SB 7 — AN ACT STRENGTHENING PROTECTIONS FOR CONNECTICUT'S CONSUMERS OF ENERGY.

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

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

Sec.5.(NEW)(Effectivefrompassage)Inanyproceedingtoamendrates under section 16-19 of the general statutes, as amended by this act, for customers of an electric distribution company that has a service area of eighteen or more cities and towns, that is initiated on or after July 1, 2023, or in a pending proceeding to amend rates under section 16-19 of the general statutes, as amended by this act, for customers of an electric distribution company that has a service area of eighteen or more cities Public Act No.

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7 and towns, for which a final decision has not been issued prior to July 1, 2023, the Public Utilities Regulatory Authority shall not reauthorize the on-bill reconciling mechanism for new electric plant additions that was first authorized in 2018.

5.

Subsection (c) of section 16-19b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(c) If the authority, after notice and hearing, determines that the adoption of an energy adjustment clause would protect the interests of ratepayers of an electric distribution company, ensure economy and efficiency inenergy productionandpurchase by theelectricdistribution company and achieve the objectives set forth in subsection (a) of section 16-19, as amended by this act, and in section 16-19e better than would the continued operation of a fuel adjustment clause and a generation utilization adjustment clause, the authority shall approve an energy adjustment clause to be superimposed upon the existing rate schedule oftheelectricdistributioncompany.The authority shalldesignany such energy adjustment clause to reflect cost-efficient energy resource procurement and to recover the costs of energy that are proper for rate- LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00003 of 24 R03-SB.docx } Substitute Bill No.

7 making purposes and for which the authority has not authorized recoverythroughbaserates.Thesecosts,reflectingprudentandefficient management and operations, may include, but are not limited to, the costs of oil, gas, coal, nuclear fuel, wood or other fuels, and energy transactions with other utilities, nonutility generators or power pools [,] and all or part of the cost of conservation and load management.

[, and the gross earnings tax imposed by section 12-264 on the revenues from the energy sources subject to the energy adjustment clause] The authority may establish an efficiency factor in the energy adjustment clause of each electric distribution company, that may provide for less than one hundred per cent recovery of the gross earnings tax imposed pursuant to section12-264ontherevenuesfromsuchpurchasedenergy.

The authority shall design the energy adjustment clause to provide for recovery of energy costs prudently incurred by an electric distribution company in accordance with section 16-19e.

Notwithstanding the provisions of section 16-19, as amended by this act, the authority shall change an energy adjustment clause in accordance with the provisions of subsections (e) and (h) of this section.

An energy adjustment clause approved pursuant to this section shall apply to all electric distribution companies similarly affected by the costs which form the basis for the adjustment clause.

Sec.

Section 16-19yy of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Notwithstanding any provision of the general statutes, in exercising its discretion regarding whether to allow the recovery throughratesofany portionofthecompensationpackage for executives or officers or of any portion of any incentive compensation for employees of any electric distribution company, gas company or water company, as defined in section 16-1, the Public Utilities Regulatory Authority shall consider whether to require that any such compensation that is recoverable through rates be dependent upon the achievement of performance targets.

[established pursuant to section 16-244aa.] (b) The total amount of compensation for any executives or officers LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0004 of 24 R03-SB.docx } Substitute Bill No.

7 of the parent company of any electric distribution company, gas company or water company, as defined in section 16-1, shall not exceed the base compensation of such executives or officers by five per cent or more.

(c) Whenever an increase of more than ten per cent occurs between billing periods of (1) the standard service rate established pursuant to section 16-244c, (2) the energy adjustment clause or purchased gas adjustment clause established pursuant to section 16-19b, as amended by this act, or (3) a water company rate adjustment mechanism established pursuant to section 16-262w, any public service company with rates incorporating the increase shall provide a monthly bill credit to its customers equal to the total compensation of its executives and officers that is recovered through rates in such monthly bill.

Such company or companies shall provide the bill credit for a period of not less than six months.

Sec.

7.

(NEW) (Effective from passage) On and after January 1, 2024, new electric plant additions shall not be eligible for cost recovery through an on-bill reconciling mechanism first authorized in 2018.

Sec.

8.

(b) [In any rate amendment proposed on and after May 19, 1992, by a public service company, as defined by section 16-1, the Public Utilities Regulatory Authority shall analyze the effect on ratepayers of a public service company's provision of reduced or free utility service to its employees.]employees]During Duringeachproceeding eachonarate proceeding on a rate amendment under section 16-19, as amended by this act, 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:

(2) the company's compliance with state law, regulations and the decisions and policies of the LCOauthority {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0005and ofthe 24Department R03-SB.docxof }Energy Substituteand BillEnvironmental No.Protection;

7(3) policiesthe burden of the authority;public service company's costs on residential ratepayers, measured as a percentage of household income, under the current and proposed rate;

(3) the burden of energy costs on residential ratepayers, measured as a percentage of household income, under the current and proposed rate;

and (5) anythe otherrate issueimpact deemedon relevantall byresidential theand authority.nonresidential customers;

and (6) any other issue deemed relevant by the authority.

9.7.

(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 UtilitiesAct Commission,No. 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, as amended by this act.

23-102 6 of 83 Substitute Senate Bill No.

7 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.

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,shallalsofilewiththeauthorityaplanforpromotingwateramendment, shall also file with the authority a plan for promoting water conservation by customers in such form and in accordance with a LCOmemorandum {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0006 of 24understanding R03-SB.docxentered }into Substituteby Billthe No.authority pursuant to section 4-67e.

7Each memorandumpublic ofservice understandingcompany enteredshall intonotify each customer who would be affected by the authorityproposed pursuantamendment, by mail, at least one week prior to section4-67e.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.

EachpublicSuch servicenotice companyshallalso shallnotifyindicate eachcustomer(1)thedate, whotime wouldandlocationofany bescheduledpublic affectedhearing, by(2) thea proposedstatement amendment,that bycustomers mail,may atprovide leastwritten onecomments weekregarding priorthe proposed amendment to the firstPublic publicUtilities hearingRegulatory thereon,Authority butor notappear earlierin thanperson sixat weekspriorany toscheduled suchfirst public hearing, that(3) anamendmentthe hasPublic beenAct orNo. willberequested.

Suchnotice23-102 shallalso7 indicate (1) thedate, time and location of any83 scheduledSubstitute publicSenate hearing,Bill (2)No. 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 [twenty] five per cent or more, and, if so, describe ingeneraltermsany suchrate or charge andthe amount oftheproposed increase.[,providednosuchcompanyshallberequiredtoprovidemore than one form of the notice to each class of its customers] The costs of providingsuchnoticeshallnotberecoverableinrates.Ifacompanyfails 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.

Until7 Public Utilities Regulatory Authority telephone number for obtaining information concerning the effectiveschedule filingfor date,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 [twenty] five per cent or more, and, if so, describe in general terms any suchrateorchargeandtheamountoftheproposedincrease.[,provided no dayssuch company shall countbe towardrequired to provide more than one form of the timenotice limitto ineach thisclass subsection.of its customers] 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.

InUntil the caseeffective offiling adate, proposedno amendmentdays to the rates of any public service company, the authority shall holdcount onetoward 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 principlestime andlimit guidelinesfor seta forthfinal indecision 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 excessthis ofsubsection. public necessity and convenience, provided the authority may (A) evaluate the reasonableness and adequacy ofthe 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) LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0007 of 24 R03-SB.docx } Substitute Bill No.

7In the case of a proposed amendment to the rates of any public service company, the authority shallholdoneormorepublichearingsthereon,exceptas permittedwith respect to interim rate amendments by subsections (d) and (g) of this section,andshallmakesuchinvestigationofsuchproposedamendment of rates as is necessary to determine whether such rates conform to the principlesandguidelinesset forthin section16-19e, 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 ofthe 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.

If the authority finds any proposed amendment of rates to not conform to the principles and guidelines set forth in section 16-19e, or toPublic beAct unreasonablyNo. discriminatory or more or less than just, reasonable andadequate toenable suchcompany to provideproperly forthepublic 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.

23-102 8 of 83 Substitute Senate Bill No.

7 to be unreasonably discriminatory or more or less than just, reasonable andadequate toenable suchcompany to provideproperly forthepublic 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.

