Bill Text: CT HB05508 | 2010 | General Assembly | Introduced
Bill Title: An Act Establishing The Division Of Electricity Policy And Procurement.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2010-03-12 - Public Hearing 03/16 [HB05508 Detail]
Download: Connecticut-2010-HB05508-Introduced.html
General Assembly |
Raised Bill No. 5508 | ||
February Session, 2010 |
LCO No. 2314 | ||
*02314_______ET_* | |||
Referred to Committee on Energy and Technology |
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Introduced by: |
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(ET) |
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AN ACT ESTABLISHING THE DIVISION OF ELECTRICITY POLICY AND PROCUREMENT.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2010) (a) There is established a Division of Electricity Policy and Procurement, which shall be within the Public Utilities Control Authority.
(b) The Division of Electricity Policy and Procurement shall, in accordance with the comprehensive plan approved pursuant to section 16a-3a of the general statutes, (1) increase the state's energy independence by promoting conservation and efficiency and the use of diverse indigenous and regional electric resources; (2) encourage the use of new electric technologies, particularly technologies that support economic development in the state and promote environmental sustainability; (3) minimize costs of electric services to state consumers while maintaining reliable service; (4) discourage undue price volatility of electric service; and (5) encourage competition, when in the interests of state consumers.
(c) The chairperson of the Public Utilities Control Authority shall appoint an executive director, who shall be the chief administrative officer of the Division of Electricity Policy and Procurement and who shall have no less than ten years experience in electric procurement, conservation and renewable energy policy. Said chairperson shall supervise the executive director, who shall serve for a four-year term. The executive director (1) shall conduct comprehensive planning with respect to the functions of the division; (2) shall coordinate the activities of the division; (3) shall cause the administrative organization of the division to be examined with a view to promoting economy and efficiency; (4) may enter into such contractual agreements, in accordance with established procedures, as may be necessary for the discharge of his duties; and (5) may, subject to the provisions of section 4-32 of the general statutes, 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. The executive director shall require the staff of the division to have expertise in public utility engineering and accounting, finance, economics, computers and rate design. Within available funds in any fiscal year, the executive director may appoint a secretary and may employ such accountants, clerical assistants, engineers, inspectors, experts, consultants and agents as the division may require.
(d) The Division of Electricity Policy and Procurement under the direction of the executive director may (1) hire three employees, one each specializing in power procurement, energy efficiency and renewables, (2) contract with consultants, and (3) adopt any policies for internal organization as necessary.
Sec. 2. Section 16a-3b of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) The [Department of Public Utility Control] Division of Electricity Policy and Procurement shall oversee the implementation of the procurement plan approved by the [Department of Public Utility Control] Public Utilities Control Authority pursuant to section 16a-3a. The electric distribution companies shall implement the demand-side measures, including, but not limited to, energy efficiency, load management, demand response, combined heat and power facilities, distributed generation and other emerging energy technologies, specified in said procurement plan through the comprehensive conservation and load management plan prepared pursuant to section 16-245m for review by the Energy Conservation Management Board. The electric distribution companies shall submit proposals to appropriate regulatory agencies to address transmission and distribution upgrades as specified in said procurement plan.
(b) If the procurement plan specifies the construction of a generating facility, the [department] division shall develop and issue a request for proposals, shall publish such request for proposals in one or more newspapers or periodicals, as selected by the [department] division, and shall post such request for proposals on its web site. Pursuant to a nondisclosure agreement, the [department] division shall make available to the Office of Consumer Counsel and the Attorney General all confidential bid information it receives pursuant to this subsection, provided the bids and any analysis of such bids shall not be subject to disclosure under the Freedom of Information Act. Three months after the [department] division issues a final decision, it shall make available all financial bid information, provided such information regarding the bidders not selected be presented in a manner that conceals the identities of such bidders.
(1) On and after July 1, 2008, an electric distribution company may submit proposals in response to a request for proposals on the same basis as other respondents to the solicitation. A proposal submitted by an electric distribution company shall include its full projected costs such that any project costs recovered from or defrayed by ratepayers are included in the projected costs. An electric distribution company submitting any such bid shall demonstrate to the satisfaction of the [department] division that its bid is not supported in any form of cross subsidization by affiliated entities. If the [department] division approves such electric distribution company's proposal, the costs and revenues of such proposal shall not be included in calculating such company's earning for purposes of, or in determining whether its rates are just and reasonable under, sections 16-19, 16-19a and 16-19e, as amended by this act. An electric distribution company shall not recover more than the full costs identified in any approved proposal. Affiliates of the electric distribution company may submit proposals pursuant to section 16-244h, regulations adopted pursuant to section 16-244h and other requirements the [department] division may impose.
