Chapter 277

Sec. 16-1. Definitions. (a) Terms used in this title and in chapters 244, 244a, 244b, 245, 245a and 245b shall be construed as follows, unless another meaning is expressed or is clearly apparent from the language or context:

(1) “Authority” means the Public Utilities Regulatory Authority and “department” means the Department of Energy and Environmental Protection;

(2) “Utility commissioner” means a utility commissioner of the Public Utilities Regulatory Authority;

(3) “Public service company” includes electric distribution, gas, telephone, pipeline, sewage, water and community antenna television companies and holders of a certificate of cable franchise authority, owning, leasing, maintaining, operating, managing or controlling plants or parts of plants or equipment, but shall not include towns, cities, boroughs, any municipal corporation or department thereof, whether separately incorporated or not, a private power producer, as defined in section 16-243b, or an exempt wholesale generator, as defined in 15 USC 79z-5a;

(4) “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;

(5) “Gas company” includes every person owning, leasing, maintaining, operating, managing or controlling mains, pipes or other fixtures, in public highways or streets, for the transmission or distribution of gas for sale for heat or power within this state, or engaged in the manufacture of gas to be so transmitted or distributed for such purpose, but shall not include (A) a person manufacturing gas through the use of a biomass gasification plant provided such person does not own, lease, maintain, operate, manage or control mains, pipes or other fixtures in public highways or streets, (B) 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, or (C) an entity approved to submeter pursuant to section 16-19ff;

(6) “Water company” includes every person owning, leasing, maintaining, operating, managing or controlling any pond, lake, reservoir, stream, well or distributing plant or system employed for the purpose of supplying water to fifty or more consumers. A water company does not include homeowners, condominium associations providing water only to their members, homeowners associations providing water to customers at least eighty per cent of whom are members of such associations, a municipal waterworks system established under chapter 102, a district, metropolitan district, municipal district or special services district established under chapter 105, chapter 105a or any other general statute or any public or special act which is authorized to supply water, or any other waterworks system owned, leased, maintained, operated, managed or controlled by any unit of local government under any general statute or any public or special act;

(7) “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;

(8) “Sewage company” includes every person owning, leasing, maintaining, operating, managing or controlling, for general use in any town, city or borough, or portion thereof, in this state, sewage disposal facilities which discharge treated effluent into any waterway of this state;

(9) “Pipeline company” includes every person owning, leasing, maintaining, operating, managing or controlling mains, pipes or other fixtures through, over, across or under any public land, water, parkways, highways, parks or public grounds for the transportation, transmission or distribution of petroleum products for hire within this state;

(10) “Community antenna television company” includes every person owning, leasing, maintaining, operating, managing or controlling a community antenna television system, in, under or over any public street or highway, for the purpose of providing community antenna television service for hire and shall include any municipality which owns or operates one or more plants for the manufacture or distribution of electricity pursuant to section 7-213 or any special act and seeks to obtain or obtains a certificate of public convenience and necessity to construct or operate a community antenna television system pursuant to section 16-331 or a certificate of cable franchise authority pursuant to section 16-331q. “Community antenna television company” does not include a certified competitive video service provider;

(11) “Community antenna television service” means (A) the one-way transmission to subscribers of video programming or information that a community antenna television company makes available to all subscribers generally, and subscriber interaction, if any, which is required for the selection of such video programming or information, and (B) noncable communications service. “Community antenna television service” does not include video service provided by a certified competitive video service provider;

(12) “Community antenna television system” means a facility, consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide community antenna television service which includes video programming and which is provided in, under or over any public street or highway, for hire, to multiple subscribers within a franchise, but such term does not include (A) a facility that serves only to retransmit the television signals of one or more television broadcast stations; (B) a facility that serves only subscribers in one or more multiple unit dwellings under common ownership, control or management, unless such facility is located in, under or over a public street or highway; (C) a facility of a common carrier which is subject, in whole or in part, to the provisions of Subchapter II of Chapter 5 of the Communications Act of 1934, 47 USC 201 et seq., as amended, except that such facility shall be considered a community antenna television system and the carrier shall be considered a public service company to the extent such facility is used in the transmission of video programming directly to subscribers; or (D) a facility of an electric distribution company which is used solely for operating its electric distribution company systems. “Community antenna television system” does not include a facility used by a certified competitive video service provider to provide video service;

(13) “Video programming” means programming provided by, or generally considered comparable to programming provided by, a television broadcast station;

(14) “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;

(15) “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;

(16) “Renewable fuel resources” means energy sources described in subdivisions (20) and (21) of this subsection;

(17) “Telephone company” means a telecommunications company that provides one or more noncompetitive or emerging competitive services, as defined in section 16-247a;

(18) “Domestic telephone company” includes any telephone company which has been chartered by or organized or constituted within or under the laws of this state;

(19) “Telecommunications company” means a person that provides telecommunications service, as defined in section 16-247a, within the state, but shall not mean a person that provides only (A) private telecommunications service, as defined in section 16-247a, (B) the one-way transmission of video programming or other programming services to subscribers, (C) subscriber interaction, if any, which is required for the selection of such video programming or other programming services, (D) the two-way transmission of educational or instructional programming to a public or private elementary or secondary school, or a public or independent institution of higher education, as required by the authority 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 authority, or (E) a combination of the services set forth in subparagraphs (B) to (D), inclusive, of this subdivision;

(20) “Class I renewable energy source” means (A) electricity derived from (i) solar power, (ii) wind power, (iii) a fuel cell, (iv) geothermal, (v) landfill methane gas, anaerobic digestion or other biogas derived from biological sources, (vi) thermal electric direct energy conversion from a certified Class I renewable energy source, (vii) ocean thermal power, (viii) wave or tidal power, (ix) low emission advanced renewable energy conversion technologies, including, but not limited to, zero emission low grade heat power generation systems based on organic oil free rankine, kalina or other similar nonsteam cycles that use waste heat from an industrial or commercial process that does not generate electricity, (x) (I) a run-of-the-river hydropower facility that began operation after July 1, 2003, has a generating capacity of not more than sixty megawatts, is not based on a new dam or a dam identified by the Commissioner of Energy and Environmental Protection as a candidate for removal, and meets applicable state and federal requirements, including state dam safety requirements and applicable site-specific standards for water quality and fish passage, or (II) a run-of-the-river hydropower facility that received a new license after January 1, 2018, under the Federal Energy Regulatory Commission rules pursuant to 18 CFR 16, as amended from time to time, is not based on a new dam or a dam identified by the Commissioner of Energy and Environmental Protection as a candidate for removal, and meets applicable state and federal requirements, including state dam safety requirements and applicable site-specific standards for water quality and fish passage, (xi) a biomass facility that uses sustainable biomass fuel and has an average emission rate of equal to or less than .075 pounds of nitrogen oxides per million BTU of heat input for the previous calendar quarter, except that energy derived from a biomass facility with a capacity of less than five hundred kilowatts that began construction before July 1, 2003, may be considered a Class I renewable energy source, or (xii) a nuclear power generating facility constructed on or after October 1, 2023, or (B) any electrical generation, including distributed generation, generated from a Class I renewable energy source, provided, on and after January 1, 2014, any megawatt hours of electricity from a renewable energy source described under this subparagraph that are claimed or counted by a load-serving entity, province or state toward compliance with renewable portfolio standards or renewable energy policy goals in another province or state, other than the state of Connecticut, shall not be eligible for compliance with the renewable portfolio standards established pursuant to section 16-245a;

(21) “Class II renewable energy source” means electricity derived from a trash-to-energy facility that has obtained a permit pursuant to section 22a-208a and section 22a-174-33 of the regulations of Connecticut state agencies;

(22) “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;

(23) “Electric distribution company” or “distribution company” means any person providing electric transmission or distribution services within the state, 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) an electric supplier; (G) an entity approved to submeter pursuant to section 16-19ff; or (H) a municipality, state or federal governmental entity authorized to distribute electricity across a public highway or street pursuant to section 16-243aa;

(24) “Electric supplier” means any person, including an electric aggregator or participating municipal electric utility that is licensed by the Public Utilities Regulatory Authority in accordance with section 16-245, that provides electric generation services to end use customers in the state using the transmission or distribution facilities of an electric distribution company, regardless of whether or not such person takes title to such generation services, but does not include: (A) A municipal electric utility established under chapter 101, other than a participating municipal electric utility; (B) a municipal electric energy cooperative established under chapter 101a; (C) an electric cooperative established under chapter 597; or (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;

(25) “Electric aggregator” means (A) a person, municipality or regional water authority that gathers together electric customers for the purpose of negotiating the purchase of electric generation services from an electric supplier, or (B) the MIRA Dissolution 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;

(26) “Electric generation services” means electric energy, electric capacity or generation-related services;

(27) “Electric transmission services” means electric transmission or transmission-related services;

(28) “Generation entity or affiliate” means a corporate affiliate or a separate division of an electric distribution company that provides electric generation services;

(29) “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 authority in accordance with section 16-245c to provide electric generation services to end use customers outside its service area, as defined in section 16-245c;

(30) “Person” means an individual, business, firm, corporation, association, joint stock association, trust, partnership or limited liability company;

(31) “Regional independent system operator” means the “ISO - New England, Inc.”, or its successor organization as approved by the Federal Energy Regulatory Commission;

(32) “Certified telecommunications provider” means a person certified by the authority to provide intrastate telecommunications services, as defined in section 16-247a, pursuant to sections 16-247f to 16-247h, inclusive;

(33) “Gas registrant” means a person registered to sell natural gas pursuant to section 16-258a;

(34) “Customer-side distributed resources” means (A) the generation of electricity from a unit with a rating of not more than sixty-five megawatts on the premises of a retail end user within the transmission and distribution system including, but not limited to, fuel cells, photovoltaic systems or small wind turbines, or (B) a reduction in the demand for electricity on the premises of a retail end user in the distribution system through methods of conservation and load management, including, but not limited to, peak reduction systems and demand response systems;

(35) “Federally mandated congestion charges” means any cost approved by the Federal Energy Regulatory Commission as part of New England Standard Market Design including, but not limited to, locational marginal pricing, locational installed capacity payments, any cost approved by the Public Utilities Regulatory Authority to reduce federally mandated congestion charges in accordance with section 7-233y, this section, sections 16-32f, 16-50i, 16-50k, 16-50x, 16-243i to 16-243q, inclusive, 16-244c, 16-245m, 16-245n and 16-245z, section 21 of public act 05-1 of the June special session*, subsection (f) of section 16a-3j and reliability must run contracts;

(36) “Combined heat and power system” means a system that produces, from a single source, both electric power and thermal energy used in any process that results in an aggregate reduction in electricity use;

(37) “Grid-side distributed resources” means the generation of electricity from a unit with a rating of not more than sixty-five megawatts that is connected to the transmission or distribution system, which units may include, but are not limited to, units used primarily to generate electricity to meet peak demand;

(38) “Class III source” means the electricity output from combined heat and power systems with an operating efficiency level of no less than fifty per cent that are part of customer-side distributed resources developed at commercial and industrial facilities in this state on or after January 1, 2006, a waste heat recovery system installed on or after April 1, 2007, that produces electrical or thermal energy by capturing preexisting waste heat or pressure from industrial or commercial processes, or the electricity savings created in this state from conservation and load management programs begun on or after January 1, 2006, provided on and after January 1, 2014, no such programs supported by ratepayers, including programs overseen by the Energy Conservation Management Board or third-party programs pursuant to section 16-245m, shall be considered a Class III source, except that any demand-side management project awarded a contract pursuant to section 16-243m shall remain eligible as a Class III source for the term of such contract;

(39) “Sustainable biomass fuel” means biomass that is cultivated and harvested in a sustainable manner. “Sustainable biomass fuel” does not mean construction and demolition waste, as defined in section 22a-208x, finished biomass products from sawmills, paper mills or stud mills, organic refuse fuel derived separately from municipal solid waste, or biomass from old growth timber stands, except where (A) such biomass is used in a biomass gasification plant that received funding prior to May 1, 2006, from the Clean Energy Fund established pursuant to section 16-245n, or (B) the energy derived from such biomass is subject to a long-term power purchase contract pursuant to subdivision (2) of subsection (j) of section 16-244c entered into prior to May 1, 2006;

(40) “Video service” means video programming services provided through wireline facilities, a portion of which are located in the public right-of-way, without regard to delivery technology, including Internet protocol technology. “Video service” does not include any video programming provided by a commercial mobile service provider, as defined in 47 USC 332(d), any video programming provided as part of community antenna television service in a franchise area as of October 1, 2007, any video programming provided as part of and via a service that enables users to access content, information, electronic mail or other services over the public Internet;

(41) “Certified competitive video service provider” means an entity providing video service pursuant to a certificate of video franchise authority issued by the authority in accordance with section 16-331e. “Certified competitive video service provider” does not mean an entity issued a certificate of public convenience and necessity in accordance with section 16-331 or the affiliates, successors and assigns of such entity or an entity issued a certificate of cable franchise authority in accordance with section 16-331p or the affiliates, successors and assignees of such entity;

(42) “Certificate of video franchise authority” means an authorization issued by the Public Utilities Regulatory Authority conferring the right to an entity or person to own, lease, maintain, operate, manage or control facilities in, under or over any public highway to offer video service to any subscribers in the state;

(43) “Certificate of cable franchise authority” means an authorization issued by the Public Utilities Regulatory Authority pursuant to section 16-331q conferring the right to a community antenna television company to own, lease, maintain, operate, manage or control a community antenna television system in, under or over any public highway to (A) offer community antenna television service in a community antenna television company's designated franchise area, or (B) use the public rights-of-way to offer video service in a designated franchise area. The certificate of cable franchise authority shall be issued as an alternative to a certificate of public convenience and necessity pursuant to section 16-331 and shall only be available to a community antenna television company under the terms specified in sections 16-331q to 16-331aa, inclusive;

(44) “Thermal energy transportation company” means any person authorized under any provision of the general statutes or special act to furnish heat or air conditioning or both, by means of steam, heated or chilled water or other medium, to lay and maintain mains, pipes or other conduits, and to erect such other fixtures necessary or convenient in and on the streets, highways and public grounds of any municipality to carry steam, heated or chilled water or other medium from such plant to the location to be served and to return the same;

(45) “The Connecticut Television Network” means the General Assembly's state-wide twenty-four-hour state public affairs programming service, separate and distinct from community access channels;

(46) “Commissioner of Energy and Environmental Protection” means the Commissioner of Energy and Environmental Protection appointed pursuant to title 4, or the commissioner's designee;

(47) “Large-scale hydropower” means any hydropower facility that (A) began operation on or after January 1, 2003, (B) is located in the New England Power Pool Generation Information System geographic eligibility area in accordance with Rule 2.3 of said system or an area abutting the northern boundary of the New England Power Pool Generation Information System geographic eligibility area that is not interconnected with any other control area that is not a part of the New England Power Pool Generation Information System geographic eligibility area, (C) delivers power into such geographic eligibility area, and (D) has a generating capacity of more than thirty megawatts;

(48) “Energy storage system” means any commercially available technology that is capable of absorbing energy, storing it for a period of time and thereafter dispatching the energy, and that is capable of either: (A) Using mechanical, chemical or thermal processes to store electricity that is generated at one time for use at a later time; (B) storing thermal energy for direct use for heating or cooling at a later time in a manner that avoids the need to use electricity at a later time; (C) using mechanical, chemical or thermal processes to store electricity generated from renewable energy sources for use at a later time; or (D) using mechanical, chemical or thermal processes to capture or harness waste electricity and to store such electricity generated from mechanical processes for delivery at a later time;

(49) “Distributed energy resource” means any (A) customer-side distributed resource or grid-side distributed resource that generates electricity from a Class I renewable energy source or Class III source, and (B) customer-side distributed resource that reduces demand for electricity through conservation and load management, energy storage system which is located on the customer-side of the meter or is connected to the distribution system or microgrid; and

(50) “Grid-side system enhancement” means an investment in distribution system infrastructure, technology and systems designed to enable the deployment of distributed energy resources and allow for grid management and system balancing, including, but not limited to, energy storage systems, distribution system automation and controls, intelligent field systems, advanced distribution system metering, and communication and systems that enable two-way power flow.