The authority shall issue a final decision on [eacheach electric distribution or gas company] any public service company rate filing within[within] not later than three hundred fifty days from[from the [proposed]proposed] effectiveafter filingdate[thereof.Theauthorityshallissueafinaldecisiononallpublic service company rate filings,except electricdistributionor gascompany rate filings, within two hundred days from the proposed effective filing date thereof][thereof] of the proposed amendment.

(b)IfThe theauthorityauthority hasnotshall madeitsfindingissue respectinga anamendmentfinal ofdecision anyon [electricall distribution or gas] public service company rate withinfilings, 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,rate withinfilings, two[within] hundrednot dayslater fromthan thetwo proposedhundred effectiveseventy datedays of[from such amendment thereof,] such amendment may become effective pending the authority'sproposed] findingafter with respect to such amendment upon the effective filing bydate the[thereof] companyof with the LCOproposed {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0008amendment. of 24 R03-SB.docx } Substitute Bill No.

7(b)If theauthority hasnot made itsfinding respecting anamendment 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.Public Act No.

23-102 9 of 83 Substitute Senate Bill No.

7 authority.

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 LCOinterest {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0009such amounts as the company may collect from such interim rates in excess of 24the R03-SB.docxrates }approved Substituteby Billthe No.authority in accordance with subsection (a) of this section.

7The interestauthority suchshall amountsorder asa therefund company may collect from such interim rates in excessan ofPublic theAct ratesNo. approved by the authority in accordance with subsection (a) of this section.

The23-102 authority10 shall order a refund in an amount equal to the excess, if any, of the83 amountSubstitute collectedSenate pursuantBill toNo. 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.

7 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.

(f) [Any]Any No public service company, as defined in section 16-1, mayas [filing]amended fileby this act, filing an application with the Public Utilities Regulatory Authority to reopen a rate proceeding under this section.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.

[, which application proposesto increase thecompany'srevenues or any rate or charge ofthe 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.

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.]notice. LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-000010 of 24 R03-SB.docx } Substitute Bill No.

7The (g)The authority shallholdeithershall aspecialpublichearingonly orgrant combine an investigationapplication with an ongoing four-year review conducted in accordancewithsection16-19a,asamendedbythisact,orwithageneral 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] 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 [finds] provides appropriate notice that a public servicePublic companyAct mayNo. 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.

23-102 11 of 83 Substitute Senate Bill No.

7 service company to reopen a rate proceeding under this section upon a unanimous vote of the utility commissioners.

(g)The authority shallholdeither aspecialpublichearing or combine an investigation with an ongoing four-year review conducted in accordancewithsection16-19a,asamendedbythisact,orwithageneral 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 [finds] 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.

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 fixedatfixed at the conclusionofany appealtakenasaresult of any finding by the authority.

(h)Public TheAct 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 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0011 of 24 R03-SB.docx } Substitute Bill No.

723-102 section12 16-247k.of 83 Substitute Senate Bill No.

(i)7 No(h) publicThe serviceprovisions companyof maythis filesection anshall applicationnot apply to amendthe itsregulation ratesof pursuanta totelecommunications thisservice sectionwhich oris sectiona 16-19ecompetitive if,service, atas thedefined timein ofsection the16-247a, company'sor filing,to anothera publictelecommunications service companyto withwhich thean sameapproved parentplan companyfor has an applicationalternative toform amendof itsregulation ratesapplies, pendingpursuant beforeto thesection authority.16-247k.

The authority may waive this provision upon a showing of good cause or at the authority's discretion.

10.8.

The authority may convene such LCOgeneralratehearingatanintervaloflessthanfouryearsatthediscretion {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0012Public ofAct 24 R03-SB.docx } Substitute Bill No.

723-102 generalratehearingatanintervaloflessthanfouryearsatthediscretion13 of the83 authority.Substitute Senate Bill No.

7 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, as amended by this act, a gas company, electric distribution company or water company may recover reasonable and prudently incurred costs associated witha proceeding convened by theauthority 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.

11.9.

SubdivisionSubsection (4) of subsection (b) of section 16-8 of the general statutes is repealed and the following is substituted in lieu thereof (Effective fromJuly passage):1, 2023):

(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 warrantedbyareasonablyforeseeablefinancial,safetyorservicebenefit to subscribers of the company which is the subject of such an audit, and Public Act No.

23-102 14 of 83 Substitute Senate Bill No.

7 (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 thesupervision 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.Iftheaffectedcompany or personhasmore than seventy-five thousand customers, such independent management consulting firm shall be of nationally recognized stature.

All reasonable andproperexpensesoftheaudits,including,butnotlimitedto,thecosts 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 Public Act No.

23-102 15 of 83 Substitute Senate Bill No.

7 accordancewiththeprovisionsofchapter54settingforthsuchgenerally 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.

(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 proceduresastheauthority shallfindnecessary 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 Public Act No.

23-102 16 of 83 Substitute Senate Bill No.

7 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.

12.10.

Subdivision (6) of subsection (b) of section 16-8 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(6) [All reasonable and proper] No 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.

Sec.

13.

LCOSec. {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0013 of 24 R03-SB.docx } Substitute Bill No.

711. Sec.

14.

(NEW) (d) In an appeal, the Public UtilitiesAct RegulatoryNo. Authority may only stay enforcement of a civil penalty if the person appealing the order, authorization or decision that imposed the penalty provides an escrow deposit, bond or other surety equal to the total amount of the penalty.

To23-102 obtain17 a stay of enforcement83 ofSubstitute anySenate otherBill order,No. authorization or decision of the authority, the person appealing such order, authorization or decision bears the burden of demonstrating that:

7 (NEW) (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:

(2) thesuch person appealing will suffer substantial and irreparable harm absent a stay;

15.12.

(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.accident, as defined by regulations of the authority.

[, 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.

[Any person, company orPublic electricAct supplier failing to comply with the provisions of this section shall be fined not more than five hundred dollars for each offense.] LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0014 of 24 R03-SB.docx } Substitute Bill No.

723-102 (b)18 The monthly report required pursuant to subsection (a) of this83 sectionshallSubstitute incorporateSenate theinformationdescribedinBill section16-19ee,No. as amended by this act.

(c)7 Any person, company or electric supplier failing to comply with the provisions of this section shall be fined not more than onefive thousandhundred dollars for each offense.offense.] (b) Each electric distribution company shall incorporate the information described in section 16-19ee, as amended by this act, into the monthly report required pursuant to subsection (a) of this section.

A(c) violationAny of this section shall constitute a continued violation, pursuant to section 16-41, for the period from the date the person, company or electric supplier isthat requiredfails to notifycomply with the authorityprovisions of thethis accidentsection untilshall thebe datefined thenot authoritymore receivesthan suchone notificationthousand indollars writing.for each offense.

(d)A Anyviolation restitutionof orderedthe byprovisions of this section concerning the authorityreporting of accidents, except minor accidents, shall constitute a continued violation, pursuant to section 16-16-41, 41as amended by this act, for customerthe equipmentperiod from the date the person, company or customerelectric propertysupplier damagedis inrequired ato majornotify the chairperson of the authority by telephone or minorotherwise accidentof shallthe equalaccident until the replacementdate valuethe ofauthority receives such equipmentnotice orin property.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, as amended by this act, 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, as amended by this act, for customer equipment or customer propertydamagedinanaccident,includingaminoraccident,asdefined by regulations of the authority, shall equal the replacement value of such equipment or property.

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

Sec.Public Act No.

16.23-102 19 of 83 Substitute Senate Bill No.

7 Sec.

13.

Each electric distribution company shall, in its [periodic] monthly report to the Public Utilities Regulatory Authority [,] required pursuant to section16-16, asamendedby thisact,provideinformation 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.

17.14.

SubsectionSection (b)16-245d of section 16-49 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2023):

(b)(a) On(1) orThe beforePublic JulyUtilities 15,Regulatory 1999,Authority andshall, onby orregulations beforeadopted Maypursuant first,to annuallychapter LCO54, {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-000015develop ofa 24standard R03-SB.docxbilling }format Substitutethat Billenables No.customers to compare pricing policies and charges among electric suppliers.

7The thereafter,authority eachshall companyalter shallor reportrepeal itsany intrastaterelevant grossregulation revenuesin ofconjunction with the precedingimplementation calendarof yeara toredesigned thestandard Publicbilling Utilitiesformat Regulatorydescribed Authority,in which[subdivision amount(2)] shallsubdivisions be(2) subjectand to(3) auditof bythis thesubsection. authority.

