANSION OF THE ELECTRIC POWER GRID OF THE
ELECTRIC SYSTEMS SERVING THE STATE AND
INTERCONNECTED UTILITY SYSTEMS AND WILL SERVE THE
INTERESTS OF ELECTRIC SYSTEM ECONOMY AND
RELIABILITY, AND (iii) THAT THE OVERHEAD PORTIONS
OF THE FACILITY, IF ANY, ARE COST-EFFECTIVE AND
THE MOST APPROPRIATE ALTERNATIVE BASED ON A
LIFE-CYCLE COST ANALYSIS OF THE FACILITY AND
UNDERGROUND ALTERNATIVES TO SUCH FACILITY AND ARE
CONSISTENT WITH THE PURPOSES OF THIS CHAPTER, WITH
SUCH REGULATIONS AS THE COUNCIL MAY ADOPT PURSUANT
TO SUBSECTION (a) OF SECTION 16-50t, AND WITH THE
FEDERAL ENERGY REGULATORY COMMISSION "GUIDELINES
FOR THE PROTECTION OF NATURAL HISTORIC SCENIC AND
RECREATIONAL VALUES IN THE DESIGN AND LOCATION OF
RIGHTS-OF-WAY AND TRANSMISSION FACILITIES" OR ANY
OTHER SUCCESSOR GUIDELINES AND ANY OTHER
APPLICABLE FEDERAL GUIDELINES; AND (E) IN THE CASE
OF AN ELECTRIC OR FUEL TRANSMISSION LINE, THAT THE
LOCATION OF THE LINE WILL NOT POSE AN UNDUE HAZARD
TO PERSONS OR PROPERTY ALONG THE AREA TRAVERSED BY
THE LINE. FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS
SUBDIVISION, A PUBLIC BENEFIT EXISTS IF SUCH A
FACILITY IS NECESSARY FOR THE RELIABILITY OF THE
ELECTRIC POWER SUPPLY OF THE STATE OR FOR THE
DEVELOPMENT OF A COMPETITIVE MARKET FOR
ELECTRICITY.
[(c)] (d) If the council determines that the
location of all or a part of the proposed facility
should be modified, it may condition the
certificate upon such modification, provided the
municipalities, and persons residing or located in
such municipalities, affected by the modification
shall have had notice of the application as
provided in subsection (b) of section 16-50l.
[(d)] (e) In an amendment proceeding, the
council shall render a decision within ninety days
of the filing of the application or adoption of
the resolution initiating the proceeding. The
council shall file an opinion with its order
stating its reasons for the decision. The
council's decision shall include the findings and
determinations enumerated in subsection (a) of
this section which are relevant to the proposed
amendment.
[(e)] (f) A copy of the order and opinion
issued therewith shall be served upon each party
and a notice of the issuance of the order and
opinion shall be published in such newspapers as
will serve substantially to inform the public of
the issuance of such order and opinion. The name
and address of each party shall be set forth in
the order.
[(f)] (g) In making its decision as to whether
or not to issue a certificate, the council shall
in no way be limited by the fact that the
applicant may already have acquired land or an
interest therein for the purpose of constructing
the facility which is the subject of its
application.
Sec. 51. Section 7-217 of the general statutes
is repealed and the following is substituted in
lieu thereof:
Any municipality establishing or purchasing a
plant as provided by this chapter, [or]
reconstructing, extending or enlarging the same,
as provided in section 7-218, OR PAYING OR
LIQUIDATING OBLIGATIONS INCURRED PURSUANT TO ANY
POWER PURCHASE CONTRACT ENTERED INTO BY OR ON
BEHALF OF SUCH MUNICIPALITY, may pay for the same
by an issue of bonds, payable in a term not
exceeding thirty years, which shall not be
disposed of at less than par, but such bonds shall
not be issued until a vote authorizing the same
has been passed by the town or borough or the
common council of the city. No indebtedness shall
be incurred by any municipality in connection with
such plant except as provided in this section,
provided money may be borrowed temporarily to pay
the running expenses thereof and may be borrowed
in accordance with section 7-217a. All receipts
from the sale of gas or electricity shall be paid
over to the treasurer of such municipality. The
gross expenses of running such plant and
conducting such business of supplying gas or
electricity, including interest on such bonds and
the requirements of the sinking fund, if such a
fund has been provided for the payment of such
bonds, shall be included in the appropriations
made annually or from time to time by such
municipality and shall be paid out of the treasury
thereof. For the purposes of this chapter, the
proceeds of any notes issued pursuant to section
7-217a for the purpose of purchasing capacity or
energy shall be considered income of the plant
operated pursuant to this chapter by the
municipality issuing such notes and shall be
applicable against the expenses related to such
plant.
Sec. 52. Section 16-19e of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) In the exercise of its powers under the
provisions of this title, the Department of Public
Utility Control shall examine and regulate the
transfer of existing assets and franchises, the
expansion of the plant and equipment of existing
public service companies, the operations and
internal workings of public service companies and
the establishment of the level and structure of
rates in accordance with the following principles:
(1) That there is a clear public need for the
service being proposed or provided; (2) that the
public service company shall be fully competent to
provide efficient and adequate service to the
public in that such company is technically,
financially and managerially expert and efficient;
(3) that the department and all public service
companies shall perform all of their respective
public responsibilities with economy, efficiency
and care for the public safety, and so as to
promote economic development within the state with
consideration for energy and water conservation,
energy efficiency and the development and
utilization of renewable sources of energy and for
the prudent management of the natural environment;
(4) that the level and structure of rates be
sufficient, but no more than sufficient, to allow
public service companies to cover their operating
and capital costs, to attract needed capital and
to maintain their financial integrity, and yet
provide appropriate protection to the relevant
public interests, both existing and foreseeable;
(5) that the level and structure of rates charged
customers shall reflect prudent and efficient
management of the franchise operation and (6) that
the rates, charges, conditions of service and
categories of service of the companies not
discriminate against customers which utilize
renewable energy sources or cogeneration
technology to meet a portion of their energy
requirements.
(b) The Department of Public Utility Control
shall promptly undertake a separate, general
investigation of, and shall hold at least one
public hearing on new pricing principles and rate
structures for electric companies and for gas
companies to consider, without limitation, long
run incremental cost of marginal cost pricing,
peak load or time of day pricing and proposals for
optimizing the utilization of energy and
restraining its wasteful use and encouraging
energy conservation, and any other matter with
respect to pricing principles and rate structures
as the department shall deem appropriate. The
department shall determine whether existing or
future rate structures place an undue burden upon
those persons of poverty status and shall make
such adjustment in the rate structure as is
necessary or desirable to take account of their
indigency. The department shall require the
utilization of such new principles and structures
to the extent that the department determines that
their implementation is in the public interest and
necessary or desirable to accomplish the purposes
of this provision without being unfair or
discriminatory or unduly burdensome or disruptive
to any group or class of customers, and determines
that such principles and structures are capable of
yielding required revenues. In reviewing the rates
and rate structures of electric and gas companies,
the department shall take into consideration
appropriate energy policies, including those of
the state as expressed in subsection (c) of this
section. The authority shall issue its initial
findings on such investigation by December 1,
1976, and its final findings and order by June 1,
1977; provided that after such final findings and
order are issued, the department shall at least
once every two years undertake such further
investigations as it deems appropriate with
respect to new developments or desirable
modifications in pricing principles and rate
structures and, after holding at least one public
hearing thereon, shall issue its findings and
order thereon.
(c) The Department of Public Utility Control
shall consult at least once each year with the
Commissioner of Environmental Protection, the
Connecticut Siting Council and the Office of
Policy and Management, so as to coordinate and
integrate its actions, decisions and policies
pertaining to gas and electric companies, so far
as possible, with the actions, decisions and
policies of said other agencies and
instrumentalities in order to further the
development and optimum use of the state's energy
resources and conform to the greatest practicable
extent with the state energy policy as stated in
section 16a-35k, taking into account prudent
management of the natural environment and
continued promotion of economic development within
the state. In the performance of its duties, the
department shall take into consideration the
energy policies of the state as expressed in this
subsection and in any annual reports prepared or
filed by such other agencies and
instrumentalities, and shall defer, as
appropriate, to any actions taken by such other
agencies and instrumentalities on matters within
their respective jurisdictions.
(d) The Commissioner of Environmental
Protection, the Commissioner of Economic and
Community Development, the Connecticut Siting
Council and the Office of Policy and Management
shall be made parties to each proceeding on a rate
amendment proposed by a gas, [or] electric OR
ELECTRIC DISTRIBUTION company based upon an
alleged need for increased revenues to finance an
expansion of capital equipment and facilities, and
shall participate in such proceedings to the
extent necessary.
(e) THE DEPARTMENT OF PUBLIC UTILITY CONTROL,
IN A PROCEEDING ON A RATE AMENDMENT PROPOSED BY AN
ELECTRIC DISTRIBUTION COMPANY BASED UPON AN
ALLEGED NEED FOR INCREASED REVENUES TO FINANCE AN
EXPANSION OF THE CAPACITY OF ITS ELECTRIC
DISTRIBUTION SYSTEM, SHALL DETERMINE WHETHER
DEMAND-SIDE MANAGEMENT WOULD BE MORE
COST-EFFECTIVE IN MEETING ANY DEMAND FOR
ELECTRICITY FOR WHICH THE INCREASE IN CAPACITY IS
PROPOSED.
[(e)] (f) The provisions of this section shall
not apply to the regulation of a
telecommunications service which is a competitive
service, as defined in section 16-247a, or to a
telecommunications service to which an approved
plan for an alternative form of regulation
applies, pursuant to section 16-247k.
Sec. 53. Subsection (a) of section 16-246f of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) As used in this section:
(1) "Assistance" means any aid or support
provided, or any actions taken by a domestic
electric company for or on behalf of another
domestic electric company or by a foreign electric
company for or on behalf of a domestic electric
company including, without limitation, the
temporary transfer or use of repair personnel and
equipment;
(2) "Domestic electric company" means any
electric COMPANY OR ELECTRIC DISTRIBUTION company,
as defined in section 16-1, AS AMENDED BY SECTION
1 OF THIS ACT, any membership electric cooperative
organized under chapter 597 and any municipal
electric utility or municipal electric energy
cooperative, as defined respectively in section
7-233b, which has been chartered by or organized
or constituted within or under the laws of this
state;
(3) "Foreign electric company" shall have the
same meaning as provided in section 16-246a.
Sec. 54. Section 12-264 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Each (1) Connecticut municipality or
department or agency thereof, or Connecticut
district, manufacturing, selling or distributing
gas or electricity to be used for light, heat or
power, in this chapter and in chapter 212a called
a "municipal utility", (2) company the principal
business of which is manufacturing, selling or
distributing gas [, electricity] or steam to be
used for light, heat or power, including each
foreign municipal electric utility, as defined in
section 12-59 and given authority to engage in
business in this state pursuant to the provisions
of section 16-246c, and (3) company required to
register pursuant to section 16-258a shall pay a
quarterly tax upon gross earnings from such
operations in this state. Gross earnings from such
operations under subdivisions (1) and (2) of this
subsection shall include (A) all income classified
as operating revenues by the Department of Public
Utility Control in the uniform systems of accounts
prescribed by said department for operations
within the taxable quarter and, with respect to
each such company, (B) all income classified in
said uniform systems of accounts as income from
merchandising, jobbing and contract work, (C)
income from nonutility operations, (D) revenues
from lease of physical property not devoted to
utility operation, and (E) receipts from the sale
of residuals and other by-products obtained in
connection with the production of gas, electricity
or steam. Gross earnings from such operations
under subdivision (3) of this subsection shall be
gross income from the sales of natural gas. Gross
earnings of a gas company, as defined in section
16-1, AS AMENDED BY THIS ACT, shall not include
income earned in a taxable year commencing prior
to January 1, 2000, from the sale of natural gas
or propane as a fuel for a motor vehicle. No
deductions shall be allowed from such gross
earnings for any commission, rebate or other
payment, except a refund resulting from an error
or overcharge and those specifically mentioned in
section 12-265. Gross earnings of a company as
described in subdivision (2) of this subsection
shall not include income earned in any taxable
quarter commencing on or after July 1, 2000, from
the sale of steam.
