Connecticut General Statutes 16-9c – Participation by stakeholder groups in proceedings pertaining to a gas, water, pipeline, electric distribution company or electric supplier. Compensation program. Independent evaluation of program
(a) As used in this section:
Terms Used In Connecticut General Statutes 16-9c
- Authority: means the Public Utilities Regulatory Authority and "department" means the Department of Energy and Environmental Protection. See Connecticut General Statutes 16-1
- Consumer: means any private dwelling, boardinghouse, apartment, store, office building, institution, mechanical or manufacturing establishment or other place of business or industry to which water is supplied by a water company. See Connecticut General Statutes 16-1
- distribution company: means any person providing electric transmission or distribution services within the state, but does not include: (A) A private power producer, as defined in section 16-243b. See Connecticut General Statutes 16-1
- Electric supplier: means any person, including an electric aggregator or participating municipal electric utility that is licensed by the Public Utilities Regulatory Authority in accordance with section 16-245, that provides electric generation services to end use customers in the state using the transmission or distribution facilities of an electric distribution company, regardless of whether or not such person takes title to such generation services, but does not include: (A) A municipal electric utility established under chapter 101, other than a participating municipal electric utility. See Connecticut General Statutes 16-1
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Gas company: includes every person owning, leasing, maintaining, operating, managing or controlling mains, pipes or other fixtures, in public highways or streets, for the transmission or distribution of gas for sale for heat or power within this state, or engaged in the manufacture of gas to be so transmitted or distributed for such purpose, but shall not include (A) a person manufacturing gas through the use of a biomass gasification plant provided such person does not own, lease, maintain, operate, manage or control mains, pipes or other fixtures in public highways or streets, (B) 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 (C) an entity approved to submeter pursuant to section 16-19ff. See Connecticut General Statutes 16-1
- Pipeline company: includes every person owning, leasing, maintaining, operating, managing or controlling mains, pipes or other fixtures through, over, across or under any public land, water, parkways, highways, parks or public grounds for the transportation, transmission or distribution of petroleum products for hire within this state. See Connecticut General Statutes 16-1
- Public service company: includes electric distribution, gas, telephone, pipeline, sewage, water and community antenna television companies and holders of a certificate of cable franchise authority, owning, leasing, maintaining, operating, managing or controlling plants or parts of plants or equipment, but shall not include towns, cities, boroughs, any municipal corporation or department thereof, whether separately incorporated or not, a private power producer, as defined in section 16-243b, or an exempt wholesale generator, as defined in 15 USC 79z-5a. See Connecticut General Statutes 16-1
- Water company: includes every person owning, leasing, maintaining, operating, managing or controlling any pond, lake, reservoir, stream, well or distributing plant or system employed for the purpose of supplying water to fifty or more consumers. See Connecticut General Statutes 16-1
(1) “Compensation” means payment by any public service company that is a party to a proceeding, investigation or rulemaking before the Public Utilities Regulatory Authority, or is a party to alternative dispute resolution ordered by the authority, for all or part, as determined by the authority, of a stakeholder group’s reasonable attorneys’ fees, reasonable expert witness fees and other reasonable costs for preparation and participation in such proceeding before the authority.
(2) “Stakeholder group” means (A) a group of persons designated an intervenor pursuant to section 4-177a or designated a participant pursuant to section 16-1-135 of the regulations of Connecticut state agencies that applies jointly for an award of compensation under this section and represents the interests of more than one (i) residential utility customer residing in an environmental justice community, as defined in section 22a-20a, (ii) residential utility customer who is a hardship case for purposes of subdivision (3) of subsection (b) of section 16-262c, or (iii) small business customer; or (B) a nonprofit organization in the state authorized to represent the interests of (i) residential utility customers residing in an environmental justice community, as defined in section 22a-20a, (ii) residential utility customers who are hardship cases for purposes of subdivision (3) of subsection (b) of section 16-262c, or (iii) small business customers. “Stakeholder group” does not include any nonprofit or other organization whose principal interests are the welfare of a public service company or its investors or employees, or the welfare of one or more businesses or industries which receive utility service primarily for use in connection with the manufacture, sale or distribution of goods or services for profit; and does not include any state agency that participates in proceedings before the authority, including, but not limited to, the Department of Energy and Environmental Protection, the office of the Attorney General and the Office of Consumer Counsel.