ForThe eachauthority fiscalshall year,adopt eachregulations, companyin shallaccordance paywith the authorityprovisions theof company'schapter share54, ofto allprovide expensesthat ofan theelectric department'ssupplier Bureaushall ofprovide Energydirect billing and Technology,collection theservices Officefor ofelectric Consumergeneration Counsel,services theand Officerelated offederally Policymandated andcongestion Management'scharges expensesthat relatedsuch suppliers provide to thetheir dutiescustomers underor sectionsmay 16-330bchoose to obtain such billing and 16-330ccollection service through an electric distribution company and theoperationsofthePublicUtilitiesRegulatoryAuthorityforsuchfiscalpay year.its pro rata share in accordance with the provisions of subsection (f) of section 16-244c.

TheAny authoritycustomer shallof notan recognizeelectric suchsupplier, assessmentswhich asis normalchoosing operatingto costsprovide ofdirect eachbilling, companywho andpaid for the assessmentscost of billing and other services to an electric distribution company shall notreceive bea recoverablecredit throughon rates.their monthly bill.

(2) On or before SeptemberJuly first,1, annually,2014, the authority shall giveinitiate a docket to eachredesign company(A) athe statementstandard whichbilling shallformat include:for residential customers Public Act No.

(1)23-102 The20 amount appropriated to the department's Bureau of Energy83 andSubstitute Technology,Senate theBill OfficeNo. of Consumer Counsel, the Office of Policy and Management'sexpensesrelatedtothedutiesunder sections16-330band 16-330c, [and] the operations of the Public Utilities Regulatory Authority and the operations of any nonprofit agency engaged in energy assistance programs for the fiscal year beginning July first of the same year;

(2)7 implemented pursuant to subdivision (1) of this subsection to better enable such residential customers to compare pricing policies and charges among electric suppliers, and (B) the totalaccount grosssummary revenuespage of alla companies;residential customer located on the electric distribution company's Internet web site.

andThe (3)authority theshall proposedissue assessmenta againstfinal thedecision company for the fiscal year beginning on Julysuch firstdocket ofnot thelater samethan year,six adjustedmonths toafter reflectits theinitiation. estimated payment required under subdivision (1) of subsection (c) of this section.

Such proposedfinal assessmentdecision shall beinclude calculated by multiplying the company'splacement percentage share of the totalfollowing grossitems revenueson as specified in subdivision (2) of this subsection by the totalfirst revenuepage appropriated to the department'sBureauofEnergyandTechnology,theOfficeofConsumer Counsel, the Office of Policyeach andbill Management'sfor expenseseach relatedresidential tocustomer thereceiving dutieselectric undergeneration sectionsservice 16-330bfrom andan 16-330c,electric [and]supplier: the operations of the Public [Utility] Utilities Regulatory Authority and the operations of any nonprofit agency engaged in energy assistance programs, as specified in subdivision (1) of this subsection.

(i) The electric generation service rate;

(ii)thetermandexpirationdate ofsuchrate;

(iii)any change to suchrate effective for the next billing cycle;

(iv) the cancellation fee, if applicable, provided there is such a change;

(v) notification that such rate is variable, if applicable;

(vi) the standard service rate;

(vii) the term and expiration date of the standard service rate;

(viii) the dollar amount that would have been billed for the electric generation services component had the customer been receiving standard service;

and (ix) an electronic link or Internet web site address to the rate board Internet web site described in section 16-244d and the toll-free telephone number and other information necessary to enable the customer to obtain standard service.

Such final decision shall also include the feasibility of (I) an electric distribution company transferring a residential customer receiving electric generation service from an electric supplier to a different electric supplier in a timely manner and ensuring that the electricdistributioncompanyandtherelevantelectricsuppliersprovide timely information to each other to facilitate such transfer, and (II) allowing residential customers to choose how to receive information related to bill notices, including United States mail, electronic mail, text message, an application on a cellular telephone or a third-party notification service approved by the authority.

[On or before July 1, 2015, the authority shall implement, or cause to be implemented, the redesigned standard billing format and Internet web site for a customer's account summary.] On or before July 1, 2020, and every five years thereafter, the authority shall reopen such docket to ensure the Public Act No.

23-102 21 of 83 Substitute Senate Bill No.

7 standard billing format and Internet web site for a customer's account summary remains a useful tool for customers to compare pricing policies and charges among electric suppliers.

(3) Not later than August 1, 2023, each electric distribution company shall use a total of four categories as part of the standard billing format for all residential customers, one of which shall relate to charges for generation of electricity, one of which shall relate to charges for local distribution of electricity, one of which shall relate to charges for transmission of electricity, and one of which shall relate to system benefits and the subset of federally mandated congesting charges approved by the authority pursuant to any provision of the general statutes, public act or special act.

The authority shall require that each electric distribution company's standard billing format for residential customers identify each charge and the corresponding category in accordance with the authority's determinations.

The authority, in a docket reopened pursuant to subdivision (2) of this subsection, may modify the categoriesdescribed in this subdivision if the authority finds that such modification improves customer understanding of the components of the electric bill or customer understanding of what costs are causing increases to the total amount of a customer's bill.

[(3)] (4) An electric supplier that chooses to provide billing and collection services shall, in accordance with the billing format developed by the authority, include the following information in each customer's bill:

(A) The total amount owed by the customer, which shall be itemized to show (i) the electric generation services component and any additional charges imposed by the electric supplier, and (ii) federally mandated congestion charges applicable to the generation services;

(B) any unpaid amounts from previous bills, which shall be listed separately from current charges;

(C) the rate and usage for the current month and each of the previous twelve months in bar graph form or other visual format;

(D) the payment due date;

(E) the interest Public Act No.

23-102 22 of 83 Substitute Senate Bill No.

7 rateapplicabletoanyunpaidamount;(F)thetoll-freetelephonenumber of the Public Utilities Regulatory Authority for questions or complaints;

and (G) the toll-free telephone number and address of the electric supplier.

On or before October 1, 2013, the authority shall conduct a review of the costs and benefits of suppliers billing for all components of electric service, and 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 regarding the results of such review.

Any such report may be submitted electronically.

[(4)] (5) An electric distribution company shall, in accordance with the billing format developed by the authority, include the following information in each customer's bill:

(A) The total amount owed by the customer, which shall be itemized [to show, (i) the electric generation services component if the customer obtains standard service or last resortservicefromtheelectricdistributioncompany,(ii)thedistribution charge, including all applicable taxes and the systems benefits charge, as provided in section 16-245l, (iii) the transmission rate as adjusted pursuant to subsection (d) of section 16-19b, (iv) the competitive transition assessment, as provided in section 16-245g, (v) federally mandated congestion charges, and (vi) the conservation and renewable energy charge, consisting of the conservation and load management program charge, as provided in section 16-245m, and the renewable energy investment charge, as provided in section 16-245n] using the categoriesdescribed in subdivision (3)ofthissubsection;(B)any unpaid amounts from previous bills which shall be listed separately from current charges;

(C) except for customers subject to a demand charge, therateandusageforthecurrentmonthandeachoftheprevioustwelve months in the form of a bar graph or other visual form;

(D) the payment due date;

(E) the interest rate applicable to any unpaid amount;

(F) the toll-free telephone number oftheelectricdistributioncompany toreport power losses;

(G) the toll-free telephone number of the Public Utilities Regulatory Authority for questions or complaints;

and (H) if a customer Public Act No.

23-102 23 of 83 Substitute Senate Bill No.

7 has a demand of five hundred kilowatts or less during the preceding twelve months, a statement about the availability of information concerning electric suppliers pursuant to section 16-245p.

(b) An electric distribution company that provides billing services for an electric supplier shall be entitled to recover from the electric supplier all reasonable transaction costs to provide such billing services as well as a reasonable rate of return, in accordance with the principles in subsection (a) of section 16-19e.

(c) From June 3, 2014, and until one year after June 3, 2014, inclusive, each electric distribution company shall, on a quarterly basis, include the following items in a bill insert to each residential customer who obtains standard service or electric generation service from an electric supplier:

(1) The standard service rate;

(2) the term and expiration date of such rate;

(3) any change to the standard service rate not later than forty-five days before the standard service rate is effective;

and (4) before any reference to the term "standard service", the name of the electric distribution company.