(b) Each such company and municipal utility
shall, on or before the last day of January,
April, July and October of each year, render to
the Commissioner of Revenue Services under oath of
its treasurer, or the person performing the duties
of treasurer, or of an authorized agent or
officer, a return on forms prescribed or furnished
by the commissioner specifying (1) the name and
location of such company or municipal utility, (2)
the amount of gross earnings from operations for
the quarter ending with the last day of the
preceding month, (3) the gross earnings from the
sale or rental of appliances using water, steam,
gas or electricity and the cost of such appliances
sold, cost to be interpreted as net invoice price
plus transportation costs of such appliances, (4)
the gross earnings from all sales for resale of
water, steam, gas and electricity, whether or not
the purchasers are public service corporations,
municipal utilities, located in the state or
subject to the tax imposed by this chapter, (5)
the number of miles of water or steam pipes, gas
mains or electric wires operated by such company
or municipal utility within this state on the
first day and on the last day of the calendar year
immediately preceding, and (6) the number of miles
of water or steam pipes, gas mains or electric
wires wherever operated by such company or
municipal utility on said dates. Gas pipeline and
gas transmission companies which do not
manufacture or buy gas in this state for resale in
this state shall be subject to the provisions of
chapter 208 and shall not be subject to the
provisions of this chapter and chapter 212a.
(c) (1) EACH ELECTRIC DISTRIBUTION COMPANY, AS
DEFINED IN SECTION 16-1, AS AMENDED BY SECTION 1
OF THIS ACT, PROVIDING ELECTRIC TRANSMISSION
SERVICES, AS DEFINED IN SAID SECTION 16-1, OR
ELECTRIC DISTRIBUTION SERVICES, AS DEFINED IN SAID
SECTION 16-1, SHALL PAY A QUARTERLY TAX UPON ITS
GROSS EARNINGS IN EACH CALENDAR QUARTER AT THE
RATE OF (A) EIGHT AND ONE-HALF PER CENT OF ITS
GROSS EARNINGS FROM PROVIDING ELECTRIC
TRANSMISSION SERVICES OR ELECTRIC DISTRIBUTION
SERVICES ALLOCABLE TO OTHER THAN RESIDENTIAL
SERVICE AND (B) SIX AND EIGHT-TENTHS PER CENT OF
SUCH GROSS EARNINGS FROM PROVIDING ELECTRIC
TRANSMISSION SERVICES OR ELECTRIC DISTRIBUTION
SERVICES ALLOCABLE TO RESIDENTIAL SERVICE.
(2) FOR PURPOSES OF THIS SUBSECTION, GROSS
EARNINGS FROM PROVIDING ELECTRIC TRANSMISSION
SERVICES OR ELECTRIC DISTRIBUTION SERVICES SHALL
INCLUDE (A) ALL INCOME CLASSIFIED AS INCOME FROM
PROVIDING ELECTRIC TRANSMISSION SERVICES OR
ELECTRIC DISTRIBUTION SERVICES BY THE DEPARTMENT
OF PUBLIC UTILITY CONTROL IN THE UNIFORM SYSTEM OF
ACCOUNTS PRESCRIBED BY SAID DEPARTMENT AND (B) THE
COMPETITIVE TRANSITION ASSESSMENT COLLECTED
PURSUANT TO SECTION 10 OF THIS ACT, THE SYSTEMS
BENEFITS CHARGE COLLECTED PURSUANT TO SECTION 18
OF THIS ACT, AND THE ASSESSMENTS CHARGED UNDER
SECTIONS 33 AND 44 OF THIS ACT. SUCH GROSS
EARNINGS SHALL NOT INCLUDE INCOME FROM PROVIDING
ELECTRIC TRANSMISSION SERVICES OR ELECTRIC
DISTRIBUTION SERVICES TO A COMPANY DESCRIBED IN
SUBSECTION (c) OF SECTION 12-265.
(3) EACH ELECTRIC DISTRIBUTION COMPANY SHALL,
ON OR BEFORE THE LAST DAY OF JANUARY, APRIL, JULY
AND OCTOBER OF EACH YEAR, RENDER TO THE
COMMISSIONER OF REVENUE SERVICES UNDER OATH OF ITS
TREASURER, OR THE PERSON PERFORMING THE DUTIES OF
TREASURER, OR OF AN AUTHORIZED AGENT OR OFFICER, A
RETURN ON FORMS PRESCRIBED OR FURNISHED BY THE
COMMISSIONER WITH SUCH OTHER INFORMATION AS THE
COMMISSIONER OF REVENUE SERVICES DEEMS NECESSARY.
(d) THE TAX IMPOSED BY THIS CHAPTER IS DUE AND
PAYABLE TO THE COMMISSIONER OF REVENUE SERVICES
QUARTERLY ON OR BEFORE THE LAST DAY OF THE MONTH
NEXT SUCCEEDING EACH CALENDAR QUARTER.
Sec. 55. Section 12-265 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) As used in this section (1) with regard to
electric power, "sales for resale" include (A)
sales of electric power capacity, (B) power output
from such capacity, and (C) all transmission
charges in conjunction with such sales on or after
May 17, 1982, and (2) "net invoice price" means
invoice price less trade discounts.
(b) (1) Each company and municipal utility
included in section 12-264, OTHER THAN AN ELECTRIC
DISTRIBUTION COMPANY, AS DEFINED IN SECTION 16-1,
AS AMENDED BY SECTION 1 OF THIS ACT, INCLUDED IN
SUBSECTION (c) OF SECTION 12-264, AS AMENDED BY
SECTION 54 OF THIS ACT, shall be taxed at the rate
of five per cent upon the amount of gross earnings
in each taxable quarter from operations, except as
set forth in subsection (c) or (d) of this section
and except that each company and municipal utility
manufacturing, selling or distributing gas or
electricity to be used for light, heat or power
shall be taxed at the rate of four per cent upon
the amount of gross earnings in each taxable
quarter allocable to residential service, but
deduction shall be made of gross earnings (A) from
all sales for resale of water, steam, gas and
electricity to public service corporations and
municipal utilities, whether or not such
purchasers are Connecticut public service
corporations or Connecticut municipal utilities,
and whether or not they are subject to the tax
imposed by this chapter, (B) from any federal BTU
energy tax included in adjustment clause and
base-rate revenues, (C) from sales of appliances
using water, steam, gas or electricity by each
such company of the net invoice price plus
transportation costs of such appliances, (D) of
electric and gas companies, as defined in section
16-1, from energy conservation loan programs and
(E) from all sales for resale of gas to companies
registered pursuant to section 16-258a.
(2) Gross earnings for any taxable quarter,
for the purposes of assessment and taxation, shall
be as follows: (A) In the case of a company or
municipal utility carrying on business or
operating entirely within this state, the amount
of gross earnings from operations; (B) in the case
of a company or municipal utility carrying on
business or operations a part of which is outside
of this state, (i) such portion of the amount of
gross earnings from operations determined under
the provisions of section 12-264, AS AMENDED BY
THIS ACT, as is represented by the ratio of the
number of miles of water or steam pipes, gas mains
or electric wires operated by such company or
municipal utility within this state on the first
day and on the last day of the calendar year
immediately preceding to the total number of miles
of water or steam pipes, gas mains or electric
wires operated by such company or municipal
utility on said dates; or (ii) in the case of a
company required to register pursuant to section
16-258a, such portion of the amount of gross
earnings from operations determined under the
provisions of section 12-264, AS AMENDED BY THIS
ACT, as is represented by the ratio of the sales
in this state to end users during such quarter to
the total sales everywhere to end users during
such quarter.
(c) The rate of tax on the sale, furnishing or
distribution of electricity or natural gas for use
directly by a company engaged in a manufacturing
production process, in accordance with the
Standard Industrial Classification Manual, United
States Office of Management and Budget, 1987
edition, classifications 2000 to 3999, inclusive,
shall be four per cent with respect to calendar
quarters commencing on or after January 1, 1994,
and prior to January 1, 1995, three per cent with
respect to calendar quarters commencing on or
after January 1, 1995, and prior to January 1,
1996, and two per cent with respect to calendar
quarters commencing on or after January 1, 1996,
and prior to January 1, 1997. The sale, furnishing
or distribution of electricity or natural gas for
use by a company as provided in this subsection
shall not be subject to the provisions of this
chapter with respect to calendar quarters
commencing on or after January 1, 1997. Not later
than thirty days after May 19, 1993, and thirty
days after the effective date of each rate
decrease provided for in this section, each
electric and gas public service company, as
defined in section 16-1, which does not have a
proposed rate amendment under section 16-19
pending before the Department of Public Utility
Control at such time, shall request the department
to reopen the proceeding under section 16-19 on
the company's most recent rate amendment, solely
for the purpose of decreasing the company's rates
to reflect the decreases required under this
section. The department shall immediately reopen
such proceedings, solely for such purpose.
(d) The rate of tax on the sale, furnishing or
distribution of steam for use by a company, as
described in subdivision (2) of subsection (a) of
section 12-264, shall be: (1) Four per cent with
respect to calendar quarters commencing on or
after July 1, 1996, and prior to July 1, 1997; (2)
three per cent with respect to calendar quarters
commencing on or after July 1, 1997, and prior to
July 1, 1998; (3) two per cent with respect to
calendar quarters commencing on or after July 1,
1998, and prior to July 1, 1999; and (4) one per
cent with respect to calendar quarters commencing
on or after July 1, 1999, and prior to July 1,
2000. The sale, furnishing or distribution of
steam as provided in this subsection shall not be
subject to the provisions of this chapter with
respect to calendar quarters commencing on or
after July 1, 2000.
Sec. 56. Section 16-19q of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) If the funds allocated for decommissioning
are insufficient to pay for decommissioning costs,
the licensee shall first be responsible for the
additional cost if it is the only holder of an
operating permit from the United States Nuclear
Regulatory Commission with respect to the
facility.
(b) If the assets of such a licensee are
insufficient to cover the remaining cost of
decommissioning after such funds are exhausted, or
if there are two or more holders of an operating
permit from the United States Nuclear Regulatory
Commission with respect to the facility, the
owners shall be liable for the safe and proper
decommissioning of the nuclear power generating
facility in accordance with their respective
ownership shares in the facility. If, under this
subsection, any in-state owner pays
decommissioning costs in excess of its ownership
share in the facility, that owner shall have a
cause of action to recover that excess from the
other owners. The Attorney General shall assist in
bringing such an action.
(c) The state shall have no financial
responsibility for decommissioning. If the
Governor finds that, because of inadequate action
by the responsible parties in carrying out
decommissioning, protective action is reasonably
required to protect the public health and safety,
the state may undertake that action. In that case,
the Attorney General shall bring action against
the licensee and the owners to recover the cost of
that protective action. If the state pays for any
decommissioning costs as a result of an owner
paying less than its share of a facility's
decommissioning costs, the Attorney General shall
bring an action against such owner to recover any
such costs paid by the state.
[(d) The Department of Public Utility Control
shall include all decommissioning costs of an
electric company, as defined in section 16-1,
which are approved by the department under
sections 16-19o and 16-19p, as operating costs of
the company under section 16-19, provided no
decommissioning costs for a facility may be
included in the rates charged by the company after
the date of closing of the facility unless the
department determines (1) that the company has
complied with the decommissioning financing plan
under which such costs are incurred and (2) that
there are compelling reasons for including such
costs in the rates. The joint standing committee
of the General Assembly having cognizance of
matters relating to public utilities may, upon
submitting a request to the department, review any
such determination not later than thirty days
before such rates would take effect.]
Sec. 57. Section 16-19hh of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) In order to encourage economic development
and maintain the state's manufacturing base, the
department shall: (1) Continue to implement
flexible pricing when it determines that such
pricing is appropriate; (2) require each water,
electric and gas public service company, as
defined in section 16-1, which serves
manufacturing customers and has not yet done so,
to propose, in its first application for an
amendment of rates filed pursuant to section 16-19
on or after October 1, 1993, flexible and
innovative rates which promote manufacturing,
which rates may include, but not be limited to,
economic development, business retention,
competitive energy, interruptible, conservation
and time of use rates; and (3) require each water,
gas and electric public service company, as
defined in said section 16-1, to support and
promote the Connecticut manufacturing program for
energy technology.
