2004 Utility Act Summary

Originally published October 2004

The 2004 legislative session was, once again, active and provided significant legislation for the utility and regulated industries. Among other things, the session extended the moratorium on electric and gas transmission line construction across Long Island Sound and made numerous changes to the statutes governing the Siting Council ("Siting Council" or "Council"). The following is a summary of several significant bills that will have an impact upon consumers as well as utilities and regulated industries.

Pub. Act 04-43: An Act Concerning The Call-Before-You-Dig Program

This Act, effective October 1, 2004, amends Conn. Gen. Stat. ß 16-356, which sets forth penalties for failure to comply with Call-Before-You-Dig requirements by increasing the civil penalties from $10,000 to $40,000 while limiting to $1,000 the civil penalty for violations involving the failure of a public utility to mark the approximate location of underground facilities correctly or within the timeframes prescribed by regulation, as long as the violation does not result in any property damage or personal injury and is not the result of an act of gross negligence on the part of the public utility. The Act further requires the Department of Public Utility Control ("DPUC" or "Department") to revise its regulations regarding a graduated schedule of civil penalties assessed pursuant to section 16-356, as amended by this Act, and the criteria by which the Department determines the amount of such civil penalties.

Pub. Act 04-85: An Act Concerning Energy Efficiency Standards

This Act, effective July 1, 2004,

amends Conn. Gen. Stat. ß 16a-48, as amended by section 146 of Public Act 03-6 of the June 30, 2003 Special Session, and gives the DPUC, rather than the Commissioner of Agriculture and Consumer Protection, the responsibility for adopting regulations to implement the statute's provisions and establish minimum energy efficiency standards for various products, which it must do by July 1, 2005. The Act also broadens the statute's applicability to different types of products by making numerous changes and additions to the definitions used in the section by:

ï replacing the definition of "Commissioner," which had been defined as "Commissioner of Agriculture and Consumer Protection," with a definition of "Department," defined as the DPUC;

ï replacing the definition of "new appliance" with a definition of "new product"; and

ï adding definitions for "torchiere lighting fixture," "unit heater," "transformer," "low voltage dry-type transformer," "pass-through cabinet," "reach-in cabinet," "roll-in" or "roll-through cabinet," "commercial refrigerators and freezers," "traffic signal module," "illuminated exit sign," "packaged air-conditioning equipment," "large packaged airconditioning equipment," "commercial clothes washer" and "energy efficiency ratio."

The Act also requires that by July 1, 2007 and biennially thereafter, the Department, in consultation with the Secretary of the Office of Policy and Management (the "Secretary"), review and increase the level of efficiency standards by adopting regulations. It also requires the Department, in consultation with the Secretary, to adopt regulations to designate additional products to be subject to the statute and establish efficiency standards for those products upon a determination that such standards would promote energy conservation and be cost-effective for consumers, and that multiple products are available to meet the standards. However, no such standards may become effective until one year following their adoption. The Act further provides that on and after July 1, 2006 (except for commercial clothes washers, for which the date shall be July 1, 2007, commercial refrigerators and freezers, for which the date shall be July 1, 2008, and large packaged air-conditioning equipment, for which the date shall be July 1, 2009) certain new products cannot be sold, offered for sale or installed in the state unless they meet the required energy efficiency standards. The Act also deletes a provision providing for periodic inspections of distributors and retailers of new appliances by the Commissioner of Agriculture and Consumer Protection.

Pub. Act 04-86: An Act Concerning Direct Billing by Electric Suppliers

Section One of this Act, effective October 1, 2004, amends Conn. Gen. Stat. ß 16-244i(c) and provides that each electric distribution company shall continue to provide metering, billing and collection services. However, on and after the effective date of regulations adopted pursuant to Conn. Gen. Stat. ß 16-245d, as amended by the Act, which allow an electric supplier to provide direct billing and collection services for electric generation services and related federally mandated congestion costs that such supplier provides to its customers that use a demand meter or have a maximum demand of not less than five hundred kilowatts and that choose to receive a bill directly from their electric supplier, an electric distribution company shall not provide such billing and collection services for such customers. It further provides that, notwithstanding an electric supplier's right to terminate its contract with a customer for the provision of generation services by reason of the customer's nonpayment of the charges directly billed by the supplier to the customer, an electric supplier shall not disconnect electric service to the customer or otherwise terminate the physical delivery of electricity to customers directly billed by the electric supplier.

Section Two of this Act, effective October 1, 2004, requires the DPUC, not later than January 1, 2005, to adopt regulations to provide that an electric supplier may provide direct billing and collection services for electric generation services and related federally mandated congestion costs that such supplier provides to its customers that use a demand meter or have a maximum demand of not less than five hundred kilowatts and that choose to receive a bill directly from such supplier. It also requires that electric suppliers providing direct billing of the electric generation service component and related federally mandated congestion costs include certain information on customers' bills. It further provides that an electric distribution company providing billing services for an electric supplier is entitled to recover from the electric supplier all reasonable transaction costs to provide such billing services as well as a reasonable rate of return.

Pub. Act 04-103: An Act Concerning Gas Pipeline Safety

Section One of this Act, effective October 1, 2004, amends Conn. Gen. Stat. ß 16-280d to provide that if the DPUC investigates an accident involving a pipeline facility, the operator of the facility must make available to the Department all records and information that pertain to the accident, including but not limited to integrity management plans or test results, and must afford all reasonable assistance to the Department in the investigation of the accident.

Section Two of this Act, effective October 1, 2004, amends Conn. Gen. Stat. ß 16-280e by deleting the provision specifying civil penalties for violation of any provisions of its chapter or any regulation adopted pursuant to subsection (b) or (c) of section 16- 280b or 49 U.S.C. Chapter 601, or regulations issued thereunder, and providing for civil penalties not to exceed the maximum civil penalty provided under 49 U.S.C. ß 60122(a), as amended. It also provides that nothing in the section shall be construed to limit the penalties available under Conn. Gen. Stat. ß 16-33 for providing false information to the DPUC under certain circumstances.

Section Three of this Act, effective October 1, 2004, repeals Conn. Gen. Stat. ß 16-280g, which provides that Conn. Gen. Stat. ßß 16-280a to 16- 280g, inclusive, do not apply to pipeline facilities and transportation of gas subject to the jurisdiction of the Federal Energy Regulatory Commission under the Natural Gas Act.

Pub. Act 04-172: An Act Concerning Revisions to the Underground Storage Tank Account Provisions and a Stay of Certain Administrative Costs and Accrual of Interest

Section One of this Act, effective from passage, amends Conn. Gen. Stat. ß 22a-449d(d) and provides, notwithstanding the provisions of the statute, that if the Underground Storage Tank Petroleum Clean-Up Account Review Board determines that the owner of a residential underground heating oil storage tank system may not receive reimbursement payment from the contactor for remediation, the board may, if reimbursement has not been sent to the contractor, directly reimburse the owner of such system for eligible costs incurred by the owner and paid to the registered contractor for services associated with remediation of a system before July 1, 2001.

Section Two of this Act, effective from passage, amends Conn. Gen. Stat. ß 22a-449l(c)(1) to refer to amendments to Conn. Gen. Stat. ß 22a- 449d and provides for contractor submission of eligible costs pursuant to a contract with the state or an owner of a residential underground heating oil storage tank system.

Section Three of this Act, effective from passage, amends Conn. Gen. Stat. ß 22a-449l(d) to provide, notwithstanding Conn. Gen. Stat. ß 22a-449l(c), that before July 1, 2004, the Underground Storage Tank Petroleum Clean-Up Account Review Board may accept applications for reimbursement from and make payments to any owner...