Bill Text: CT HB05467 | 2010 | General Assembly | Comm Sub
Bill Title: An Act Concerning Customer Rebates For Electricity Ratepayers.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2010-04-01 - Favorable Change of Reference, Senate to Committee on Finance, Revenue and Bonding [HB05467 Detail]
Download: Connecticut-2010-HB05467-Comm_Sub.html
General Assembly |
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February Session, 2010 |
*_____HB05467ET_FIN032410____* |
AN ACT CONCERNING CUSTOMER REBATES FOR ELECTRICITY RATEPAYERS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective from passage and applicable to profits generated on or after January 1, 2010) (a) Each company that owns an electric generating plant located in the state, including any affiliates or subsidiaries of such company, whether those affiliates or subsidiaries are located within the state or outside the state, shall pay a quarterly tax of fifty per cent upon windfall profits, as described in subsections (b) and (c) of this section, from the generation, manufacture, sale or other disposition of electricity or rights to electricity generated or manufactured at such electric generating plant located in the state.
(b) Windfall profits of a company from the generation, manufacture, sale or other disposition of electricity or rights to electricity shall include all earnings in excess of twenty per cent return on equity, as classified by the Federal Energy Regulatory Commission according to the uniform systems of accounts prescribed in 18 CFR Part 101, accounted for as if the company owning an electric generating plant located in the state and any of its affiliates or subsidiaries maintained their books and records according to such uniform system of accounts, for operations within the taxable quarter.
(c) (1) With respect to each company that owns an electric generating plant located in the state, in calculating earnings for the purpose of the windfall profits tax, those earnings shall include all revenue derived by such company and any affiliate or subsidiary of such company owning an electric generating plant located in the state, whether the affiliate or subsidiary is located within or outside of the state, from the sale or other disposition of electricity or rights to electricity from the electric generating plant located in the state to any buyer in any state.
(2) Revenue derived from the sale or other disposition of electricity or rights to electricity from a generating plant located in the state by any affiliate or subsidiary of a company that owns such electric generating plant, whether or not such affiliate or subsidiary is located in the state, shall be attributed to the revenue of the company that owns the electric generating plant located in the state as if the sale or other disposition of electricity or rights to electricity by such affiliate or subsidiary were made directly by the company that owns the electric generating plant located in the state.
(3) In calculating earnings subject to the windfall profits tax, revenue from such company and such affiliates or subsidiaries attributed to an electric generating plant located in the state shall be reduced by the reasonable operating expenses of such company and affiliate or subsidiary properly allocated to the sale or other disposition of electricity or rights to electricity which is generated or manufactured by the electric generating plant located in the state and is to be determined as if the affiliate or subsidiary were subject to the uniform system of accounts prescribed by the Federal Energy Regulatory Commission in 18 CFR Part 101 for regulated entities.
(d) Each company that owns an electric generating plant located in the state shall, on or before the last day of January, April, July and October of each year, render to the Commissioner of Revenue Services a return on forms prescribed or furnished by the commissioner and signed by its treasurer or the person performing the duties of treasurer, or by an authorized agent or officer, specifying (1) the name and location of such company or affiliate or subsidiary of such company, (2) the amount of all revenue derived from the generation, manufacture, sale or other disposition of electricity or the rights to electricity from the electric generating plant located in the state, by such company or any of its affiliates or subsidiaries and the amount of reasonable operating expenses for the quarter ending on the last day of the preceding month, (3) the return on equity from the generation, manufacture, sale or other disposition of electricity or rights to electricity, (4) the earnings in excess of a twenty per cent return on equity from the generation, manufacture or sale of electricity or the rights to electricity, and (5) the tax due to the state on the windfall profits.
(e) Each such company shall pay a quarterly tax upon its windfall profits in each calendar quarter at the rate of fifty per cent.
(f) The tax imposed by chapter 208 of the general statutes is due and payable to the Commissioner of Revenue Services quarterly on or before the last day of the month next succeeding each calendar quarter.
Sec. 2. (NEW) (Effective from passage) (a) There is established an account to be known as the "electricity ratepayers relief account" which shall be a separate, nonlapsing account of the General Fund. The proceeds of the tax imposed pursuant to section 1 of this act shall be deposited into the account. Investment earnings credited to the assets of the account shall become part of the assets of the account. Any balance remaining in said account at the end of any fiscal year shall be carried forward in said account for the fiscal year next succeeding.
(b) The Department of Public Utility Control shall conduct a contested case proceeding in accordance with the provisions of chapter 54 of the general statutes to disburse funds from the electricity ratepayers relief account in a manner to directly reduce electricity ratepayers' electric bills.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
from passage and applicable to profits generated on or after January 1, 2010 |
New section |
Sec. 2 |
from passage |
New section |
ET |
Joint Favorable Subst. C/R |
FIN |