(b) Notwithstanding any provision of the general statutes, the terms “utility”, “public utility” and “public service company” shall be deemed to include a community antenna television company and a holder of a certificate of cable franchise authority, except (1) as otherwise provided in sections 16-8, 16-27, 16-28 and 16-43, (2) that no provision of the general statutes, including but not limited to, the provisions of sections 16-6b and 16-19, shall subject a community antenna television company to regulation as a common carrier or utility by reason of providing community antenna television service, other than noncable communications service, as provided in Subchapter V-A of Chapter 5 of the Communications Act of 1934, 47 USC 521 et seq., as amended, and (3) that no provision of the general statutes, including but not limited to, sections 16-6b and 16-19, shall apply to community antenna television companies to the extent any such provision is preempted pursuant to any other provision of the Communications Act of 1934, 47 USC 151 et seq., as amended, any other federal act or any regulation adopted thereunder.

(c) An owner of an electric vehicle charging station, as defined in section 16-19f, shall not be deemed to be a utility, public utility or public service company solely by virtue of the fact that such owner is an owner of an electric vehicle charging station.

(1949 Rev., S. 5390; February, 1965, P.A. 175, S. 1; 1967, P.A. 546, S. 1; 691, S. 1; 1969, P.A. 768, S. 208; P.A. 73-267; P.A. 75-486, S. 2, 69; P.A. 77-614, S. 162, 587, 610; P.A. 78-303, S. 85, 136; P.A. 79-214, S. 1; 79-610, S. 7; P.A. 80-482, S. 39, 348; 80-483, S. 65, 186; P.A. 81-297, S. 3; 81-329, S. 1, 11; 81-358, S. 2; 81-439, S. 2, 14; P.A. 85-246, S. 8; 85-509, S. 1, 11; P.A. 86-403, S. 33, 132; P.A. 87-323, S. 4; 87-415, S. 7, 13; P.A. 91-310, S. 3; P.A. 92-137, S. 2; P.A. 93-149; P.A. 94-83, S. 1, 16; P.A. 95-79, S. 47, 189; P.A. 98-28, S. 1, 117; P.A. 99-222, S. 1, 19; 99-286, S. 1, 19; P.A. 00-53, S. 11, 12; P.A. 01-49, S. 1; 01-204, S. 7, 29; June Sp. Sess. P.A. 01-9, S. 73, 131; P.A. 03-135, S. 1, 2; 03-163, S. 2; 03-221, S. 1, 2; June Sp. Sess. P.A. 05-1, S. 1, 2; P.A. 06-74, S. 1, 2; P.A. 07-242, S. 44; 07-253, S. 1; June Sp. Sess. P.A. 07-5, S. 58; P.A. 08-77, S. 1; 08-185, S. 4; Sept. Sp. Sess. P.A. 09-7, S. 186; P.A. 11-80, S. 1, 14; P.A. 13-5, S. 1, 30, 31; 13-298, S. 1, 2, 38; 13-303, S. 1–4; P.A. 14-94, S. 1; 14-134, S. 1; P.A. 15-107, S. 2, 3; June Sp. Sess. P.A. 15-5, S. 102; P.A. 16-135, S. 3; P.A. 17-144, S. 2; P.A. 18-50, S. 27; P.A. 23-102, S. 36; 23-170, S. 8; 23-204, S. 185.)

*Note: Section 21 of public act 05-1 of the June special session is special in nature and therefore has not been codified but remains in full force and effect according to its terms.

History: 1965 act added definition of community antenna television company; 1967 acts included sewage plants in definition of “public service company” and defined “sewage company”, redefined “water company” to include companies owning, controlling etc. streams and wells and to delete phrase “for general domestic use in any town, city or borough … within this state” and defined “consumer”; 1969 act defined “commissioner of transportation”; P.A. 73-267 included motor bus companies in definition of “public service company”; P.A. 75-486 replaced definition of “commission” with definition of “authority”; P.A. 77-614 and P.A. 78-303 included definition of division of public utility control, effective January 1, 1979; P.A. 79-214 defined “cogeneration technology” and excluded persons owning or operating facilities producing one or less megawatt from definition of “public service company”; P.A. 79-610 defined “department”, deleted railroad and motor bus companies from definition of “public service company” and added reference to leasing in definitions of “railroad company” and “water company”; P.A. 80-482 replaced definition of “division” with definition of “department” re public utility control, deleting previous definition of “department” as “department of transportation”; P.A. 80-483 added reference to leasing in definitions of “street railway company” and “sewage company”; P.A. 81-297 excluded telegraph company functions concerning intrastate money order service from definition of public service company; P.A. 81-329 added definitions of “telephone company” and “domestic telephone company”; P.A. 81-358 excluded homeowners and condominium associations providing water to members only from definition of water company; P.A. 81-439 excluded private power producers from definitions of public service company and electric company; P.A. 85-246 redefined “public service company” to omit references to street railway companies and deleted a reference to street railway companies in definition of “motor bus”; P.A. 85-509 made existing section Subsec. (a), added definitions of “community antenna television service”, “community antenna television system”, “video programming” and “noncable communications service” in Subsec. (a), clarified definition of “community antenna television company” to apply to an antenna television system and added Subsec. (b) re the meaning of the terms “utility”, “public utility” and “public service company”; P.A. 86-403 made a technical change to Subsec. (a); (Revisor's note: In 1987 the definitions in Subsec. (a) were numbered editorially by the Revisors for ease of reference); P.A. 87-323 redefined “water company” to specifically exclude certain homeowners associations; P.A. 87-415 redefined “telephone company” to exclude entities which provide only those telecommunications services authorized under Secs. 16-247f to 16-247h, inclusive; P.A. 91-310 redefined “electric company”, “gas company” and “water company” to specifically exclude municipal utilities; P.A. 92-137 redefined “community antenna television company” to include municipalities which own or operate electric plants; P.A. 93-149 redefined “community antenna television system” to include municipalities which own or operate electric plants only if they obtain a certificate of public convenience and necessity for a community antenna television system; P.A. 94-83 amended Subsec. (a) by clarifying reference to the Communications Act of 1934 in Subdivs. (16) and (18), redefined “telephone company” in Subdiv. (23) and adding new Subdiv. (25) defining “telecommunications company”, and amended Subsec. (b) by clarifying reference to the Communications Act of 1934, effective July 1, 1994; P.A. 95-79 redefined “telecommunications company” to include a limited liability company, effective May 31, 1995; P.A. 98-28 amended Subsec. (a), redefining “public service company” by adding electric distribution companies and exempting wholesale generators, by making minor changes in definitions of “electric company” and “renewable fuel resources” and added new Subdivs. (26) to (37), defining “class I renewable energy source”, “class II renewable energy source”, “electric distribution services”, “electric distribution company”, “electric supplier”, “electric aggregator”, “electric generation services”, “electric transmission services”, “generation entity or affiliate”, “participating municipal electric utility”, “person” and “regional independent system operator”, effective July 1, 1998 (Revisor's note: In Subdiv. (22) the Revisors editorially changed the phrase “… subdivisions (26) and (27) of this section” to “… subdivisions (26) and (27) of this subsection”); P.A. 99-222 amended Subsec. (a) by inserting new Subdiv. (38) defining “certified telecommunications provider”, effective June 29, 1999; P.A. 99-286 amended Subsec. (a) by making technical changes and by defining “certified telecommunications provider” in words identical to those in P.A. 99-222, effective July 19, 1999; P.A. 00-53 amended Subsec. (a) by redefining “electric aggregator” in Subdiv. (31) to include regional water authorities, and by adding a new Subdiv., designated as (39), defining “gas registrant”; P.A. 01-49 amended Subsec. (a) by making technical changes in Subdivs. (15) and (16); P.A. 01-204 amended Subsec. (a) by redefining “Class I renewable energy source” in Subdiv. (26) to include biomass gasification plants, effective July 11, 2001; June Sp. Sess. P.A. 01-9 revised effective date of P.A. 01-204 but without affecting this section; P.A. 03-135 redefined “Class I renewable energy source” in Subdiv. (26) to include “ocean thermal power, wave or tidal power, low emission advanced renewable energy conversion technologies” and certain run-of-the-river hydropower facilities, to revise the type of biomass that falls under the definition and include, as an exception, “energy derived from a biomass facility that began operation before July 1, 1998” provided “the average emission rate for such facility is equal to or less than .075 pounds of nitrogen oxides per million BTU of heat input for the previous calendar quarter”, and to include “any electrical generation, including distributed generation, generated from a Class I renewable energy source”, redefined “Class II renewable energy source” in Subdiv. (27) to limit the type of biomass facility included in the definition to a facility “that began operation before July 1, 1998, provided the average emission rate for such facility is equal to or less than .2 pounds of nitrogen oxides per million BTU of heat input for the previous calendar quarter” and to change the type of hydropower facility included in the definition to certain run-of-the-river hydropower facilities, and added new Subdivs. (40) and (41), defining “distributed generation” and “federally mandated congestion costs”, effective July 1, 2003; P.A. 03-163 redefined “gas company” in Subdiv. (9) to exclude a person manufacturing gas through the use of a biomass gasification plant, effective June 26, 2003; P.A. 03-221 redefined “Class I renewable energy source” in Subdiv. (26) to delete provisions re the date that a biomass facility began operation, to make the emission rate applicable to all biomass facilities, and to add an exception for biomass facilities with a capacity of less than five hundred kilowatts, and redefined “federally mandated congestion costs” in Subdiv. (41) by replacing “imposed” with “approved” and adding “including, but not limited to, locational marginal pricing and reliability must run contracts”, effective July 1, 2003; June Sp. Sess. P.A. 05-1 amended Subsec. (a) by amending Subdiv. (40) to change the definition of “distributed generation” to “customer-side distributed resources”, to designate existing language as Subpara. (A), to add a unit rating limit in Subpara. (A), and to add Subpara. (B) re reduction in demand, by amending Subdiv. (41) to change the definition of “federally mandated congestion costs” to “federally mandated congestion charges” and to add additional qualifying payments and costs, and by adding Subdivs. (42) to (44), inclusive, defining “combined heat and power system”, “grid-side distributed resources” and “Class III renewable energy source”, effective July 21, 2005; P.A. 06-74 amended Subsec. (a)(26) to insert “sustainable” prior to each occurrence of “biomass facility”, to delete language re biomass gasification plants, to make conforming changes, and to delete language within exception for biomass facilities re biomass cultivated and harvested in a sustainable manner, and added new Subdiv. (45) in Subsec. (a) defining “sustainable biomass”; P.A. 07-242 amended Subsec. (a)(44) to change term from “Class III renewable energy source” to “Class III source” and redefine the term, effective June 4, 2007; P.A. 07-253 redefined “public service company”, “community antenna television company”, “community antenna television service” and “community antenna television system”, defined “video service”, “certified competitive video service provider”, “certificate of video franchise authority” and “certificate of cable franchise authority” and made technical changes in Subsec. (a), and added holder of a certificate of cable franchise authority and made technical changes in Subsec. (b); June Sp. Sess. P.A. 07-5 amended Subsec. (a)(45)(C) to change exception from biomass used in a facility approved before October 1, 2005, to biomass used in a facility certified as a Class I renewable energy source until department certifies that a biomass gasification plant is operational, effective October 6, 2007; P.A. 08-77 added Subsec. (a)(50) defining “thermal energy transportation company”, effective April 30, 2008; P.A. 08-185 redefined “sustainable biomass” in Subsec. (a)(45) by adding as exception renewable energy facilities certified prior to December 31, 2007, and volume-reduction facilities in Subpara. (C), adding Subpara. (D) re certain other renewable energy facilities, and adding provision re amount of biomass shall not apply to a biomass gasification plant, effective June 12, 2008; Sept. Sp. Sess. P.A. 09-7 added Subsec. (a)(51) defining “the Connecticut Television Network”, effective October 5, 2009; P.A. 11-80 amended Subsec. (a)(1) to redefine “authority” as Public Utilities Regulatory Authority and “department” as Department of Energy and Environmental Protection, rather than Public Utilities Control Authority and Department of Public Utility Control, amended Subsec. (a)(2) to replace “commissioner” with “director” as the defined term, amended Subsec. (a)(30), (41), (48) and (49) to replace “Department of Public Utility Control” with “Public Utilities Regulatory Authority”, amended Subsec. (a)(35), (38), (45) and (47) to replace “department” with “authority”, amended Subsec. (a)(45)(A) to replace “Renewable Energy Investment Fund” with “Clean Energy Fund”, and added Subsec. (a)(52) defining “Commissioner of Energy and Environmental Protection”, effective July 1, 2011; P.A. 13-5 amended Subsec. (a)(25) to redefine “telecommunications company” by replacing “department” with “authority”, amended Subsec. (a)(30) to redefine “electric supplier” by deleting former Subpara. (E) re electric distribution company in its provision of electric generation services and amended Subsec. (a)(41) to make a technical change in definition of “federally mandated congestion charges”, effective May 8, 2013; P.A. 13-298 amended Subsec. (a)(8) to redefine “electric company” by adding Subparas. (G) and (H) re entity approved to submeter and municipality, state or federal governmental entity authorized to distribute electricity across a public highway or street and amended Subsec. (a)(9) to redefine “gas company” by adding Subpara. (A) and (B) designators in existing provisions re person manufacturing gas through use of a biomass gasification plant and re municipal gas utility and adding Subpara. (C) re entity approved to submeter, effective July 1, 2013, and amended Subsec. (a)(2) to replace “director” with “utility commissioner” and make a technical change and amended Subsec. (a)(52) to add “or the commissioner's designee” in definition of “Commissioner of Energy and Environmental Protection”, effective July 8, 2013; P.A. 13-303 amended Subsec. (a)(26) to redefine “Class I renewable energy source” by replacing “energy derived from” with “electricity derived from”, inserting clause designators, including geothermal, anaerobic digestion or other biogas derived from biological sources and thermal electric direct energy conversion from a certified Class I renewable energy source, revising the type of run-of-the-river hydropower facility and biomass facility that fall under the definition and adding provision re eligibility of any megawatt hours of electricity claimed or counted by a load-serving entity, province or state towards compliance with renewable portfolio standards or renewable energy policy goals in another province or state other than Connecticut, amended Subsec. (a)(44) to redefine “Class III source” by adding provision re eligibility of programs supported by ratepayers, amended Subsec. (a)(45) to replace “sustainable biomass” with “sustainable biomass fuel” and to delete former Subparas. (C) and (D) re eligibility as sustainable biomass and added Subsec. (a)(53) defining “large-scale hydropower”, effective June 5, 2013; pursuant to P.A. 14-94, “Connecticut Resources Recovery Authority” was changed editorially by the Revisors to “Materials Innovation and Recycling Authority” in Subsec. (a)(31), effective June 6, 2014; P.A. 14-134 amended Subsec. (a) by deleting former Subdivs. (3), (6) to (8), (19) and (20) re definitions of “Commissioner of Transportation”, “railroad company”, “street railway company”, “electric company”, “public service motor vehicle” and “motor bus”, redesignating existing Subdivs. (4), (5), (9) to (18) and (21) to (53) as Subdivs. (3) to (47), redefining “public service company” in redesignated Subdiv. (3), replacing “electric company” with “electric distribution company” in redesignated Subdiv. (12)(D), redefining “electric distribution company” or “distribution company” in redesignated Subdiv. (23), redefining “generation entity or affiliate” in redesignated Subdiv. (28), and making conforming changes, effective June 6, 2014; P.A. 15-107 amended Subsec. (a)(35) by adding “subsection (f) of section 16a-3j and” and added Subsec. (a)(48) to define “energy storage system”, effective June 19, 2015; June Sp. Sess. P.A. 15-5 amended Subsec. (a) by adding Subdiv. (49) defining “distributed energy resource” and Subdiv. (50) defining “grid-side system enhancement”, effective July 1, 2015; P.A. 16-135 added Subsec. (c) re owner of electric vehicle charging station, effective July 1, 2016; P.A. 17-144 amended Subsec. (a)(21) to redefine “Class II renewable energy source,” effective June 27, 2017; P.A. 18-50 amended Subsec. (a)(20) by redefining “Class I renewable energy source”; P.A. 23-102 amended Subsec. (a) by redefining “utility commissioner” in Subdiv. (2) and redefining “Class I renewable energy source” in Subdiv. (20), effective June 29, 2023; P.A. 23-204 amended Subsec. (a)(20) by adding January 1, 2018 date re run-of-the-river hydropower facilities, effective June 12, 2023; pursuant to P.A. 23-170, “Materials Innovation and Recycling Authority” was changed editorially by the Revisors to “MIRA Dissolution Authority”, effective July 1, 2023.