(b) NOTWITHSTANDING THE PROVISIONS OF
SUBSECTION (a) OF THIS SECTION, AN ELECTRIC
COMPANY OR ELECTRIC DISTRIBUTION COMPANY THAT (1)
RENEGOTIATES, EXTENDS OR RENEWS ANY SPECIAL
CONTRACT FOR ELECTRIC SERVICE THAT IS IN EFFECT ON
THE EFFECTIVE DATE OF THIS ACT AND HAS A TERM THAT
EXPIRES PRIOR TO JULY 1, 2000, FOR A TERM THAT
EXTENDS BEYOND JUNE 30, 2000, OR (2) ENTERS INTO
ANY NEW SPECIAL CONTRACTS FOR ELECTRIC SERVICE,
SHALL PROVIDE IN ANY SUCH RENEGOTIATED, EXTENDED,
RENEWED OR NEW CONTRACT FOR THE COLLECTION OF THE
ASSESSMENT REQUIRED UNDER SECTION 10 OF THIS ACT
AS PROVIDED IN SAID SECTION 10 AND FOR THE
COLLECTION OF THE CHARGE REQUIRED IN SECTION 18 OF
THIS ACT AS PROVIDED IN SAID SECTION 18 PROVIDED
NO SUCH CONTRACT SHALL SHIFT COSTS TO OTHER
RATEPAYERS.
Sec. 58. Section 16-19hh of the general
statutes, as amended by section 57 of this act, is
repealed and the following is substituted in lieu
thereof:
(a) In order to encourage economic development
and maintain the state's manufacturing base, the
department shall: (1) Continue to implement
flexible pricing when it determines that such
pricing is appropriate; (2) require each water [,
electric] and gas [public service] company, as
defined in section 16-1, which serves
manufacturing customers and has not yet done so,
to propose, in its first application for an
amendment of rates filed pursuant to section 16-19
on or after October 1, 1993, flexible and
innovative rates which promote manufacturing,
which rates may include, but not be limited to,
economic development, business retention,
competitive energy, interruptible, conservation
and time of use rates and (3) require each water
[,] AND gas [and electric public service] company,
as defined in said section 16-1, to support and
promote the Connecticut manufacturing program for
energy technology.
(b) Notwithstanding the provisions of
subsection (a) of this section, an electric
company or electric distribution company that (1)
renegotiates, extends or renews any special
contract for electric service that is in effect on
the effective date of this act and has a term that
expires prior to July 1, 2000, for a term that
extends beyond June 30, 2000, or (2) enters into
any new special contracts for electric service,
shall provide in any such renegotiated, extended,
renewed or new contract for the collection of the
assessment required under section 10 of this act
as provided in said section 10 and for the
collection of the charge required in section 18 of
this act as provided in said section 18 provided
no such contract shall shift costs to other
ratepayers.
Sec. 59. Section 16a-4a of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Office of Policy and Management shall:
(1) Formulate and prepare state-wide or
interregional plans for the physical, social and
economic development of the state. Such plans may
be prepared jointly or in consultation with other
state, interstate, federal, regional or local
agencies. Such plans may include, but need not be
limited to, (A) demographic projections, (B)
economic projections, (C) land use and water
considerations, (D) transportation requirements,
(E) environmental considerations, (F) energy
capabilities and requirements, (G) public
facilities, (H) labor needs and skills, (I)
educational objectives, (J) housing needs and (K)
health needs;
(2) Receive for review, information and
recommendations, plans proposed by any state
agency acting alone or jointly which has among its
duties planning responsibilities relating to those
considerations set forth in subdivision (1) of
this section or similar subjects;
(3) Coordinate regional and state planning
activities and accomplish such planning review
activities as may be necessary;
(4) Designate or redesignate logical planning
regions within the state and promote and assist in
the promotion and continuation of regional
planning agencies under chapter 127;
(5) Provide for technical aid and the
administration of financial assistance to regional
planning agencies established under chapter 127 or
any regional council of elected officials in any
region without a regional planning agency or any
regional council of governments organized under
sections 4-124i to 4-124p, inclusive, under such
terms and conditions as may be agreed upon by the
secretary;
(6) Accept from any source funds, revenue or
other consideration available to this state for
interstate, state, regional, interregional or area
planning activities or projects and provide for
the administration of such funds, revenues or
other consideration;
(7) Make available to the public, for a
reasonable fee, all reports, testing results and
other material developed or procured as a result
of activities authorized by this section, section
16a-14 and section 16a-14b; AND
(8) PROVIDE TECHNICAL ASSISTANCE TO
MUNICIPALITIES THAT WANT TO AGGREGATE ELECTRIC
GENERATION SERVICES.
Sec. 60. (NEW) The Office of Policy and
Management shall operate a purchasing pool for the
purchase of electricity for state operations. Said
office shall provide the opportunity to
participate in such purchasing pool to each
household that includes an individual who receives
means-tested assistance administered by the state
or federal government. Any such household shall
receive through such purchasing pool the same
benefits and rate discounts available for state
facilities. The Office of Policy and Management
shall use federal and state energy assistance
funds to leverage the lowest practicable electric
rates for households participating in such pool,
provided such funds shall not be used for
administrative purposes. The provisions of section
16-245, as amended by this act, shall not apply to
the Office of Policy and Management for purposes
of this section.
Sec. 61. Section 16-243e of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Any electric company, as defined in
section 16-1, AS AMENDED BY SECTION 1 OF THIS ACT,
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 18 OF
THIS ACT AND REMITTED TO THE REGIONAL RESOURCE
RECOVERY AUTHORITY ACTING ON BEHALF OF MEMBER
MUNICIPALITIES.
Sec. 62. Section 16-262g of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any wilful or malicious violation of sections
16-262c to 16-262i, inclusive, by any agent,
owner, lessor, manager or any company, ELECTRIC
SUPPLIER or municipal utility shall be punishable
by a fine of not more than five hundred dollars or
imprisonment for not more than thirty days or
both.
Sec. 63. Section 16-262h of the general
statutes is repealed and the following is
substituted in lieu thereof:
Nothing in sections 16-262c to 16-262i,
inclusive, shall be construed to prevent the
occupant of such building from pursuing any other
action or remedy at law or equity that it may have
against the owner, agent, lessor, manager,
company, ELECTRIC SUPPLIER or municipal utility.
Sec. 64. Section 16-262j of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) No public service company AND NO ELECTRIC
SUPPLIER shall refuse to provide electric, gas or
water service to a residential customer based on
the financial inability of such customer to pay a
security deposit for such service. The Department
of Public Utility Control shall adopt regulations
in accordance with chapter 54 to carry out the
provisions of this subsection.
(b) No telephone company shall refuse to
provide telecommunications service to a candidate
or a committee, as defined in section 9-333a, on
the grounds that such candidate, such committee or
the person acting on behalf of such committee has
offered to pay the security deposit for such
service with a credit card.
(c) Each public service company AND ELECTRIC
SUPPLIER shall pay interest on any security
deposit it receives from a customer at the average
rate paid, as of December 30, 1992, on savings
deposits by insured commercial banks as published
in the Federal Reserve Board bulletin and rounded
to the nearest one-tenth of one percentage point,
except in no event shall the rate be less than one
and one-half per cent. On and after January 1,
1994, the rate for each calendar year shall be not
less than the deposit index as defined in
subsection (d) of this section for that year and
rounded to the nearest one-tenth of one percentage
point, except in no event shall the rate be less
than one and one-half per cent.
(d) The deposit index for each calendar year
shall be equal to the average rate paid on savings
deposits by insured commercial banks as last
published in the Federal Reserve Board bulletin in
November of the prior year. The Commissioner of
Banking shall determine the deposit index for each
calendar year and publish such deposit index in
the Department of Banking news bulletin no later
than December fifteenth of the prior year. For
purposes of this section, "Federal Reserve Board
bulletin" means the monthly survey of selected
deposits published as a special supplement to the
Federal Reserve Statistical Release Publication
H.6 published by the Board of Governors of the
Federal Reserve System or, if such bulletin is
superseded or becomes unavailable, a substantially
similar index or publication.
Sec. 65. Section 19a-109 of the general
statutes is repealed and the following is
substituted in lieu thereof:
When any building or part thereof is occupied
as a home or place of residence or as an office or
place of business, either mercantile or otherwise,
a temperature of less than sixty-five degrees
Fahrenheit in such building or part thereof shall,
for the purpose of this section, be deemed
injurious to the health of the occupants thereof,
except that the Commissioner of Public Health may
adopt regulations establishing a temperature
higher than sixty-five degrees when the health,
comfort or safety of the occupants of any such
building or part thereof so requires. In any such
building or part thereof where, because of
physical characteristics or the nature of the
business being conducted, a temperature of
sixty-five degrees Fahrenheit cannot reasonably be
maintained in certain areas, the Labor
Commissioner may grant a variance for such areas.
The owner of any building or the agent of such
owner having charge of such property, or any
lessor or his agent, manager, superintendent or
janitor of any building, or part thereof, the
lease or rental agreement whereof by its terms,
express or implied, requires the furnishing of
heat, cooking gas, electricity, hot water or water
to any occupant of such building or part thereof,
who, wilfully and intentionally, fails to furnish
such heat to the degrees herein provided, cooking
gas, electricity, hot water or water and thereby
interferes with the cooking gas, electricity, hot
water or water and thereby interferes with the
comfortable or quiet enjoyment of the premises, at
any time when the same are necessary to the proper
or customary use of such building or part thereof,
shall be fined not more than one hundred dollars
or imprisoned not more than sixty days or both. No
public service company OR ELECTRIC SUPPLIER, AS
DEFINED IN SECTION 16-1, AS AMENDED BY SECTION 1
OF THIS ACT, shall, at the request of any such
owner, agent, lessor, manager, superintendent or
janitor, cause heat, cooking gas, electricity, hot
water or water services to be terminated with
respect to any such leased or rented property
unless the owner or lessor furnishes a statement
signed by the lessee agreeing to such termination
or a notarized statement signed by the lessor to
the effect that the premises are vacant.
Sec. 66. Section 33-219 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) Cooperative, nonprofit, membership
corporations may be organized under this chapter
for the purpose of supplying electric energy and
promoting and extending the use thereof to persons
(1) in rural areas or in any portion thereof
occupied by such persons and not receiving central
station service, and (2) elsewhere except that the
supplying of electric energy to franchise areas
being supplied on October 1, 1971, with electric
energy, or to areas supplied on said date by
municipal utilities, shall be permitted only with
the consent of the holder of the franchise or the
municipal utility.
(b) Notwithstanding the provisions of
subsection (a) of this section, cooperative,
nonprofit, membership corporations may be
organized under this chapter for the purpose of
generating electric energy by means of
cogeneration technology, renewable energy
resources or both and supplying it to any member
or supplying it to, purchasing it from or
exchanging it with a public service company,
ELECTRIC SUPPLIER, AS DEFINED IN SECTION 16-1 OF
THE GENERAL STATUTES, AS AMENDED BY SECTION 1 OF
THIS ACT, MUNICIPAL AGGREGATOR, AS DEFINED IN SAID
SECTION, municipal utility or municipal electric
energy cooperative, in accordance with [the Public
Utility Regulatory Policies Act of 1978, as
amended, or under] an agreement with the company,
ELECTRIC SUPPLIER, ELECTRIC AGGREGATOR, MUNICIPAL
utility or cooperative. No membership corporation
under this subsection may exercise those powers
contained in subsection (i) or (j) of section
33-221, AS AMENDED BY THIS ACT, unless the prior
approval of the Department of Public Utility
Control is obtained, after opportunity for hearing
in accordance with title 16 and chapter 54. ANY
COOPERATIVE ORGANIZED ON OR AFTER JULY 1, 1998,
PURSUANT TO THIS SUBSECTION SHALL COLLECT FROM ITS
MEMBERS THE COMPETITIVE TRANSITION ASSESSMENT
LEVIED PURSUANT TO SECTION 10 OF THIS ACT AND THE
SYSTEMS BENEFITS CHARGE LEVIED PURSUANT TO SECTION
18 OF THIS ACT IN SUCH MANNER AND AT SUCH RATE AS
THE DEPARTMENT OF PUBLIC UTILITY CONTROL
PRESCRIBES, PROVIDED THE DEPARTMENT SHALL ORDER
THE COLLECTION OF SAID ASSESSMENT AND SAID CHARGE
IN A MANNER AND RATE EQUAL TO THAT TO WHICH THE
MEMBERS OF THE COOPERATIVE WOULD HAVE BEEN SUBJECT
HAD THE COOPERATIVE NOT BEEN ORGANIZED.