(d) From June 3, 2014, and until one year after June 3, 2014, inclusive, each electric supplier shall, on a quarterly basis, include the following items in a mailing to each residential customer receiving electric generationservicefromsuchsupplier:(1)Theelectricgenerationservice rate;

(2) the term and expiration date of such rate;

(3) any change to such rate effective for the next billing cycle;

(4) the cancellation fee, if applicable, provided there is such a change;

(5) notification that such rate is variable, if applicable;

(6) the standard service rate;

(7) the term and expiration date of the standard service rate;

and (8) the dollar amount that would have been billed for the electric generation services component had the customer been receiving standard service.

(e) On and after July 1, 2015, if a residential customer is enrolled in automatic electronic bill payments and does not receive a bill through Public Act No.

23-102 24 of 83 Substitute Senate Bill No.

7 United States mail, an electric distribution company shall send such customer a link to such customer's bill in electronic mail with confirmation of bill payment.

18.15.

Subsection (d) of section 16-49 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2023):

LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0016 of 24 R03-SB.docx } Substitute Bill No.

7 (d) Immediately following the close of each fiscal year, the authority shall recalculate the proposed assessment of each company, based on the expenses, as determined by the Comptroller, of the department's Bureau of Energy and Technology, the Office of Consumer Counsel, the Office of Policy and Management's expenses related to the duties under sections 16-330b and 16-330c, [and] the operations of the Public Utilities Regulatory Authority and the operations of any nonprofit agency engaged inenergy assistance programs for suchfiscal year.Onor before September first, annually, the authority shall give to each company a statement showing the difference between its recalculated assessment and the amount previously paid by the company.

Sec.

19.

(1) "Compensation" means payment by any public service company that is a party to a proceedingproceeding, investigation or rulemaking before the Public Utilities Regulatory AuthorityAuthority, 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.

Such(2) compensation"Stakeholder shallgroup" bemeans limited(A) a group of persons designated an intervenor pursuant to notsection more4-177a thanof twothe hundredgeneral thousandstatutes dollarsor designated a participant pursuant to section 16-1-135 of the regulations of Connecticut state agencies that applies jointly for eachan stakeholderaward group,of compensation under this section and notrepresents the interests of more than sixone hundred(i) thousandresidential dollarsutility forcustomer allresiding stakeholderin groupsan environmental justice community, as defined in eachsection proceeding.22a-20a of the general statutes, (ii) residential utility customer who is a hardship case for purposes of subdivision (3) of subsection (b) of section 16-262c of the general statutes, as amended by this act, or (iii) small business customer;

(2)or "Stakeholder(B) group"anonprofitorganizationinthestateauthorizedtorepresenttheinterests meansof (A)(i) aresidential grouputility ofcustomers personsresiding designatedin an intervenorenvironmental pursuantjustice tocommunity, as defined in section 4-177a22a-20a of the general statutesstatutes, or(ii) designatedresidential autility participantcustomers pursuantwho toare sectionhardship 16-1-135cases offor thepurposes regulations of Connecticutsubdivision state(3) agenciesof thatsubsection applies(b) jointly for an award of compensation under this section and16-262c representsof the interestsgeneral ofstatutes, more than one (i) residential utility customer residing in an environmental justice community, as definedamended inby sectionthis 22a-20aact, of the general statutes, or (ii)(iii) small business customer;customers.

or"Stakeholder (B)group" adoes nonprofitnot organizationinclude inany thenonprofit stateor authorizedother toorganizationwhoseprincipalinterestsare representthewelfare theofapublicservice interestscompany ofor (i)its residentialinvestors utilityor customersemployees, residingor inthe anwelfare environmentalof justiceone community,or asmore definedbusinesses inor sectionindustries 22a-20awhich ofreceive theutility generalservice statutes,primarily orfor (ii)use smallPublic businessAct customers.No.

"Stakeholder23-102 group"25 does not include any nonprofit or other LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0017 of 2483 R03-SB.docx } Substitute Senate Bill No.

7 organizationwhoseprincipalinterestsare thewelfare ofapublicservice 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.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.

(4)"Proceeding" means acontested case, investigation,rulemaking or other formal proceeding before the authority, or alternative dispute resolution ordered by the authority.authority, pertaining to a gas company, water company, pipeline company, electric distribution company or electric supplier,assuchtermsaredefinedinsection16-1ofthegeneralstatutes, as amended by this act.

(5) "Significant financial hardship" means that a stakeholder group demonstrates that it is unable to afford to pay the costs of effectively participating inintheproceeding, the proceeding, including attorneys' fees,fees,expert expert witness fees and other reasonable costs,costs. without undue hardship.

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

(7) "Substantial contribution" means participation by a stakeholder group in a proceeding that, in the judgment of the chairman 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, legallegalcontentionsor contentions or policy or proceduralproceduralrecommendations recommendations that the stakeholder group presents.

(b) A(1) stakeholderNot grouplater whothan seeksJanuary designation15, as2024, an intervenor pursuant to section 4-177a of the generalPublic statutesUtilities orRegulatory aPublic participantAct pursuantNo. to section 16-1-135 of the regulations of Connecticut state agencies may apply for an award of compensation under this section in a proceeding.

At23-102 the26 same time or before filing its application, the stakeholder group shall serve on every party, intervenor or participant to the proceeding notice of intent83 to apply for an award of LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0018 of 24 R03-SB.docx } Substitute Senate Bill No.

7 compensation.Authority shall establish a program to award compensation to eligible stakeholder groups in proceedings of the authority.

TheSuch authoritycompensation shall determinebe appropriatelimited procedures for accepting and responding to suchnot applications,more andthan mayone requirehundred thatthousand applicantsdollars attendfor educationaleach trainingsstakeholder sponsoredgroup, ornot recommendedmore bythan theauthoritythree asahundred conditionofreceivingthousand anawardofcompensation.Anydollars suchfor trainingsall shallstakeholder begroups designedin toan supporteligible publicproceeding participation and publicnot understandingmore ofthan authorityone decisionsmillion andtwo rulings,hundred andthousand generaldollars educationtotal and awareness regarding public service company regulation and operations, and shall include resources for theall publicstakeholder thatgroups explainin theeach rolecalendar andyear. function of the authority and the Office of Consumer Counsel.

In(2) its(A) performanceNot oflater dutiesthan pursuantMarch to15, this2026, subsection, the authority mayshall retainissue consultantsa torequest providefor trainingproposals into areasretain ina whichconsultant staffwith expertiseprogram doesevaluation notexperience currently exist or when necessary to supplementconduct existingan staffindependent expertise,evaluation andof may incur other reasonable costs, provided the totalprogram costsestablished incurredpursuant byto thesubdivision authority(1) underof this subsectionsubsection, doincluding notits exceedperformance, oneimpact millionand dollarseffectiveness. per year.

(c)The Anauthority application shall include:determine the criteria for evaluating proposals and the deadline for responding to the request for proposals.

(1)(B) ANot statementlater ofthan theJuly nature15, and2026, extent and the factualauthority andshall legalevaluate basis of the stakeholder'sbids plannedsubmitted participation,and toselect the extentbidder itthat isshall possibleconduct to describe such participation with reasonable specificity at the timestudy. the application is filed.

(2)A(C) detaileddescriptionofanticipatedattorneys'Not andexpertwitnesslater feesthan andJanuary other15, costs2027, the chairperson of preparationthe forauthority andshall participationreport, in accordance with the proceeding.provisions of section 11-4a of the general statutes, 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.

(3)The Ifreport 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 includeinclude, evidencebut ofneed significantnot financialbe hardshiplimited into: its application.

(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 Public Act No.

23-102 27 of 83 Substitute Senate Bill No.

7 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 of the general statutes 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 Public Act No.

23-102 28 of 83 Substitute Senate Bill No.

7 possible to describe such participation with reasonable specificity at the time the application is filed.

(2)Adetailedbudgetofanticipatedattorneys'andexpertwitnessfees 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.

(d)(e) (1) Not later than thirty days after receiving a stakeholder group's application, the authority shall decide if the stakeholder group's LCOparticipationconstitutesa {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0019substantial ofcontribution.Iftheauthorityfinds 24that R03-SB.docxsuch }participation Substituteis Billa No.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.

