Substitute Senate Bill No. 24

Public Act No. 00-91

An Act Licensing Natural Gas Suppliers.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 16-258a of the general statutes is repealed and the following is substituted in lieu thereof:

(a) Each [corporation, company, association, joint stock association, partnership or] person [, or lessee thereof, which] that sells natural gas to an end user in the state and is not (1) a gas company, as defined in section 16-1, (2) a municipal gas utility established under chapter 101 or any other gas utility owned, leased, maintained, operated, managed, or controlled by any unit of local government under any general statute or any public or special act, or (3) a gas pipeline or gas transmission company subject to the provisions of chapter 208, shall register with the Department of Public Utility Control prior to making any such sale by filing a form supplied by said department.

(b) Each person registered with the department shall: (1) Maintain a bond or other security in amount and form approved by the department, to ensure the person's financial responsibility and its supply of natural gas to end-use customers in accordance with contracts, agreements or arrangements; (2) have a contractual relationship with an entity or entities to purchase natural gas supply; (3) comply with the National Labor Relations Act and regulations, if applicable; (4) comply with the Connecticut Unfair Trade Practices Act and applicable regulations; and (5) agree to cooperate with (A) each gas company, (B) each municipal gas utility established under chapter 101 or any other gas utility owned, leased, maintained, operated, managed or controlled by any unit of local government under any general statute or special act, (C) each gas pipeline or gas transmission company subject to the provisions of chapter 208, (D) the department, and (E) all other gas suppliers in the event of an emergency condition that may jeopardize the safety and reliability of the state's natural gas system.

(c) Each person registered with the department shall, at such times as the department requires but not less than annually, submit to the department, on a form prescribed by the department, an update of information the department deems relevant. A registered person shall notify the department at least ten days before a change in corporate structure that affects the person. Each registered person shall pay an annual registration fee to be determined by the department which shall not exceed the actual administrative costs of the department.

(d) No registration may be transferred without the prior approval of the department. The department may assess additional registration fees to pay the administrative costs of reviewing a request for such transfer.

(e) Any person who violates any provision of this section shall be subject to sanctions by the department in accordance with section 16-41, as amended by this act, which may include, but are not limited to, the suspension or revocation of such registration or a prohibition on accepting new customers.

Sec. 2. Subsection (a) of section 16-41 of the general statutes, as amended by section 1 of public act 99-105, is repealed and the following is substituted in lieu thereof:

(a) Each (1) public service company and its officers, agents and employees, (2) electric supplier or person providing electric generation services without a license in violation of section 16-245, and its officers, agents and employees, (3) certified telecommunications provider or person providing telecommunications services without authorization pursuant to sections 16-247f to 16-247h, inclusive, and its officers, agents and employees, (4) person, public agency or public utility, as such terms are defined in section 16-345, subject to the requirements of chapter 293, [and] (5) person subject to the registration requirements under section 16-258a, as amended by this act, and (6) company, as defined in section 16-49, shall obey, observe and comply with all applicable provisions of this title and each applicable order made or applicable regulations adopted by the Department of Public Utility Control by virtue of this title so long as the same remains in force. Any such company, electric supplier, certified telecommunications provider, person, any officer, agent or employee thereof, public agency or public utility which the department finds has failed to obey or comply with any such provision of this title, order or regulation shall be fined by order of the department in accordance with the penalty prescribed for the violated provision of this title or, if no penalty is prescribed, not more than ten thousand dollars for each offense except that the penalty shall be a fine of not more than forty thousand dollars for failure to comply with an order of the department made in accordance with the provisions of section 16-19 or 16-247k or within thirty days of such order or within any specific time period for compliance specified in such order. Each distinct violation of any such provision of this title, order or regulation shall be a separate offense and, in case of a continued violation, each day thereof shall be deemed a separate offense. Each such penalty and any interest charged pursuant to subsection (g) or (h) of section 16-49 shall be excluded from operating expenses for purposes of rate-making.

Approved May 26, 2000