Sec. 67. Section 33-221 of the general
statutes is repealed and the following is
substituted in lieu thereof:
A cooperative shall have power, subject to the
limitations of section 33-219: (a) To sue and be
sued in its corporate name; (b) to have perpetual
existence; (c) to adopt a corporate seal and alter
the same; (d) to generate, manufacture, purchase,
acquire, accumulate and transmit electric energy,
and to distribute, sell, supply and dispose of
electric energy to its members, and to other
persons not in excess of ten per cent of the
number of its members PURSUANT TO APPLICABLE
FEDERAL LAW AND REGULATIONS ADOPTED THEREUNDER,
provided the furnishing by a cooperative of
electric cold storage or processing plant service
shall not be deemed to be distributing, selling,
supplying or disposing of electric energy; (e) to
assist persons to whom electric energy is or will
be supplied by the cooperative in wiring their
premises and in acquiring and installing
electrical [and plumbing] appliances, equipment,
fixtures, apparatus and energy conservation and
renewable energy systems and equipment, by the
financing thereof or otherwise, and, in connection
therewith, to wire, or cause to be wired, such
premises and to purchase, acquire, lease as lessor
or lessee, sell, distribute, install and repair
such electric [and plumbing] appliances,
equipment, fixtures, apparatus and energy
conservation and renewable energy systems and
equipment; (f) to assist persons to whom electric
energy is or will be supplied by the cooperative
in constructing, equipping, maintaining and
operating electric cold storage or processing
plants, by the financing thereof or otherwise; (g)
to construct, purchase, lease as lessee, or
otherwise acquire, and to equip, maintain and
operate, and to sell, assign, convey, lease as
lessor, mortgage, pledge or otherwise dispose of
or encumber, electric transmission and
distribution lines or systems, electric generating
plants, electric cold storage or processing
plants, lands, buildings, structures, dams, plants
and equipment, and any other real property or
tangible or intangible personal property which
shall be deemed necessary, convenient or
appropriate to accomplish the purpose stated in
section 33-219, AS AMENDED BY THIS ACT; (h) to
borrow money and otherwise contract indebtedness,
and to issue notes, bonds and other evidences of
indebtedness, and to secure the payment thereof by
mortgage, pledge or deed of trust of, or any other
encumbrance upon, any or all of its then owned or
after-acquired real or personal property, assets,
franchises, revenues or income; (i) to construct,
maintain and operate electric transmission and
distribution lines along, upon, under and across
publicly owned lands and public thoroughfares,
including, without limitation, all roads,
highways, streets, alleys, bridges and causeways,
subject to the provisions of all laws regulating
the use of highways by electric companies,
provided no standards in excess of standards
provided in the National Electric Safety Code
shall be required; (j) to exercise the power of
eminent domain in the manner provided by the
general statutes for the exercise of such power by
other corporations constructing or operating
electric transmission and distribution lines or
systems; (k) to petition the Department of Public
Utility Control to issue an order under section
16-243c; (l) to conduct its business and exercise
its powers within or without this state; (m) to
adopt, amend and repeal bylaws; and (n) to do and
perform any other acts and things, and to have and
exercise any other powers, which may be necessary,
convenient or appropriate to accomplish the
purpose for which the cooperative is organized.
Sec. 68. For purposes of investigation and
report to the General Assembly, the Department of
Public Utility Control shall design or cause each
electric company to design a plan for
performance-based regulation of each electric
distribution company that encourages such
distribution companies to control their costs
while they continue to provide efficient, safe and
reliable distribution services. In designing a
performance-based regulation plan, the department
or the electric companies, as the case may be,
shall identify those performance standards that
would be appropriate for performance-based
regulation and an analysis of how such a plan
should best be structured so that electric
distribution companies, as defined in section 16-1
of the general statutes, as amended by section 1
of this act, would have flexibility in
implementing such a plan. In addition to designing
or causing the design of performance-based
regulation plans, the department shall also
determine whether performance-based regulation
would better meet the goal of reducing costs to
all customer classes than traditional cost-plus
regulation. The department shall hold a hearing
that shall be conducted as a contested case in
accordance with chapter 54 of the general statutes
to make such investigation. After consultation
with the Office of Consumer Counsel, the Office of
Policy and Management and the Office of the
Attorney General, the department shall report its
findings along with legislative recommendations
not later than January 1, 2000, to the joint
standing committee of the General Assembly having
cognizance of matters relating to energy.
Sec. 69. (NEW) (a) As used in this section,
"self-generation facility" means a facility that
generates electricity, is owned or operated by an
entity other than an electric distribution
company, as defined in section 16-1 of the general
statutes, as amended by section 1 of this act, or
electric supplier, as defined in said section
16-1, and operates in parallel with other
generation on the distribution system of an
electric distribution company and which reduces or
eliminates the purchase of electricity through the
distribution network.
(b) The Department of Public Utility Control
shall design a process for determining a fee to be
paid by customers who have installed
self-generation facilities in order to offset any
loss or potential loss in revenue from such
facilities toward the competitive transition
assessment, the systems benefits charge the
conservation and load management assessment
collected under section 33 of this act and the
Renewable Energy Investment Fund assessment
collected under section 44 of this act. Except as
provided in subsection (c) of this section, such
fee shall apply to customers who have installed
self-generation facilities that begin operation on
or after July 1, 1998.
(c) An exit fee shall not apply to a customer
who has installed a self-generation facility that
(1) exclusively services the load of one to four
residential units, or (2) is installed in
conjunction with the expansion of an industrial
plant that began operation before July 1, 1998, if
the self-generation facility predominantly
services such industrial plant and the expansion
of said industrial plant results in economic
development, as determined by the department. The
exemption under subdivision (2) of this subsection
shall only apply to the amount of any new load
provided by the self-generation facility to
service the expansion.
(d) The department shall develop criteria for
excluding units based on size or specialized use,
balancing concerns of the potential impact on
small businesses, equity among customer classes,
and the need to offset losses to the competitive
transition assessment and the systems benefits
charge. The department shall establish procedures
for distinguishing between existing load and new
load for purposes of self-generation facilities
described in subdivision (2) of subsection (c) of
this section. The department shall determine how
to identify self-generation facilities, such as
through a registration process, and how to enforce
the collection of such fees. The department shall
establish criteria to determine how such fee shall
be valued and the process for its collection,
which shall include the ability of self-generation
facilities to pay the fee over a period of time.
(e) Not later than January 1, 1999, the
department shall submit its findings and
recommendations to the joint standing committee of
the General Assembly having cognizance of matters
relating to energy.
Sec. 70. The Department of Public Utility
Control shall propose standards and procedures
which facilitate the aggregation of electrical
load and the aggregation of end use customers into
buying groups, consistent with the principles set
forth in section 16-244, as amended by section 2
of this act. Not later than September 1, 1998, the
department shall commence an investigation into
such aggregation. The investigation shall consider
the relationship of aggregation to the education
outreach program established pursuant to section
17 of this act, the billing format requirements
established pursuant to section 21 of this act,
the solicitation procedures established pursuant
to section 26 of this act, the information
requirements and procedures established pursuant
to section 27 of this act, the right to change
electric suppliers established pursuant to section
28 of this act, the third party verification
requirements established pursuant to section 30 of
this act, and other matters as the department
deems appropriate. The investigation also shall
consider whether one or more of the licensing
requirements set forth in section 16-245 of the
general statutes, as amended by this act, should
be moderated for aggregators, and whether one or
more of the licensing requirements set forth in
said section 16-245, should not be imposed on
municipalities or political subdivisions that act
as aggregators. The investigation also shall
consider whether legislative changes are needed in
order to properly facilitate aggregation. Not
later than January 1, 1999, the department shall
report its findings along with any legislative
recommendations to the joint standing committee of
the General Assembly having cognizance of matters
relating to energy.
Sec. 71. The Connecticut Siting Council shall
examine siting procedures as they relate to
electric generating facilities and determine how
such procedures should be modified and the
criteria that should be considered when
determining the siting of a generation facility in
a restructured electric industry in order to
facilitate expeditious siting of generation
facilities within the state while taking into
consideration environmental concerns such as those
relating to the development of greenfields,
development of new transmission grids and reliance
on higher polluting out-of-state generation. Not
later than January 1, 1999, the council shall
submit its findings and recommendations to the
joint standing committees of the General Assembly
having cognizance of matters relating to energy
and the environment.
Sec. 72. The Connecticut Energy Advisory Board
established under section 16a-3 of the general
statutes shall, in consultation with the
Department of Public Utility Control and the
Office of Consumer Counsel, conduct a study of the
provision of metering, billing and collection
services by electric distribution companies and
consider whether customers would be better served
if such services were performed by electric
suppliers. Said board shall consider how
reallocating the performance of these services
could negatively impact employee staffing levels
of electric distribution companies, and how it
could affect reliability of collecting payments
from customers including any potential impact on
the security of funds collected for the
competitive transition assessment, the systems
benefits charge, the conservation and load
management assessment collected under section 33
of this act and the Renewable Energy Investment
Fund assessment collected under section 44 of this
act. Said board shall report its findings along
with legislative recommendations not later than
January 1, 1999, to the joint standing committee
of the General Assembly having cognizance of
matters relating to energy.
Sec. 73. The Department of Public Utility
Control and the Office of Consumer Counsel shall
conduct a joint study on how best to structure a
program of providing electric services to
customers who do not or are unable to arrange for
or maintain electric generation services with an
electric supplier. The department and the Office
of Consumer Counsel shall consider the following
options: (1) The electric distribution company
shall be responsible for procuring electric
generation services for default customers through
a competitive bid, and the bidding process shall
be supervised by the department; (2) if there are
no qualified bidders, the electric distribution
company shall supply electric generation services,
and its costs are recovered through the systems
benefits charge; (3) suppliers who choose not to
carry default customers shall be assessed their
proportionate share of the cost of providing
default service; and (4) whether a state agency
should be made responsible for procuring electric
generation services for default customers. The
department and the Office of Consumer Counsel
shall maintain as their objective establishing a
program for default service that achieves the
lowest possible cost and maintains high quality of
service. Not later than January 1, 2002, the
department and the Office of Consumer Counsel
shall report their findings along with legislative
recommendations to the joint standing committee of
the General Assembly having cognizance of matters
relating to energy.
Sec. 74. Not later than October 1, 2002, each
electric distribution company shall report to the
Department of Public Utility Control the
proportion of its customers receiving electric
service under the standard offer established under
section 20 of this act and the average rate paid
for electric services by such customers by
customer class. Not later than January 1, 2003,
the department shall calculate for each customer
class the difference between the average rate paid
for electric services by customers under the
standard offer and the average rate paid for
electric services by all other customers. Not
later than January 1, 2003, the department shall
report the calculated proportions and differences
for each electric distribution company and, in
consultation with the Office of Consumer Counsel,
report any recommendations as to whether the
standard offer should be extended for a longer
period of time to the joint standing committee of
the General Assembly having cognizance of matters
relating to energy.
Sec. 75. (NEW) (a) The Department of Public
Utility Control shall, in consultation with the
Office of Consumer Counsel, monitor on an on-going
basis the state of competition, as it exists and
as it is likely to evolve, and the average total
rates of each customer class. Not later than
January 1, 2002 and annually thereafter, the
department shall report its findings to the joint
standing committee of the General Assembly having
cognizance of matters relating to energy.
(b) (1) As used in this subdivision, "total
average residential rate" means the total
residential revenues divided by total residential
kilowatt hour sales, and "total average industrial
rate" means the total industrial revenues divided
by total industrial kilowatt hour sales. At least
annually, the department shall compute the rate
differential for electric service between
residential and industrial customers by comparing
the total average residential rate and the total
average industrial rate, based on filings made by
electric suppliers and electric distribution
companies with the Federal Energy Regulatory
Commission or the department. The rate
differential shall be the difference between the
total average residential rate and the total
average industrial rates, divided by the total
average residential rate.