(2) If the [department] division selects a nonelectric distribution company proposal, an electric distribution company shall, within thirty days of the selection of a proposal by the [department] division, negotiate in good faith the final terms of a contract with a generating facility and shall apply to the [department] division for approval of such contract. Upon [department] the division's approval, the electric distribution company shall enter into such contract.
(3) The [department] division shall determine the appropriate manner of cost recovery for proposals selected pursuant to this section.
(4) The [department] division may retain the services of a third-party entity with expertise in the area of energy procurement to oversee the development of the request for proposals and to assist the department in its approval of proposals pursuant to this section. The reasonable and proper expenses for retaining such third-party entity shall be recoverable through the generation services charge.
(c) The electric distribution companies shall issue requests for proposals to acquire any other resource needs not identified in subsection (a) or (b) of this section but specified in the procurement plan approved by the [Department of Public Utility Control] Public Utilities Control Authority pursuant to section 16a-3a. Such requests for proposals shall be subject to approval by the [department] division.
Sec. 3. Section 16a-3c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
[(a) On and after July 1, 2009, if] If the [Department of Public Utility Control] Division of Electricity Policy and Procurement does not receive and approve proposals pursuant to the requests for proposals processes, pursuant to section 16a-3b, as amended by this act, sufficient to reach the goal set by the plan approved pursuant to section 16a-3a, the [department] division may order an electric distribution company to submit for the [department's] division's review in a contested case proceeding, in accordance with chapter 54, a proposal to build and operate an electric generation facility in the state. An electric distribution company shall be eligible to recover its prudently incurred costs consistent with the principles set forth in section 16-19e, as amended by this act, for any generation project approved pursuant to this section.
[(b) On or before January 1, 2008, the department shall initiate a contested case proceeding to determine the costs and benefits of the state serving as the builder of last resort for the shortfall of megawatts from said request for proposal process.]
Sec. 4. (NEW) (Effective October 1, 2010) The Division of Electricity Policy and Procurement may own and operate electric power plants and may provide financial assistance, including low-interest loans to encourage the development of necessary electric generation facilities by the electric distribution companies or private entities, provided electricity generated at such facilities shall be sold through the electric distribution companies or the Connecticut Municipal Electric Energy Cooperative for use by Connecticut consumers at cost of service with a reasonable rate of return, as determined by the Department of Public Utility Control. The Division of Electricity Policy and Procurement may enter into contracts with electricity generators, suppliers and such other persons as necessary to carry out the purposes of this section.
Sec. 5. Subsection (c) of section 16-244c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(c) (1) On and after January 1, 2007, each electric distribution company shall provide electric generation services through standard service to any customer who (A) does not arrange for or is not receiving electric generation services from an electric supplier, and (B) does not use a demand meter or has a maximum demand of less than five hundred kilowatts.
(2) Not later than October 1, 2006, and periodically as required by subdivision (3) of this subsection, but not more often than every calendar quarter, the Department of Public Utility Control shall establish the standard service price for such customers pursuant to subdivision (3) of this subsection. Each electric distribution company shall recover the actual net costs of procuring and providing electric generation services pursuant to this subsection, provided such company mitigates the costs it incurs for the procurement of electric generation services for customers who are no longer receiving service pursuant to this subsection.
(3) An electric distribution company providing electric generation services pursuant to this subsection shall mitigate the variation of the price of the service offered to its customers by procuring electric generation services contracts in the manner prescribed in a plan approved by the department. Such plan shall require the procurement of a portfolio of service contracts sufficient to meet the projected load of the electric distribution company. Such plan shall require that the portfolio of service contracts be procured in an overlapping pattern of fixed periods at such times and in such manner and duration as the department determines to be most likely to produce just, reasonable and reasonably stable retail rates while reflecting underlying wholesale market prices over time. The portfolio of contracts shall be assembled in such manner as to invite competition; guard against favoritism, improvidence, extravagance, fraud and corruption; and secure a reliable electricity supply while avoiding unusual, anomalous or excessive pricing. The portfolio of contracts procured under such plan shall be for terms of not less than six months, provided contracts for shorter periods may be procured under such conditions as the department shall prescribe to (A) ensure the lowest rates possible for end-use customers; (B) ensure reliable service under extraordinary circumstances; and (C) ensure the prudent management of the contract portfolio. An electric distribution company may receive a bid for an electric generation services contract from any of its generation entities or affiliates, provided such generation entity or affiliate submits its bid the business day preceding the first day on which an unaffiliated electric supplier may submit its bid and further provided the electric distribution company and the generation entity or affiliate are in compliance with the code of conduct established in section 16-244h.
