Connecticut § 16-19gg - Factors to be considered during a rate proceeding.

§ 16-19gg. Factors to be considered during a rate proceeding.

Sec. 16-19gg. Factors to be considered during a rate proceeding. (a) During each proceeding on a rate amendment under section 16-19 proposed by an electric or gas public service company, as defined in section 16-1, the Public Utilities Regulatory Authority, when determining rates for individual rate classes, shall give consideration to the energy cost of manufacturers by analyzing the following: (1) The effect of different rates of return among rate classes upon manufacturers; (2) the use of different cost allocation methodologies; (3) the use of flexible pricing; and (4) any other issue deemed relevant by the authority.

(b) During each proceeding on a rate amendment under section 16-19 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: (1) Macroeconomic conditions at the time the rate amendment is pending before the authority; (2) the company's compliance with state law, regulations and the decisions and policies of the authority and the Department of Energy and Environmental Protection; (3) the burden of the public service company's costs on residential ratepayers, measured as a percentage of household income, under the current and proposed rate; (4) trends in the company's accrual of bad debt; (5) the rate impact on all residential and nonresidential customers; and (6) any other issue deemed relevant by the authority.

(P.A. 90-65, S. 1, 5; P.A. 92-99, S. 1, 3; P.A. 11-80, S. 1; P.A. 23-102, S. 6.)

History: P.A. 92-99 added a new Subsec. (b) re effect on ratepayers of reduced or free utility service for company employees; pursuant to P.A. 11-80, “Department of Public Utility Control” was changed editorially by the Revisors to “Public Utilities Regulatory Authority”, effective July 1, 2011; P.A. 23-102 deleted former Subsec. (b) re effect on ratepayers of reduced or free utility service for company employees and added new Subsec. (b) re factors required to be considered in determining a reasonable rate of return, effective June 29, 2023.