Substitute Senate Bill No. 7, known as Public Act No. 23-102, introduces a comprehensive set of amendments to Connecticut's energy-related statutes, with an effective date of October 1, 2023. The bill modifies the decoupling mechanism for gas and electric distribution companies, granting the Public Utilities Regulatory Authority (PURA) discretion to determine the appropriate methodology. It also prevents large public service companies from recovering costs associated with rate proceedings, lobbying, trade association memberships, and certain executive expenses through rates. The bill requires these companies to provide an itemized list of such costs to PURA annually and allows PURA to adopt settlements from alternative dispute resolution in contested cases. Additionally, the bill sets forth requirements for proposed settlements, including a statement of position from nonsettling parties and intervenors, and mandates prefiled testimony with settlements proposed before the close of the evidentiary record.

The bill extends the time frame for PURA to issue decisions on rate filings and outlines procedures for refunds if rates collected exceed approved amounts. It allows for interim rate increases under certain conditions and requires a unanimous vote of utility commissioners to reopen a rate proceeding. The bill also expands PURA's review to include water companies and allows for general rate hearings at intervals of less than four years. It mandates regular management audits of large gas, electric, and water companies, with the costs borne by the audited entities. The bill specifies that costs incurred due to inefficient or imprudent practices are not recognized as proper business expenses, and it revises the handling of excess funds held by electric distribution companies. Lastly, the bill amends notification requirements for accidents and increases fines for non-compliance, while clarifying that fines or restitution costs cannot be recovered through rates.

Statutes affected:
Committee Bill: 16-19jj, 16-19yy, 16-19, 16-19bb, 16-35, 16-16, 16-19ee
ET Joint Favorable Substitute: 16-19jj, 16-19yy, 16-19, 16-19bb, 16-35, 16-16, 16-19ee
File No. 338: 16-19jj, 16-19yy, 16-19, 16-19bb, 16-35, 16-16, 16-19ee
APP Joint Favorable: 16-19jj, 16-19yy, 16-19, 16-19bb, 16-35, 16-16, 16-19ee
Public Act No. 23-102: 16-19jj, 16-19, 16-8, 16-19bb, 16-35, 16-16, 16-19ee, 16-245d, 16-2, 16-4, 16-2c, 16-244z, 16-258e