State Codes and Statutes

Statutes > Connecticut > Title16 > Chap277 > Sec16-19aa

      Sec. 16-19aa. Excess generating capacity. Exclusion of costs associated with. Return on and depreciation of unrecovered investment in generating facilities. (a) During each proceeding on a rate amendment under section 16-19 proposed by an electric public service company, as defined in section 16-1, having more than seventy-five thousand customers, the Department of Public Utility Control shall (1) review the facilities utilized by the company for the generation and transmission of electricity, (2) determine the level of the company's reserve capacity, (3) determine the company's net reserve capacity by making such adjustments as the department determines appropriate to the level of the company's reserve capacity determined under subdivision (2) of this subsection based on: (A) The reduction of the company's reserve capacity requirement resulting from conservation and load management measures taken by the company and from any other programs or measures undertaken by the company promoting the state's energy policy since January 1, 1986, (B) the capacity of the company's interest in hydroelectric and other renewable resource facilities placed in service after June 1, 1986, (C) the capacity provided to the company by qualifying facilities and resource recovery facilities, (D) any increases of the company's capacity after June 1, 1986, resulting from programs or measures undertaken by the company to implement the state's energy and other policy, (E) the reduction in the company's reserve capacity requirement attributable to electrical interconnections between New England electric companies and other electric systems outside New England approved by the department, and (F) such other capacity adjustments, which may include adjustments previously recognized by the department, as the department deems appropriate, (4) determine the level of reserve capacity which would provide a net economic benefit to customers of the company, provided the department shall also consider the New England Power Pool reliability standard, the state energy policy as stated in section 16a-35k and any other factors which the department deems appropriate and adjust such level accordingly and (5) exclude from the company's rates, in a manner which shall provide the optimal short-term and long-term benefits to customers of the company, the costs associated with generating facilities which provide net reserve capacity in excess of the level, including any adjustments, determined by the department under subdivision (4) of this section.

      (b) The department shall permit the company to continue to recover a return on, and depreciation of, its unrecovered investment in generating facilities previously included in such company's rate base on that portion of a facility determined by the department to be temporarily or permanently retired from service because of capacity, programs or actions that result in deductions from reserve capacity pursuant to subdivision (3) of subsection (a) of this section. Costs incurred to retire such facilities, temporarily or permanently, and prudently incurred continuing costs associated with temporarily retired facilities shall also be recognized as operating costs of the company. The department's determination shall consider the potential for the sale of energy or capacity, or both, from the facilities temporarily or permanently retired.

      (c) Nothing in this section shall impair any settlement agreement the department approves prior to June 20, 1991, or arising out of any proceeding pending before the department as of that date.

      (d) The Department of Public Utility Control shall, in any rate proceeding held pursuant to section 16-19 or 16-19a, examine the nuclear generating capacity of any electric public service company.

      (P.A. 88-220, S. 10, 11; P.A. 91-248, S. 7, 13.)

      History: P.A. 88-220, S. 10, re examination of nuclear generating capacity in rate proceedings under Sec. 16-19 or Sec. 16-19a, was added editorially by the Revisors as Subsec. (b); P.A. 91-248 inserted new Subdiv. (3) re factors to be considered in determining a company's net reserve capacity, relettering the remaining Subdivs. accordingly, added a new Subsec. (b) authorizing the department to allow a company a return on and depreciation of certain investments in generating facilities and added a new Subsec. (c) re applicability of section re settlement agreements approved prior to effective date of the act, relettering former Subsec. (b) as (d).

      Cited. 216 C. 627.