Sec. 16-19f. Rate design standards for electric utilities. Determination of appropriateness. Implementation. - Connecticut Statutes

      Sec. 16-19f. Rate design standards for electric utilities. Determination of appropriateness. Implementation. (a) As used in this section:

      (1) "Cost of service" means an electric utility rate for a class of consumer which is designed, to the maximum extent practicable, to reflect the cost to the utility in providing electric service to such class;

      (2) "Declining block rate" means an electric utility rate for a class of consumer which prices successive blocks of electricity consumed by such consumer at lower per-unit prices;

      (3) "Time of day rate" means an electric utility rate for a class of consumer which is designed to reflect the cost to the utility of providing electricity to such consumer at different times of the day;

      (4) "Seasonal rate" means an electric utility rate for a class of consumer designed to reflect the cost to the utility in providing electricity to such consumer during different seasons of the year;

      (5) "Interruptible rate" means an electric utility rate designed to reflect the cost to the utility in providing service to a consumer where such consumer permits his service to be interrupted during periods of peak electrical demand;

      (6) "Load management techniques" means cost-effective techniques used by an electric utility to reduce the maximum kilowatt demand on the utility.

      (b) The Department of Public Utility Control, with respect to each electric public service company and each municipal electric company, shall, within two years, consider and determine whether it is appropriate to implement any of the following rate design standards: (1) Cost of service; (2) prohibition of declining block rates; (3) time of day rates; (4) seasonal rates; (5) interruptible rates; and (6) load management techniques. The consideration of said standards by the department and each municipal electric company shall be made after public notice and hearing. Such hearing may be held concurrently with a hearing required pursuant to subsection (b) of section 16-19e. The department and each municipal company shall make a determination on whether it is appropriate to implement any of said standards. Said determination shall be in writing, shall take into consideration the evidence presented at the hearing and shall be available to the public. A standard shall be deemed to be appropriate for implementation if such implementation would encourage energy conservation, optimal and efficient use of facilities and resources by an electric public service company or municipal electric company and equitable rates for electric consumers.

      (c) The Department of Public Utility Control, with respect to each electric public service company, and each municipal electric company may implement any standard determined under subsection (b) of this section to be appropriate or decline to implement any such standard. If the department or a municipal electric company declines to implement any standard determined to be appropriate, it shall state in writing its reasons for doing so and make such statement available to the public.

      (d) The provisions of this section shall not apply to any municipal electric company which has total annual sales of electricity for purposes other than resale of five hundred million kilowatt-hours or less.

      (P.A. 79-554, S. 1-5; P.A. 80-482, S. 4, 40, 345, 348; P.A. 88-220, S. 1, 11; P.A. 05-288, S. 65.)

      History: P.A. 80-482 made division of public utility control an independent department and abolished department of business regulation; P.A. 88-220 deleted Subsec. (e) containing obsolete 1980 reporting requirement; P.A. 05-288 made a technical change in Subsec. (c), effective July 13, 2005.

      See chapter 101 (Sec. 7-213 et seq.) re municipal electric companies.