(4) The [department] Division of Electricity Policy and Procurement, in consultation with the Office of Consumer Counsel, shall retain the services of a third-party entity with expertise in the area of energy procurement to oversee the initial development of the request for proposals and the procurement of contracts by an electric distribution company for the provision of electric generation services offered pursuant to this subsection. Costs associated with the retention of such third-party entity shall be included in the cost of electric generation services that is included in such price.
(5) Each bidder for a standard service contract shall submit its bid to the electric distribution company and the third-party entity who shall jointly review the bids, conduct a cost-based analysis of such bids and submit an overview of all bids together with a joint recommendation to the [department] division as to the preferred bidders. Said division shall make available to the Office of Consumer Counsel and the Attorney General all bids it receives pursuant to this subsection, provided the Office of Consumer Counsel and the Attorney General shall not make the bids available to the public until the division does so pursuant to subdivision (6) of this subsection, except that the Attorney General may share such information if such action is necessary for any law enforcement purposes. The [department] division may, [within] not later than ten business days [of] after submission of the overview, reject the recommendation regarding preferred bidders if the bids are not in the best interest of the electric distribution company's customers. In analyzing the bids, the division shall determine if they are consistent with the state's integrated resource plan. In the event that the [department] division rejects the preferred bids, the [electric distribution company and the third-party entity] division shall rebid the service pursuant to this subdivision.
(6) Upon the Division of Electricity Policy and Procurement's approval of the preferred bids, the electric distribution company shall enter into contracts with approved bidders in accordance with contract terms established by the division. All bids received by the division during the procurement process shall be available for public review three months after division rejection, provided such information regarding the bidders not selected shall be presented in a manner that conceals the identities of such bidders.
(7) Not later than October 1, 2010, and biennially thereafter, the Division of Electricity Policy and Procurement shall conduct a contested case proceeding in accordance with chapter 54 to review the efficacy of the contract procurement process held pursuant to this subsection.
Sec. 6. (NEW) (Effective October 1, 2010) The Division of Electricity Policy and Procurement may negotiate contracts on behalf of electric distribution companies with electricity generators for the provision of electric generation services offered pursuant to subsection (c) of section 16-244c of the general statutes, as amended by this act. Such negotiation may be in connection with the provision of financing or other assistance to an electricity generation services supplier for the construction or reconstruction of a generation facility. Such contracts shall be in the best interests of ratepayers and shall offer a reduction in electricity costs to those consumers receiving electric generation services pursuant to said subsection. The Public Utility Control Authority, in consultation with the electric distribution companies, shall review such contracts and shall approve a contract if the authority determines that such contract is (1) consistent with the principles of section 16-19e of the general statutes, as amended by this act, (2) in the best interests of ratepayers, and (3) reduces electricity costs to those consumers receiving electric generation services pursuant to said subsection. Upon the authority's approval, an electric distribution company shall enter into such contract with the approved electric generation services supplier.
Sec. 7. Section 16-4 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
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 of the Public Utilities Control Authority or an employee of the Department of Public Utility Control or the Division of Electricity Policy and Procurement.
Sec. 8. Section 16a-3 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) There is established a Connecticut Energy Advisory Board consisting of [fifteen] sixteen members, including the Commissioner of Environmental Protection, the chairperson of the Public Utilities Control Authority, the executive director of the Division of Electricity Policy and Procurement, the Commissioner of Transportation, the Consumer Counsel, the Commissioner of Agriculture, and the Secretary of the Office of Policy and Management, or their respective designees. The Governor shall appoint a representative of an environmental organization knowledgeable in energy efficiency programs, a representative of a consumer advocacy organization and a representative of a state-wide business association. The president pro tempore of the Senate shall appoint a representative of a chamber of commerce, a representative of a state-wide manufacturing association and a member of the public considered to be an expert in electricity, generation, procurement or conservation programs. The speaker of the House of Representatives shall appoint a representative of low-income ratepayers, a representative of state residents, in general, with expertise in energy issues and a member of the public considered to be an expert in electricity, generation, procurement or conservation programs. All appointed members shall serve in accordance with section 4-1a. No appointee may be employed by, or a consultant of, a public service company, as defined in section 16-1, or an electric supplier, as defined in section 16-1, or an affiliate or subsidiary of such company or supplier.