(2) If the department determines that the rate
differential for electric service between
residential and industrial customers has increased
by three percentage points or more from the rate
differential that existed on January 1, 1998, the
department shall institute an investigatory
proceeding in which the Office of the Consumer
Counsel shall participate. Not more than ninety
days after the official commencement of the
proceeding, the department shall issue written
findings that identify the factors or
circumstances that contributed to such increase in
the rate differential. If the department finds
that such increase is a result of a violation of
title 16 of the general statutes or of other state
or federal laws, the department shall take
appropriate enforcement action or refer such
violation to the appropriate state or federal
authority. If the department finds that such
increase is due to factors or circumstances other
than a violation of state or federal law, the
department shall take action in accordance with
methods of allocation in effect on January 1,
1997, to minimize to the greatest extent possible
such differential to less than three percentage
points, within the authority granted to the
department pursuant to section 16-7, subsections
(a) or (b) of section 16-8, sections 16-8c, 16-9,
16-10, 16-10a, 16-15, 16-19, 16-19a, subsection
(g) of section 16-19b, sections 16-19e, 16-19f,
16-19gg, 16-19hh, 16-19kk, 16-20, 16-21, 16-24,
16-28, 16-32, 16-41 or 16-245 of the general
statutes, as amended by this act, or sections 10,
18 or 20 of this act, provided any action taken by
the department shall be in compliance with the
principles set forth in section 2 of this act, and
provided further the department shall not allow
inter or intra class rate subsidization.
(3) Not later than January first, as
applicable, the department shall report its
findings described in subdivisions (1) and (2) of
this subsection, including a description of the
factors or circumstances that contributed to such
increase in the rate differential and a
description of actions taken by the department,
along with any legislative recommendations to
minimize such differential to less than three
percentage points without creating intra or inter
class rate subsidization, to members of the joint
standing committee of the General Assembly having
cognizance of matters relating to energy.
(c) Each electric distribution company shall
submit, on a form prescribed by the department,
quarterly reports containing (1) the average price
for electric service for each customer class, and
(2) separately within the residential class, the
price for electric service under the standard
offer, as provided in subsection (a) of section 20
of this act and the price for default service, as
provided in subsection (b) of said section 20.
(d) The department shall require electric
distribution companies and electric suppliers to
supply to the department whatever pricing
information the department needs to complete its
reporting and monitoring requirements under this
section. The department may grant confidential
status to certain data if a valid claim is made
that the information is competitively sensitive,
provided composite numbers shall be public
information. Any electric distribution company or
electric supplier that fails to provide
information requested by the department more than
thirty days after the department makes such
request shall be subject to enforcement measures
under title 16 of the general statutes. The
department may adopt regulations pursuant to
chapter 54 of the general statutes to implement
the provisions of this subsection.
Sec. 76. (NEW) Any municipality may, upon
approval by its legislative body or in any town in
which the legislative body is a town meeting, by
the board of selectmen, abate the property taxes
due for any tax year with respect to any property
of an electric cooperative organized pursuant to
chapter 597 of the general statutes that is
operating within the boundaries of the
municipality.
Sec. 77. (NEW) (a) Not later than October 1,
1999, and annually thereafter, each electric
company and electric distribution company, as
defined in section 16-1 of the general statutes,
as amended by section 1 of this act, shall report
to the Department of Public Utility Control its
system average interruption duration index (SAIDI)
and its system average interruption frequency
index (SAIFI) for the preceding twelve months. For
purposes of this section: (1) Interruptions shall
not include outages attributable to major storms,
scheduled outages and outages caused by customer
equipment, each as determined by the department;
(2) SAIDI shall be calculated as the sum of
customer interruptions in the preceding
twelve-month period, in minutes, divided by the
average number of customers served during that
period; and (3) SAIFI shall be calculated as the
total number of customers interrupted in the
preceding twelve-month period, divided by the
average number of customers served during that
period. Not later than January 1, 2000, and
annually thereafter, the department shall report
on the SAIDI and SAIFI data for each electric
company and electric distribution, and all
state-wide SAIDI and SAIFI data to the joint
standing committee of the General Assembly having
cognizance of matters relating to energy.
(b) Not later than October 1, 1999, and
annually thereafter, each electric supplier, as
defined in section 16-1 of the general statutes,
as amended by section 1 of this act, shall report
to the Department of Public Utility Control and
the Department of Environmental Protection the
following information regarding the preceding
twelve-month period or any part thereof that the
supplier has been licensed pursuant to section
16-245 of the general statutes, as amended by this
act: (1) Total megawatt hours of electricity
produced from generating facilities owned by the
supplier or under long-term contract to the
supplier that are sold to end use customers in the
state; (2) total megawatt hours of electricity
purchased by the supplier from other sources and
sold to end use customers in the state; (3) the
proportion of such production from facilities
listed under subdivision (1) of this subsection
that use nuclear fuels, oil, coal, natural gas,
hydropower and other fuels as the principal
generation fuel; and (4) the amount of emissions
from facilities listed under subdivision (1) of
this subsection of the pollutants identified by
the Department of Environmental Protection, which
shall include, but not be limited to: (A) Volatile
organic compounds; (B) nitrogen oxides; (C) sulfur
oxides; (D) carbon dioxide; (E) carbon monoxide;
(F) particulates; and (G) heavy metals. Not later
than January 1, 2000, and annually thereafter, the
Department of Environmental Protection, in
consultation with the Department of Public Utility
Control, shall report state-wide data for these
variables to the joint standing committees of the
General Assembly having cognizance of matters
relating to the environment and energy.
(c) Not later than January 1, 1999, and
annually thereafter until January 1, 2005, the
Department of Public Utility Control shall report
to the joint standing committees of the General
Assembly having cognizance of matters relating to
energy and labor the number of dislocated workers
contained on the roster established pursuant to
section 46 of this act and the number of such
workers hired by electric suppliers in the
preceding twelve months.
(d) Not later than January 1, 1999, and
annually thereafter, the Department of Public
Utility Control shall report to the joint standing
committee of the General Assembly having
cognizance of matters relating to energy the
number of applicants for licensure pursuant to
section 16-245 of the general statutes, as amended
by this act, during the preceding twelve months,
the number of applicants licensed by the
department and the average period of time taken to
process a license application.
Sec. 78. Subsection (k) of section 16-2 of the
general statutes is repealed and the following is
substituted in lieu thereof:
(k) No commissioner of the authority shall,
FOR A PERIOD OF ONE YEAR FOLLOWING THE TERMINATION
OF HIS OR HER SERVICE AS A COMMISSIONER, accept
employment: [by] (1) BY a public service company
or by any person, firm or corporation engaged in
lobbying activities with regard to governmental
regulation of public service companies; [for a
period of one year following the termination of
his or her service as a commissioner. On and after
July 1, 1995, no commissioner of the authority
shall accept employment] (2) by a person, firm or
corporation certified by the Department of Public
Utility Control to provide intrastate
telecommunications services pursuant to sections
16-247f to 16-247h, inclusive, or by any person,
firm or corporation engaged in lobbying activities
with regard to governmental regulation of persons,
firms or corporations so certified; [, for a
period of one year following the termination of
his or her service as a commissioner] OR (3) BY AN
ELECTRIC SUPPLIER OR BY ANY PERSON, FIRM OR
CORPORATION ENGAGED IN LOBBYING ACTIVITIES WITH
REGARD TO GOVERNMENTAL REGULATION OF ELECTRIC
SUPPLIERS. No such commissioner who is also an
attorney shall in any capacity, appear or
participate in any matter, or accept any
compensation regarding a matter, before the
authority, for a period of one year following the
termination of his or her service as a
commissioner. [The prohibitions of this subsection
shall not apply to any commissioner serving on
October 1, 1980, who serves for the term to which
he or she is currently appointed and is not
thereafter reappointed.]
Sec. 79. Section 16-2a of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) There shall continue to be an independent
Office of Consumer Counsel, within the Department
of Public Utility Control for administrative
purposes only, to act as the advocate for consumer
interests in all matters which may affect
Connecticut consumers with respect to public
service companies, ELECTRIC SUPPLIERS and persons,
firms and corporations certified, or seeking to be
certified, to provide intrastate
telecommunications service pursuant to sections
16-247f to 16-247h, inclusive. The Office of
Consumer Counsel is authorized to appear in and
participate in any regulatory or judicial
proceedings, federal or state, in which such
interests of Connecticut consumers may be
involved, or in which matters affecting utility
services rendered or to be rendered in this state
may be involved. The Office of Consumer Counsel
shall be a party to each contested case before the
department of public utility control and shall
participate in such proceedings to the extent it
deems necessary. Said Office of Consumer Counsel
may appeal from a decision, order or authorization
in any such state regulatory proceeding
notwithstanding its failure to appear or
participate in said proceeding.
(b) Except as prohibited by the provisions of
section 4-181, the Office of Consumer Counsel
shall have access to the records of the Public
Utilities Control Authority and the Department of
Public Utility Control, shall be entitled to call
upon the assistance of the authority's and the
department's experts, and shall have the benefit
of all other facilities or information of the
authority or department in carrying out the duties
of the Office of Consumer Counsel, except for such
internal documents, information or data as are not
available to parties to the authority's
proceedings. The department shall provide such
space as necessary within the department's
quarters for the operation of the Office of
Consumer Counsel, and the department shall be
empowered to set regulations providing for
adequate compensation for the provision of such
office space.
(c) The Office of Consumer Counsel shall be
under the direction of a Consumer Counsel, who
shall be appointed by the Governor with the advice
and consent of either house of the General
Assembly. The Consumer Counsel shall be an elector
of this state and shall have demonstrated a strong
commitment and involvement in efforts to safeguard
the rights of the public. The Consumer Counsel
shall serve for a term of five years unless
removed pursuant to section 16-5. The salary of
the Consumer Counsel shall be equal to that
established for management pay plan salary group
seventy by the Commissioner of Administrative
Services. No Consumer Counsel shall, [accept
employment by a public service company] for a
period of one year following the termination of
his or her service as Consumer Counsel, [. On and
after July 1, 1995, no Consumer Counsel shall]
accept employment by (1) A PUBLIC SERVICE COMPANY,
(2) a person, firm or corporation certified by the
Department of Public Utility Control to provide
intrastate telecommunications services pursuant to
sections 16-247f to 16-247h, inclusive, [for a
period of one year following the termination of
his or her service as Consumer Counsel] OR (3) AN
ELECTRIC SUPPLIER. No Consumer Counsel who is also
an attorney shall in any capacity, appear or
participate in any matter, or accept any
compensation regarding a matter, before the Public
Utilities Control Authority, for a period of one
year following the termination of his or her
service as Consumer Counsel.
(d) The Consumer Counsel shall hire such staff
as he deems necessary to perform the duties of
said office of Consumer Counsel and may employ
from time to time outside consultants
knowledgeable in the utility regulation field
including, but not limited to, economists, capital
cost experts and rate design experts. The salaries
and qualifications of the individuals so hired
shall be determined by the Commissioner of
Administrative Services pursuant to section 4-40.
(e) Nothing in this section shall be construed
to prevent any party interested in such proceeding
or action from appearing in person or from being
represented by counsel therein.
(f) As used in this section, "consumer" means
any person, company, limited liability company,
corporation, association, city, borough or town,
that receives service from any public service
company, ELECTRIC SUPPLIER or from any person,
firm or corporation certified to provide
intrastate telecommunications service pursuant to
sections 16-247f to 16-247h, inclusive, in this
state whether or not such person, company, limited
liability company, corporation, association, city,
borough or town is financially responsible for
such service.
(g) The Office of Consumer Counsel shall not
be required to post a bond as a condition to
presenting an appeal from any state regulatory
decision, order or authorization.
(h) The expenses of the Office of Consumer
Counsel shall be assessed in accordance with the
provisions of section 16-49.
Sec. 80. Section 16-4 of the general statutes
is repealed and the following is substituted in
lieu thereof:
No officer, employee, attorney or agent of any
public service company, [shall be a member of the
Public Utilities Control Authority or an employee
of the Department of Public Utility Control. On
and after July 1, 1995, no officer, employee,
attorney or agent] of any person, firm or
corporation certified by the Department of Public
Utility Control to provide intrastate
telecommunications services pursuant to sections
16-247f to 16-247h, inclusive, OR OF ANY ELECTRIC
SUPPLIER shall be a member of the Public Utilities
Control Authority or an employee of the Department
of Public Utility Control.