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Sec. 16-2. Public Utilities Regulatory Authority. Utility commissioners. Staff. (a) There shall continue to be a Public Utilities Regulatory Authority within the Department of Energy and Environmental Protection, which shall consist of five electors of this state, appointed by the Governor with the advice and consent of both houses of the General Assembly. Not more than three members of said authority in office at any one time shall be members of any one political party. The Governor shall appoint five members to the authority. The procedure prescribed in section 4-7 shall apply to such appointments, except that the Governor shall submit each nomination on or before May first, and both houses shall confirm or reject it before adjournment sine die. Any utility commissioner appointed by the Governor and confirmed by both chambers of the General Assembly between February 1, 2019, and June 1, 2019, shall serve a term expiring on March 1, 2024. Any utility commissioner appointed by the Governor and confirmed by both houses of the General Assembly between February 1, 2018, and June 1, 2018, shall serve a term expiring on March 1, 2022. Between July 1, 2019, and May 1, 2020, the Governor shall appoint three utility commissioners, provided one such commissioner shall serve a term expiring on March 1, 2021, and two such commissioners shall serve terms expiring on March 1, 2023. Any utility commissioner appointed on or after May 1, 2020, shall serve a term of four years. The utility commissioners shall be sworn to the faithful performance of their duties.

(b) Not later than June 30, 2023, and between June first and June thirtieth in each odd-numbered year thereafter, the Governor shall select the chairperson of the authority from among the utility commissioners. The chairperson shall serve a two-year term starting on July first of the same year. Each June, the utility commissioners shall choose, from among said commissioners, a vice-chairperson, who shall serve for a one-year term starting on July first of the same year. The vice-chairperson shall perform the duties of the chairperson in his or her absence.

(c) Any matter coming before the authority may be assigned by the chairperson to a panel of three or more utility commissioners. Except as otherwise provided by statute or regulation, the panel shall determine whether a public hearing shall be held on the matter, and may designate one or more of its members to conduct such hearing or may assign a hearing officer to ascertain the facts and report thereon to the panel. The decision of the panel, if unanimous, shall be the decision of the authority. If the decision of the panel is not unanimous, the matter shall be approved by a majority vote of the utility commissioners.

(d) The utility commissioners of the Public Utilities Regulatory Authority shall serve full time and shall file a statement of financial interests with the Office of State Ethics in accordance with section 1-83. Each utility commissioner shall receive annually a salary equal to that established for management pay plan salary group seventy-five by the Commissioner of Administrative Services, except that the chairperson shall receive annually a salary equal to that established for management pay plan salary group seventy-seven.

(e) To insure the highest standard of public utility regulation, on and after October 1, 2007, any newly appointed utility commissioner of the authority shall have education or training and three or more years of experience in one or more of the following fields: Economics, engineering, law, accounting, finance, utility regulation, public or government administration, consumer advocacy, business management, and environmental management. On and after July 1, 1997, at least three of these fields shall be represented on the authority by individual utility commissioners at all times. Any time a utility commissioner is newly appointed, at least one of the utility commissioners shall have experience in utility customer advocacy.

(f) (1) The chairperson of the authority, with the approval of the Commissioner of Energy and Environmental Protection, shall prescribe the duties of the staff assigned to the authority in order to (A) conduct comprehensive planning with respect to the functions of the authority; (B) cause the administrative organization of the authority to be examined with a view to promoting economy and efficiency; and (C) organize the authority into such divisions, bureaus or other units as necessary for the efficient conduct of the business of the authority and may from time to time make recommendations to the Commissioner of Energy and Environmental Protection regarding staff and resources.

(2) The chairperson of the Public Utilities Regulatory Authority, in order to implement the comprehensive planning and organizational structure established pursuant to subdivision (1) of this subsection, shall (A) coordinate the activities of the authority and prescribe the duties of the staff assigned to the authority; (B) for any proceeding on a proposed rate amendment in which staff of the authority are to be made a party pursuant to section 16-19j, determine which staff shall appear and participate in the proceedings and which shall serve the members of the authority; (C) enter into such contractual agreements, in accordance with established procedures, as may be necessary for the discharge of the authority's duties; (D) subject to the provisions of section 4-32, and unless otherwise provided by law, receive any money, revenue or services from the federal government, corporations, associations or individuals, including payments from the sale of printed matter or any other material or services; and (E) require the staff of the authority to have expertise in public utility engineering and accounting, finance, economics, computers and rate design.

(g) No utility commissioner of the Public Utilities Regulatory Authority or employee of the Department of Energy and Environmental Protection assigned to work with the authority shall have any interest, financial or otherwise, direct or indirect, or engage in any business, employment, transaction or professional activity, or incur any obligation of any nature, which is in substantial conflict with the proper discharge of his or her duties or employment in the public interest and of his or her responsibilities as prescribed in the laws of this state, as defined in section 1-85, concerning any matter within the jurisdiction of the authority; provided, no such substantial conflict shall be deemed to exist solely by virtue of the fact that a utility commissioner of the authority or employee of the department assigned to work with the authority, or any business in which such a person has an interest, receives utility service from one or more Connecticut utilities under the normal rates and conditions of service.

(h) No utility commissioner of the Public Utilities Regulatory Authority or employee of the Department of Energy and Environmental Protection assigned to work with the authority, during such assignment, shall accept other employment which will either impair his or her independence of judgment as to his or her official duties or employment or require him or her, or induce him or her, to disclose confidential information acquired by him or her in the course of and by reason of his or her official duties.

(i) No utility commissioner of the Public Utilities Regulatory Authority or employee of the Department of Energy and Environmental Protection assigned to work with the authority, during such assignment, shall wilfully and knowingly disclose, for pecuniary gain, to any other person, confidential information acquired by him or her in the course of and by reason of his or her official duties or employment or use any such information for the purpose of pecuniary gain.

(j) No utility commissioner of the Public Utilities Regulatory Authority or employee of the Department of Energy and Environmental Protection assigned to work with the authority, during such assignment, shall agree to accept, or be in partnership or association with any person, or a member of a professional corporation or in membership with any union or professional association which partnership, association, professional corporation, union or professional association agrees to accept any employment, fee or other thing of value, or portion thereof, in consideration of his or her appearing, agreeing to appear, or taking any other action on behalf of another person before the authority, the Connecticut Siting Council, the Office of Policy and Management or the Commissioner of Energy and Environmental Protection.

(k) No utility commissioner of the Public Utilities Regulatory Authority shall, for a period of one year following the termination of his or her service as a utility commissioner, accept employment: (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; (2) by a certified telecommunications provider or by any person, firm or corporation engaged in lobbying activities with regard to governmental regulation of persons, firms or corporations so certified; 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 utility 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 utility commissioner.

(l) The chairperson of the authority shall assign authority staff to fulfill the duties of procurement manager where required pursuant to this title and title 16a.

(m) Notwithstanding any provision of the general statutes, the decisions of the Public Utilities Regulatory Authority, including, but not limited to, decisions relating to rate amendments arising from the Comprehensive Energy Strategy, the Integrated Resources Plan, the Conservation and Load Management Plan and policies established by the Department of Energy and Environmental Protection, shall be guided by said strategy and plans and such policies.

(n) Two or more utility commissioners serving on a panel established pursuant to subsection (c) of this section may confer or communicate regarding the matter before such panel. Any such conference or communication that does not occur before the public at a hearing or proceeding shall not constitute a meeting as defined in section 1-200.

(1949, Rev., S. 5391; 1959, P.A. 383, S. 1; P.A. 74-216, S. 1, 8; P.A. 75-486, S. 3, 69; P.A. 77-614, S. 19, 67, 162, 589, 610; P.A. 78-303, S. 13, 136; P.A. 80-462, S. 1; P.A. 82-150, S. 1; P.A. 84-342, S. 4, 13; P.A. 85-552, S. 3, 8; P.A. 86-187, S. 4, 10; P.A. 89-291, S. 1, 8; P.A. 94-74, S. 1, 11; 94-77; P.A. 98-28, S. 78, 117; P.A. 99-248, S. 1, 3; 99-286, S. 3, 19; P.A. 00-112, S. 4, 5; P.A. 02-89, S. 22; P.A. 07-242, S. 57; P.A. 11-80, S. 1, 15; P.A. 13-244, S. 25; 13-298, S. 3; June Sp. Sess. P.A. 15-5, S. 466; P.A. 19-117, S. 79, 80; P.A. 23-204, S. 118.)

History: 1959 act provided appointment of members be subject to the consent of either house of the general assembly rather than both, provided for minority representation and added provision that appointment procedure of Sec. 4-7 is generally applicable; P.A. 74-216 increased membership from three to five members with not more than three of the same political party, rather than two, reduced terms from six to five years, deleted reference to appointment in odd-numbered years, added provision to cover terms during transition period and added Subsecs. (b) and (c); P.A. 75-486 amended section to replace public utilities commission with public utilities control authority, requiring consent of both houses rather than either house for appointments, increasing terms to six years and providing for transition period and added Subsecs. (d) to (k); P.A. 77-614 replaced personnel policy board with commissioner of administrative services in Subsec. (d), replaced “Connecticut energy agency”, i.e. department of planning and energy policy, with office of policy and management and, effective January 1, 1979, replaced public utilities control authority with division of public utility control within the department of business regulation and revised appointment provisions in Subsec. (a) to cover transition period; P.A. 78-303 restored public utilities control authority; P.A. 80-462 replaced former Subsec. (k) re applicability of Secs. 1-69 to 1-78 with new provisions re employment by public service company after serving as commissioner; P.A. 82-150 updated provisions re appointment of members and election of officers transferred the provisions of Sec. 16-50 to Subsec. (f) and made other technical changes; P.A. 84-342 established position of executive director in Subsec. (f) and replaced “staff” of the authority with “employee of the department” in Subsecs. (g), (h), (i) and (j); P.A. 85-552 amended Subsec. (k) to prohibit any commissioner from accepting employment with entity engaged in lobbying with regard to regulation of public service companies; P.A. 86-187 replaced power facility evaluation council with Connecticut siting council in Subsec. (j); P.A. 89-291 updated salary group references for commissioners in Subsec. (d) and for the chairpersons in Subsec. (f); P.A. 94-74 amended Subsec. (k) by adding provision restricting commissioner's employment by persons, firms or corporations certified to provide intrastate telecommunication services, effective July 1, 1994; P.A. 94-77 amended Subsec. (e) by adding “prior to July 1, 1997,” in Subdiv. (1) and adding Subdiv. (2) re standards for commissioners on and after July 1, 1997; P.A. 98-28 amended Subsec. (k) by rearranging language, deleting obsolete provisions and adding electric suppliers, effective July 1, 1998; P.A. 99-248 amended Subsec. (d) to increase the salary of commissioners from group seventy-four to group seventy-five, to increase the salary of the chairman from group seventy-six to group seventy-seven and to make a technical change, effective July 1, 1999; P.A. 99-286 amended Subsec. (k)(2) by changing reference to person, firm or corporation certified by the department to “certified telecommunications provider”, effective July 19, 1999; P.A. 00-112 amended Subsec. (d) to make a technical change, effective May 26, 2000; P.A. 02-89 amended Subsec. (e) to delete as obsolete former Subdiv. (1) re qualifications for commissioners prior to July 1, 1997, and to delete Subdiv. (2) designator; P.A. 07-242 amended Subsec. (e) to change qualifications from applying on and after July 1, 1997, to at least three commissioners, to on and after October 1, 2007, to any newly appointed commissioner and to provide that any time a commissioner is newly appointed, at least one commissioner shall have experience in utility customer advocacy; P.A. 11-80 amended Subsec. (a) to change “Public Utilities Control Authority” to “Public Utilities Regulatory Authority within the Department of Energy and Environmental Protection”, reduce number of electors from 5 to 3 and number of members from same political party from 3 to 2, replace former member appointment criteria with requirements re staggered terms for initial appointments and 4-year terms thereafter and end term for any commissioner serving on June 30, 2011, amended Subsec. (c) to reduce panel size from 3 to “one or more”, delete provisions re appointment of examiner and referral to entire authority and add provisions re request for hearing officer appointment and approval by majority vote, amended Subsec. (f) to delete provisions re executive director appointment and duties and add provisions re chairperson duties re authority staff with approval of Commissioner of Energy and Environmental Protection, amended Subsecs. (g) to (j) to add references to department employees “assigned to work with the authority”, changed “commissioner” and “commissioners” to “director” and “directors” throughout and made technical changes, effective July 1, 2011; P.A. 13-244 amended Subsec. (d) to replace provision re financial disclosure filed with Secretary of the State with provision re statement of financial interests filed with Office of State Ethics; P.A. 13-298 amended Subsec. (c) to replace “request the appointment of” with “may assign” re hearing officer and to replace “majority vote of the panel” with “majority vote of the utility commissioners”, amended Subsec. (f) by dividing existing provisions into new Subdivs. (1) and (2) and making technical changes therein, deleting former Subdiv. (2) re coordinating the activities of the authority and, in new Subdiv. (2), adding provision re chairperson of the authority implementing comprehensive planning and organizational structure and coordinating activities of the authority, amended Subsec. (g) to delete provision re conflict of interest while serving as utility commissioner and add provision re conflict of interest concerning any matter within the authority's jurisdiction, added Subsec. (m) re authority's decision guided by strategy, plans and policies, and replaced “director” with “utility commissioner” and made technical changes throughout, effective July 8, 2013; June Sp. Sess. P.A. 15-5 added Subsec. (n) re conference or communication between utility commissioners serving on a panel, effective June 30, 2015; P.A. 19-117 amended Subsec. (a) by changing number of members from 3 to 5, changing maximum number of members in office from one political party from 2 to 3, deleting provision re appointment on or before July 1, 2011, changing number of members appointed by Governor from 3 to 5, adding provision re procedure in Sec. 4-7, deleting provisions re commissioners appointed on or before July 1, 2011, adding provisions re terms for commissioners appointed and confirmed between February 1, 2019 and June 1, 2019, adding provisions re terms for commissioners appointed and confirmed between February 1, 2018 and June 1, 2018, adding provisions re appointment of commissioners between July 1, 2019 and May 1, 2020, replacing “January 1, 2014” with “May 1, 2020”, deleting provisions re procedures in section 4-7 and deleting provision re term of commissioners serving on June 30, 2011, amended Subsec. (c) by changing number of commissioners that may be assigned to a panel from 1 or more to 3 or more and changing number of panel members that may be designated to conduct a hearing from 1 or 2 to 1 or more, amended Subsec. (l) by deleting provisions re inclusion of a procurement manager and duties of procurement manager and adding provisions re the chairperson of authority assigning staff to fulfill duties of procurement manager where required and made technical changes, effective July 1, 2019; P.A. 23-204 amended Subsec. (b) by removing provision re authority's election of chairperson and adding provision re Governor's selection of chairperson, and made technical changes, effective June 12, 2023.

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Sec. 16-2c. Division of Adjudication. There is established a Division of Adjudication within the Public Utilities Regulatory Authority. The staff of the division shall include, but not be limited to, hearing officers appointed pursuant to subsection (c) of section 16-2. The responsibilities of the division shall include, but not be limited to, hearing matters assigned under said subsection and advising the Public Utilities Regulatory Authority concerning legal issues. One or more utility commissioners may assign a hearing officer pursuant to section 16-2, and the chairperson of the Public Utilities Regulatory Authority may assign such other staff as are necessary to advise said chairperson.

(P.A. 84-342, S. 8, 13; P.A. 11-80, S. 17; P.A. 13-298, S. 4; P.A. 23-102, S. 23.)

History: P.A. 11-80 changed “Department of Public Utility Control” to “Department of Energy and Environmental Protection”, changed “chairperson of the Public Utilities Control Authority” to “commissioner and the Public Utilities Regulatory Authority”, changed “hearing examiners” to “hearing officers”, and required commissioner to appoint hearing officers and assign such other staff as necessary, effective July 1, 2011; P.A. 13-298 replaced “Department of Energy and Environmental Protection” with “Public Utilities Regulatory Authority” and “The commissioner shall appoint such hearing officers” with “A panel of one or more utility commissioners may assign a hearing officer”, added provision re chairperson of authority assigning other staff and made technical changes, effective July 8, 2013; P.A. 23-102 replaced “A panel of one” with “one”, effective June 29, 2023.

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Sec. 16-4. Employees of public service companies, certified telecommunications providers and electric suppliers ineligible to serve on authority or in department. No officer, employee, attorney or agent of any public service company, of any certified telecommunications provider or of any electric supplier shall be a utility commissioner of the Public Utilities Regulatory Authority or an employee of the Department of Energy and Environmental Protection.

(1949 Rev., S. 5393; P.A. 75-486, S. 1, 69; P.A. 77-614, S. 162, 610; P.A. 78-303, S. 79, 136; P.A. 84-342, S. 6, 13; P.A. 94-74, S. 3, 11; P.A. 98-28, S. 80, 117; P.A. 99-286, S. 5, 19; P.A. 11-80, S. 19; P.A. 23-102, S. 22.)