(b) The board shall (1) represent the state in regional energy system planning processes conducted by the regional independent system operator, as defined in section 16-1; (2) encourage representatives from the municipalities that are affected by a proposed project of regional significance to participate in regional energy system planning processes conducted by the regional independent system operator; (3) participate in a forecast proceeding conducted pursuant to subsection (a) of section 16-50r; (4) participate in a life-cycle proceeding conducted pursuant to subsection (b) of section 16-50r; (5) advise the Division of Electricity Policy and Procurement, and [(5)] (6) review the procurement plan submitted by the electric distribution companies pursuant to section 16a-3a.
(c) The board shall elect a chairman and a vice-chairman from among its members and shall adopt such rules of procedure as are necessary to carry out its functions.
(d) The board shall convene its first meeting not later than September 1, 2003. A quorum of the board shall consist of two-thirds of the members currently serving on the board.
(e) The board shall employ such staff as is required for the proper discharge of its duties. The board may also retain any third-party consultants it deems necessary to accomplish the goals set forth in subsection (b) of this section. The board shall annually submit to the Department of Public Utility Control a proposal regarding the level of funding required for the discharge of its duties, which proposal shall be approved by the department either as submitted or as modified by the department.
(f) The Connecticut Energy Advisory Board shall be within the Office of Policy and Management for administrative purposes only.
Sec. 9. Subsection (a) of section 4-65a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) There shall be an Office of Policy and Management which shall be responsible for all aspects of state staff planning and analysis in the areas of budgeting, management, planning, energy policy determination and evaluation, except to the extent such policies are under the authority of the Division of Electricity Policy and Procurement, intergovernmental policy, criminal and juvenile justice planning and program evaluation. The department head shall be the Secretary of the Office of Policy and Management, who shall be appointed by the Governor in accordance with the provisions of sections 4-5, 4-6, 4-7 and 4-8, with all the powers and duties therein prescribed. The Secretary of the Office of Policy and Management shall be the employer representative (1) in collective bargaining negotiations concerning changes to the state employees retirement system and health and welfare benefits, and (2) in all other matters involving collective bargaining, including negotiation and administration of all collective bargaining agreements and supplemental understandings between the state and the state employee unions concerning all executive branch employees except (A) employees of the Division of Criminal Justice, and (B) faculty and professional employees of boards of trustees of constituent units of the state system of higher education. The secretary may designate a member of the secretary's staff to act as the employer representative in the secretary's place.
Sec. 10. Subdivision (2) of subsection (e) of section 4a-57 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(2) Any purchase of or contract by the department for electric generation services that are subject to competitive bidding and competitive negotiations shall be conducted in cooperation with the [Office of Policy and Management] Division of Electricity Policy and Procurement pursuant to section 16a-14e.
Sec. 11. Subsection (c) of section 16-19e of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(c) The Department of Public Utility Control shall consult at least once each year with the Commissioner of Environmental Protection, the Connecticut Siting Council, the Division of Electricity Policy and Procurement and the Office of Policy and Management, so as to coordinate and integrate its actions, decisions and policies pertaining to gas and electric companies, so far as possible, with the actions, decisions and policies of said other agencies and instrumentalities in order to further the development and optimum use of the state's energy resources and conform to the greatest practicable extent with the state energy policy as stated in section 16a-35k, taking into account prudent management of the natural environment and continued promotion of economic development within the state. In the performance of its duties, the department shall take into consideration the energy policies of the state as expressed in this subsection and in any annual reports prepared or filed by such other agencies and instrumentalities, and shall defer, as appropriate, to any actions taken by such other agencies and instrumentalities on matters within their respective jurisdictions.