Sec. 81. Section 16-6b of the general statutes
is repealed and the following is substituted in
lieu thereof:
The Department of Public Utility Control may,
in accordance with chapter 54, adopt such
regulations with respect to rates and charges,
services, accounting practices, safety and the
conduct of operations generally of public service
companies subject to its jurisdiction as it deems
reasonable and necessary. THE DEPARTMENT MAY, IN
ACCORDANCE WITH CHAPTER 54, ADOPT SUCH REGULATIONS
WITH RESPECT TO SERVICES, ACCOUNTING PRACTICES,
SAFETY AND THE CONDUCT OF OPERATIONS GENERALLY OF
ELECTRIC SUPPLIERS SUBJECT TO ITS JURISDICTION AS
IT DEEMS REASONABLE AND NECESSARY. After
consultation with the Secretary of the Office of
Policy and Management, the department may also
adopt regulations establishing standards for
systems utilizing cogeneration technology and
renewable fuel resources.
Sec. 82. Section 16-7 of the general statutes
is repealed and the following is substituted in
lieu thereof:
The commissioners and any employees of the
Department of Public Utility Control while engaged
in the performance of their duties may, at all
reasonable times, enter any premises, buildings,
cars or other places belonging to or controlled by
any public service company OR ELECTRIC SUPPLIER,
and any person obstructing or in any way causing
to be obstructed or hindered any member or
employee of the department in the performance of
his duties shall be fined not more than two
hundred dollars or imprisoned not more than six
months or both.
Sec. 83. Subdivision (4) of subsection (b) of
section 16-8 of the general statutes, as amended
by public act 97-23, is repealed and the following
is substituted in lieu thereof:
(4) A complete audit of each portion of each
gas, [or] electric OR ELECTRIC DISTRIBUTION
company having more than seventy-five thousand
customers shall begin no less frequently than
every six years, so that a complete audit of such
a company's operations shall be performed every
six years. Such an audit of each [gas or electric]
SUCH company having more than seventy-five
thousand customers shall be updated as required by
the department.
Sec. 84. Section 16-12 of the general statutes
is repealed and the following is substituted in
lieu thereof:
Any person or any town, city or borough may
make complaint, in writing, to the Department of
Public Utility Control, of any defects in any
portion of the plant or equipment of any public
service company OR ELECTRIC SUPPLIER, or of the
manner of operating such plant, by reason of which
the public safety or the health or safety of
employees is endangered; and, if he or it so
requests, the name of the complainant shall not be
divulged unless in the opinion of the department
the complaint is such that publicity is demanded.
Sec. 85. Section 16-14 of the general statutes
is repealed and the following is substituted in
lieu thereof:
Any town, city or borough, or any person or
corporation maintaining pipes, conductors or other
structures under or above ground in the streets or
highways, or owning cattle, as defined in section
22-381, may make complaint in writing to the
Department of Public Utility Control of conditions
resulting in injury to or destruction of such
pipes, conductors, structures or cattle by
electrolysis or by reason of the escape of
electricity of any public service company OR
ELECTRIC SUPPLIER. Proceedings shall be had upon
such complaint as provided in sections 16-12, AS
AMENDED BY THIS ACT, and 16-13. After hearing, as
therein provided, said department may make such
order as may be necessary to prevent such injury
or destruction, and said department may, at any
time thereafter, for cause shown, upon hearing,
after notice to all parties in interest, alter any
such decision or order. Neither the provisions of
this section nor compliance with any order passed
pursuant to the provisions hereof shall constitute
a defense in an action for damages resulting from
electrolysis.
Sec. 86. Section 16-15 of the general statutes
is repealed and the following is substituted in
lieu thereof:
Each public service company AND ELECTRIC
SUPPLIER shall comply immediately with any order
of the Department of Public Utility Control made
in accordance with the provisions of sections
16-13 and 16-14, AS AMENDED BY THIS ACT, and any
company failing to comply with any such order
shall be fined not more than one thousand dollars
for each offense and shall be liable in double
damages for any injury or damage resulting to any
person from such failure.
Sec. 87. Section 16-16 of the general statutes
is repealed and the following is substituted in
lieu thereof:
Each public service company AND ELECTRIC
SUPPLIER subject to regulation by the Department
of Public Utility Control shall, in the event of
any accident attended with personal injury or
involving public safety, which was or may have
been connected with or due to the operation of its
or his property, or caused by contact with the
wires of any public service company OR ELECTRIC
SUPPLIER, notify the department thereof, by
telephone or otherwise, as soon as may be
reasonably possible after the occurrence of such
accident, unless such accident is a minor
accident, as defined by regulations of the
department. Each such person, [or] company OR
ELECTRIC SUPPLIER shall report such minor
accidents to the department in writing, in summary
form, once each month. If notice of such accident,
other than a minor accident, is given otherwise
than in writing, it shall be confirmed in writing
within five days after the occurrence of such
accident. Any person, [or] company OR ELECTRIC
SUPPLIER failing to comply with the provisions of
this section shall be fined not more than five
hundred dollars for each offense.
Sec. 88. Section 16-17 of the general statutes
is repealed and the following is substituted in
lieu thereof:
The Department of Public Utility Control shall
examine the causes of, and the circumstances
connected with, all fatal accidents occurring in
the operation of the plant or equipment of any
public service company OR ELECTRIC SUPPLIER, and
such other accidents, whether resulting in
personal injury or not, as, in its judgment,
require investigation. The department shall make a
record of the causes, facts and circumstances of
each accident, within three months thereafter, and
as a part of such record shall suggest means, if
possible, whereby similar accidents may be avoided
in the future. Such record shall be open to public
inspection at the office of the department and a
copy thereof shall be mailed to the PUBLIC SERVICE
company OR ELECTRIC SUPPLIER affected thereby. The
department may by written order extend the
deadline for completion of its record in cases
where it is not possible to conclude an
investigation within the three-month period
because of circumstances beyond its control.
Sec. 89. Subsection (a) of section 16-19 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) No public service company may charge rates
in excess of those previously approved by the
authority or the Department of Public Utility
Control except that any rate approved by the
Public Utilities Commission or the authority shall
be permitted until amended by the authority or the
department, that rates not approved by the
authority or the department may be charged
pursuant to subsection (b) of this section, and
that the hearing requirements with respect to
adjustment clauses are as set forth in section
16-19b. Each public service company shall file any
proposed amendment of its existing rates with the
department in such form and in accordance with
such reasonable regulations as the department may
prescribe. Each electric, ELECTRIC DISTRIBUTION,
gas or telephone company filing a proposed
amendment shall also file with the department an
estimate of the effects of the amendment, for
various levels of consumption, on the household
budgets of high and moderate income customers and
customers having household incomes not more than
one hundred fifty per cent of the federal poverty
level. Each electric AND ELECTRIC DISTRIBUTION
company shall also file such an estimate for space
heating customers. Each water company, except a
water company that provides water to its customers
less than six consecutive months in a calendar
year, filing a proposed amendment, shall also file
with the department a plan for promoting water
conservation by customers in such form and in
accordance with a memorandum of understanding
entered into by the department pursuant to section
4-67e. Each public service company shall notify
each customer who would be affected by the
proposed amendment, by mail, at least one week
prior to the public hearing thereon, that an
amendment has been or will be requested. Such
notice shall also indicate (1) the Department of
Public Utility Control telephone number for
obtaining information concerning the schedule for
public hearings on the proposed amendment and (2)
whether the proposed amendment would, in the
company's best estimate, increase any rate or
charge by twenty per cent or more, and, if so,
describe in general terms any such rate or charge
and the amount of the proposed increase, provided
no such company shall be required to provide more
than one form of the notice to each class of its
customers. In the case of a proposed amendment to
the rates of any public service company, the
department shall hold a public hearing thereon,
except as permitted with respect to interim rate
amendments by subsection (d) and subsection (g) of
this section, and shall make such investigation of
such proposed amendment of rates as is necessary
to determine whether such rates conform to the
principles and guidelines set forth in section
16-19e, or are unreasonably discriminatory or more
or less than just, reasonable and adequate, or
that the service furnished by such company is
inadequate to or in excess of public necessity and
convenience. The department, if in its opinion
such action appears necessary or suitable in the
public interest may, and, upon written petition or
complaint of the state, under direction of the
Governor, shall, make the aforesaid investigation
of any such proposed amendment which does not
involve an alteration in rates. If the department
finds any proposed amendment of rates to not
conform to the principles and guidelines set forth
in section 16-19e, or to be unreasonably
discriminatory or more or less than just,
reasonable and adequate to enable such company to
provide properly for the public convenience,
necessity and welfare, or the service to be
inadequate or excessive, it shall determine and
prescribe, as appropriate, an adequate service to
be furnished or just and reasonable maximum rates
and charges to be made by such company. In the
case of a proposed amendment filed by an electric,
ELECTRIC DISTRIBUTION, gas or telephone company,
the department shall also adjust the estimate
filed under this subsection of the effects of the
amendment on the household budgets of the
company's customers, in accordance with the rates
and charges approved by the department. The
department shall issue a final decision on each
rate filing within one hundred fifty days from the
proposed effective date thereof, provided it may,
before the end of such period and upon notifying
all parties and intervenors to the proceedings,
extend the period by thirty days.
Sec. 90. Subsection (a) of section 16-19a of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) The Department of Public Utility Control
shall, at intervals of not more than four years
from the last previous general rate hearing of
each gas, ELECTRIC and electric DISTRIBUTION
company having more than seventy-five thousand
customers, conduct a complete review and
investigation of the financial and operating
records of each such company and hold a public
hearing to determine whether the rates of each
such company are unreasonably discriminatory or
more or less than just, reasonable and adequate,
or that the service furnished by such company is
inadequate to or in excess of public necessity and
convenience or that the rates do not conform to
the principles and guidelines set forth in section
16-19e. In making such determination, the
department shall consider the gross and net
earnings of such company since its last previous
general rate hearing, its retained earnings, its
actual and proposed capital expenditures, its
advertising expenses, the dividends paid to its
stockholders, the rate of return paid on its
preferred stock, bonds, debentures and other
obligations, its credit rating, and such other
financial and operating information as the
department may deem pertinent.
Sec. 91. Section 16-19d of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) As used in this section:
(1) "Advertising" means the commercial use of
any media including, but not limited to, newspaper
and all other forms of print, radio and
television, in order to transmit a message to a
substantial number of members of the public or
customers of a [utility] PUBLIC SERVICE COMPANY;
(2) "Political advertising" means any
advertising for the purpose of influencing public
opinion with respect to any legislative,
administrative or electoral decision or with
respect to any controversial issue of public
importance;
(3) "Institutional advertising" means any
advertising which is designed to create, enhance
or sustain a [utility's] PUBLIC SERVICE COMPANY'S
image or good will with regard to the general
public or its customers;
(4) "Promotional advertising" means any
advertising that has the purpose of inducing the
public to select or use the service or additional
service of a [utility] PUBLIC SERVICE COMPANY or
select or install any appliance or equipment
designed to use such [utility] service, provided
such advertising shall not include advertising
authorized by order or regulation of the
Department of Public Utility Control.
(b) The cost of political, institutional or
promotional advertising of any gas, ELECTRIC or
electric DISTRIBUTION company and the cost of
political or institutional advertising of any
telephone company shall not be deemed to be an
operating expense in any rate schedule proceedings
held pursuant to section 16-19. For the purposes
of this section, political, institutional or
promotional advertising shall not be deemed to
include reasonable expenditures for (1) the
publication or distribution of existing or
proposed tariffs or rate schedules; (2) notices
required by law or regulation; (3) public
information regarding service interruptions,
safety measures, emergency conditions, employment
opportunities or the means by which customers can
conserve energy or make efficient and economical
use of service; (4) the promotion or marketing of
efficient gas and electric equipment which the
Department of Public Utility Control determines:
(A) Is consistent with the state's energy policy;
(B) is consistent with integrated resource
planning principles; (C) provides net economic
benefit to such company's customers and (D) shall
not have the primary purpose of promoting one fuel
over another; or (5) advertising by a gas company
that is necessary as a result of competition
created by actions and decisions of the federal
Energy Regulatory Commission and the Department of
Public Utility Control. Such advertising shall be
limited to the express purpose of promoting gas
[public service] companies in competition with
other providers and marketers of natural gas. Such
advertising shall not include any promotions,
cash, equipment, installation or service subsidies
for the conversion to natural gas from any other
energy source.