History: P.A. 75-486 replaced public utilities commission with public utilities control authority; P.A. 77-614 would have replaced public utilities control authority with division of public utility control within the department of business regulation, effective January 1, 1979, except for action of P.A. 78-303 which retained reference to authority in this section; P.A. 84-342 added reference to the department of public utility control; P.A. 94-74 added provision re persons, firms or corporations certified to provide intrastate telecommunication services, effective July 1, 1994; P.A. 98-28 rearranged language, deleted an obsolete provision and added electric suppliers, effective July 1, 1998; P.A. 99-286 changed reference to person, firm or corporation certified by the department to “certified telecommunications provider”, effective July 19, 1999; P.A. 11-80 changed “Public Utilities Control Authority” to “Public Utilities Regulatory Authority” and “Department of Public Utility Control” to “Department of Energy and Environmental Protection”, effective July 1, 2011; P.A. 23-102 replaced “member” with “utility commissioner”, effective June 29, 2023.

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Sec. 16-8. Examination of witnesses and documents. Hearing officers. Management audits. (a) The Public Utilities Regulatory Authority may, in its discretion, delegate its powers, in specific cases, to one or more of its directors or to a hearing officer to ascertain the facts and report thereon to the authority. The authority, or any director thereof, in the performance of its duties or in connection with any hearing, or at the request of any person, corporation, company, town, borough or association, may summon and examine, under oath, such witnesses, and may direct the production of, and examine or cause to be produced and examined, such books, records, vouchers, memoranda, documents, letters, contracts or other papers in relation to the affairs of any public service company or person involved in the transportation of gas, as such terms are defined in section 16-280a, as it may find advisable, and shall have the same powers in reference thereto as are vested in magistrates taking depositions. If any witness objects to testifying or to producing any book or paper on the ground that such testimony, book or paper may tend to incriminate him, and the authority directs such witness to testify or to produce such book or paper, and he complies, or if he is compelled so to do by order of court, he shall not be prosecuted for any matter concerning which he or she has so testified. The fees of witnesses summoned by the authority to appear before it under the provisions of this section, and the fees for summoning witnesses shall be the same as in the Superior Court. All such fees, together with any other expenses authorized by statute, the method of payment of which is not otherwise provided, shall, when taxed by the authority, be paid by the state, through the business office of the authority, in the same manner as court expenses. The authority may designate in specific cases a hearing officer who may be a member of its technical staff or a member of the Connecticut Bar engaged for that purpose under a contract approved by the Secretary of the Office of Policy and Management to hold a hearing and make report thereon to the authority. A hearing officer so designated shall have the same powers as the authority, or any director thereof, to conduct a hearing, except that only a director of the authority shall have the power to grant immunity from prosecution to any witness who objects to testifying or to producing any book or paper on the ground that such testimony, book or paper may tend to incriminate him or her.

(b) (1) The authority may employ professional personnel to perform management audits. The authority shall promptly establish such procedures as it deems necessary or desirable to provide for management audits to be performed on a regular or irregular schedule on all or any portion of the operating procedures and any other internal workings of any public service company or person involved in the transportation of gas, as such terms are defined in section 16-280a, including the relationship between any public service company or person involved in the transportation of gas, as such terms are defined in section 16-280a, and a related holding company or subsidiary, consistent with the provisions of section 16-8c, provided no such audit shall be performed on a community antenna television company, except with regard to any noncable communications services which the company may provide, or when (A) such an audit is necessary for the authority to perform its regulatory functions under the Communications Act of 1934, 47 USC 151, et seq., as amended from time to time, other federal law or state law, (B) the cost of such an audit is warranted by a reasonably foreseeable financial, safety or service benefit to subscribers of the company which is the subject of such an audit, and (C) such an audit is restricted to examination of the operating procedures that affect operations within the state.

(2) In any case where the authority determines that an audit is necessary or desirable, it may (A) order the audit to be performed by one of the management audit teams, (B) require the affected company or person to perform the audit utilizing the company's own internal management audit staff as supervised by designated members of the authority's staff or the person's own internal management audit staff as supervised by designated members of the authority's staff, or (C) require that the audit be performed under the supervision of designated members of the authority's staff by an independent management consulting firm selected by the authority, in consultation with the affected company or person. If the affected company or person has more than seventy-five thousand customers, such independent management consulting firm shall be of nationally recognized stature. All reasonable and proper expenses of the audits, including, but not limited to, the costs associated with the audit firm's testimony at a public hearing or other proceeding, shall be borne by the affected companies or persons and shall be paid by such companies or persons at such times and in such manner as the authority directs.

(3) For purposes of this section, a complete audit shall consist of (A) a diagnostic review of all functions of the audited company or person, which shall include, but not be limited to, documentation of the operations of the company or person, assessment of the company's system of internal controls or assessment of the person's system of internal controls, and identification of any areas of the company or person which may require subsequent audits, and (B) the performance of subsequent focused audits identified in the diagnostic review and determined necessary by the authority. All audits performed pursuant to this section shall be performed in accordance with generally accepted management audit standards. The authority shall adopt regulations in accordance with the provisions of chapter 54 setting forth such generally accepted management audit standards. Each audit of a community antenna television company shall be consistent with the provisions of the Communications Act of 1934, 47 USC 151, et seq., as amended from time to time, and of any other applicable federal law. The authority shall certify whether a portion of an audit conforms to the provisions of this section and constitutes a portion of a complete audit.

(4) A complete audit of each portion of each gas company, electric distribution company or water 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 such company having more than seventy-five thousand customers shall be updated as required by the authority.

(5) The results of an audit performed pursuant to this section shall be filed with the authority and shall be open to public inspection. Upon completion and review of the audit, if the person or firm performing or supervising the audit determines that any of the operating procedures or any other internal workings of the affected public service company or person involved in the transportation of gas, as such terms are defined in section 16-280a, are inefficient, improvident, unreasonable, negligent or in abuse of discretion, the authority may, after notice and opportunity for a hearing, order the affected public service company or person involved in the transportation of gas, as such terms are defined in section 16-280a, to adopt such new or altered practices and procedures as the authority shall find necessary to promote efficient and adequate service to meet the public convenience and necessity. The authority shall annually submit a report of audits performed pursuant to this section to the joint standing committee of the General Assembly having cognizance of matters relating to public utilities which report shall include the status of audits begun but not yet completed and a summary of the results of audits completed. Any such report may be submitted electronically.

(6) All prudent, reasonable and proper costs and expenses, as determined by the authority, of complying with any order of the authority pursuant to this subsection shall be recognized by the authority for all purposes as proper business expenses of the affected company or person. Any costs or expenses, as determined by the authority, incurred by the company or person to address or remediate an inefficient, improvident, unreasonable, negligent or imprudent management or company practice identified in the course of the management audit shall not constitute prudent, reasonable and proper costs and expenses.

(7) After notice and hearing, the authority may modify the scope and schedule of a management audit of a telephone company which is subject to an alternative form of regulation so that such audit is consistent with that alternative form of regulation.

(c) Nothing in this section shall be deemed to interfere or conflict with any powers of the authority or its staff provided elsewhere in the general statutes, including, but not limited to, the provisions of this section and sections 16-7, 16-28 and 16-32, to conduct an audit, investigation or review of the books, records, plants and equipment of any regulated public service company or person involved in the transportation of gas, as such terms are defined in section 16-280a.

(1949 Rev., S. 5398; P.A. 73-355, S. 2; P.A. 75-486, S. 6, 69; P.A. 77-614, S. 19, 162, 587, 610; P.A. 78-303, S. 85, 136; P.A. 80-168; 80-482, S. 4, 40, 45, 345, 348; P.A. 81-348, S. 1; P.A. 82-472, S. 50, 183; P.A. 85-509, S. 2, 11; 85-552, S. 4, 8; P.A. 90-221, S. 2, 15; P.A. 94-229, S. 1; P.A. 97-23; P.A. 98-28, S. 83, 117; June Sp. Sess. P.A. 98-1, S. 5, 121; P.A. 11-80, S. 1, 23; P.A. 13-5, S. 2; P.A. 13-119, S. 1, 2; P.A. 14-134, S. 48; P.A. 22-20, S. 2; P.A. 23-102, S. 9.)

History: P.A. 73-355 specified that hearing examiners may be staff member or member of Connecticut bar; P.A. 75-486 replaced public utilities commission with public utilities control authority, allowed authority to act at request of person, corporation, company, town, borough or association and added Subsec. (b) re audits; P.A. 77-614 and P.A. 78-303 replaced commissioner of finance and control with secretary of the office of policy and management and, effective January 1, 1979, replaced public utilities control authority with division of public utility control within the department of business regulation; P.A. 80-168 replaced “member(s)” with “commissioner(s)”, and “secretary” with “business office”, allowed delegation of powers to hearing examiners and replaced provision whereby hearing examiner had power only to administer oaths with provision granting examiners same powers as division except power to grant immunity from prosecution; P.A. 80-482 made division an independent department with public utilities control authority as its head; P.A. 81-348 reduced number of consulting firms required to be included in list provided to company by department in Subsec. (b), from five to three; P.A. 82-472 made technical corrections; P.A. 85-509 divided Subsec. (b) into Subsecs. (b) and (c) and, in Subsec. (b), prohibited management audits of community antenna television companies except with regard to noncable communications services; P.A. 85-552 amended Subsec. (b) to require department, instead of affected company, to select consulting firm for management audit, to require consulting firm to be of nationally-recognized stature if affected company has more than 75,000 customers and to require periodic audits only of gas, electric and telephone companies having more than 75,000 customers; P.A. 90-221 in Subsec. (b) added provision that the affected companies shall pay all reasonable and proper costs of an audit, including the costs of the audit firm's testimony at a public hearing and a provision that such costs shall be paid as directed by the department; P.A. 94-229 amended Subsec. (b) by adding Subdiv. designations, adding provision re relationship between public service company and related holding company or subsidiary in Subdiv. (1), adding Subparas. (A) to (C) re audits of community antenna television companies in Subdiv. (1), changing subdivision designations to subparagraph designations in Subdiv. (2), deleting provision re audits of gas, electric or telephone companies having more than 75,000 customers from Subdiv. (2), adding Subdiv. (3) re complete audits, adding Subdiv. (4) re audits of gas, electric and telephone companies having more than 75,000 customers, changing “any such audits” to “an audit performed pursuant to this section” in Subdiv. (5), adding provision re report of audits in Subdiv. (5), and adding Subdiv. (7) re audits of telephone companies subject to an alternative form of regulation; P.A. 97-23 amended Subsec. (b)(4) to delete references to telephone companies and delete provision requiring department to schedule complete audits; P.A. 98-28 amended Subsec. (b)(4) by adding electric distribution companies, effective July 1, 1998; June Sp. Sess. P.A. 98-1 made a technical change to Subsec. (b)(5), effective June 24, 1998; P.A. 11-80 amended Subsecs. (a) and (b) to replace “Department of Public Utility Control” with “Public Utilities Regulatory Authority”, “department” with “authority” and “hearing examiner” with “hearing officer” and amended Subsec. (b)(1) to replace provision allowing Department of Public Utility Control to establish management audit teams with provision allowing authority, within available appropriations, to employ personnel to perform management audits, effective July 1, 2011; pursuant to P.A. 11-80, “department” was changed editorially by the Revisors to “authority” in Subsec. (c), effective July 1, 2011; P.A. 13-5 amended Subsecs. (a) and (b)(3) to replace “department” with “authority”, effective May 8, 2013; P.A. 13-119 amended Subsec. (b) to delete “within available appropriations,” re employment of professional personnel to perform management audits in Subdiv. (1) and to add provision re electronic submission of report in Subdiv. (5), effective June 18, 2013; P.A. 14-134 amended Subsec. (b)(4) by deleting reference to electric company and making a technical change, effective June 6, 2014; P.A. 22-20 amended Subsecs. (a), (b) and (c) by adding references to person involved in the transportation of gas as defined in Sec. 16-280a, amended Subsec. (b) by adding “or person” and “or persons” after instances of “company” or “companies”, adding reference to the person's own internal management audit staff in Subdiv. (2), adding reference to assessment of the person's system of internal controls in Subdiv. (3), and making a technical change in Subsec. (c); P.A. 23-102 amended Subsec. (b)(4) by applying provisions to water companies with more than 75,000 customers, and amended Subsec. (b)(6) by adding “prudent” and adding provision re costs or expenses incurred to address or remediate management or company practices, effective July 1, 2023.

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(1) “Compensation” means payment by any public service company that is a party to a proceeding, investigation or rulemaking before the Public Utilities Regulatory Authority, or is a party to alternative dispute resolution ordered by the authority, for all or part, as determined by the authority, of a stakeholder group's reasonable attorneys' fees, reasonable expert witness fees and other reasonable costs for preparation and participation in such proceeding before the authority.

(2) “Stakeholder group” means (A) a group of persons designated an intervenor pursuant to section 4-177a or designated a participant pursuant to section 16-1-135 of the regulations of Connecticut state agencies that applies jointly for an award of compensation under this section and represents the interests of more than one (i) residential utility customer residing in an environmental justice community, as defined in section 22a-20a, (ii) residential utility customer who is a hardship case for purposes of subdivision (3) of subsection (b) of section 16-262c, or (iii) small business customer; or (B) a nonprofit organization in the state authorized to represent the interests of (i) residential utility customers residing in an environmental justice community, as defined in section 22a-20a, (ii) residential utility customers who are hardship cases for purposes of subdivision (3) of subsection (b) of section 16-262c, or (iii) small business customers. “Stakeholder group” does not include any nonprofit or other organization whose principal interests are the welfare of a public service company or its investors or employees, or the welfare of one or more businesses or industries which receive utility service primarily for use in connection with the manufacture, sale or distribution of goods or services for profit; and does not include any state agency that participates in proceedings before the authority, including, but not limited to, the Department of Energy and Environmental Protection, the office of the Attorney General and the Office of Consumer Counsel.

(3) “Other reasonable costs” means reasonable out-of-pocket expenses incurred by the stakeholder group that are directly related to the group's preparation for or participation in the proceeding before the authority that resulted in a substantial contribution.

(4) “Proceeding” means a contested case, investigation, rulemaking or other formal proceeding before the authority, or alternative dispute resolution ordered by the authority, pertaining to a gas company, water company, pipeline company, electric distribution company or electric supplier, as such terms are defined in section 16-1.

(5) “Significant financial hardship” means that a stakeholder group demonstrates that it is unable to afford to pay the costs of effectively participating in the proceeding, including attorneys' fees, expert witness fees and other reasonable costs.

(6) “Small business customer” means a commercial or industrial electric customer with less than a two hundred kilowatt peak load that is a “small business” under section 4-168a.

(7) “Substantial contribution” means participation by a stakeholder group in a proceeding that, in the judgment of the authority, may substantially assist the authority in making its decision or part of its decision because the authority may adopt one or more factual contentions, legal contentions or policy or procedural recommendations that the stakeholder group presents.

(b) (1) Not later than January 15, 2024, the Public Utilities Regulatory Authority shall establish a program to award compensation to eligible stakeholder groups in proceedings of the authority. Such compensation shall be limited to not more than one hundred thousand dollars for each stakeholder group, not more than three hundred thousand dollars for all stakeholder groups in an eligible proceeding and not more than one million two hundred thousand dollars total for all stakeholder groups in each calendar year.

(2) (A) Not later than March 15, 2026, the authority shall issue a request for proposals to retain a consultant with program evaluation experience to conduct an independent evaluation of the program established pursuant to subdivision (1) of this subsection, including its performance, impact and effectiveness. The authority shall determine the criteria for evaluating proposals and the deadline for responding to the request for proposals.

(B) Not later than July 15, 2026, the authority shall evaluate the bids submitted and select the bidder that shall conduct the study.

(C) Not later than January 15, 2027, the chairperson of the authority shall report, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to energy and technology, regarding the implementation of the program required by this subsection during the period from January 15, 2024, to July 15, 2026, inclusive. The report shall include, but need not be limited to: (i) A summary of the program's implementation, including a summary of the application process, the number of applicants received, the number of stakeholder groups who participated in proceedings, the number of stakeholder groups who were awarded funding, the number of stakeholder groups who claimed financial hardship, and the annual costs of the program, including a breakdown of costs by type of stakeholder group expense; (ii) an assessment of the impact of stakeholder groups on proceedings and their outcomes; (iii) the program evaluation by the independent consultant retained by the authority; and (iv) any recommendations regarding legislative changes to the program.