Sec. 12. Subsection (d) of section 16a-48 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(d) (1) The [office] Division of Electricity Policy and Procurement, in consultation with the Department of Public Utility Control, shall adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of this section and to establish minimum energy efficiency standards for the types of new products set forth in subsection (b) of this section. The regulations shall provide for the following minimum energy efficiency standards:
(A) Commercial clothes washers shall meet the requirements shown in Table P-3 of section 1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4, Article 4;
(B) Commercial refrigerators and freezers shall meet the August 1, 2004, requirements shown in Table A-6 of said California regulation;
(C) Illuminated exit signs shall meet the version 2.0 product specification of the "Energy Star Program Requirements for Exit Signs" developed by the United States Environmental Protection Agency;
(D) Large packaged air-conditioning equipment having not more than seven hundred sixty thousand BTUs per hour of capacity shall meet a minimum energy efficiency ratio of 10.0 for units using both electric heat and air conditioning or units solely using electric air conditioning, and 9.8 for units using both natural gas heat and electric air conditioning;
(E) Large packaged air-conditioning equipment having not less than seven hundred sixty-one thousand BTUs per hour of capacity shall meet a minimum energy efficiency ratio of 9.7 for units using both electric heat and air conditioning or units solely using electric air conditioning, and 9.5 for units using both natural gas heat and electric air conditioning;
(F) Low voltage dry-type distribution transformers shall meet or exceed the energy efficiency values shown in Table 4-2 of the National Electrical Manufacturers Association Standard TP-1-2002;
(G) Torchiere lighting fixtures shall not consume more than one hundred ninety watts and shall not be capable of operating with lamps that total more than one hundred ninety watts;
(H) Traffic signal modules shall meet the product specification of the "Energy Star Program Requirements for Traffic Signals" developed by the United States Environmental Protection Agency that took effect in February, 2001, except where the department, in consultation with the Commissioner of Transportation, determines that such specification would compromise safe signal operation;
(I) Unit heaters shall not have pilot lights and shall have either power venting or an automatic flue damper;
(J) On or after January 1, 2009, residential furnaces and boilers purchased by the state shall meet or exceed the following annual fuel utilization efficiency: (i) For gas and propane furnaces, ninety per cent annual fuel utilization efficiency, (ii) for oil furnaces, eighty-three per cent annual fuel utilization efficiency, (iii) for gas and propane hot water boilers, eighty-four per cent annual fuel utilization efficiency, (iv) for oil-fired hot water boilers, eighty-four per cent annual fuel utilization efficiency, (v) for gas and propane steam boilers, eighty-two per cent annual fuel utilization efficiency, (vi) for oil-fired steam boilers, eighty-two per cent annual fuel utilization efficiency, and (vii) for furnaces with furnace air handlers, an electricity ratio of not more than 2.0, except air handlers for oil furnaces with a capacity of less than ninety-four thousand BTUs per hour shall have an electricity ratio of 2.3 or less;
(K) On or after January 1, 2010, metal halide lamp fixtures designed to be operated with lamps rated greater than or equal to one hundred fifty watts but less than or equal to five hundred watts shall not contain a probe-start metal halide lamp ballast;
(L) Single-voltage external AC to DC power supplies manufactured on or after January 1, 2008, shall meet the energy efficiency standards of table U-1 of section 1605.3 of the January 2006 California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations. This standard applies to single voltage AC to DC power supplies that are sold individually and to those that are sold as a component of or in conjunction with another product. This standard shall not apply to single voltage external AC to DC power supplies sold with products subject to certification by the United States Food and Drug Administration. A single-voltage external AC to DC power supply that is made available by a manufacturer directly to a consumer or to a service or repair facility after and separate from the original sale of the product requiring the power supply as a service part or spare part shall not be required to meet the standards in said table U-1 until five years after the effective dates indicated in the table;
(M) On or after January 1, 2009, state regulated incandescent reflector lamps shall be manufactured to meet the minimum average lamp efficacy requirements for federally-regulated incandescent reflector lamps contained in 42 USC 6295(i)(1)(A). Each lamp shall indicate the date of manufacture;
(N) On or after January 1, 2009, bottle-type water dispensers, commercial hot food holding cabinets, portable electric spas, walk-in refrigerators and walk-in freezers shall meet the efficiency requirements of section 1605.3 of the January 2006 California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations. On or after January 1, 2010, residential pool pumps shall meet said efficiency requirements;
(O) On or after January 1, 2009, pool heaters shall meet the efficiency requirements of sections 1605.1 and 1605.3 of the January 2006 California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations.