(c) A PUBLIC SERVICE company shall make
application to the department for determination
that equipment meets the requirements of
subdivision (4) of subsection (b) of this section.
The department shall, to the extent practicable,
make such determination within one hundred twenty
days of such filing. All reasonable and proper
expenses, required by the department and the
Office of Consumer Counsel, including, but not
limited to, the costs associated with analysis,
testing, evaluation and testimony at a public
hearing or other proceeding, shall be borne by the
company and shall be paid by the company at such
times and in such manner as the department
directs.
(d) The department shall not allocate any
expenditures made by a gas company pursuant to
subdivision (5) of subsection (b) of this section
to residential customers in any rate schedule
proceedings held pursuant to section 16-19, AS
AMENDED BY THIS ACT, unless the department finds
that effective competition in the residential gas
market already exists.
(e) The department shall adopt regulations to
carry out the purposes of subsections (a) and (b)
of this section.
(f) Each gas, ELECTRIC or electric
DISTRIBUTION company shall conspicuously indicate
in all of its advertising whether the costs of the
advertising are being paid for by the company's
shareholders, its customers or both.
Sec. 92. Section 16-19i of the general
statutes is repealed and the following is
substituted in lieu thereof:
[Each] PRIOR TO JANUARY 1, 2000, EACH electric
company, as defined in section 16-1, having at
least seventy thousand customers, shall
conspicuously indicate the amount of its
residential customer service charge on the front
of each residential customer's bill.
Sec. 93. Section 16-19bb of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Department of Public Utility Control shall
require that any funds held by an electric OR
ELECTRIC DISTRIBUTION company [, as defined in
section 16-1,] in excess of the company's
authorized return on equity, which funds are
intended by the department to offset future rate
increases in lieu of a present rate decrease,
shall be applied to such rate increases or shall
be refunded to the company's customers not later
than July 1, 1988. Any such funds collected by the
company after July 1, 1988, shall be applied to
offset such rate increases or refunded to the
company's customers within one year of receipt.
Sec. 94. Section 16-19ee of the general
statutes is repealed and the following is
substituted in lieu thereof:
Each electric OR ELECTRIC DISTRIBUTION company
[, as defined by section 16-1,] with more than
seventy-five thousand customers, shall, in its
periodic report to the Department of Public
Utility Control, concerning electrical outages,
indicate which outages resulted from a power
surge.
Sec. 95. Subsection (a) of section 16-19ff of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) Notwithstanding any provisions of the
general statutes to the contrary, each electric OR
ELECTRIC DISTRIBUTION company [, as defined by
section 16-1,] shall allow the installation of
submeters at a recreational campground or in any
other location as approved by the department.
Sec. 96. Subsection (a) of section 16-32c of
the general statutes is repealed and the following
is substituted in lieu thereof:
(a) Notwithstanding the provisions of section
16-19, AS AMENDED BY THIS ACT, a water company, as
defined in section 16-1, may charge rates in
excess of or less than those approved by the
Department of Public Utility Control, after a
limited hearing as deemed appropriate by the
department, by adjusting existing rates to
compensate for increases or decreases only in the
company's following expenses: (1) The price of
water purchased for redistribution to its
customers from another water company or
governmental authority whose rates have been
adjusted; (2) the price of gas or electricity
purchased from a gas, ELECTRIC or electric
DISTRIBUTION company, ELECTRIC SUPPLIER or
governmental authority whose rates have been
adjusted; (3) federal, state and local taxes or
other government assessments on revenue, income or
property; (4) fees charged by any federal or state
agency or other government entity that has
jurisdiction over the company; (5) fees, or
changes in fees, charged for federal and state
mandated monitoring of the quality of the
company's water supply; and (6) changes in
expenses due to inflation that, in the opinion of
the department, are subject to an inflation
adjustment in rate schedule proceedings held
pursuant to section 16-19, AS AMENDED BY THIS ACT.
The amount of any adjustment of rates shall not
exceed the aggregate net amount of increases and
decreases in the expenses set forth in this
subsection on an annualized basis, provided that
such adjustment shall not cause the company's
projected return on equity for the following
twelve-month period to exceed the return on equity
authorized in the company's most recent proceeding
for an amendment of rates pursuant to section
16-19, AS AMENDED BY THIS ACT. A company may
adjust its rates pursuant to this section only (A)
when the aggregate effect of increases or
decreases in such expenses equals or exceeds one
half of one per cent of the company's operating
revenues for the twelve-month period commencing
after the department issued a decision on the
company's most recent application for an amendment
of rates pursuant to section 16-19, AS AMENDED BY
THIS ACT, and (B) once in any twelve-month period.
A company shall not adjust its rates pursuant to
this section in any twelve-month period following
approval of an amendment of rates by the
department pursuant to section 16-19, AS AMENDED
BY THIS ACT.
Sec. 97. Section 16-32g of the general
statutes is repealed and the following is
substituted in lieu thereof:
Not later than January 1, 1988, each electric
OR ELECTRIC DISTRIBUTION company [, as defined in
section 16-1,] shall submit to the Department of
Public Utility Control a plan for the maintenance
of poles, wires, conduits or other fixtures, along
public highways or streets for the transmission or
distribution of electric current, owned, operated,
managed or controlled by such [electric] company,
in such format as the department shall prescribe.
Such plan shall include a program for the trimming
of tree branches and limbs located in close
proximity to overhead electric wires where such
branches and limbs may cause damage to such
electric wires. The department shall review each
plan and may issue such orders as may be necessary
to ensure compliance with this section. [After
January 1, 1988, the] THE department may require
each electric OR ELECTRIC DISTRIBUTION company to
submit an updated plan at such time and containing
such information as the department may prescribe.
The department shall adopt regulations, in
accordance with the provisions of chapter 54, to
carry out the provisions of this section.
Sec. 98. Section 16-47 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) As used in this section, "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. As used in
this section, "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.
Sec. 99. Subsection (f) of section 16-50i of
the general statutes is repealed and the following
is substituted in lieu thereof:
(f) "Emergency generating device" means an
electric generating device with a generating
capacity of five megawatts or less, installed
primarily for the purpose of producing emergency
backup electrical power for not more than five
hundred hours per year, and that (1) does not have
a substantial adverse environmental effect, as
determined by the council, or (2) is owned and
operated by an entity other than an electric,
ELECTRIC DISTRIBUTION or gas company or (3) is
under construction or in operation prior to May 2,
1989.
Sec. 100. Subsection (b) of section 16-50l of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) Each application shall be accompanied by
proof of service of a copy of such application on:
(1) Each municipality in which any portion of such
facility is to be located, both as primarily
proposed and in the alternative locations listed,
which copy shall be served on the chief executive
officer of the municipality and shall include
notice of the date on or about which the
application is to be filed, and the zoning
commissions, planning commissions, planning and
zoning commissions, conservation commissions and
inland wetlands agencies of each such
municipality, and the regional planning agencies
which encompass each such municipality; (2) the
Attorney General; (3) each member of the
legislature in whose assembly or senate district
the facility or any alternative location listed in
the application is to be located; (4) any agency,
department or instrumentality of the federal
government that has jurisdiction, whether
concurrent with the state or otherwise, over any
matter that would be affected by such facility;
(5) each state department, agency and commission
named in subsection (h) of section 16-50j; and (6)
such other state and municipal bodies as the
council may by regulation designate. A notice of
such application shall be given to the general
public, in municipalities entitled to receive
notice under subdivision (1) of this subsection,
by the publication of a summary of such
application and the date on or about which it will
be filed. Such notice shall be published under the
regulations to be promulgated by the council, in
such form and in such newspapers as will serve
substantially to inform the public of such
application and to afford interested persons
sufficient time to prepare for and to be heard at
the hearing prescribed in section 16-50m. Such
notice shall be published in not less than
ten-point type. A notice of such an application
for a certificate for a facility described in
subdivision (3), (4), (5) or (6) of subsection (a)
of section 16-50i shall also be sent, by certified
or registered mail, to each person appearing of
record as an owner of property which abuts the
proposed primary or alternative sites on which the
facility would be located. Such notice shall be
sent at the same time that notice of such
application is given to the general public. Notice
of an application for a certificate for a facility
described in subdivision (1) of subsection (a) of
section 16-50i shall also be provided to each
electric company OR ELECTRIC DISTRIBUTION COMPANY
customer in the municipality where the facility is
proposed to be placed. Such notice shall (A) be
provided on a separate enclosure with each
customer's monthly bill for one or more months,
(B) be provided by the electric company OR
ELECTRIC DISTRIBUTION COMPANY not earlier than
sixty days prior to filing the application with
the council, but not later than the date that the
application is filed with the council, and (C)
include: A brief description of the project,
including its location relative to the affected
municipality and adjacent streets; a brief
technical description of the project including its
proposed length, voltage, and type and range of
heights of support structures or underground
configuration; the reason for the project; the
address and a toll-free telephone number of the
applicant by which additional information about
the project can be obtained; and a statement in
print no smaller than twenty-four-point type size
stating "NOTICE OF PROPOSED CONSTRUCTION OF A HIGH
VOLTAGE ELECTRIC TRANSMISSION LINE".
Sec. 101. Section 16-243 of the general
statutes is repealed and the following is
substituted in lieu thereof:
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.
Sec. 102. Section 16-261 of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) The Department of Public Utility Control
shall order and direct the electric [utility
companies distributing current] AND ELECTRIC
DISTRIBUTION COMPANIES PROVIDING ELECTRIC
DISTRIBUTION SERVICES in this state to extend
lines in their chartered territory to all unserved
areas having a density of subscribers for electric
DISTRIBUTION service averaging at least two per
mile on such proposed new lines, in accordance
with the provisions of this section.
(b) The Department of Public Utility Control
is directed, in considering the rates of electric
[utility companies in this state] OR ELECTRIC
DISTRIBUTION COMPANIES or in the proceedings
having to do with such rates, to consider the
expenses and revenues of each company as a whole,
in arriving at a fair return on the fair value of
such properties. In prescribing a rate for service
on such new lines, the department shall exercise
its statutory powers, except that the guarantee
required shall not exceed thirteen dollars and
fifty cents per mile per month.
(c) The Department of Public Utility Control
is directed to advance the objects of this section
in every lawful manner.
(d) Nothing in this section shall authorize
the Department of Public Utility Control to order
and direct electric [utility] OR ELECTRIC
DISTRIBUTION companies to extend their lines in
their chartered territory over or under any body
of water or elsewhere than along public highways
unless such department, exercising its powers
under section 16-20, finds such extension to be
economically justifiable.
Sec. 103. Subsection (c) of section 16-345 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(c) "Public utility" means the owner or
operator of underground facilities for furnishing
electric DISTRIBUTION, gas, telephone, telegraph,
pipeline, sewage, water, community television
antenna, steam or traffic signal service,
including a municipal or other public owner or
operator.
Sec. 104. Section 29-320 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Commissioner of Public Safety shall make
and enforce, and may amend, reasonable regulations
concerning the safe storage, use, transportation
by any mode and transmission by pipeline of
flammable or combustible liquids. In adopting such
regulations, said commissioner may adopt by
reference standards concerning flammable or
combustible liquids as set forth by the National
Fire Protection Association for the prevention of
damage to property and injury to life, and
protection from hazards incident to the storage,
use, transportation by any mode and transmission
by pipeline of such liquids. Such regulations
shall not apply to electric, [companies] ELECTRIC
DISTRIBUTION and gas companies, as defined in
section 16-1.