7(2) participationconstitutesasubstantialcontribution.IftheauthorityfindsNotwithstanding subsection (f) of this section, if the authority finds that suchthe participationstakeholder isgroup ahas substantialsignificant contribution,financial hardship, the authority shallmay describedirect thisthe substantialpublic contributionservice andcompany determineor companies subject to the amountproceeding to pay all or part of compensationthe pursuantexpected compensation, as determined by the authority, to subdivisionthe (2)stakeholder group before the end of thisthe subsection.proceeding.

(2)If Notwithstanding subsection (e) of this section, if the authority finds that the stakeholder group hasdiscontinues significantits financialparticipation hardship,in the authorityproceeding maywithout direct the publicconsent serviceof companythe orauthority, companies subject to the proceedingauthority toshall payrecover all or part of theany expectedpayments compensation,made asto determinedsuch bystakeholder theand authority,refund such payments to the stakeholderpublic groupservice beforecompany theor endcompanies ofthat made the proceeding.payments.

If(3) theAny stakeholderdetermination groupby discontinues its participation in the proceedingauthority withoutto thedirect consentpayment of the authority, the authority may recover all or part of anya payments made to such stakeholder andgroup's refundexpected suchcompensation paymentsbefore to the publicend serviceof companyPublic orAct companiesNo. that made the payments.

(3)23-102 The29 calculation of compensation83 pursuantSubstitute toSenate subdivisionBill (2)No. 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.

7 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.

(e)(f) Any compensation shall be paid at the conclusion of the LCOproceeding {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0020by ofthe 24public R03-SB.docxservice }company, Substitutein Billa No.manner determined by the authority.

7 proceeding by the public service company, in a manner determined by the authority.

(f)(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 of the general statutes concerning the Office of Consumer Counsel.

20.16.

(NEW) (Effective from passage) TheNot Publiclater Utilitiesthan RegulatoryFebruary Authority1, shall2024, study the procurementPublic processes,Act policies,No. procedures and timelines associated with the procurement of standard service and supplier of last resort service and shall submit a report on its findings and recommendations to the joint standing committee of the General Assembly having cognizance of matters relating to energy, in accordance with the provisions of section 11-4a of the general statutes.

23-102 30 of 83 Substitute Senate Bill No.

7 Public Utilities Regulatory Authority shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to energy concerning the procurement processes, policies, procedures and timelines associated with the procurement ofstandardservice andsupplier oflast resort service.

Such study shall include, but need not be limited to:

(1) Reviewing electric distribution companies' procurement policies for standard service;

(2) reviewing the procedures used by municipal electric utilities to procure electric generation services and identifying practices that could be adopted by electric distribution companies to lower rates for ratepayers in the state;

(3) reviewing the procurement practices of electric distribution companies in other deregulated states and identifying practices that could result in lower rates for ratepayers in the state;

and (4) reviewing the economic and policy achievement relationship between environmental attributes purchased by the electric distribution companies through the grid-scale procurements and distributed generation programs, and compliance with the renewable portfolio standards.

21.17.

(2)Public "ElectricAct distributionNo. company" has the same meaning as provided in section 16-1;

and23-102 (3)31 "After the occurrence of an83 emergency"Substitute meansSenate theBill conclusionNo. of the emergency, as determined by the authority in its sole discretion, through a review of the following:

(A)7 The(2) time"Electric whendistribution company" has the electricsame LCOmeaning {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0021as ofprovided 24in R03-SB.docxsection }16-1, Substituteas Billamended No.by this act;

7and distribution(3) company"After couldthe firstoccurrence deployof resourcesan safelyemergency" means the conclusion of the emergency, as determined by the authority in its servicediscretion, territory;through a review of the following:

(B)(A) The time when the firstelectric ofdistribution anycompany officialcould declarationsfirst concerningdeploy theresources endsafely ofin theits emergency;service territory;

(B) thefirstofanyofficialdeclarationsconcerningtheendoftheemergency;

22.18.

(d) Not later than fourteen calendar days after the occurrence of an emergency, an electric distribution company may petition the authority forforawaiveroftherequirementsofthissection.Anypetitionforawaiver amade waiverunder of the requirements of this section,subsection provided the authority shall notinclude grantthe aseverity waiverof forthe anyemergency, emergency[employee] thatline resultsand inrestoration lesscrew thansafety tenissues perand centconditions ofon the electricground, distributionand company'sshall customersbe experiencingconducted anas outagea atcontested thecase periodproceeding. of peak electrical demand.

AnyThe petitionburden forof aproving that such waiver madeis underreasonable thisand subsectionwarranted shall includebeontheelectricdistributioncompany.Indeterminingwhethertogrant such waiver, the severityauthority ofshall consider whether the emergency,electric [employee]distribution linecompany andreceived restorationapproval crewand safetyreasonable issuesfunding andallowances, conditionsas ondetermined by the ground,authority, andto shallmeet beinfrastructure conductedresiliency asefforts ato contestedimprove casesuch proceeding.company's performance.

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.

23.19.

Subsection (a) of section 16-32m of the general statutes is repealed andthefollowing issubstituted inlieuthereof(EffectiveOctoberinlieu thereof(EffectiveOctober 1, 2023):

[, "emergency" has the same meaning as provided in subdivision (1) of subsection (a) of section 16- 32ePublic andAct "electric distribution company"] (1) "Emergency" means any hurricane, tornado, storm, flood, high water, wind-driven water, tidal wave, earthquake, landslide, mudslide, LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0022 of 24 R03-SB.docx } Substitute Bill No.

723-102 snowstorm,32 drought or fire explosion that results in sixty-nine per cent or less of the83 electricSubstitute distributionSenate company'sBill customersNo. experiencing an outage at the period of peak electrical demand;

(2)7 "Electric32e and "electric distribution company"company"] has(1) the"Emergency" samemeans meaningany ashurricane, providedtornado, storm, flood, high water, wind-driven water, tidal wave, earthquake, landslide, mudslide, snowstorm, drought or fire explosion that results in sectionsixty-nine 16-1;per cent or less of the electric distribution company's customers experiencing an outage at the period of peak electrical demand;

and(2) (3)"Electric "Afterdistribution thecompany" occurrencehas of an emergency" means the conclusionsame ofmeaning the emergency, as determinedprovided by the authority in itssection sole16-1, discretion,as throughamended aby reviewthis ofact; the following:

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:

(B) thethefirstofanyofficialdeclarationsconcerningtheendoftheemergency; first of any official declarations concerning the end of the emergency;

24.20.

(d) Not later than fourteen calendar days after the occurrence of an emergency, an electric distribution company may petition the authority forforawaiveroftherequirementsofthissection.Anypetitionforawaiver amade waiverunder of the requirements of this section,subsection provided the authority shall notinclude grantthe aseverity waiverof forthe anyemergency, emergency[employee] thatline resultsand inrestoration lesscrew thansafety tenissues perand centconditions ofon the electricground, distributionand company'sshall customersbe experiencingconducted anas outagea atcontested thecase periodproceeding. of peak electrical demand.

AnyThe petitionburden forof aproving that such waiver madeis underreasonable thisand subsectionwarranted shall includebeontheelectricdistributioncompany.Indeterminingwhethertogrant thesuch severitywaiver, of the emergency,authority [employee]shall lineconsider andwhether restorationthe crewelectric safetydistribution issuescompany received approval and conditionsreasonable onfunding theallowances, ground,as anddetermined shallby bethe conductedauthority, asto ameet contestedinfrastructure casePublic proceeding.Act No.

The23-102 burden33 of proving83 thatSubstitute suchSenate waiverBill isNo. reasonable and warranted shall be on the electric distribution company.

In7 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.

LCOSec. {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-0023 of 24 R03-SB.docx } Substitute Bill No.

721. This act shall take effect as follows and shall amend the following sections:

Section 116-2 Octoberof 1,the 2023general 16-19tt(b)statutes Sec.is repealed and the following is substituted in lieu thereof (Effective from passage):

2(a) fromThere passageshall 16-243p(b)continue Sec.to be a Public Utilities Regulatory Authority within the Department of Energy and Environmental Protection, which shall consist of five [electors of this state] utility commissioners, appointed by the Governor with the advice and consent of both houses of the General Assembly.

3Not frommore passagethan Newthree section[members] Sec.utility commissioners of said authority in office at any one time shall be members of any one political party.

4[The fromGovernor passageshall 16-19jjappoint Sec.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.

5Any fromutility passagecommissioner 16-19b(c)appointed Sec.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.

6Any fromutility passagecommissioner 16-19yyappointed Sec.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.