(c) A stakeholder group that seeks designation as an intervenor pursuant to section 4-177a or a participant pursuant to section 16-1-135 of the regulations of Connecticut state agencies may apply for an award of compensation in accordance with the program established pursuant to this section. At the same time or before filing its application, the stakeholder group shall serve on every party, intervenor or participant to the proceeding notice of intent to apply for an award of compensation. The authority shall determine appropriate procedures for accepting, taking comment on and responding to such applications, and may require that applicants attend educational trainings sponsored or recommended by the authority or the Office of Consumer Counsel as a condition of receiving an award of compensation. Any such trainings shall be designed to support public participation and public understanding of authority decisions and rulings, and general education and awareness regarding public service company regulation and operations, and shall include resources for the public that explain the role and function of the authority and the Office of Consumer Counsel. In its performance of duties pursuant to this subsection, the authority and the Office of Consumer Counsel may retain consultants to provide training in areas in which staff expertise does not currently exist or when necessary to supplement existing staff expertise, and may incur other reasonable costs related to stakeholder engagement and the program, provided the total costs incurred by the authority and the Office of Consumer Counsel under this subsection do not exceed one million dollars per year.

(d) Any application submitted pursuant to this section shall include:

(1) A statement of the nature and extent and the factual and legal basis of the stakeholder's planned participation, to the extent it is possible to describe such participation with reasonable specificity at the time the application is filed.

(2) A detailed budget of anticipated attorneys' and expert witness fees and other costs of preparation for and participation in the proceeding.

(3) If participation will impose a significant financial hardship and the stakeholder group seeks advance payment of an award of compensation in order to initiate, continue or complete participation in the proceeding, the stakeholder group shall include substantial evidence of significant financial hardship in its application.

(4) Any other requirements, as determined by the authority.

(e) (1) Not later than thirty days after receiving a stakeholder group's application, the authority shall decide if the stakeholder group's participation constitutes a substantial contribution. If the authority finds that such participation is a substantial contribution, the authority shall describe this substantial contribution and determine if the stakeholder group has significant financial hardship pursuant to subdivision (2) of this subsection.

(2) Notwithstanding subsection (f) of this section, if the authority finds that the stakeholder group has significant financial hardship, the authority may direct the public service company or companies subject to the proceeding to pay all or part of the expected compensation, as determined by the authority, to the stakeholder group before the end of the proceeding. If the stakeholder group discontinues its participation in the proceeding without the consent of the authority, the authority shall recover all or part of any payments made to such stakeholder and refund such payments to the public service company or companies that made the payments.

(3) Any determination by the authority to direct payment of all or part of a stakeholder group's expected compensation before the end of a proceeding pursuant to subdivision (2) of this subsection shall take into consideration the compensation paid to attorneys, expert witnesses and other persons of comparable training and experience who offer similar services as the services relevant to the stakeholder group's application and compensation.

(4) Each stakeholder group shall return any unused compensation to the authority, which the authority shall refund to the public service company or companies that provided the compensation.

(5) The authority shall require that every stakeholder group maintain an itemized record of all expenditures incurred as a result of the proceeding. The authority may use the record to verify the stakeholder group's claim of financial hardship and to determine if any unused funds remain at the completion of a proceeding.

(6) If the authority determines that two or more stakeholder groups have substantially similar interests, the authority may require such stakeholder groups to apply jointly in order to receive compensation.

(f) Any compensation shall be paid at the conclusion of the proceeding by the public service company, in a manner determined by the authority. Compensation shall be paid by all relevant public service companies in proportion to such companies' relative annual load, number of customers or revenue, as determined by the authority.

(g) The authority shall not award compensation to any stakeholder group that delays or obstructs, or attempts to delay or obstruct, the orderly and timely fulfillment of the authority's duties under this title.

(h) Nothing in this section shall be construed as restricting, diminishing or otherwise altering the provisions of section 16-2a concerning the Office of Consumer Counsel.

(P.A. 23-102, S. 15.)

History: P.A. 23-102 effective June 29, 2023.

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Sec. 16-16. Report of accidents. Penalties. (a) Each public service company, person involved in the transportation of gas, as such terms are defined in section 16-280a, and electric supplier subject to regulation by the Public Utilities Regulatory Authority 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 property, or caused by contact with the wires of any public service company or electric supplier, notify the authority thereof, by contacting the chairperson of the authority or the chairperson's designee by telephone or otherwise, as soon as may be reasonably possible after the occurrence of such accident, but not later than twelve hours after the occurrence, unless such accident is a minor accident, as defined by regulations of the authority. Each such person, company or electric supplier shall report such minor accidents to the authority 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.

(b) Each electric distribution company shall incorporate the information described in section 16-19ee into the monthly report required pursuant to subsection (a) of this section.

(c) Any person, company or electric supplier that fails to comply with the provisions of this section shall be fined not more than one thousand dollars for each offense. A violation of the provisions of this section concerning the reporting of accidents, except minor accidents, shall constitute a continued violation, pursuant to section 16-41, for the period from the date the person, company or electric supplier is required to notify the chairperson of the authority by telephone or otherwise of the accident until the date the authority receives such notice in writing. A violation of the provision of this section concerning the reporting of minor accidents shall constitute a continued violation, pursuant to section 16-41, for the period from the date the person, company or electric supplier is required to notify the authority in writing of such minor accident until the date the authority receives such notice in writing.

(d) Any restitution ordered by the authority pursuant to section 16-41 for customer equipment or customer property damaged in an accident, including a minor accident, as defined by regulations of the authority, shall equal the replacement value of such equipment or property. The fines imposed in accordance with subsection (c) of this section shall not reduce or limit the amount of any restitution.

(e) Any fines or restitution costs paid by an electric distribution company pursuant to subsection (c) or (d) of this section shall not be recoverable through rates.

(1949 Rev., S. 5406; P.A. 75-486, S. 1, 69; P.A. 77-254; 77-614, S. 162, 610; P.A. 79-610, S. 42; P.A. 80-482, S. 52, 348; P.A. 94-242, S. 1, 9; P.A. 98-28, S. 87, 117; P.A. 11-80, S. 1; P.A. 22-20, S. 5; P.A. 23-102, S. 12.)

History: P.A. 75-486 replaced public utilities commission with public utilities control authority; P.A. 77-254 added special provisions for reporting minor accidents; P.A. 77-614 replaced public utilities control authority with division of public utility control within the department of business regulation, effective January 1, 1979; P.A. 79-610 deleted reference to companies operating motor buses or taxicabs; P.A. 80-482 made division of public utility control an independent department and deleted reference to abolished department of business regulation; P.A. 94-242 deleted references to persons or companies operating motor vehicles in livery service and motor common or contract carriers of property for hire, effective June 2, 1994; P.A. 98-28 added electric suppliers, effective July 1, 1998; pursuant to P.A. 11-80, “Department of Public Utility Control” and “department” were changed editorially by the Revisors to “Public Utilities Regulatory Authority” and “authority”, respectively, effective July 1, 2011; P.A. 22-20 added reference to person involved in the transportation of gas as defined in Sec. 16-280a and made a technical change; P.A. 23-102 designated existing provisions as Subsec. (a) and amended same by adding reference to contacting chairperson or chairperson's designee, adding “but not later than twelve hours after the occurrence,” and deleting provision re fines, and added Subsecs. (b) to (e) re monthly report requirement, fines and restitution, effective June 29, 2023.

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Sec. 16-19. Amendment of rate schedule; investigations and findings by authority; hearings; deferral of municipal rate increases; refunds; notice of application for rate amendment, interim rate amendment and reopening of rate proceeding. (a) No public service company may charge rates in excess of those previously approved by the Public Utilities Control Authority or the Public Utilities Regulatory Authority, except that any rate approved by the Public Utilities Commission, the Public Utilities Control Authority or the Public Utilities Regulatory Authority shall be permitted until amended by the Public Utilities Regulatory Authority, that rates not approved by the Public Utilities Regulatory Authority 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. For water companies, existing rates shall include the amount of any adjustments approved pursuant to section 16-262w since the company's most recent general rate case, provided any adjustment amount shall be separately identified in any customer bill. Each public service company shall file any proposed amendment of its existing rates with the authority in such form and in accordance with such reasonable regulations as the authority may prescribe. Each electric distribution, gas or telephone company filing a proposed amendment shall also file with the authority 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 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 authority a plan for promoting water conservation by customers in such form and in accordance with a memorandum of understanding entered into by the authority 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 first public hearing thereon, but not earlier than six weeks prior to such first public hearing, that an amendment has been or will be requested. Such notice shall also indicate (1) the date, time and location of any scheduled public hearing, (2) a statement that customers may provide written comments regarding the proposed amendment to the Public Utilities Regulatory Authority or appear in person at any scheduled public hearing, (3) the Public Utilities Regulatory Authority telephone number for obtaining information concerning the schedule for public hearings on the proposed amendment, and (4) whether the proposed amendment would, in the company's best estimate, increase any rate or charge by five per cent or more, and, if so, describe in general terms any such rate or charge and the amount of the proposed increase. If a company fails to provide adequate notice, the authority shall consider the effective filing date of such company's proposed amendment to be the date that the company provides adequate notice to customers, as determined by the authority. Until the effective filing date, no days shall count toward the time limit for a final decision in this subsection. In the case of a proposed amendment to the rates of any public service company, the authority shall hold one or more public hearings thereon, except as permitted with respect to interim rate amendments by subsections (d) and (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, provided the authority may (A) evaluate the reasonableness and adequacy of the performance or service of the public service company using any applicable metrics or standards adopted by the authority pursuant to section 16-244aa, and (B) determine the reasonableness of the allowed rate of return of the public service company based on such performance evaluation. The authority, 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 authority 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 distribution, gas or telephone company, the authority 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 authority. The authority shall issue a final decision on each electric distribution or gas company rate filing not later than three hundred fifty days after the effective filing date of the proposed amendment. The authority shall issue a final decision on all public service company rate filings, except electric distribution or gas company rate filings, not later than two hundred seventy days after the effective filing date of the proposed amendment.

(b) If the authority has not made its finding respecting an amendment of any electric distribution or gas company rate within three hundred fifty days from the proposed effective date of such amendment thereof, or if the authority has not made its finding respecting an amendment of any public service company rate, except an electric distribution or a gas company rate, within two hundred seventy days from the proposed effective date of such amendment thereof, such amendment may become effective pending the authority's finding with respect to such amendment upon the filing by the company with the authority of assurance satisfactory to the authority, which may include a bond with surety, of the company's ability and willingness to refund to its customers with interest such amounts as the company may collect from them in excess of the rates fixed by the authority in its finding or fixed at the conclusion of any appeal taken as a result of a finding by the authority.

(c) Upon conclusion of its investigation of the reasonableness of any proposed increase of rates, the authority shall order the company to refund to its customers with interest any amounts the company may have collected from them during the period that any amendment permitted by subsection (b) of this section was in force, which amounts the authority may find to have been in excess of the rates fixed by the authority in its finding or fixed at the conclusion of any appeal taken as a result of a finding by the authority. Any such refund ordered by the authority shall be paid by the company, under direction of the authority, to its customers in such amounts as are determined by the authority.

(d) Nothing in this section shall be construed to prevent the authority from approving an interim rate increase, if the authority finds that such an interim rate increase is necessary to prevent substantial and material deterioration of the financial condition of a public service company, to prevent substantial deterioration of the adequacy and reliability of service to its customers or to conform to the applicable principles and guidelines set forth in section 16-19e, provided the authority shall first hold a special public hearing on the need for such interim rate increase and the company, at least one week prior to such hearing, notifies each customer who would be affected by the interim rate increase that such an increase is being requested. The company shall include the notice in a mailing of customer bills, unless such a mailing would not provide timely notice, in which case the authority shall authorize an alternative manner of providing such notice. Any such interim rate increase shall only be permitted if the public service company submits an assurance satisfactory to the authority, which may include a bond with surety, of the company's ability and willingness to refund to its customers with interest such amounts as the company may collect from such interim rates in excess of the rates approved by the authority in accordance with subsection (a) of this section. The authority shall order a refund in an amount equal to the excess, if any, of the amount collected pursuant to the interim rates over the amount which would have been collected pursuant to the rates finally approved by the authority in accordance with subsection (a) of this section or fixed at the conclusion of any appeal taken as a result of any finding by the authority. Such refund ordered by the authority shall be paid by the company to its customers in such amounts and by such procedure as ordered by the authority.

(e) If the authority finds that the imposition of any increase in rates would create a hardship for a municipality, because such increase is not reflected in its then current budget, or cannot be included in the budget of its fiscal year which begins less than five months after the effective date of such increase, the authority may defer the applicability of such increase with respect to services furnished to such municipality until the fiscal year of such municipality beginning not less than five months following the effective date of such increase; provided the revenues lost to the public service company through such deferral shall be paid to the public service company by the municipality in its first fiscal year following the period of such deferral.

(f) Any public service company, as defined in section 16-1, filing an application with the Public Utilities Regulatory Authority to reopen a rate proceeding under this section, which application proposes to increase the company's revenues or any rate or charge of the company by five per cent or more, shall, not later than one week prior to the hearing under the reopened proceeding, notify each customer who would be affected thereby that such an application is being filed. Such notice shall indicate the rate increases proposed in the application. The company shall include the notice in a mailing of customer bills, unless such a mailing would not provide timely notice to customers of the reopening of the proceeding, in which case the authority shall authorize an alternative manner of providing such notice. The authority shall only grant an application by a public service company to reopen a rate proceeding under this section upon a unanimous vote of the utility commissioners.

(g) The authority shall hold either a special public hearing or combine an investigation with an ongoing four-year review conducted in accordance with section 16-19a or with a general rate hearing conducted in accordance with subsection (a) of this section on the need for an interim rate decrease (1) when a public service company has, for the rolling twelve-month period ending with the two most recent consecutive financial quarters, earned a return on equity which exceeds the return authorized by the authority by at least one-half of one percentage point, (2) if it finds that any change in municipal, state or federal tax law creates a significant increase in a company's rate of return, or (3) if it provides appropriate notice that a public service company may be collecting rates or may have an authorized rate of return which is or are more than just, reasonable and adequate, as determined by the authority, provided the authority shall require appropriate notice of hearing to the company and its customers who would be affected by an interim rate decrease in such form as the authority deems reasonable. The company shall be required to demonstrate to the satisfaction of the authority that earning such a return on equity, having an authorized rate of return or collecting rates which are more than just, reasonable and adequate is directly beneficial to its customers. At the completion of the proceeding, the authority may order an interim rate decrease if it finds that such return on equity or rates exceeds a reasonable rate of return or is more than just, reasonable and adequate as determined by the authority. Any such interim rate decrease shall be subject to a customer surcharge if the interim rates collected by the company are less than the rates finally approved by the authority or fixed at the conclusion of any appeal taken as a result of any finding by the authority. Such surcharge shall be assessed against customers in such amounts and by such procedure as ordered by the authority.

(h) 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.

(1949 Rev., S. 5409; 1969, P.A. 217; 1972, P.A. 192, S. 1; P.A. 74-216, S. 2, 8; P.A. 75-486, S. 8, 69; P.A. 77-121; 77-614, S. 162, 587, 610; P.A. 78-303, S. 85, 136; P.A. 80-482, S. 55, 348; P.A. 83-190, S. 1–3; P.A. 84-113, S. 1, 2, 4; 84-342, S. 9, 13; 84-546, S. 49, 173; P.A. 85-33, S. 1; P.A. 87-202, S. 1; 87-331, S. 1, 4; P.A. 89-327, S. 5, 7; P.A. 94-83, S. 12, 16; 94-242, S. 2, 9; P.A. 98-28, S. 89, 117; P.A. 00-17, S. 1; P.A. 01-49, S. 4; P.A. 11-61, S. 6; 11-80, S. 1; P.A. 13-119, S. 4; P.A. 14-134, S. 50; P.A. 17-138, S. 1; Sept. Sp. Sess. P.A. 20-5, S. 2; P.A. 21-40, S. 17; P.A. 23-102, S. 7.)

