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