7[Between fromJuly passage1, New2019, sectionand Sec.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.

8All fromutility passagecommissioners 16-19gg(b)shall Sec.be electors of the state.

9The fromutility passagecommissioners 16-19shall Sec.be sworn to the faithful performance of their duties.

10(b) [The authority shall elect] 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 passageamong 16-19a(a)the Sec.utility commissioners.

11The fromchairperson passageshall 16-8(b)(4)serve Sec.a Public Act No.

1223-102 from34 passageof 16-8(b)(6)83 Sec.Substitute Senate Bill No.

137 fromtwo-year passageterm 16-19bbstarting Sec.on July first of the same year.

14Each June, the utility commissioners shall choose, from passageamong 16-35(d)said Sec.commissioners, a [chairperson and] vice-chairperson, [each June] who shall serve for a one-year [terms] term starting on July first of the same year.

15The fromvice- passagechairperson 16-16shall Sec.perform the duties of the chairperson in his or her absence.

16(c) fromAny passagematter 16-19eecoming Sec.before the authority may be assigned by the chairperson to [a panel of three] one or more utility commissioners.

17Except Julyas 1,otherwise 2023provided 16-49(b)by Sec.statute or regulation, [the panel] any such utility commissioner or commissioners, as applicable, shall determine whether a public hearing shall be held on the matter, and may designate oneor more [of its members] utility commissioners, from among such utility commissioner or commissioners, as applicable, assigned to such matter pursuant to this subsection, to conduct such hearing or may assign a hearing officer to ascertain the facts and report thereon to [the panel] such utility commissioner or commissioners, as applicable, assigned to such matter.

18The Julydecision 1,of 2023[the 16-49(d)panel, Sec.if unanimous,] such utility commissioner or commissioners, as applicable, shallbethedecisionof theauthority.Inanycontestedproceedingbefore the authority assigned to one or more utility commissioners, whenever such utility commissioner or commissioners, as applicable, issue a proposed final decision, all utility commissioners shall vote on the decision of the authority in such matter.

19If fromthe passagedecision Newof section[the Sec.panel] such commissioners is not unanimous, the matter shall be approved by a majority vote of all of the utility commissioners.

20(d) fromThe passageutility Newcommissioners 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 Sec.1-83.

21Each Octoberutility 1,commissioner 2023shall 16-32l(a)receive Sec.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 Public Act No.

2223-102 October35 1,of 202383 16-32l(d)Substitute Sec.Senate Bill No.

237 Octobershall 1,receive 2023annually 16-32m(a)a Sec.salary equal to that established for management pay plan salary group seventy-seven.

24(e) To insure the highest standard of public utility regulation, on and after October 1, 20232007, 16-32m(d)any ETnewly Jointappointed Favorableutility Subst.commissioner of the authority shall have education or training and three or more years of experience in one or more of the following fields:

APPEconomics, Jointengineering, Favorablelaw, LCOaccounting, {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-00007-finance, 24utility ofregulation, 24public R03-SB.docxor }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 establishedpursuant to subdivision(1)ofthissubsection,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] Public Act No.

23-102 36 of 83 Substitute Senate Bill No.

7 utility commissioners 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 theDepartment 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 Protectionassignedtoworkwiththeauthority,duringsuchassignment, 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 Public Act No.

23-102 37 of 83 Substitute Senate Bill No.

7 or her official duties.

(i) No utility commissioner of the Public Utilities Regulatory Authority or employee of the Department of Energy and Environmental Protectionassignedtoworkwiththeauthority,duringsuchassignment, shall wilfully and knowingly disclose, for pecuniary gain, to any other person, confidential information acquired by him or her in the course of andby reasonofhisorher officialdutiesoremployment or use anysuch 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 Protectionassignedtoworkwiththeauthority,duringsuchassignment, shallagreetoaccept,orbeinpartnershiporassociationwithanyperson, 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 Public Act No.

23-102 38 of 83 Substitute Senate Bill No.

7 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] assigned a matter pursuant to subsection (c) of this section may confer or communicate regarding the matter before such [panel] commissioners.

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.

Sec.

22.

Section 16-4 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

No officer, employee, attorney or agent of any public service company, of any certified telecommunications provider or of any electric supplier shall be a [member] utility commissioner of the Public Utilities Regulatory Authority or an employee of the Department of Energy and Environmental Protection.

Sec.

23.

Section 16-2c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

Public Act No.

23-102 39 of 83 Substitute Senate Bill No.

7 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, as amended by this act.

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.

[A panel of one] One or more utility commissioners may assign a hearing officer pursuant to section 16-2, as amended by this act, and the chairperson of the Public Utilities Regulatory Authority may assign such other staff as are necessary to advise said chairperson.

Sec.

24.

(NEW) (Effective October 1, 2023) At the next general rate proceeding of each gas company and water company, as such terms are defined in section 16-1 of the general statutes, as amended by this act, with more than seventy-five thousand customers commencing on or after October 1, 2023, and conducted pursuant to section 16-19 of the general statutes, as amended by this act, 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 thissectioninageneralrate proceeding shallapply only to the rate plan that is the subject of such proceeding.

Sec.

25.

Section 16-244z of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2023):

(a) (1) (A) On or before September 1, 2018, the Public Utilities Regulatory Authority shall initiate a proceeding to establish a procurement plan for each electric distribution company pursuant to this subsection and may give a preference to technologies manufactured, researched or developed in the state, provided such procurement planisconsistent withand contributesto therequirements to reduce greenhouse gas emissions in accordance with section 22a- 200a.

Each electric distribution company shall develop such Public Act No.

23-102 40 of 83 Substitute Senate Bill No.

7 procurement plan in consultation with the Department of Energy and Environmental Protection and shall submit such procurement plan to the authority not later than sixty days after the authority initiates the proceeding pursuant to this subdivision, provided the department shall submit the program requirements pursuant to subparagraph (C) of this subdivision on or before July 1, 2019.

The authority may require such electric distribution companies to conduct separate solicitations pursuant to subdivision (4) of this subsection for the resources in subparagraphs (A), (B) and (C) of said subdivision, including separate solicitations based upon the size of such resources to allow for a diversity of selected projects.

(B) On or before September 1, 2018, the authority shall initiate a proceeding to establish tariffs that provide for twenty-year terms of service described in subdivision (3) of this subsection for each electric distribution company pursuant to subparagraphs (A) and (B) of subdivision (2)ofthissubsection.In suchproceeding,theauthorityshall establish the period of time that will be used for calculating the net amount of energy produced by a facility and not consumed, provided the authority shall assess whether to incorporate time-of-use rates or other dynamic pricing and such period of time shall be either (i) in real time, (ii) in one day, (iii) in any fraction of a day not to exceed one day, or (iv) in any period of time greater than one day up to and including one month.

In such proceeding, the authority shall consider the findings of the study of the value of distributed energy resources conducted pursuant to section 16a-3o.

The rate for such tariffs shall be established by the solicitation pursuant to subdivision (2) of this subsection.

(C) On or before September 1, 2018, the Department of Energy and Environmental Protection shall (i) initiate a proceeding to develop program requirements and tariff proposals for shared clean energy facilities eligible pursuant to subparagraph (C) of subdivision (2) of this subsection, including, but not limited to, the requirements in Public Act No.

23-102 41 of 83 Substitute Senate Bill No.

7 subdivision (6) of this subsection, and (ii) establish either or both of the following tariff proposals:

(I) A tariff proposal that includes a price cap on a cents-per-kilowatt-hour basis for any procurement for such resources based on the procurement results of any other procurement issuedpursuant tothissubsection,and(II)atariffproposalthatincludes a tariff rate for customers eligible under subparagraph (C) of subdivision(2)ofthissubsectionbasedonenergypolicygoalsidentified by the department in the Comprehensive Energy Strategy pursuant to section 16a-3d.

On or before July 1, 2019, the department shall submit any such program requirements and tariff proposals to the authority for review and approval.

On or before January 1, 2020, the authority shall approve or modify such program requirements and tariff proposals submitted by the department.

If the authority approves two tariff proposals pursuant to this subparagraph, the authority shall determine how much of the total compensation authorized for customers eligible under this subparagraph pursuant to subparagraph (A) of subdivision (1) of subsection (c) of this section shall be available under each tariff.