History: 1969 act allowed suspension of effective date of increase for 150 days rather than 120 days; 1972 act added provisions re deferment of increase to municipalities if increase would cause budget difficulties; P.A. 74-216 added special provisions re rate increases for gas and electric companies; P.A. 75-486 replaced public utilities commission with public utilities control authority, clarified and rearranged provisions, allowed company to charge rates higher than those previously approved under certain circumstances and made interim rate provisions applicable to all public service companies rather than to gas and electric companies only; P.A. 77-121 required that companies notify customers of rate amendment request by mail before public hearing in Subsec. (a); P.A. 77-614 and P.A. 78-303 replaced authority with division of public utility control within the department of business regulation, effective January 1, 1979; P.A. 80-482 made division an independent department and deleted reference to abolished department of business regulation; P.A. 83-190 amended Subsec. (a) to require notice of proposed amendment one week prior to hearing and indication whether amendment would increase any rate or charge by at least 20%, amended Subsec. (d) to establish notice requirement for proposed interim rate amendments and added Subsec. (f) to establish notice requirement for any application to reopen a rate proceeding, which application proposes to increase company's revenues or any rate or charge by at least 5%; P.A. 84-113 amended Subsecs. (a) and (b) to authorize department to extend deadline for issuing a final decision on a rate filing by 30 days, to 180 days; P.A. 84-342 amended Subsec. (a) to require filing of estimate of effects of amendment and adjustment of estimate by department; P.A. 84-546 confirmed action of the Revisors in adding P.A. 83-190, S. 1 as Subsec. (f); P.A. 85-33 amended Subsec. (a) to require each public service company to include, in notice of proposed amendment, department telephone number for information on hearing schedule; P.A. 87-202 amended Subsec. (a) to require water companies filing proposed rate amendments to submit water conservation plans; P.A. 87-331 added Subsec. (g) re interim rate decrease and Subsec. (h) re effects of Tax Reform Act of 1986; P.A. 89-327 amended Subsec. (a) requiring that water conservation plan be in accordance with the memorandum of understanding; P.A. 94-83 added new Subsec. (i) re applicability to telecommunications service which is competitive or to which an approved plan for an alternative form of regulation applies, effective July 1, 1994; P.A. 94-242 deleted former Subsec. (h) re review of the effects of the federal Tax Reform Act of 1986, necessitating relettering of new Subsec. (i) added by P.A. 94-83 as (h), effective June 2, 1994; P.A. 98-28 amended Subsec. (a) by adding electric distribution companies, effective July 1, 1998; P.A. 00-17 amended Subsec. (g) by authorizing the department to combine investigation with ongoing four-year review or with general rate hearing as an alternative to a special public hearing and by making conforming technical changes; P.A. 01-49 amended Subsec. (g) to make technical changes; P.A. 11-61 amended Subsec. (a) to specify that adjustments approved under Sec. 16-262w are included in water companies' existing rates, effective June 21, 2011; pursuant to P.A. 11-80, “Department of Public Utility Control” and “department” were changed editorially by the Revisors to “Public Utilities Regulatory Authority” and “authority”, respectively, effective July 1, 2011; P.A. 13-119 amended Subsec. (a) to specify when notice must be mailed to customers, to redesignate existing Subdivs. (1) and (2) as Subdivs. (3) and (4), to add new Subdivs. (1) and (2) re notice requirements and to make technical changes; P.A. 14-134 amended Subsec. (a) by deleting references to electric company, effective June 6, 2014; P.A. 17-138 amended Subsec. (g)(1) to replace “six consecutive months” with “the rolling twelve-month period ending with the two most recent consecutive financial quarters”; Sept. Sp. Sess. P.A. 20-5 amended Subsec. (a) to permit evaluation and rate determination based upon performance-based metrics or standards, and amended Subsecs. (a) and (b) to extend deadline for issuing a final decision on a rate filing to 350 days for electric distribution or gas companies and 200 days for all other public service companies, effective October 2, 2020; P.A. 21-40 made technical changes in Subsec. (b); P.A. 23-102 amended Subsec. (a) by replacing “twenty” with “five”, deleting proviso re more than 1 form of notice not required to be provided to customers, adding provisions re effective filing date, changing deadlines for issuing a final decision on a rate filing to 350 days after the effective filing date for electric distribution and gas companies and 270 days after effective filing date for all other public service companies, amended Subsec. (b) by replacing “two hundred days” with “two hundred seventy days”, amended Subsec. (f) by adding provision requiring a unanimous vote of utility commissioners to reopen a rate proceeding, amended Subsec. (g) by changing percentage point re return on equity to 0.5 per cent, replacing “finds” with “provides appropriate notice” and adding references to authorized rate of return, and made technical and conforming changes, effective June 29, 2023.

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Sec. 16-19a. Periodic review re gas, electric distribution and water companies' rates, services and performance. Approval of performance-based incentives and penalties. (a)(1) The Public Utilities Regulatory Authority shall, at intervals of not more than four years from the last previous general rate hearing of each gas company, electric distribution company or water 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 authority 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 authority may deem pertinent.

(2) The authority may conduct a general rate hearing in accordance with subsection (a) of section 16-19, in lieu of the periodic review and investigation proceedings required under subdivision (1) of this subsection. The authority may convene such general rate hearing at an interval of less than four years at the discretion of the authority, unless convening such general rate hearing at an interval of less than four years violates the terms of any final decision of the authority. Notwithstanding the provisions of section 16-243p, a gas company, electric distribution company or water company may recover reasonable and prudently incurred costs associated with a proceeding convened by the authority pursuant to this section, provided such company demonstrates to the satisfaction of the authority that it is not collecting rates and does not have an authorized rate of return which is or are more than just, reasonable and adequate, as determined by the authority.

(b) In any proceeding required under subdivision (1) of subsection (a) of this section, or in any rate hearing pursuant to section 16-19, the authority shall consider the implementation of financial performance-based incentives and penalties and performance-based metrics. Notwithstanding subsection (a) of this section, if the authority approves such performance-based incentives and penalties for a particular company, the authority shall include in such approval a framework for periodic monitoring and review of the company's performance pursuant to metrics developed by the authority.

(P.A. 74-216, S. 3, 8; P.A. 75-486, S. 9, 69; P.A. 77-614, S. 162, 610; P.A. 80-482, S. 56, 348; P.A. 85-30, S. 1, 2; P.A. 96-42, S. 1, 2; P.A. 98-28, S. 90, 117; P.A. 00-17, S. 2; P.A. 11-80, S. 1, 26; P.A. 14-134, S. 51; Sept. Sp. Sess. P.A. 20-5, S. 3; P.A. 23-102, S. 8.)

History: P.A. 75-486 replaced public utilities commission with public utilities control authority, required review not more than two years after last rate hearing, rather than not less than two years after hearing, included operating records in review and required review to see whether rates conform to guidelines in Sec. 16-19e; P.A. 77-614 replaced authority with division of public utility control within the department of business regulation, effective January 1, 1979; P.A. 80-482 made division an independent department and deleted reference to abolished department of business regulation; P.A. 85-30 required department to conduct reviews and investigations at intervals of not more than four years, instead of not more than two years, from last rate hearing and limited applicability of provisions of section to companies having more than 75,000 customers; P.A. 96-42 lettered existing section as Subsec. (a) and added Subsec. (b) re performance-based incentives and periodic monitoring and review by the Department of Public Utility Control in lieu of a rate proceeding described in Subsec. (a), effective May 2, 1996; P.A. 98-28 amended Subsec. (a) by adding electric distribution companies, effective July 1, 1998; P.A. 00-17 amended Subsec. (a) by designating existing language as Subdiv. (1) and inserting new Subdiv. (2) authorizing department to conduct general rate hearing in lieu of periodic review and investigation proceedings, and amended Subsec. (b) by making conforming technical changes; P.A. 11-80 replaced “Department of Public Utility Control” with “Public Utilities Regulatory Authority” and replaced “department” with “authority”, effective July 1, 2011; P.A. 14-134 amended Subsec. (a)(1) to delete reference to electric company and amended Subsec. (b) to replace “electric company” with “electric distribution company”, effective June 6, 2014; Sept. Sp. Sess. P.A. 20-5 amended Subsec. (b) by adding “, or in any rate hearing pursuant to section 16-19”, replacing “may approve performance-based incentives to encourage a gas or electric distribution company to operate efficiently and provide high quality service at fair and reasonable prices” with “shall consider the implementation of financial performance-based incentives and penalties and performance-based metrics”, adding reference to penalties, deleting provisions re performance criteria specified by authority and periodic review and investigation, adding reference to metrics developed by the authority and by making a technical change, effective November 1, 2020; P.A. 23-102 amended Subsec. (a)(1) by applying provisions to water companies with more than 75,000 customers and amended Subsec. (a)(2) by adding provisions re authority's discretion to convene general rate hearing at interval of less than 4 years and recovery of costs associated with proceedings under the section, effective June 29, 2023.

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Sec. 16-19bb. Application or refund of electric distribution company rate moderation funds. The Public Utilities Regulatory Authority shall require that any funds held by an electric distribution company in excess of the company's authorized return on equity, which funds are intended by the authority 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, in a manner determined by the authority, not later than the conclusion of the company's next proceeding conducted pursuant to section 16-19a.

(P.A. 87-331, S. 3, 4; P.A. 98-28, S. 93, 117; P.A. 11-80, S. 1; P.A. 14-134, S. 58; P.A. 23-102, S. 10.)

History: P.A. 98-28 added electric distribution companies and made a technical change, effective July 1, 1998; pursuant to P.A. 11-80, “Department of Public Utility Control” was changed editorially by the Revisors to “Public Utilities Regulatory Authority”, effective July 1, 2011; P.A. 14-134 deleted reference to electric company, deleted “not later than July 1, 1988” and deleted provision re funds collected after July 1, 1988, effective June 6, 2014; P.A. 23-102 replaced “within one year of receipt” with provision re manner of application or refund and reference to company's next proceeding, effective June 29, 2023.

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Sec. 16-19ee. Reports from electric distribution companies concerning electrical outages affecting at least two hundred fifty customers. Each electric distribution company shall, in its monthly report to the Public Utilities Regulatory Authority required pursuant to section 16-16, provide information concerning the primary cause of all planned and unplanned electrical outages affecting two hundred fifty or more customers in the preceding month that is the subject of such report and shall indicate which outages resulted from a power surge.

(P.A. 90-39, S. 1; P.A. 98-28, S. 94, 117; P.A. 11-80, S. 1; P.A. 14-134, S. 59; P.A. 23-102, S. 13.)

History: P.A. 98-28 added electric distribution companies and made a technical change, effective July 1, 1998; pursuant to P.A. 11-80, “Department of Public Utility Control” was changed editorially by the Revisors to “Public Utilities Regulatory Authority”, effective July 1, 2011; P.A. 14-134 deleted reference to electric company and deleted “with more than seventy-five thousand customers”, effective June 6, 2014; P.A. 23-102 substantially revised section, adding reference to monthly report re primary cause of accidents and provision re 250 or more customers.

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Sec. 16-19gg. Factors to be considered during a rate proceeding. (a) During each proceeding on a rate amendment under section 16-19 proposed by an electric or gas public service company, as defined in section 16-1, the Public Utilities Regulatory Authority, when determining rates for individual rate classes, shall give consideration to the energy cost of manufacturers by analyzing the following: (1) The effect of different rates of return among rate classes upon manufacturers; (2) the use of different cost allocation methodologies; (3) the use of flexible pricing; and (4) any other issue deemed relevant by the authority.

(b) During each proceeding on a rate amendment under section 16-19 proposed by an electric distribution company, gas company or water company, the Public Utilities Regulatory Authority shall consider the following factors in determining a reasonable rate of return: (1) Macroeconomic conditions at the time the rate amendment is pending before the authority; (2) the company's compliance with state law, regulations and the decisions and policies of the authority and the Department of Energy and Environmental Protection; (3) the burden of the public service company's costs on residential ratepayers, measured as a percentage of household income, under the current and proposed rate; (4) trends in the company's accrual of bad debt; (5) the rate impact on all residential and nonresidential customers; and (6) any other issue deemed relevant by the authority.

(P.A. 90-65, S. 1, 5; P.A. 92-99, S. 1, 3; P.A. 11-80, S. 1; P.A. 23-102, S. 6.)

History: P.A. 92-99 added a new Subsec. (b) re effect on ratepayers of reduced or free utility service for company employees; pursuant to P.A. 11-80, “Department of Public Utility Control” was changed editorially by the Revisors to “Public Utilities Regulatory Authority”, effective July 1, 2011; P.A. 23-102 deleted former Subsec. (b) re effect on ratepayers of reduced or free utility service for company employees and added new Subsec. (b) re factors required to be considered in determining a reasonable rate of return, effective June 29, 2023.

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Sec. 16-19jj. Alternative dispute resolution mechanisms. Settlements. (a) The Public Utilities Regulatory Authority may, whenever it deems appropriate and is consistent with the principles set forth in sections 16-19 and 16-19e, adopt proposed settlements produced by alternative dispute resolution mechanisms to resolve contested cases and proceedings.

(b) Parties or intervenors to a contested proceeding may propose a settlement by filing a motion, which shall be filed not later than three weeks prior to the scheduled issuance date of the proposed final decision in the proceeding. The parties proposing the settlement shall provide the proposed settlement to all parties and intervenors not less than three business days before the filing of a motion pursuant to this subsection, with a request that the party or intervenor provide a position on the proposed settlement for reference in the motion. Motions made pursuant to this subsection shall include, as applicable: (1) An analysis identifying any increases or decreases to components of rates resulting from the proposed settlement and the causal relationship of particular rate component increases or decreases to provisions in the proposed settlement, to the extent ascertainable; and (2) a statement of the position of nonsettling parties and intervenors on the proposed settlement, such as “support”, “oppose” or “no position”, if such party or intervenor complies with the request to provide such statement. If a proposed settlement is submitted prior to the close of the evidentiary record, prefiled testimony shall be submitted with the settlement.

(c) The provisions of any proposed settlement shall be supported by citations to the evidentiary record or other evidence as the authority may require.

(d) The authority may hold hearings and may order briefs to be filed related to any proposed settlement.

(e) (1) If the term of any provision in a settlement of a proceeding to amend rates under section 16-19 extends longer than the effective date of the rate amendment approved in the subsequent proceeding to amend rates under section 16-19, the authority may reject or modify such provision.

(2) Any proceeding to amend rates under section 16-19 that is resolved by a settlement shall not constitute a general rate hearing for purposes of the periodic review required under section 16-19a, if the previous proceeding to amend rates under section 16-19 was resolved by a settlement in full or in part.

(P.A. 91-61, S. 2; P.A. 11-80, S. 1; P.A. 23-102, S. 4.)

History: Pursuant to P.A. 11-80, “Department of Public Utility Control” was changed editorially by the Revisors to “Public Utilities Regulatory Authority”, effective July 1, 2011; P.A. 23-102 designated existing provisions as Subsec. (a) and amended same by replacing “shall” with “may”, deleting “, encourage the use of”, and adding references to Secs. 16-19 and 16-19e, and added Subsecs. (b) to (e) re settlement requirements, effective June 29, 2023.

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Sec. 16-19tt. Gas and electric distribution companies' distribution revenue decoupling. (a) In any rate case initiated on or after June 4, 2007, and for which a final decision has not been issued prior to July 8, 2013, the Public Utilities Regulatory Authority shall order the state's gas and electric distribution companies to decouple distribution revenues from the volume of natural gas or electricity sales through any of the following strategies, singly or in combination: (1) A mechanism that adjusts actual distribution revenues to allowed distribution revenues, (2) rate design changes that increase the amount of revenue recovered through fixed distribution charges, or (3) a sales adjustment clause, rate design changes that increase the amount of revenue recovered through fixed distribution charges, or both. In making its determination on this matter, the authority shall consider the impact of decoupling on the gas or electric distribution company's return on equity and make necessary adjustments thereto.

(b) In any rate case initiated on or after October 1, 2023, or in a pending rate case for which a final decision has not been issued prior to October 1, 2023, the Public Utilities Regulatory Authority shall order the state's gas and electric distribution companies to decouple distribution revenues from the volume of natural gas and electricity sales. The authority shall have the discretion to determine the decoupling mechanism and methodology used in decoupling orders made pursuant to this subsection, subject to the principles set forth in subsection (m) of section 16-2. In making such determination, the authority shall consider factors, including, but not limited to, (1) whether the decoupling mechanism and methodology is in the best interest of ratepayers, (2) whether such mechanism and methodology adequately accounts for distribution system service outages, and (3) whether such mechanism and methodology adequately addresses the disincentive for utilities to engage in conservation and energy efficiency measures.

(P.A. 07-242, S. 107; P.A. 11-80, S. 1; P.A. 13-298, S. 11; P.A. 23-102, S. 1.)

