sHB 5005


SUMMARY:  This bill  requires  each electric company to
submit a plan  to  the  Department  of  Public  Utility
Control (DPUC) to  separate ("unbundle") its generation
assets and related  functions  and  transfer  them to a
corporate affiliate that  is structurally separate from
the company's transmission and distribution affiliates.
 The plan must  provide  for  at  least  (1)  unbundled
prices or rates for generation and distribution and (2)
access to the  distribution  system  for  all  electric
suppliers.  DPUC must  conduct proceedings it considers
necessary to approve or modify the plan.

DPUC  must  also  open  a  proceeding  to  examine  and
investigate the extent  to  which electric rates can be
reduced for all customers if it approves the unbundling
plans.  It must  also  develop  a  plan  to provide all
retail electric customers  with  information concerning
electric deregulation.  The  plan  must be submitted to
the legislature for its approval.

The bill requires  the  Office of Policy and Management
(OPM) in consultation  with  the Treasurer's Office and
the Energy and  Technology Committee, to hire a firm to
study the issue of electric industry deregulation.  OPM
must report to  the governor and legislature by January
1, 1999.

EFFECTIVE DATE:  Upon passage


OPM Study

OPM, in consultation  with  the  Treasurer's Office and
the Energy and  Technology  Committee,  must  employ  a
nationally  recognized  firm   with  expertise  in  the
electric industry to  study  and  make  recommendations
regarding the possible  deregulation  of  the industry.
The  report (presumably  prepared  by  the  firm)  must
examine: (1) the  operations  and  financial  future of
Connecticut Light and  Power;  (2)  legislative  policy
options  for  achieving  the  greatest  long  run  rate
savings experience for  all  customers, in light of the
industry's present and  predicted  condition; (3) other
states'   deregulation   experience;    and   (4)   the
operational  readiness  of   the   Independent   System
Operator (ISO) of  New  England,  Inc  or its federally
approved  successor.   (The   ISO  is  responsible  for
coordinating electric generation  and  distribution  in
New England.)

OPM  must submit  the  report  to  the  legislature  by
January 1, 1999.   The  report  must  form the basis of
implementing  legislation  during   the   1999  regular


Energy and Technology Committee

    Joint Favorable Substitute Change of Reference
    Yea 15    Nay 2

Environment Committee

    Change of Reference
    Yea 14  Nay 1

Planning and Development Committee

    Joint Favorable Change of Reference
    Yea 17    Nay 2

Judiciary Committee

    Change of Reference
    Voice Vote

Finance, Revenue and Bonding Committee

    Joint Favorable Substitute
    Yea 42   Nay 0