§ 16-19tt — Gas and electric distribution companies' distribution revenue decoupling.

(a) In any rate case initiated on or after June 4, 2007, and for which a final decision has not been issued prior to July 8, 2013, the Public Utilities Regulatory Authority shall order the state's gas and electric distribution companies to decouple distribution revenues from the volume of natural gas or electricity sales through any of the following strategies, singly or in combination: (1) A mechanism that adjusts actual distribution revenues to allowed distribution revenues, (2) rate design changes that increase the amount of revenue recovered through fixed distribution charges, or (3) a sales adjustment clause, rate design changes that increase the amount of revenue recovered through fixed distribution charges, or both. In making its determination on this matter, the authority shall consider the impact of decoupling on the gas or electric distribution company's return on equity and make necessary adjustments thereto. (b) In any rate case initiated on or after October 1, 2023, or in a pending rate case for which a final decision has not been issued prior to October 1, 2023, the Public Utilities Regulatory Authority shall order the state's gas and electric distribution companies to decouple distribution revenues from the volume of natural gas and electricity sales. The authority shall have the discretion to determine the decoupling mechanism and methodology used in decoupling orders made pursuant to this subsection, subject to the principles set forth in subsection (m) of section 16-2 . In making such determination, the authority shall consider factors, including, but not limited to, (1) whether the decoupling mechanism and methodology is in the best interest of ratepayers, (2) whether such mechanism and methodology adequately accounts for distribution system service outages, and (3) whether such mechanism and methodology adequately addresses the disincentive for utilities to engage in conservation and energy efficiency measures.

Legislative History

(P.A. 07-242, S. 107; P.A. 11-80, S. 1; P.A. 13-298, S. 11; P.A. 23-102, S. 1.) History: P.A. 07-242 effective June 4, 2007; 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. 13-298 designated existing provisions as Subsec. (a) and amended same by making a technical change and adding “and for which a final decision has not been issued prior to July 8, 2013,” and added Subsec. (b) re decoupling mechanisms for any rate case initiated on or after July 8, 2013, or in a pending rate case for which a final decision has not been issued prior to July 8, 2013, effective July 8, 2013; P.A. 23-102 amended Subsec. (b) by replacing July 8, 2013, with October 1, 2023, deleting provisions re decoupling mechanisms for electric distribution companies and adding provisions re authority's discretion to determine decoupling methodology and factors considered, and made technical changes.