OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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sHB-5542

AN ACT CONCERNING CONSUMER PROTECTION FOR UTILITY CUSTOMERS.

OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below

Explanation

The bill requires electric companies to reimburse certain customers for losses to food or refrigerated medications that result from an outage that lasts more than 48 hours through the systems benefits charge. 1 The state and municipalities, as ratepayers, would incur increased costs to the extent the systems benefits charge is insufficient to cover these expenses.

The bill also limits the amount of compensation for utility company officers and employees and waives late fees and credits monthly bills during certain outages. These provisions are not anticipated to have a fiscal impact.

The Out Years

The annualized ongoing fiscal impact of the systems benefits charge would continue into the future subject to inflation.

1 The systems benefits charge is funded by a rate set by the Public Utilities Regulatory Authority. Effective January 1, 2012, the average systems benefits charge for CL&P is 0. 143 cents per kilowatt-hour to collect $23. 7 million in 2012. The average systems benefits charge for UI is 0. 2367 cents per kilowatt-hour to collect $13. 3 million in 2012.