OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www. cga. ct. gov/ofa

sSB-23

AN ACT ENHANCING EMERGENCY PREPAREDNESS AND RESPONSE.

As Amended by Senate "A" (LCO 5079)

House Calendar No. : 518

Senate Calendar No. : 289

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 13 $

FY 14 $

Department of Energy and Environmental Protection

CC&PUCF - Cost

245,518

245,518

Department of Energy and Environmental Protection

CC&PUCF - Cost

See Below

See Below

Note: CC&PUCF=Consumer Counsel and Public Utility Control Fund

Municipal Impact: None

Explanation

The bill requires the Public Utilities Regulatory Authority (PURA) to establish certain utility company performance standards for emergency preparation and service restoration. PURA will need to hire two engineers (total salary cost of $245,518 including fringe benefits) to evaluate each electric, gas, and telephone company's infrastructure and facilities. While this section of the bill is effective upon passage, it is not anticipated that PURA will incur any costs until FY 13. Utility companies are allowed recover costs incurred to maintain or improve its infrastructure to meet the standards set by PURA. This may result in increased rates for ratepayers, including the state and municipalities.

The bill also requires the Department of Energy and Environmental Protection (DEEP) to establish a pilot program to fund local clean energy generation. The program is authorized to spend up to $15 million in total grants and loans, though no funding source is identified in the bill. 1 To the extent that these grants and loans are nonetheless provided, there is a cost of up to $15 million.

The bill requires DEEP to consult with the Connecticut Academy of Science and Engineering (CASE) to study the methods of providing reliable electric services to critical facilities. DEEP may incur costs up to $25,000 to contract with CASE.

The bill also makes several regulatory changes that have no fiscal impact on PURA.

Senate “A” struck the underlying bill and its associated fiscal impact. The substitute language results in the fiscal impact described above.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

1 It should be noted that the bond bill approved by the Finance, Revenue and Bonding Committee (sSB 25, AA Authorizing and Adjusting Bonds of the State for Capital Improvements, Transportation and Other Purposes) does not authorize any bond funds for the local clean energy generation pilot program established in this bill.