(2) [Not later than July 1, 2022, and annually thereafter] Not less than once per year, each electric distribution company shall jointly or individually solicit and file with the Public Utilities Regulatory Authority for its approval one or more projects selected resulting from any procurement issued pursuant to subdivision (1) of this subsection that are consistent with the tariffs approved by the authority pursuant to subparagraphs (B) and (C) of subdivision (1) of this subsection and that areapplicable to (A)customersthatownor developnewgeneration projects on a customer's own premises that are less than five megawatts in size, serve the distribution system of [the] an electric distribution company, are constructed after the solicitation conducted pursuant to subdivision (4) of this subsection to which the customer is responding, and use a Class I renewable energy source that either (i) uses anaerobic digestion, or (ii) has emissions of no more than 0.07 pounds per megawatt-hour of nitrogen oxides, 0.10 pounds per megawatt-hour of Public Act No.

23-102 42 of 83 Substitute Senate Bill No.

7 carbon monoxide, 0.02 pounds per megawatt-hour of volatile organic compounds and one grain per one hundred standard cubic feet, (B) customers that own or develop new generation projects on a customer's own premises that are less than five megawatts in size, serve the distribution system of [the] an electric distribution company, are constructed after the solicitation conducted pursuant to subdivision (4) of this subsection to which the customer is responding, and use a Class I renewable energy source that emits no pollutants, and (C) customers that own or develop new generation projects that are a shared clean energy facility, consistent with the program requirements developed pursuant to subparagraph (C) of subdivision (1) of this subsection.

For purposes of this section, "shared clean energy facility" means a Class I renewable energy source, as defined in section 16-1, as amended by this act, that (i) is served by an electric distribution company, as defined in section 16-1, as amended by this act, (ii) [is within the same electric distribution company service territory as the individual billing meters for subscriptions, (iii)] has a nameplate capacity rating of five megawatts or less, and [(iv)] (iii) has at least two subscribers.

Any project that is eligible pursuant to subparagraph (C) of this subdivision shall not be eligible pursuant to subparagraph (A) or (B) of this subdivision.

(3) A customer that is eligible pursuant to subparagraph (A) or (B) of subdivision (2) of this subsection may elect in any such solicitation to utilize either (A) a tariff for the purchase of all energy and renewable energy certificates on a cents-per-kilowatt-hour basis, or (B) a tariff for the purchase of any energy produced by a facility and not consumed in the period of time established by the authority pursuant to subparagraph (B) of subdivision (1) of this subsection and all renewable energy certificates generated by such facility on a cents-per-kilowatt- hour basis, subject to any tariff terms, conditions or other stipulations of the authority, including, but not limited to, stipulations regarding the capacity rights of a given facility.

Public Act No.

23-102 43 of 83 Substitute Senate Bill No.

7 (4) Each electric distribution company shall jointly or individually conduct an annual solicitation or solicitations, as determined by the authority, for the purchase of energy and renewable energy certificates produced by eligible generation projects under this subsection over the duration of each applicable tariff.

Generation projects eligible pursuant to subparagraphs (A) and (B) of subdivision (2) of this subsection shall be sized so as not to exceed the load at the customer's individual electric meter or a set of electric meters, when such meters are combined for billing purposes, [from the electric distribution company providing service to such customer, as determined by such electric distribution company] as determined by the authority, unless such customer is a state, municipal or agricultural customer, then such generation project shall be sized so as not to exceed the load at such customer's individual electric meter or a set of electric meters at the same customer premises, when such meters are combined for billing purposes, and the load of up to five state, municipal or agricultural beneficial accounts, as defined in section 16-244u, identified by such state, municipal or agricultural customer, and such state, municipal or agricultural customer may include the load of upto five additional nonstate or municipal beneficial accounts, as defined in section 16-244u, when sizing such generation project, provided such accounts are critical facilities, as defined in subdivision (2) of subsection (a) of section 16-243y, and are connected to a microgrid.

(5) The maximum selected purchase price of energy and renewable energy certificates on a cents-per-kilowatt-hour basis in any given solicitation shall not exceed such maximum selected purchase price for the same resources in the prior year's solicitation, unless the authority makes a determination that there are changed circumstances in any given year.

For the first year solicitation issued pursuant to this subsection, the authority shall establish a cap for the selected purchase price for energy and renewable energy certificates on a cents-per- kilowatt-hour basis for any resources authorized under this subsection.

Public Act No.

23-102 44 of 83 Substitute Senate Bill No.

7 (6) The program requirements for shared clean energy facilities developed pursuant to subparagraph (C) of subdivision (1) of this subsection shall include, but not be limited to, the following:

(A) The department shall allow cost-effective projects of various nameplate capacities that may allow for the construction of multiple projects in the service area of each electric distribution company that operates within the state.

(B) The department shall determine the billing credit for any subscriber of a shared clean energy facility that may be issued through the electric distribution companies' monthly billing systems, and establish consumer protections for subscribers and potential subscribers of such a facility, including, but not limited to, disclosures to be made when selling or reselling a subscription.

(C) Such program shall utilize one or more tariff mechanisms with theelectricdistributioncompaniesforatermnottoexceedtwentyyears, subject to approval by the Public Utilities Regulatory Authority, to pay for the purchase of any energy products and renewable energy certificates produced by any eligible shared clean energy facility, or to deliver any billing credit of any such facility.

(D) The department shall limit subscribers to (i) low-income customers, (ii) moderate-income customers, (iii) small business customers, (iv) state or municipal customers, (v) commercial customers, and(vi)residentialcustomerswho candemonstrate, pursuant to criteria determined by the department in the program requirements recommended by the department and approved by the authority, that they are unable to utilize the tariffs offered pursuant to subsection (b) of this section.

(E) The department shall require that (i) not less than twenty per cent of the total capacity of each shared clean energy facility is sold, given or Public Act No.

23-102 45 of 83 Substitute Senate Bill No.

7 provided to low-income customers, and (ii) not less than sixty per cent of the total capacity of each shared clean energy facility is sold, given or provided to low-income customers, moderate-income customers or low-income service organizations.

The authority may modify such shared clean energy facility capacity requirements for the limited purpose of aligning the allocation of shared clean energy facility capacity with the requirements of any federal acts providing renewable energy incentives.

(F) The department may allow preferences to projects that serve low- income customers and shared clean energy facilities that benefit customers who reside in environmental justice communities.

(G) The department may create incentives or other financing mechanisms to encourage participation by low-income customers.

(H) The department may require that not more than [fifty] forty per cent of the total capacity of each shared clean energy facility is sold to commercial customers.

(7) For purposes of this subsection:

(A) "Environmental justice community" has the same meaning as provided in subsection (a) of section 22a-20a;

(B) "Low-income customer" means an in-state retail end user of an electric distribution company (i) whose income does not exceed sixty per cent of the state median income, adjusted for family size, or (ii) that is an affordable housing facility.

The authority may modify such definition for the limited purpose of aligning such definition with the requirementsofanyfederalactsprovidingrenewableenergyincentives;

(C) "Low-income service organization" means a for-profit or nonprofitorganizationthatprovidesserviceorassistancetolow-income individuals;

Public Act No.

23-102 46 of 83 Substitute Senate Bill No.

7 (D) "Moderate-income customer" means an in-state retail end user of anelectricdistributioncompany whoseincome isbetween sixtyper cent and one hundred per cent of the [area] state median income, [as defined by the United States Department of Housing and Urban Development,] adjusted for family size.

The authority may modify such definition for the limited purpose of aligning such definition with the requirements of any federal acts providing renewable energy incentives.

(b) (1) On or before July 1, 2020, the authority shall initiate a proceeding to establish (A) tariffs for each electric distribution company pursuant to subdivision (2) of this subsection, (B) a rate for such tariffs, which may be based upon the results of one or more competitive solicitations issued pursuant to subsection (a) of this section, or on the average cost of installing the generation project and a reasonable rate of return that is just, reasonable and adequate, as determined by the authority, and shall be guided by the Comprehensive Energy Strategy prepared pursuant to section 16a-3d, and (C) the period of time that will be used for calculating the net amount of energy produced by a facility and not consumed, provided the authority shall assess whether to incorporate time-of-use rates or other dynamic pricing and such period of time shall be either (i) in real time, (ii) in one day, (iii) in any fraction of a day not to exceed one day, or (iv) in any period of time greater than one day up to and including one month.

In such proceeding, the authority shall consider the findings of the study of the value of distributed energy resources conducted pursuant to section 16a-3o.