History: P.A. 07-242 effective June 4, 2007; pursuant to P.A. 11-80, “Department of Public Utility Control” was changed editorially by the Revisors to “Public Utilities Regulatory Authority”, effective July 1, 2011; P.A. 13-298 designated existing provisions as Subsec. (a) and amended same by making a technical change and adding “and for which a final decision has not been issued prior to July 8, 2013,” and added Subsec. (b) re decoupling mechanisms for any rate case initiated on or after July 8, 2013, or in a pending rate case for which a final decision has not been issued prior to July 8, 2013, effective July 8, 2013; P.A. 23-102 amended Subsec. (b) by replacing July 8, 2013, with October 1, 2023, deleting provisions re decoupling mechanisms for electric distribution companies and adding provisions re authority's discretion to determine decoupling methodology and factors considered, and made technical changes.

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Sec. 16-24b. Low-income rates for gas and water companies with more than seventy-five thousand customers. At the next general rate proceeding of each gas company and water company, as such terms are defined in section 16-1, with more than seventy-five thousand customers commencing on or after October 1, 2023, and conducted pursuant to section 16-19, the Public Utilities Regulatory Authority shall investigate and determine whether to implement low-income rates for such company's customers. Any low-income rates adopted pursuant to this section in a general rate proceeding shall apply only to the rate plan that is the subject of such proceeding.

(P.A. 23-102, S. 24.)

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Sec. 16-32l. Residential customer credits for distribution-system service outage. Recovery of costs. Waiver of requirements. (a) For the purposes of this section:

(1) “Emergency” means any hurricane, tornado, storm, flood, high water, wind-driven water, tidal wave, earthquake, landslide, mudslide, snowstorm, drought or fire explosion that results in sixty-nine per cent or less of the electric distribution company's customers experiencing an outage at the period of peak electrical demand;

(2) “Electric distribution company” has the same meaning as provided in section 16-1; and

(3) “After the occurrence of an emergency” means the conclusion of the emergency, as determined by the authority in its discretion, through a review of the following: (A) The time when the electric distribution company could first deploy resources safely in its service territory; (B) the first of any official declarations concerning the end of the emergency; or (C) the expiration of the first of any National Weather Service warning applicable to the service territory.

(b) Notwithstanding any other provision of the general statutes, on and after July 1, 2021, each electric distribution company shall provide to residential customers of such company a credit of twenty-five dollars, on the balance of such customer's account, for each day of distribution-system service outage that occurs for such customers for more than ninety-six consecutive hours after the occurrence of an emergency.

(d) Not later than fourteen calendar days after the occurrence of an emergency, an electric distribution company may petition the authority for a waiver of the requirements of this section. Any petition for a waiver made under this subsection shall include the severity of the emergency, line and restoration crew safety issues and conditions on the ground, and shall be conducted as a contested case proceeding. The burden of proving that such waiver is reasonable and warranted shall be on the electric distribution company. In determining whether to grant such waiver, the authority shall consider whether the electric distribution company received approval and reasonable funding allowances, as determined by the authority, to meet infrastructure resiliency efforts to improve such company's performance.

(e) On or before January 1, 2021, the Public Utilities Regulatory Authority shall initiate a proceeding to consider the implementation of the residential customer credit and waiver provisions of this section and establish circumstances, standards and methodologies applicable to each electric distribution company and necessary to implement the provisions of this section, including any modifications to the ninety-six-consecutive-hour standard in subsection (b) of this section. The authority shall issue a final decision in such proceeding on or before July 1, 2021.

(Sept. Sp. Sess. P.A. 20-5, S. 10; P.A. 23-102, S. 17, 18.)

History: Sept. Sp. Sess. P.A. 20-5 effective October 2, 2020; P.A. 23-102 amended Subsec. (a) by redefining “emergency” in Subdiv. (1), designating definition of “electric distribution company” as Subdiv. (2), and adding Subdiv. (3) defining “after the occurrence of an emergency”, and amended Subsec. (d) by replacing “employee” with “line and restoration crew”.

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Sec. 16-32m. Residential customer compensation for expiration of medicine and food due to distribution-system service outage. Recovery of costs. Waiver of requirements. (a) For the purposes of this section:

(2) “Electric distribution company” has the same meaning as provided in section 16-1; and

(b) On and after July 1, 2021, each electric distribution company shall provide to each residential customer compensation in an amount of two hundred fifty dollars, in the aggregate, for any medication and food that expires or spoils due to a distribution-system service outage that lasts more than ninety-six consecutive hours in duration after the occurrence of an emergency.

(e) On or before January 1, 2021, the Public Utilities Regulatory Authority shall initiate a proceeding to consider the implementation of the compensation reimbursement and waiver provisions of this section and establish circumstances, standards and methodologies applicable to each electric distribution company and necessary to implement the provisions of this section, including any modifications to the ninety-six-consecutive-hour standard in subsection (b) of this section. The authority shall issue a final decision in such proceeding on or before July 1, 2021.

(Sept. Sp. Sess. P.A. 20-5, S. 11; P.A. 23-102, S. 19, 20.)

History: Sept. Sp. Sess. P.A. 20-5 effective October 2, 2020; P.A. 23-102 amended Subsec. (a) by redefining “emergency” in Subdiv. (1), designating existing definition of “electric distribution company” as Subdiv. (2), and adding Subdiv. (3) defining “after the occurrence of an emergency”, and amended Subsec. (d) by replacing “employee” with “line and restoration crew”.

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Sec. 16-35. Appeals to Superior Court. Uncontested proceedings re acquiring electricity products or services. Stays of orders of authority. (a) Any person, including but not limited to a company, town, city, borough or corporation aggrieved by any order, authorization or decision of the Public Utilities Regulatory Authority, except an order, authorization or decision of the authority approving the taking of land, in any matter to which such person was or ought to have been made a party or intervenor, may appeal therefrom in accordance with the provisions of section 4-183. Such person so appealing shall give bond to the state, with sufficient surety, for the benefit of the adverse party, in such sum as the authority fixes, to pay all costs in case such person fails to sustain such appeal. No municipality or political subdivision shall be determined not to be aggrieved solely because there are other persons who are similarly affected by the order, authorization or decision of the authority.

(b) Any person who may appeal an order, authorization or decision of the authority under subsection (a) of this section who was an intervenor or, after timely application, was denied intervenor status to the authority proceeding, shall be limited to raise on appeal only those issues that (1) such person addressed during the proceeding or were addressed in the final decision, or (2) such person raised in his request for intervenor status if he was denied intervenor status.

(c) Notwithstanding any provision of this title and title 16a, proceedings in which the Public Utilities Regulatory Authority conducts a request for proposals or any other procurement process for the purpose of acquiring electricity products or services for the benefit of ratepayers shall be uncontested.

(d) In ruling upon an application for a stay filed to the Public Utilities Regulatory Authority by a person who is a party or intervenor in a proceeding, the authority may only stay enforcement of a civil penalty if the person who appeals the order, authorization or decision that imposed such penalty provides an escrow deposit, bond or other surety equal to the total amount of such penalty. To obtain a stay of enforcement from the authority of any other order, authorization or decision of the authority, the person who appeals such order, authorization or decision shall bear the burden of demonstrating that: (1) There is a strong likelihood that the appeal will succeed; (2) such person will suffer substantial and irreparable harm absent a stay; and (3) the stay will not be harmful to the public interest.

(1949 Rev., S. 5425; 1971, P.A. 870, S. 42; P.A. 75-486, S. 15, 69; P.A. 76-436, S. 357, 681; P.A. 77-603, S. 41, 125; 77-614, S. 162, 610; P.A. 80-482, S. 4, 40, 72, 345, 348; P.A. 96-247, S. 1; P.A. 11-80, S. 1; P.A. 13-298, S. 12; P.A. 23-102, S. 11.)

History: 1971 act replaced superior court with court of common pleas, effective September 1, 1971, except that courts with cases pending retain jurisdiction unless pending matters deemed transferable; P.A. 75-486 replaced public utilities commission with public utilities control authority; P.A. 76-436 replaced court of common pleas with superior court, effective July 1, 1978; P.A. 77-603 replaced previous appeal provision with statement that appeals are to be made in accordance with Sec. 4-183; P.A. 77-614 replaced the authority with division of public utility control within the department of business regulation, effective January 1, 1979; P.A. 80-482 made division of public utility control an independent department and deleted reference to abolished department of business regulation; P.A. 96-247 lettered existing section as Subsec. (a), made technical changes and added provision prohibiting a determination that a municipality or political subdivision is not aggrieved solely because other persons are similarly affected and added Subsec. (b) re issues that may be raised on appeal; pursuant to P.A. 11-80, “Department of Public Utility Control” and “department” were changed editorially by the Revisors to “Public Utilities Regulatory Authority” and “authority”, respectively, effective July 1, 2011; P.A. 13-298 added Subsec. (c) re uncontested proceedings for acquiring electricity products or services, effective July 8, 2013; P.A. 23-102 added Subsec. (d) re applications to authority for stays of enforcement of authority orders, authorizations or decisions, effective June 29, 2023.

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Sec. 16-41. Imposition of civil penalties by authority. (a) Each (1) public service company and its officers, agents and employees, (2) electric supplier or person providing electric generation services without a license in violation of section 16-245, and its officers, agents and employees, (3) certified telecommunications provider or person providing telecommunications services without authorization pursuant to sections 16-247f to 16-247h, inclusive, and its officers, agents and employees, (4) person, public agency or public utility, as such terms are defined in section 16-345, subject to the requirements of chapter 293, (5) person subject to the registration requirements under section 16-258a, (6) cellular mobile telephone carrier, as described in section 16-250b, (7) Connecticut electric efficiency partner, as defined in section 16-243v, (8) company, as defined in section 16-49, (9) entity approved to submeter pursuant to section 16-19ff, and (10) person involved in the transportation of gas, as such terms are defined in section 16-280a, shall obey, observe and comply with all applicable provisions of this title and each applicable order made or applicable regulations adopted by the Public Utilities Regulatory Authority by virtue of this title as long as the same remains in force. Any such company, electric supplier, certified telecommunications provider, cellular mobile telephone carrier, Connecticut electric efficiency partner, entity approved to submeter, person, any officer, agent or employee thereof, public agency or public utility which the authority finds has failed to obey or comply with any such provision of this title, order or regulation shall be fined, ordered to pay restitution to customers or ordered to pay a combination of a fine and restitution by order of the authority in accordance with the penalty prescribed for the violated provision of this title or, if no penalty is prescribed, not more than ten thousand dollars for each offense, except that the penalty shall be a fine, restitution to customers or a combination of a fine and restitution of not more than forty thousand dollars for failure to comply with an order of the authority made in accordance with the provisions of section 16-19 or 16-247k or within thirty days of such order or within any specific time period for compliance specified in such order. The authority may direct a portion of any fine levied pursuant to this section to be paid to a nonprofit agency engaged in energy assistance programs named by the authority in its decision or notice of violation and may direct a portion of any fine levied pursuant to this section against a person involved in the transportation of gas, as such terms are defined in section 16-280a, to support the study, installation and deployment of residential methane detectors by one or more public service companies, as determined by the authority. Any such nonprofit agency that receives a portion of a fine pursuant to this subsection shall administer such funds as directed by the authority and submit an annual report to the authority, at the end of each fiscal year and in a form determined by the authority, that details the expenditure of such funding. No such nonprofit agency shall use more than ten per cent of such funding for administrative purposes. Notwithstanding any provision of this subsection, for the fiscal years ending June 30, 2023, and June 30, 2024, the authority shall direct not less than ninety-five per cent of any fine levied pursuant to this section to nonprofit agencies engaged in energy assistance programs. 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) or (h) of section 16-49 shall be excluded from operating expenses for purposes of rate-making.

(b) Any regional water authority, any regional water district, any municipal gas or electric plant established under chapter 101, any municipal waterworks system established under chapter 102, or any other municipality or department thereof owning, leasing, operating or managing a plant for the supplying or furnishing of any public utility, which the Public Utilities Regulatory Authority finds has failed to comply with the procedures of section 16-29, shall be subject to a civil penalty of not more than five thousand dollars for any annual report which is not submitted or submitted late in violation of said section.

(c) If the authority has reason to believe that a violation has occurred for which a civil penalty is authorized by subsection (a) or (b) of this section, it shall notify the alleged violator by certified mail, return receipt requested, or by personal service. The notice shall include:

(1) A reference to the sections of the title, regulation or order involved;

(2) A short and plain statement of the matter asserted or charged;

(3) A statement of the prescribed civil penalty for the violation; and

(4) A statement of the person's right to a hearing.

(d) The person to whom the notice is addressed shall have twenty days from the date of receipt of the notice in which to deliver to the authority a written application for a hearing. If a hearing is requested, then, after a hearing and upon a finding that a violation has occurred, the authority may issue a final order assessing a civil penalty under this section which shall not be greater than the maximum penalty permitted by law. If a hearing is not requested, or if such a request is later withdrawn, then the notice shall, on the first day after the expiration of the twenty-day period or on the first day after the withdrawal of the request for hearing, whichever is later, become a final order of the authority and the matters asserted or charged in the notice shall be deemed admitted, unless the notice is modified by a consent order before it becomes a final order. A consent order shall be deemed a final order.

(e) All hearings under this section shall be conducted under sections 4-176e to 4-184, inclusive. The final order of the authority assessing a civil penalty shall be subject to appeal under section 4-183. No challenge to any final order of the authority assessing a civil penalty shall be allowed as to any issue which could have been raised by an appeal of an earlier order of the authority. Any civil penalty authorized by this section shall become due and payable (1) at the time of receipt of a final order in the case of a civil penalty assessed in such order after a hearing, (2) on the first day after the expiration of the period in which a hearing may be requested if no hearing is requested, or (3) on the first day after the withdrawal of a request for hearing.

(f) A civil penalty assessed in a final order of the authority under this section may be enforced in the same manner as a judgment of the Superior Court. The final order shall be delivered to the respondent by personal service or by certified mail, return receipt requested. After entry of such final order, the authority may file a transcript without the payment of costs, in the office of the clerk of the superior court in the judicial district in which the respondent resides, has a place of business, owns real property, or in which any real property which is the subject of the proceedings is located or, if the respondent is not a resident of the state of Connecticut, in the judicial district of Hartford. Upon the filing, the clerk shall docket the order in the same manner and with the same effect as a judgment entered in the superior court within the judicial district. Upon the docketing, the order may be enforced as a judgment of the court.

(1949 Rev., S. 5431; P.A. 75-486, S. 16, 69; P.A. 77-614, S. 162, 610; P.A. 80-482, S. 73, 348; P.A. 81-297, S. 1; Nov. Sp. Sess. P.A. 81-8, S. 2, 4; P.A. 85-552, S. 2, 8; P.A. 87-71, S. 1, 13; P.A. 88-230, S. 1, 12; 88-317, S. 63, 107; P.A. 90-98, S. 1, 2; 90-221, S. 7, 15; P.A. 93-142, S. 4, 7, 8; May 25 Sp. Sess. P.A. 94-1, S. 19, 130; P.A. 95-220, S. 4–6; P.A. 98-28, S. 35, 117; P.A. 99-105, S. 1, 4; 99-222, S. 13, 19; P.A. 00-91, S. 2; P.A. 05-241, S. 3; P.A. 06-196, S. 200; P.A. 07-242, S. 96; P.A. 11-80, S. 1; P.A. 13-298, S. 37; Sept. Sp. Sess. P.A. 20-5, S. 13; P.A. 22-20, S. 6; Nov. Sp. Sess. P.A. 22-1, S. 7; P.A. 23-102, S. 27.)