(2) Such efficiency standards, where in conflict with the State Building Code, shall take precedence over the standards contained in the Building Code. Not later than July 1, 2007, and biennially thereafter, the office, in consultation with the Department of Public Utility Control, shall review and increase the level of such efficiency standards by adopting regulations in accordance with the provisions of chapter 54 upon a determination that increased efficiency standards would serve to promote energy conservation in the state and would be cost-effective for consumers who purchase and use such new products, provided no such increased efficiency standards shall become effective within one year following the adoption of any amended regulations providing for such increased efficiency standards.
(3) The office, in consultation with the Department of Public Utility Control, shall adopt regulations, in accordance with the provisions of chapter 54, to designate additional products to be subject to the provisions of this section and to establish efficiency standards for such products upon a determination that such efficiency standards (A) would serve to promote energy conservation in the state, (B) would be cost-effective for consumers who purchase and use such new products, and (C) that multiple products are available which meet such standards, provided no such efficiency standards shall become effective within one year following their adoption pursuant to this subdivision.
Sec. 13. Section 16-246e of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) The Governor may designate the [Department of Public Utility Control] Division of Electricity Policy and Procurement as the agent of the state, subject only to the limitation under subsection (b) of this section, to conduct negotiations and perform all acts necessary to procure electric power capacity, power output from such capacity or both from any out-of-state electric power producer, to transmit it to within the state and to sell or resell it on a nonprofit basis for distribution within the state to electric companies, as defined in section 16-1, municipal electric utilities established under chapter 101, municipal electric energy cooperatives organized under chapter 101a, membership electric cooperatives organized under chapter 597 and such other persons or entities as may be designated by the [governor] Governor. The [department] division, if designated as such agent, shall arrange for the sale or resale of such power on an equitable basis and in such manner as it finds will most effectively promote the objectives of this title, chapters 101, 101a and 597, and section 16a-35k, subject to any conditions or limitations imposed by the out-of-state electric power producer selling such power. The [department] division, if so designated, may also enter into any contracts or other arrangements for the sale or resale of such power for transmission outside the state if such sale or resale is reasonably incidental to and furthers the needs of the state and the purposes of this section.
(b) The [department] division shall submit any final action it takes under subsection (a) of this section to the Governor, who may, not later than sixty days after such submission, disapprove such action by notifying the [department] division in writing of such disapproval and the reasons for it.
(c) Such division's responsibilities and duties shall include, but not be limited to, (1) establishing goals to develop green jobs in Connecticut, (2) overseeing the implementation of such green job goals, (3) acting as the state's lead agency for federal green job funding, (4) monitoring and reporting on the number of green jobs, and (5) implementing goals for conservation and the development of renewable sources established pursuant to the procurement plan submitted pursuant to section 16a-3a of the general statutes.
Sec. 14. Section 16-2 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) There shall continue to be a Public Utilities Control Authority, which shall consist of [five] seven electors of this state, appointed by the Governor with the advice and consent of both houses of the General Assembly. Not more than [three] four members of said authority in office at any one time shall be members of any one political party. On or before July 1, 1983, and quadrennially thereafter, the Governor shall appoint three members to the authority; [and] on or before July 1, 1985, and quadrennially thereafter, the Governor shall appoint two members; and on or before July 1, 2010, and quadrennially thereafter, the Governor shall appoint two members. All such members shall serve for a term of four years. The procedure prescribed by 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. The commissioners shall be sworn to the faithful performance of their duties.
(b) The authority shall elect a chairperson and vice-chairperson each June for one-year terms starting on July first of the same year. The vice-chairperson shall perform the duties of the chairperson in his absence.
(c) Any matter coming before the authority may be assigned by the chairperson to a panel of [three] five commissioners, not more than [two] four of whom shall be members of the same political party. Except as otherwise provided by statute or regulation, the panel shall determine whether a public hearing shall be held on the matter, and may designate one or two of its members to conduct such hearing or appoint an examiner to ascertain the facts and report thereon to the panel. The decision of the panel, if unanimous, shall be the decision of the authority. If the decision of the panel is not unanimous, the matter shall be referred to the entire authority for decision.
(d) The commissioners of the authority shall serve full time and shall make full public disclosure of their assets, liabilities and income at the time of their appointment, and thereafter each member of the authority shall make such disclosure on or before July thirtieth of each year of such member's term, and shall file such disclosure with the office of the Secretary of the State. Each commissioner shall receive 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 shall receive annually a salary equal to that established for management pay plan salary group seventy-seven.
