State Codes and Statutes

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

      Sec. 16-19kk. Finding re conservation and load management programs. Department's investigation into a company's earnings and volume of sales. Rates of return for conservation and load management programs and programs promoting the state's economic development. Considerations in establishing company's authorized return. Performance-based incentives. Consumer Counsel authorized to retain experts. Regulations. (a) The General Assembly finds that if the earnings of electric, gas, telephone and water public service companies, as defined in section 16-1, are adversely affected by such companies' conservation and load management programs or other programs promoting the state's economic development, energy and other policy, those companies will have a disincentive to implement such programs. The General Assembly further finds that in order to further the implementation of such programs the earnings of electric, gas, telephone and water companies should be consistent with the principles and guidelines set forth in sections 16-19e, 16-19aa and 16-19kk to 16-19oo, inclusive, and 16a-49 notwithstanding participation in conservation and load management programs and other programs authorized by the Department of Public Utility Control, promoting the state's economic development, energy and other policy.

      (b) The department shall complete, on or before December 31, 1991, an investigation into the relationship between a company's volume of sales and its earnings. The department shall, on or before July 1, 1993, implement rate-making and other procedures and practices in order to encourage the implementation of conservation and load management programs and other programs authorized by the department promoting the state's economic development, energy and other policy. Such procedures to implement a modification or elimination of any direct relationship between the volume of sales and the earnings of electric, gas, telephone and water companies may include the adoption of a sales adjustment clause pursuant to subsection (i) of section 16-19b, or other adjustment clause similar thereto. The department's investigation shall include a review of its regulations and policies to identify any existing disincentives to the development and implementation of cost effective conservation and load management programs and other programs promoting the state's economic development, energy and other policy.

      (c) Notwithstanding the provisions of subdivision (4) of subsection (a) of section 16-19e, in a proceeding under subsection (a) of section 16-19 the department shall consider for an electric, gas, telephone or water public service company, as defined in section 16-1, in establishing the company's authorized return within the range of reasonable rates of return: Quality, reliability and cost of service provided by the company, the reduced or shifted demand for electricity, gas or water resulting from the company's conservation and load management programs approved by the department, the company's successful implementation of programs supporting economic development of the state and the company's success in decreasing or constraining dependence on the use of petroleum or any other criteria consistent with the state energy or other policy. The department may also establish other performance-based incentives both related and unrelated to the company's rate of return designed to implement the purposes of said sections 16-19e, 16-19aa, 16-19kk to 16-19oo, inclusive, and 16a-49.

      (d) In any proceeding before the department in which a company seeks beneficial rate treatment pursuant to this section, the Office of Consumer Counsel may retain independent experts to provide analysis, evaluation and testimony to address the issue of the appropriateness of such beneficial treatment under consideration in the proceeding, and all reasonable and proper expenses, to provide such analysis, evaluation and testimony, to a maximum of fifty thousand dollars per proceeding, shall be paid by the company and shall be proper rate-making expenses.

      (e) The Department of Public Utility Control may adopt regulations, in accordance with the provisions of chapter 54, to carry out the purposes of this section.

      (P.A. 91-248, S. 1, 13; P.A. 92-122, S. 1.)

      History: P.A. 92-122 amended Subsec. (b) to impose a deadline of July 1, 1993, for implementation of rate-making procedures.