History: P.A. 75-486 replaced public utilities commission with public utilities control authority, added exception to allow $20,000 maximum fine for failure to comply within time limit with orders under Sec. 16-19 and excluded penalties and interest from consideration as operating expenses; P.A. 77-614 replaced the authority with division of public utility control within the department of business regulation, effective January 1, 1979; P.A. 80-482 made division of public utility control an independent department and deleted reference to abolished department of business regulation; P.A. 81-297 added Subsecs. (b) to (e) authorizing department to impose civil penalties and setting forth procedure for such penalties; Nov. Sp. Sess. P.A. 81-8 changed reference in Subsec. (a) from Subsec. (b) to Subsec. (g) of Sec. 16-49 to conform to amendment of said section in the same act; P.A. 85-552 made technical change in Subsec. (a), substituting reference to Sec. 16-49(f) for reference to Sec. 16-49(g); P.A. 87-71 amended Subsec. (a) to include persons, public agencies and public utilities subject to the requirements of chapter 293; P.A. 88-230 replaced “judicial district of Hartford-New Britain” with “judicial district of Hartford”, effective September 1, 1991; P.A. 88-317 amended reference to Secs. 4-177 to 4-184 in Subsec. (d) to include new sections added to Ch. 54, effective July 1, 1989, and applicable to all agency proceedings commencing on or after that date; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 90-221 inserted new Subsec. (b) establishing a penalty for regional water authorities or districts or municipalities which fail to file reports to the department and renumbered the remaining Subsecs; P.A. 93-142 changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14, 1993; May 25 Sp. Sess. P.A. 94-1 made technical change, effective July 1, 1994; P.A. 95-220 changed the effective date of P.A. 88-230 from September 1, 1996, to September 1, 1998, effective July 1, 1995; P.A. 98-28 amended Subsec. (a) by adding electric suppliers, persons providing electric generation services without a license and their officers, agents and employees, effective July 1, 1998; P.A. 99-105 amended Subsec. (a) to apply provisions to companies, as defined in Sec. 16-49, to add reference to Sec. 16-49(h) and to make technical changes, effective July 1, 1999; P.A. 99-222 amended Subsec. (a) by adding reference to certified telecommunications provider or person providing telecommunications services without authorization and its officers, agents and employees, by changing to $10,000 the maximum penalty for violating a provision of title 16 if no other penalty is prescribed, by changing to $40,000 the maximum penalty for failure to comply with order made in accordance with Sec. 16-19, by adding reference to Sec. 16-247k and by making technical changes, effective June 29, 1999 (Revisor's note: In codifying and merging the provisions of P.A. 99-105 and P.A. 99-222 the Revisors inserted “(3)” before and a comma after new language re certified telecommunications providers, deleted the word “each” from before the word “certified” and inserted the word “and” before the words “its officers, agents and employees”); P.A. 00-91 added new Subsec. (a)(5) re persons subject to registration requirements under Sec. 16-258a, redesignating former Subdiv. (5) as Subdiv. (6); P.A. 05-241 added new Subsec. (a)(6) re cellular mobile telephone carriers, redesignating existing Subdiv. (6) as Subdiv. (7) and adding reference to cellular mobile telephone carrier therein, effective July 8, 2005; P.A. 06-196 made technical changes in Subsec. (a), effective June 7, 2006; P.A. 07-242 amended Subsec. (a) to add provisions re Connecticut electric efficiency partners, effective July 1, 2007; pursuant to P.A. 11-80, “Department of Public Utility Control” and “department” were changed editorially by the Revisors to “Public Utilities Regulatory Authority” and “authority”, respectively, effective July 1, 2011; P.A. 13-298 amended Subsec. (a) to add Subdiv. (9) re entity approved to submeter and to make conforming changes, effective July 1, 2013; Sept. Sp. Sess. P.A. 20-5 amended Subsec. (a) to authorize restitution as a form of penalty and permit authority to direct portion of levied fine, effective October 2, 2020; P.A. 22-20 amended Subsec. (a) by adding new Subdiv. (10) re person involved in the transportation of gas as defined in Sec. 16-280a and amended Subsec. (d) by changing provision re civil penalties to the maximum penalty permitted by law; Nov. Sp. Sess. P.A. 22-1 amended Subsec. (a) to require nonprofit agencies receiving funds from fines to file annual expenditure reports and use no more than 10 per cent of the funds for administrative purposes, and, in fiscal years 2023 and 2024, to require the Public Utilities Regulatory Authority to direct at least 95 per cent of any fines to nonprofit agencies engaged in energy assistance programs, effective November 29, 2022; P.A. 23-102 amended Subsec. (a) by adding provision re authority may direct portion of fines to support study, installation and deployment of residential methane detectors and replacing “For” with “Notwithstanding any provision of this subsection, for”, effective June 29, 2023.

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Sec. 16-47. Holding companies. Approval of authority re exercise of control. Investigation and hearing. Annual reports. Injunctive relief. Exemption. (a) As used in this section and section 16-47a, (1) “holding company” means any corporation, association, partnership, trust or similar organization, or person, which, either alone or in conjunction and pursuant to an arrangement or understanding with one or more other corporations, associations, partnerships, trusts or similar organizations, or persons, directly or indirectly, controls a gas company, electric distribution company, water company, telephone company, community antenna television company, holder of a certificate of cable franchise authority pursuant to section 16-331p, certified telecommunications provider or certified competitive video service provider, and (2) “control” means the possession of the power to direct or cause the direction of the management and policies of a gas company, electric distribution company, water company, telephone company, community antenna television company, holder of a certificate of cable franchise authority pursuant to section 16-331p, certified telecommunications provider, certified competitive video service provider 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 company, electric distribution company, water company, telephone company, community antenna television company, holder of a certificate of cable franchise authority pursuant to section 16-331p, certified telecommunications provider, certified competitive video service provider 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 company, electric distribution company, water company, telephone company, community antenna television company, or a holding company, provided the authority 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. For a holder of a certificate of cable franchise authority pursuant to section 16-331p, certified telecommunications provider or certified competitive video service provider, or the holding company thereof, control shall be presumed to exist if a person directly or indirectly owns more than forty per cent of the voting securities of such company, provided the authority may determine, after conducting a hearing, that such presumption of control has been rebutted by a showing that such ownership does not in fact confer control.

(b) (1) No gas company, electric distribution company, water company, telephone company, community antenna television company, or holding company thereof, 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 company, electric distribution company, water company, telephone company 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 Public Utilities Regulatory Authority, except as the United States may properly regulate actual transactions in interstate commerce.

(2) No holder of a certificate of cable franchise authority pursuant to section 16-331p, certified telecommunications provider or certified competitive video service provider, 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 holder of a certificate of cable franchise authority pursuant to section 16-331p, certified telecommunications provider or certified competitive video service provider engaged in the business of supplying service within this state, without first making written application to and obtaining the approval of the Public Utilities Regulatory Authority, except as the United States may properly regulate actual transactions in interstate commerce or as set forth in subsection (j) of this section.

(c) (1) 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 company, electric distribution company, water company, telephone company 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 authority.

(2) 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 holder of a certificate of cable franchise authority pursuant to section 16-331p, certified telecommunications provider or certified competitive video service provider 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 authority, except as the United States may properly regulate actual transactions in interstate commerce or as set forth in subsection (j) of this section.

(3) Any such corporation, association, partnership, trust or similar organization, or person, applying to the authority for such approval shall pay the reasonable expenses incurred by the authority in carrying out its duties under this subsection, and accordingly, shall deposit with the authority 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 authority for such expenses.

(d) (1) The Public Utilities Regulatory Authority shall investigate and hold a public hearing on the question of granting its approval with respect to any application made under subdivision (1) of subsection (b) of this section or subdivision (1) of subsection (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 authority may request the views of the gas company, electric distribution company, water company, telephone company, 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 authority may adopt in accordance with the provisions of chapter 54, but not later than thirty business days after the filing of such application, the authority 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 sixty business days after the filing. The authority shall make its determination as soon as practicable, but not later than two hundred days after the filing of the application, unless the person required to file the application agrees to an extension of time or the authority extends the time as provided in this subsection. The authority may extend the time period for making its determination by not more than thirty days if, before the end of such time period, the authority notifies all parties and intervenors to the proceedings of such extension. The authority may, in its discretion, grant the subject company, certificate holder, provider or holding company the opportunity to participate in the hearing by presenting evidence and oral and written argument. If the authority 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 subdivision (1) of subsection (b) of this section or subdivision (1) of subsection (c) of this section, the authority 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 company, electric distribution company, water company, telephone company, 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. The authority shall only grant its approval of an application filed on or after January 1, 2021, made under subdivision (1) of subsection (c) of this section, if the holding company effects a change in the composition of the board of directors to include a proportional percentage of Connecticut-based directors equivalent to the percentage that Connecticut service areas represent of the total service areas covered by the holding company.

(2) The Public Utilities Regulatory Authority shall investigate and hold a public hearing on the question of granting its approval with respect to any application made under subdivision (2) of subsection (b) of this section or subdivision (2) of subsection (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 authority may request the views of the subject certificate holder, provider 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 authority may adopt in accordance with the provisions of chapter 54, but not later than thirty business days after the filing of such application, the authority shall give prompt notice of the public hearing to the person required to file the application and to the subject certificate holder, provider or holding company. Such hearing shall be commenced as promptly as practicable after the filing of the application, but not later than sixty business days after the filing, and the authority shall make its determination as soon as practicable, but not later than one hundred eighty days after the filing of the application, unless the person required to file the application agrees to an extension of time or the authority extends the time as provided in this subsection. The authority may extend the time period for making its determination by not more than thirty days if, before the end of such period, the authority notifies all parties and intervenors to the proceedings of such extension. Such authority-noticed extension may only occur once. The authority shall, upon request of the certificate holder, provider or holding company, grant the subject company or holding company the opportunity to participate in the hearing by presenting evidence and oral and written argument. If the authority 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 subdivision (2) of subsection (b) of this section or subdivision (2) of subsection (c) of this section, the scope of review for the authority shall be limited to (A) the financial, technological and managerial suitability and responsibility of the applicant, and (B) the legal, financial and technical ability of the holder of a certificate of cable franchise authority pursuant to section 16-331p, certified telecommunications provider, certified competitive video service provider or holding company which is the subject of the application to provide safe, adequate and reliable service subject to the authority's regulation.

(e) During any proceeding under subdivision (1) of subsection (b) of this section or subdivision (1) of subsection (c) of this section, the authority 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 company, electric distribution company, water company, telephone company, community antenna television company or holding company which is the subject of such proceedings, in regard to the matters submitted to the authority for its approval under said subdivision (1) of subsection (b) of this section or subdivision (1) of subsection (c) of this section. If the authority 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 authority 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 authority. 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 subsection (b) or (c) of this section shall be voidable on order of the authority.

(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 authority or any holding company or gas company, electric distribution company, water company, telephone company, community antenna television company, holder of a certificate of cable franchise authority pursuant to section 16-331p, certified telecommunications provider or certified competitive video service provider 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 gas company, electric distribution company, water company, telephone company, community antenna television company, holder of a certificate of cable franchise authority pursuant to section 16-331p, certified telecommunications provider, certified competitive video service provider or holding company to those persons who exercised authority or control over such company, certificate holder or provider 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 authority 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.

(j) Notwithstanding subsections (a) to (i), inclusive, of this section or any other provision of the general statutes, a holder of a certificate of cable franchise authority pursuant to section 16-331p, a certified telecommunications provider, a certified competitive video service provider or a holding company thereof shall not be required to make a written application to, or obtain the approval of, the Public Utilities Regulatory Authority with respect to any internal reorganization or restructuring of such certificate holder, provider or company that does not involve a change in the operational control or management of such certificate holder, provider or company.

(1949 Rev., S. 5438; P.A. 75-486, S. 1, 69; P.A. 77-614, S. 162, 610; P.A. 80-482, S. 80, 348; P.A. 82-252, S. 4, 6; 82-472, S. 176, 183; P.A. 85-549, S. 1, 3; P.A. 86-40, S. 1, 2; P.A. 87-446, S. 1, 3; P.A. 94-74, S. 10, 11; P.A. 98-28, S. 98, 117; P.A. 09-218, S. 1; P.A. 11-80, S. 1; P.A. 14-134, S. 69; Sept. Sp. Sess. P.A. 20-5, S. 7; P.A. 23-98, S. 19; 23-191, S. 4.)

History: P.A. 75-486 replaced public utilities commission with public utilities control authority; P.A. 77-614 replaced public utilities control authority with division of public utility control within the department of business regulation, effective January 1, 1979; P.A. 80-482 made division an independent department and deleted reference to abolished department of business regulation; P.A. 82-252 divided section into Subsecs., included trusts and similar organizations in definition of “holding company”, applied section provisions to community antenna television companies, added Subsecs. (c), (d) and (f), respectively prohibiting any corporation, association, trust or similar organization, or person from taking action to become a holding company without department approval, requiring holding companies to file annual reports and authorizing injunctive relief for violations of Subsec. (c); P.A. 82-472 made a technical change in Subsecs. (a) and (c) by clarifying that partnerships are included in the definition of “holding company”; P.A. 85-549 amended Subsecs. (b) and (c) to eliminate provisions limiting protection under said Subsecs. to companies incorporated by this state, added new Subsec. (d) re time limit on department approval or disapproval of application and added new Subsec. (e) re department orders restricting communications with owners of securities of company which is subject to proceedings, relettered former Subsecs. (d), (e) and (f) as (f), (g) and (h), respectively, and applied provisions of Subsec. (h) to violations of Subsec. (b); P.A. 86-40 added provisions in Subsec. (d) re department considerations in proceedings on written applications; P.A. 87-446 made section applicable to telephone companies, added definition of “control” and provisions re presumption of control, made technical changes re application and approval process, and added Subsec. (i); P.A. 94-74 amended Subsec. (d) by requiring investigation and hearing, changing hearing notice deadline from 20 to 30 days, hearing commencement deadline from 20 to 30 days and determination deadline from 90 to 120 days, adding “financial, technological and managerial” to Subdiv. (1), and adding Subdiv. (3) re applications concerning a telephone company, effective July 1, 1994; P.A. 98-28 added electric distribution companies, effective July 1, 1998; P.A. 09-218 amended Subsec. (a) by designating existing definitions as Subdivs. (1) and (2) and adding reference to Sec. 16-47a, effective July 8, 2009; pursuant to P.A. 11-80, “Department of Public Utility Control” and “department” were changed editorially by the Revisors to “Public Utilities Regulatory Authority” and “authority”, respectively, effective July 1, 2011; P.A. 14-134 deleted references to electric company, effective June 6, 2014; Sept. Sp. Sess. P.A. 20-5 amended Subsec. (d) to extend hearing deadline to 60 business days, extend determination deadline to 200 days with option to extend additional 30 days with notice, and add provision conditioning approval of applications filed on or after Jan. 1, 2021 upon an effective change in composition of board of directors, effective January 1, 2021; P.A. 23-98 substantially amended section by adding references to holder of certificate of cable franchise authority, certified telecommunications provider, certified competitive video service provider and broadband Internet access service provider in Subsecs. (a) to (e) and (h), and made technical and conforming changes in Subsecs. (a) to (e), (g) and (h), effective July 1, 2023; P.A. 23-191 amended Subsec. (a)(1) by deleting reference to broadband Internet access service provider, substantially amended Subsec. (a)(2) including by deleting references to broadband Internet access service providers, deleting reference to holder of certificate of cable franchise authority, certified telecommunications provider, certified competitive video service provider and adding provisions re rebuttable presumption of control of holder of certificate of cable franchise authority, certified telecommunications provider or certified competitive video service provider, or holding company thereof, substantially amended Subsec. (b) including by designating existing provisions as Subdiv. (1), deleting references to holders of certificates of cable franchise authority, certified telecommunications providers, certified competitive video service providers and broadband Internet access service providers in Subdiv. (1) and adding Subdiv. (2) prohibiting interference, attempted interference, exercise of authority or control or attempted exercise of authority or control over holder of certificate of cable franchise authority, certified telecommunications provider or certified competitive video service provider without approval of Public Utilities Regulatory Authority, substantially amended Subsec. (c) including by designating existing provisions as Subdivs. (1) and (3) and adding Subdiv. (2) prohibiting corporation, association, partnership, trust, similar organization or person from taking action to become holding company with control over holder of certificate of cable franchise authority, certified telecommunications provider or certified competitive video service provider, or acquire control over any such holding company, without approval of Public Utilities Regulatory Authority, substantially amended Subsec. (d) including by designating existing provisions as Subdiv. (1), deleting references to holders of certificates of cable franchise authority, certified telecommunications providers, certified competitive video service providers and broadband Internet access service providers and adding Subdiv. (2) re investigations, hearings and determinations by Public Utilities Regulatory Authority, substantially amended Subsec. (e) by deleting references to holders of certificates of cable franchise authority, certified telecommunications providers, certified competitive video service providers and broadband Internet access service providers, amended Subsec. (h) by deleting references to broadband Internet access service providers, added Subsec. (j) re exception for internal reorganization or restructuring, and made technical and conforming changes throughout, effective July 1, 2023.

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DEPARTMENT OF ENERGY AND ENVIRONMENTAL PROTECTION.PUBLIC UTILITIES REGULATORY AUTHORITY.OFFICE OF CONSUMER COUNSEL.MISCELLANEOUS PROVISIONS

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Note: This 2024 Supplement is intended to be used in conjunction with the General Statutes of Connecticut, revised to January 1, 2023.

DEPARTMENT OF ENERGY AND ENVIRONMENTAL PROTECTION.
PUBLIC UTILITIES REGULATORY AUTHORITY.
OFFICE OF CONSUMER COUNSEL.
MISCELLANEOUS PROVISIONS