(e) To insure the highest standard of public utility regulation, on and after October 1, 2007, any newly appointed commissioner of the authority shall have education or training and three or more years of experience in one or more of the following fields: Economics, engineering, law, accounting, finance, utility regulation, public or 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 commissioners at all times. Any time a commissioner is newly appointed, at least one of the commissioners shall have experience in utility [customer] consumer advocacy, one in environmental management and one in business management.
(f) The chairperson of the authority, with the consent of [two] three or more other members of the authority, shall appoint an executive director, who shall be the chief administrative officer of the Department of Public Utility Control. The executive director shall be supervised by the chairperson of the authority, serve for a term of four years and annually receive a salary equal to that established for management pay plan salary group seventy-two by the Commissioner of Administrative Services. The executive director (1) shall conduct comprehensive planning with respect to the functions of the department; (2) shall coordinate the activities of the department; (3) shall cause the administrative organization of the department to be examined with a view to promoting economy and efficiency; (4) shall, in concurrence with the chairperson of the authority, organize the department into such divisions, bureaus or other units as he deems necessary for the efficient conduct of the business of the department and may from time to time abolish, transfer or consolidate within the department, any division, bureau or other units as may be necessary for the efficient conduct of the business of the department, provided such organization shall include any division, bureau or other unit which is specifically required by the general statutes; (5) shall, for any proceeding on a proposed rate amendment in which staff of the department 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 of the authority; (6) may enter into such contractual agreements, in accordance with established procedures, as may be necessary for the discharge of his duties; and (7) may, 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. The executive director shall require the staff of the department to have expertise in public utility engineering and accounting, finance, economics, computers and rate design. Subject to the provisions of chapter 67 and within available funds in any fiscal year, the executive director may appoint a secretary, and may employ such accountants, clerical assistants, engineers, inspectors, experts, consultants and agents as the department may require.
(g) No member of the authority or employee of the department shall, while serving as such, 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 duties or employment in the public interest and of his responsibilities as prescribed in the laws of this state, as defined in section 1-85; provided, no such substantial conflict shall be deemed to exist solely by virtue of the fact that a member of the authority or employee of the department, 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 member of the authority or employee of the department shall accept other employment which will either impair his independence of judgment as to his official duties or employment or require him, or induce him, to disclose confidential information acquired by him in the course of and by reason of his official duties.
(i) No member of the authority or employee of the department shall wilfully and knowingly disclose, for pecuniary gain, to any other person, confidential information acquired by him in the course of and by reason of his official duties or employment or use any such information for the purpose of pecuniary gain.
(j) No member of the authority or employee of the department shall agree to accept, or be in partnership or association with any person, 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 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 Environmental Protection.
(k) No commissioner of the authority shall, for a period of one year following the termination of his or her service as a 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 commissioner who is 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 commissioner.
Sec. 15. Section 16-245l of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) The Department of Public Utility Control shall establish and each electric distribution company shall collect a systems benefits charge to be imposed against all end use customers of each electric distribution company beginning January 1, 2000. The department shall hold a hearing that shall be conducted as a contested case in accordance with chapter 54 to establish the amount of the systems benefits charge. The department may revise the systems benefits charge or any element of said charge as the need arises. The systems benefits charge shall be used to fund (1) the expenses of the public education outreach program developed under subsections (a), (f) and (g) of section 16-244d other than expenses for department staff, (2) the reasonable and proper expenses of the education outreach consultant pursuant to subsection (d) of section 16-244d, (3) the cost of hardship protection measures under sections 16-262c and 16-262d and other hardship protections, including, but not limited to, electric service bill payment programs, funding and technical support for energy assistance, fuel bank and weatherization programs and weatherization services, (4) the payment program to offset tax losses described in section 12-94d, (5) any sums paid to a resource