Sec. 105. Section 29-331 of the general
statutes is repealed and the following is
substituted in lieu thereof:
The Commissioner of Public Safety shall make
reasonable regulations concerning the safe
storage, use, transportation by any mode and
transmission by pipeline of liquefied petroleum
gas. Regulations concerning safe storage shall
specify standards to ensure maximum security
against unauthorized entry into storage areas
where liquefied petroleum gas or liquefied natural
gas is stored. In adopting such regulations, said
commissioner may adopt by reference standards
concerning liquefied petroleum gas as set forth by
the National Fire Protection Association for the
prevention of damage to property and injury to
life, and protection from hazards incident to the
storage, use, transportation by any mode and
transmission by pipeline of such gas, with
particular reference to the design, construction,
location and operation of liquefied petroleum gas
installations. Such regulations shall not apply to
electric, [companies] ELECTRIC DISTRIBUTION and
gas companies as defined in section 16-1.
Sec. 106. Subsections (e) and (f) of section
32-317 of the general statutes, as amended by
section 3 of public act 97-173, are repealed and
the following is substituted in lieu thereof:
(e) The commissioner shall adopt regulations
in accordance with chapter 54, (1) concerning
qualifications for such loans or deferred loans,
requirements and limitations as to adjustments of
terms and conditions of repayment and any
additional requirements deemed necessary to carry
out the provisions of this section and to assure
that those tax-exempt bonds and notes used to fund
such loans qualify for exemption from federal
income taxation, (2) providing for the maximum
feasible availability of such loans or deferred
loans for dwelling units owned or occupied by
persons of low and moderate income, (3)
establishing procedures to inform such persons of
the availability of such loans or deferred loans
and to encourage and assist them to apply for such
loans and (4) providing that (A) the interest
payments received from the recipients of loans or
deferred loans, less the expenses incurred by the
commissioner in the implementation of the program
of loans, deferred loans and loan guarantees under
this section, and (B) the payments received from
electric, ELECTRIC DISTRIBUTION and gas companies
under subsection (f) of this section shall be
applied to reimburse the General Fund for interest
on the outstanding bonds and notes used to fund
such loans or deferred loans.
(f) Not later than August first, annually,
the commissioner shall calculate the difference
between (1) the weighted average of the percentage
rates of interest payable on all subsidized loans
or deferred loans made from the energy
conservation loan program authorized under
sections 32-315 to 32-318, inclusive, AS AMENDED
BY THIS ACT, and (2) the average of the percentage
rates of interest on any bonds and notes issued
pursuant to section 3-20, which have been
dedicated to the energy conservation loan program
under sections 32-315 to 32-318, inclusive, AS
AMENDED BY THIS ACT, and used to fund such loans
or deferred loans, and multiply such difference by
the outstanding amount of all such loans or
deferred loans, or such lesser amount as may be
required under Section 103 (b)(2) of the Internal
Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United
States, as from time to time amended. The product
of such difference and such applicable amount
shall not exceed six per cent of the sum of the
outstanding principal amount at the end of each
fiscal year of all loans or deferred loans made
under the energy conservation loan program
authorized under sections 32-315 to 32-318,
inclusive, AS AMENDED BY THIS ACT, and the balance
remaining in the energy conservation revolving
loan account. Not later than September first,
annually, the Department of Public Utility Control
shall allocate such product among each electric,
ELECTRIC DISTRIBUTION and gas company having at
least seventy-five thousand customers, in
accordance with a formula taking into account,
without limitation, the average number of
residential customers of each company. Not later
than October first, annually, each such company
shall pay its assessed amount to the commissioner.
The commissioner shall pay to the State Treasurer
for deposit in the General Fund all such payments
from electric, ELECTRIC DISTRIBUTION and gas
companies, and shall adopt procedures to assure
that such payments are not used for purposes other
than those specifically provided in this section.
The department shall include each company's
payment as an operating expense of the company for
the purposes of rate-making under section 16-19,
AS AMENDED BY THIS ACT.
Sec. 107. Subsection (b) of section 33-645 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(b) No corporation formed under sections
33-600 to 33-998, inclusive, AS AMENDED BY THIS
ACT, shall have power to transact in this state
the business of a telegraph company, gas,
electric, [light] ELECTRIC DISTRIBUTION or water
company, or cemetery corporation, or of any
company, except a telephone company, requiring the
right to take and condemn lands or to occupy the
public highways of this state.
Sec. 108. Subsection (a) of section 33-920 of
the general statutes, as amended by section 29 of
public act 97-246, is repealed and the following
is substituted in lieu thereof:
(a) A foreign corporation, other than an
insurance, surety or indemnity company, may not
transact business in this state until it obtains a
certificate of authority from the Secretary of the
State. No foreign corporation engaged in the
business of a telegraph company, gas, electric,
[light] ELECTRIC DISTRIBUTION or water company, or
cemetery corporation, or of any company requiring
the right to take and condemn lands or to occupy
the public highways of this state, and no foreign
telephone company, shall transact in this state
the business authorized by its certificate of
incorporation or by the laws of the state under
which it was organized, unless empowered so to do
by some general or special act of this state,
except for the purpose of carrying out and
renewing contracts existing upon August 1, 1903.
No insurance, surety or indemnity company shall
transact business in this state until it has
procured a license from the Insurance Commissioner
in accordance with the provisions of section
38a-41.
Sec. 109. Subsection (b) of section 33-1035
of the general statutes, as amended by public act
97-127 and section 46 of public act 97-246, is
repealed and the following is substituted in lieu
thereof:
(b) Except as provided in subsection (f) of
this section, no corporation formed under sections
33-1000 to 33-1290, inclusive, AS AMENDED BY THIS
ACT, shall, or shall have power to, transact in
this state the business of an insurance company or
a surety or indemnity company, railroad company,
telegraph company, gas, electric, [light] ELECTRIC
DISTRIBUTION or water company, or of any company
requiring the right to take and condemn lands or
to occupy the public highways of this state.
Sec. 110. Subsection (a) of section 33-1210
of the general statutes, as amended by section 73
of public act 97-246, is repealed and the
following is substituted in lieu thereof:
(a) A foreign corporation, other than an
insurance, surety or indemnity company, may not
conduct affairs in this state until it obtains a
certificate of authority from the Secretary of the
State. No foreign corporation conducting the
affairs of a state bank and trust company, savings
bank or building and loan association, railroad
company, telegraph company, gas, electric, [light]
ELECTRIC DISTRIBUTION or water company, or of any
company requiring the right to take and condemn
lands or to occupy the public highways of this
state, and no foreign telephone company, shall
conduct in this state affairs authorized by its
certificate of incorporation or by the laws of the
state under which it was organized, unless
empowered so to do by some general or special act
of this state, except for the purpose of carrying
out and renewing contracts existing upon August 1,
1903. No insurance, surety or indemnity company
shall conduct affairs in this state until it has
procured a license from the Insurance Commissioner
in accordance with the provisions of section
38a-41.
Sec. 111. Subsection (d) of section 34-119 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(d) No limited liability company formed under
sections 34-100 to 34-242, inclusive, shall have
power to transact in this state the business of a
telegraph company, gas, electric, [light] ELECTRIC
DISTRIBUTION or water company, or cemetery
corporation, or of any company, except a telephone
company, requiring the right to take and condemn
lands or to occupy the public highways of this
state.
Sec. 112. Subdivision (12) of subsection (a)
of section 36a-250 of the general statutes is
repealed and the following is substituted in lieu
thereof:
(12) Act as agent (A) in the collection of
taxes for any qualified treasurer of any taxing
district or qualified collector of taxes or (B)
for any electric, ELECTRIC DISTRIBUTION, gas,
water or telephone company operating within this
state in receiving moneys due that company for
utility services furnished by it.
Sec. 113. Section 52-380b of the general
statutes is repealed and the following is
substituted in lieu thereof:
Any property of any telegraph, telephone,
[or] electric [light or power] OR ELECTRIC
DISTRIBUTION company, or association engaged in
distributing electricity by wires or similar
conductors, attached or liable to attachment under
the provisions of section 52-287, may be subjected
to a lien by any person holding the legal title to
an unsatisfied judgment, whether by assignment or
otherwise, against the company or association,
provided the creditor shall file a certificate in
writing in the office of the Secretary of the
State in the form provided in section 52-380a. If
the lien is placed upon the property attached in
the suit upon which the judgment was predicated
and within four months after the judgment was
rendered, it shall hold from the date of the
attachment. Any such lien may be foreclosed or
redeemed in the same manner as mortgages upon real
property.
Sec. 114. Subdivision (1) of subsection (a)
of section 12-213 of the general statutes is
repealed and the following is substituted in lieu
thereof:
(1) "Taxpayer" and "company" mean any
corporation, foreign municipal electric utility,
as defined in section 12-59, ELECTRIC DISTRIBUTION
COMPANY, AS DEFINED IN SECTION 1 OF THIS ACT,
ELECTRIC SUPPLIER, AS DEFINED IN SECTION 1 OF THIS
ACT, GENERATION ENTITY OR AFFILIATE, AS DEFINED IN
SECTION 1 OF THIS ACT, joint stock company or
association or any fiduciary thereof but not a
municipal utility as defined in chapter 212 and
chapter 212a, and any dissolved corporation which
continues to conduct business.
Sec. 115. Subdivision (20) of subsection (a)
of section 12-213 of the general statutes is
repealed and the following is substituted in lieu
thereof:
(20) (A) "Carrying on or doing business"
means and includes each and every act, power or
privilege exercised or enjoyed in this state, as
an incident to, or by virtue of, the powers and
privileges acquired by the nature of any
organization whether the form of existence is
corporate, associate, joint stock company or
fiduciary, [except that a] AND INCLUDES THE DIRECT
OR INDIRECT ENGAGING IN, TRANSACTING OR CONDUCTING
OF ACTIVITY IN THIS STATE BY AN ELECTRIC SUPPLIER,
AS DEFINED IN SECTION 1 OF THIS ACT, GENERATION
ENTITY OR AFFILIATE, AS DEFINED IN SECTION 1 OF
THIS ACT, OR, FOR THE PURPOSE OF ESTABLISHING OR
MAINTAINING A MARKET FOR THE SALE OF ELECTRICITY
OR OF ELECTRIC GENERATION SERVICES, AS DEFINED IN
SECTION 1 OF THIS ACT, TO END USE CUSTOMERS
LOCATED IN THIS STATE THROUGH THE USE OF THE
TRANSMISSION OR DISTRIBUTION FACILITIES OF AN
ELECTRIC DISTRIBUTION COMPANY, AS DEFINED IN
SECTION 1 OF THIS ACT OR, UNTIL UNBUNDLED IN
ACCORDANCE WITH SECTION 5 OF THIS ACT, ELECTRIC
COMPANY, AS DEFINED IN SECTION 1 OF THIS ACT;
(B) A company that has contracted with a
commercial printer for printing and distribution
of printed material shall not be deemed to be
carrying on or doing business in this state
because of [(A)] (i) the ownership or leasing by
that company of tangible or intangible personal
property located at the premises of the commercial
printer in this state, [(B)] (ii) the sale by that
company of property of any kind produced or
processed at and shipped or distributed from the
premises of the commercial printer in this state,
[(C)] (iii) the activities of that company's
employees or agents at the premises of the
commercial printer in this state, which activities
relate to quality control, distribution or
printing services performed by the printer, or
[(D)] (iv) the activities of any kind performed by
the commercial printer in this state for or on
behalf of that company.
Sec. 116. Subsection (13) of section 12-407
of the general statutes is repealed and the
following is substituted in lieu thereof:
(13) "Tangible personal property" means
personal property which may be seen, weighed,
measured, felt or touched or which is in any other
manner perceptible to the senses. TANGIBLE
PERSONAL PROPERTY INCLUDES THE DISTRIBUTION,
GENERATION OR TRANSMISSION OF ELECTRICITY.
Sec. 117. This act shall take effect from its
passage, except that sections 1 to 5, inclusive,
sections 7 to 44, inclusive, sections 48 to 53,
inclusive, and sections 59 to 113, inclusive,
shall take effect July 1, 1998, section 47 shall
be applicable to income years commencing on or
after January 1, 1999, sections 54 and 55 shall
take effect January 1, 2000, and shall be
applicable to calendar quarters commencing on or
after January 1, 2000, section 56 shall take
effect January 1, 2000, section 58 shall take
effect July 1, 2000, section 45 shall be
applicable to assessment years of municipalities
commencing on or after October 1, 1999, and
section 46 shall be effective until January 1,
2005.
Approved April 29, 1998