The authorityshallissuea finaldecisioninsuchproceeding onor before July 1, 2021.

The authority may modify such rate for new customers under this subsection based on changed circumstances and may establish an interim tariff rate prior to the expiration of the residential solar investment program pursuant to subsection (b) of section 16-245ff as an alternative to such program, provided any residential customer utilizing a tariff pursuant to this subsection at such customer's electric meter shall not be eligible for any incentives offered pursuant to section Public Act No.

23-102 47 of 83 Substitute Senate Bill No.

7 16-245ff at the same such electric meter and any residential customer utilizing any incentives offered pursuant to section 16-245ff at such customer's electric meter shall not be eligible for a tariff pursuant to this subsection at the same such electric meter.

(2) On and after January 1, 2022, each electric distribution company shall offer the following options to residential customers for the purchase of products generated from a Class I renewable energy source that is located on a customer's own premises and has a nameplate capacity rating of twenty-five kilowatts or less for a term not to exceed twenty years:

(A) A tariff for the purchase of all energy and renewable energy certificates on a cents-per-kilowatt-hour basis;

and (B) a tariff for the purchase of any energy produced and not consumed in the period of time established by the authority pursuant to subparagraph (C) of subdivision (1) of this subsection and all renewable energy certificates generated by such facility on a cents-per-kilowatt-hour basis, subject to any tariff terms, conditions or other stipulations of the authority, including, but not limited to, stipulations regarding the capacity rights of a given facility.

A residential customer shall select either option authorized pursuant to subparagraph (A) or (B) of this subdivision, consistent with the requirements of this section.

Such generation projects shall be sized so as not to exceed the load at the customer's individual electric meter or, in the case of a multifamily dwelling that qualifies under this subsection, the load of the premises, from the electric distribution company providing service to such customer, pursuant to any rules established by the authority and as determined by such electric distribution company.

For purposes of this section, "residential customer" means a customer of a single-family dwelling, a multifamily dwelling consisting of two to four units, or a multifamily dwelling consisting of five or more units, provided in the case of a multifamily dwelling consisting of five or more units, (i) not less than sixty per cent of the units of the multifamily dwelling are occupied by persons and families with income that is not more than sixty per cent of Public Act No.

23-102 48 of 83 Substitute Senate Bill No.

7 the area median income for the municipality in which it is located, as determined by the United States Department of Housing and Urban Development, or (ii) such multifamily dwelling is determined to be affordable housing by the Public Utilities Regulatory Authority in consultation with the Department of Energy and Environmental Protection, Department of Housing, Connecticut Green Bank, Connecticut Housing Finance Authority and United States Department of Housing and Urban Development.

In the case of a multifamily dwelling consisting of five or more units, a generation project shall only qualify under this subsection if:

(I) Each of the dwelling units receives an appropriate share of the benefits from the generation project, and (II) no greater than an appropriate share of the benefits from the generation project is used to offset common area usage.

The Public Utilities Regulatory Authority shall initiate an uncontested proceeding to implement the distribution of the benefits from the generation project pursuant to this section.

(c) (1) (A) The aggregate total megawatts available to all customers utilizing a procurement and tariff offered by electric distribution companies pursuant to subsection (a) of this section shall be up to eighty-five megawatts in year one and increase by up to an additional one hundred sixty megawatts per year [in each of the years two through six of such a tariff] on and after January 1, 2023, provided the total megawatts available to customers eligible under subparagraph (A) of subdivision (2) of subsection (a) of this section shall not exceed ten megawatts per year, the total megawatts available to customers eligible under subparagraph (B) of subdivision (2) of subsection (a) of this section shall not exceed one hundred megawatts per year and the total megawatts available to customers eligible under subparagraph (C) of subdivision (2) of subsection (a) of this section shall not exceed fifty megawatts per year.

The authority shall monitor the competitiveness of any procurements authorized pursuant to subsection (a) of this section and may adjust the annual purchase amount established in this Public Act No.

23-102 49 of 83 Substitute Senate Bill No.

7 subsection or other procurement parameters to maintain competitiveness.

Any megawatts not allocated in any given year shall roll into the next year's available megawatts.

The obligation to purchase energy and renewable energy certificates shall be apportioned [to electric distribution companies based on their respective distribution system loads,] as determined by the authority.

(B) The electric distribution companies shall offer any tariffs developed pursuant to subsection (b) of this section for six years.

At the end of the tariff term pursuant to subparagraph (B) of subdivision (2) of subsection (b) of this section, residential customers that elected the option pursuant to said subparagraph shall be credited all cents-per- kilowatt-hour charges pursuant to the tariff rate for such customer for energy produced by the Class I renewable energy source against any energy that is consumed in real time by such residential customer.

(C) The authority shall establish tariffs for the purchase of energy on a cents-per-kilowatt-hour basis at the expiration of any tariff terms authorized pursuant to this section.

(2) [At the beginning of year six of the procurements authorized pursuant to this subsection, the] The department, in consultation with theauthority, shallassessthetariffofferingspursuant tothissectionand determine if such offerings are competitive compared to the cost of the technologies [.

The department] and shall report, in accordance with section 11-4a, the results of such determination to the General Assembly not later than January 15, 2027.

(3) For any tariff established pursuant to this section, the authority shall examine how to incorporate the following energy system benefits into the rate established for any such tariff:

(A) Energy storage systems that provide electric distribution benefits, (B) location of a facility on the distribution system, (C) time-of-use rates or other dynamic pricing, and (D)otherenergypolicybenefitsidentifiedintheComprehensiveEnergy Public Act No.

23-102 50 of 83 Substitute Senate Bill No.

7 Strategy prepared pursuant to section 16a-3d.

(d) In accordance with subsection (h) of section 16-245a, the authority shall determine which of the following two options is in the best interest of ratepayers and shall direct each electric distribution company to either (1) retire the renewable energy certificates it purchases pursuant to subsections (a) and (b) of this section on behalf of all ratepayers to satisfy the obligations of all electric suppliers and electric distribution companies providing standard service or supplier of last resort service pursuanttosection16-245a,or(2)sellsuchrenewableenergycertificates into the New England Power Pool Generation information system renewable energy credit market.

The authority shall establish proceduresfortheretirement ofsuchrenewableenergy certificates.Any net revenues from the sale of products purchased in accordance with thissectionshallbecreditedtocustomersthroughanonbypassablefully reconciling component of electric rates for all customers of the electric distribution company.

(e) The costs prudently and reasonably incurred by an electric distribution company pursuant to this section shall be recovered on a timely basis through a nonbypassable fully reconciling component of electric rates for all customers of the electric distribution company.

Any net revenues from the sale of products purchased in accordance with any tariff offered pursuant to this section shall be credited to customers through the same fully reconciling rate component for all customers of such electric distribution company.

(f) Notwithstanding the size-to-load provisions of subdivision (4) of subsection (a) of this section, the entire rooftop space of a customer's own premises developed pursuant to subparagraph (B) of subdivision (1) of subsection (a) of this section and owned by a commercial or industrial customer may be used for purposes of electricity generation and participation in the solicitation conducted by each electric distribution company pursuant to subdivision (4) of subsection (a) of Public Act No.

23-102 51 of 83 Substitute Senate Bill No.

7 this section.

(g) State, municipal and agricultural customers shall be exempt from the requirement that generation projects owned or developed pursuant to subparagraph (A) or (B) of subdivision (2) of subsection (a) of this section be located on a customer's own premises.

Sec.

26.

Section 16-258e of the general statutes is amended by adding subsection (c) as follows (Effective from passage):

(NEW)(c)Anythermalenergydistributioncompanythathasentered into a power purchase agreement approved by the Public Utilities Regulatory Authority pursuant to this section may elect to extend the timeframes established in such agreement for the completion of significant milestones, as specified in such agreement, in the development of a combined heat and power system pursuant to such agreement.

Such company may elect to extend all such timeframes for milestones that such company has not already completed by not more than two six-month periods.

Any such extension shall be in addition to extensions specified in such agreement.

For each six-month extension that such company elects to use pursuant to this subsection, such company shall post additional security as specified in such agreement.

Sec.

27.

Subsection (a) of section 16-41 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(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 itsofficers, agents and employees, (4) person, public agency or public utility, as such terms Public Act No.

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7 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, as amended by this act, or 16-247k or within thirty days ofsuch 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 Public Act No.

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7 the authority.