recovery authority pursuant to subsection (b) of section 16-243e, (6) low income conservation programs approved by the Department of Public Utility Control, (7) displaced worker protection costs, (8) unfunded storage and disposal costs for spent nuclear fuel generated before January 1, 2000, approved by the appropriate regulatory agencies, (9) postretirement safe shutdown and site protection costs that are incurred in preparation for decommissioning, (10) decommissioning fund contributions, (11) the costs of temporary electric generation facilities incurred pursuant to section 16-19ss, (12) operating expenses for the Connecticut Energy Advisory Board, (13) costs associated with the Connecticut electric efficiency partner program established pursuant to section 16-243v, (14) reinvestments and investments in energy efficiency programs and technologies pursuant to section 16a-38l, costs associated with the electricity conservation incentive program established pursuant to section 119 of public act 07-242*, (15) operating expenses and costs associated with the Division of Electricity Policy and Procurement, and [(15)] (16) legal, appraisal and purchase costs of a conservation or land use restriction and other related costs as the department in its discretion deems appropriate, incurred by a municipality on or before January 1, 2000, to ensure the environmental, recreational and scenic preservation of any reservoir located within this state created by a pump storage hydroelectric generating facility. As used in this subsection, "displaced worker protection costs" means the reasonable costs incurred, prior to January 1, 2008, (A) by an electric supplier, exempt wholesale generator, electric company, an operator of a nuclear power generating facility in this state or a generation entity or affiliate arising from the dislocation of any employee other than an officer, provided such dislocation is a result of (i) restructuring of the electric generation market and such dislocation occurs on or after July 1, 1998, or (ii) the closing of a Title IV source or an exempt wholesale generator, as defined in 15 USC 79z-5a, on or after January 1, 2004, as a result of such source's failure to meet requirements imposed as a result of sections 22a-197 and 22a-198 and this section or those Regulations of Connecticut State Agencies adopted by the Department of Environmental Protection, as amended from time to time, in accordance with Executive Order Number 19, issued on May 17, 2000, and provided further such costs result from either the execution of agreements reached through collective bargaining for union employees or from the company's or entity's or affiliate's programs and policies for nonunion employees, and (B) by an electric distribution company or an exempt wholesale generator arising from the retraining of a former employee of an unaffiliated exempt wholesale generator, which employee was involuntarily dislocated on or after January 1, 2004, from such wholesale generator, except for cause. "Displaced worker protection costs" includes costs incurred or projected for severance, retraining, early retirement, outplacement, coverage for surviving spouse insurance benefits and related expenses. "Displaced worker protection costs" does not include those costs included in determining a tax credit pursuant to section 12-217bb.
(b) The amount of the systems benefits charge shall be determined by the department in a general and equitable manner and shall be imposed on all end use customers of each electric distribution company at a rate that is applied equally to all customers of the same class in accordance with methods of allocation in effect on July 1, 1998, provided the system benefits charge shall not be imposed on customers receiving services under a special contract which is in effect on July 1, 1998, until such special contracts expire. The system benefits charge shall be imposed beginning on January 1, 2000, on all customers receiving services under a special contract which are entered into or renewed after July 1, 1998. The systems benefits charge shall have a generally applicable manner of determination that may be measured on the basis of percentages of total costs of retail sales of generation services. The systems benefits charge shall be payable on an equal basis on the same payment terms and shall be eligible or subject to prepayment on an equal basis. Any exemption of the systems benefits charge by customers under a special contract shall not result in an increase in rates to any customer.
Sec. 16. (NEW) (Effective October 1, 2010) Notwithstanding any provision of the general statutes, each full-time employee or permanent part-time employee of the Office of Policy and Management whose primary duties involve electricity policies and programs shall be transferred to the Division of Electricity Policy and Procurement, in accordance with the provisions of this section and sections 4-38d, 4-38e and 4-39 of the general statutes.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
October 1, 2010 |
New section |
Sec. 2 |
October 1, 2010 |
16a-3b |
Sec. 3 |
October 1, 2010 |
16a-3c |
Sec. 4 |
October 1, 2010 |
New section |
Sec. 5 |
October 1, 2010 |
16-244c(c) |
Sec. 6 |
October 1, 2010 |
New section |
Sec. 7 |
October 1, 2010 |
16-4 |
Sec. 8 |
October 1, 2010 |
16a-3 |
Sec. 9 |
October 1, 2010 |
4-65a(a) |
Sec. 10 |
October 1, 2010 |
4a-57(e)(2) |
Sec. 11 |
October 1, 2010 |
16-19e(c) |
Sec. 12 |
October 1, 2010 |
16a-48(d) |
Sec. 13 |
October 1, 2010 |
16-246e |
Sec. 14 |
from passage |
16-2 |
Sec. 15 |
October 1, 2010 |
16-245l |
Sec. 16 |
October 1, 2010 |
New section |
Statement of Purpose:
To establish a Division of Electricity Policy and Procurement.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]