2019 Connecticut General Statutes
Title 16 - Public Service Companies
Chapter 277 - Department of Energy and Environmental Protection. Public Utilities Regulatory Authority. Office of Consumer Counsel. Miscellaneous Provisions
Section 16-19hh - Implementation of flexible pricing and rates. Special contracts for electric service. Exemption from competitive transition assessment. Regulations. Gas rates for certain manufacturers.
(a) In order to encourage economic development and maintain the state’s manufacturing base, the authority shall: (1) Continue to implement flexible pricing when it determines that such pricing is appropriate; (2) require each water and gas company, as defined in section 16-1, which serves manufacturing customers and has not yet done so, to propose, in its first application for an amendment of rates filed pursuant to section 16-19 on or after October 1, 1993, flexible and innovative rates which promote manufacturing, which rates may include, but not be limited to, economic development, business retention, competitive energy, interruptible, conservation and time of use rates; and (3) require each water and gas company, as defined in said section 16-1, to support and promote the Connecticut manufacturing program for energy technology.
(b) Notwithstanding the provisions of subsection (a) of this section, an electric distribution company that (1) renegotiates, extends or renews any special contract for electric service that is in effect on July 1, 2000, and has a term that expires prior to July 1, 2000, for a term that extends beyond June 30, 2000, or (2) enters into any new special contracts for electric service, shall provide in any such renegotiated, extended, renewed or new contract for the collection of the assessment required under section 16-245g, as provided in said section 16-245g, and for the collection of the charge required in section 16-245l, as provided in said section 16-245l, provided no such contract shall shift costs to other ratepayers.
(c) Notwithstanding the provisions of subsections (a) and (b) of this section, a customer that is (1) an existing or proposed manufacturing plant that will add or create one hundred or more jobs and that will demand at least fifty kilowatts of additional load through the construction or expansion of manufacturing facilities, or (2) an existing manufacturing plant located in a distressed municipality, as defined in section 32-9p, that is located in an enterprise corridor and employing not less than two hundred persons may be exempted from payment of the competitive transition assessment required under section 16-245g. A customer meeting the requirements of subdivision (1) of this subsection may apply to the authority for an exemption from the payment of the competitive transition assessment that relate to the new or incremental load created by such construction or expansion. A customer meeting the requirements of subdivision (2) of this subsection may apply to the authority for an exemption from the payment of the competitive transition assessment. The authority shall hold a hearing on any such application, and if approved, direct the electric distribution company to refrain from collecting a specific portion of the competitive transition assessment from such customer. The authority may adopt regulations pursuant to chapter 54 to implement the provisions of this section.
(d) (1) As used in this subsection, “qualified manufacturer” means a manufacturer described in the North American Industry Classification System Codes 324000 to 325999, inclusive, and “qualified manufacturing facility” means a manufacturing facility owned by a qualified manufacturer that, during any calendar year beginning on or after January 1, 2016, used more than two million five hundred thousand centum cubic feet of natural gas.
(2) Each gas company shall propose, in its first application for an amendment of rates filed pursuant to section 16-19 on or after October 1, 2017, a rate for certain qualified manufacturers that are firm service gas customers of such gas company on October 1, 2017, and that do not qualify for interruptible gas sales or transportation service under such gas company’s applicable interruptible service tariffs. No qualified manufacturing facility of a qualified manufacturer shall utilize such rate, as described in this subsection, unless (A) such qualified manufacturer petitions the authority for approval, and (B) the authority grants approval after determining that: (i) Participation of such qualified manufacturer in such rate is in the public interest; (ii) participation of such qualified manufacturer in such rate will provide economic benefits to the state; and (iii) utilization of such rate will not endanger the integrity of the gas distribution system of the gas company.
(3) The rate proposed and approved pursuant to subdivision (2) of this subsection shall allow for a rate equal to not less than seventy per cent of the delivery component in the gas company’s firm gas service rate that it charges to large commercial or industrial customers.
(4) A gas company shall recover its revenues lost resulting from the provisions of this subsection through such gas company’s decoupling mechanism pursuant to section 16-19tt or a monthly surcharge assessed to all of such gas company’s gas firm customers.
(5) Each gas company shall file with the authority, as part of such gas company’s annual decoupling filing pursuant to 16-19tt or in a separate proceeding, an annual revenue reconciliation of actual revenues to allowed revenues associated with the implementation of the rate in this subsection.
(P.A. 90-65, S. 2, 5; P.A. 91-61, S. 1; P.A. 93-72; P.A. 98-28, S. 57, 58, 117; P.A. 00-192, S. 81, 102; P.A. 02-141, S. 1; May 9 Sp. Sess. P.A. 02-7, S. 71; P.A. 13-5, S. 3; P.A. 14-134, S. 61; June Sp. Sess. P.A. 17-2, S. 554.)
History: P.A. 91-61 added new Subdivs. (2) and (3) re flexible rates and the manufacturing program for energy technology; P.A. 93-72 applied provisions to water companies and required that companies serving manufacturing companies include with rate amendment application, rates which would encourage and promote manufacturing; P.A. 98-28 designated existing provisions as Subsec. (a) and added new Subsec. (b) re collection of the competitive transition assessment and systems benefits charge, effective April 29, 1998, and amended Subsec. (a) by deleting references to electric companies and making technical changes, effective July 1, 2000; P.A. 00-192 added Subsec. (c) re exemption from portion of payment of competitive transition assessment and re adoption of regulations, effective July 1, 2000; P.A. 02-141 amended Subsec. (c) by designating existing exemption requirements as Subdiv. (1) and adding Subdiv. (2) re exemption for existing manufacturing plant in a distressed municipality that is located in an enterprise corridor and that employs not less than two hundred persons, effective July 1, 2002; May 9 Sp. Sess. P.A. 02-7 amended Subsec. (c) by deleting “a portion of the”, changing “these requirements” to “the requirements of subdivision (1) of this subsection” and adding provisions re total exemption for customers meeting requirements of Subdiv. (2), effective August 15, 2002; P.A. 13-5 amended Subsecs. (a) and (c) to replace “department” with “authority”, effective May 8, 2013; P.A. 14-134 amended Subsec. (b) by deleting reference to electric company, effective June 6, 2014; June Sp. Sess. P.A. 17-2 added Subsec. (d) re gas rates for certain manufacturers, effective October 31, 2017.