(3) “Other reasonable costs” means reasonable out-of-pocket expenses incurred by the stakeholder group that are directly related to the group’s preparation for or participation in the proceeding before the authority that resulted in a substantial contribution.
(4) “Proceeding” means a contested case, investigation, rulemaking or other formal proceeding before the authority, or alternative dispute resolution ordered by the authority, pertaining to a gas company, water company, pipeline company, electric distribution company or electric supplier, as such terms are defined in section 16-1.
(5) “Significant financial hardship” means that a stakeholder group demonstrates that it is unable to afford to pay the costs of effectively participating in the proceeding, including attorneys’ fees, expert witness fees and other reasonable costs.
(6) “Small business customer” means a commercial or industrial electric customer with less than a two hundred kilowatt peak load that is a “small business” under section 4-168a.
(7) “Substantial contribution” means participation by a stakeholder group in a proceeding that, in the judgment of the authority, may substantially assist the authority in making its decision or part of its decision because the authority may adopt one or more factual contentions, legal contentions or policy or procedural recommendations that the stakeholder group presents.
(b) (1) Not later than January 15, 2024, the Public Utilities Regulatory Authority shall establish a program to award compensation to eligible stakeholder groups in proceedings of the authority. Such compensation shall be limited to not more than one hundred thousand dollars for each stakeholder group, not more than three hundred thousand dollars for all stakeholder groups in an eligible proceeding and not more than one million two hundred thousand dollars total for all stakeholder groups in each calendar year.
(2) (A) Not later than March 15, 2026, the authority shall issue a request for proposals to retain a consultant with program evaluation experience to conduct an independent evaluation of the program established pursuant to subdivision (1) of this subsection, including its performance, impact and effectiveness. The authority shall determine the criteria for evaluating proposals and the deadline for responding to the request for proposals.
(B) Not later than July 15, 2026, the authority shall evaluate the bids submitted and select the bidder that shall conduct the study.
(C) Not later than January 15, 2027, the chairperson of the authority shall report, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to energy and technology, regarding the implementation of the program required by this subsection during the period from January 15, 2024, to July 15, 2026, inclusive. The report shall include, but need not be limited to: (i) A summary of the program’s implementation, including a summary of the application process, the number of applicants received, the number of stakeholder groups who participated in proceedings, the number of stakeholder groups who were awarded funding, the number of stakeholder groups who claimed financial hardship, and the annual costs of the program, including a breakdown of costs by type of stakeholder group expense; (ii) an assessment of the impact of stakeholder groups on proceedings and their outcomes; (iii) the program evaluation by the independent consultant retained by the authority; and (iv) any recommendations regarding legislative changes to the program.
(c) A stakeholder group that seeks designation as an intervenor pursuant to section 4-177a or a participant pursuant to section 16-1-135 of the regulations of Connecticut state agencies may apply for an award of compensation in accordance with the program established pursuant to this section. At the same time or before filing its application, the stakeholder group shall serve on every party, intervenor or participant to the proceeding notice of intent to apply for an award of compensation. The authority shall determine appropriate procedures for accepting, taking comment on and responding to such applications, and may require that applicants attend educational trainings sponsored or recommended by the authority or the Office of Consumer Counsel as a condition of receiving an award of compensation. Any such trainings shall be designed to support public participation and public understanding of authority decisions and rulings, and general education and awareness regarding public service company regulation and operations, and shall include resources for the public that explain the role and function of the authority and the Office of Consumer Counsel. In its performance of duties pursuant to this subsection, the authority and the Office of Consumer Counsel may retain consultants to provide training in areas in which staff expertise does not currently exist or when necessary to supplement existing staff expertise, and may incur other reasonable costs related to stakeholder engagement and the program, provided the total costs incurred by the authority and the Office of Consumer Counsel under this subsection do not exceed one million dollars per year.
(d) Any application submitted pursuant to this section shall include:
(1) A statement of the nature and extent and the factual and legal basis of the stakeholder’s planned participation, to the extent it is possible to describe such participation with reasonable specificity at the time the application is filed.
(2) A detailed budget of anticipated attorneys’ and expert witness fees and other costs of preparation for and participation in the proceeding.
(3) If participation will impose a significant financial hardship and the stakeholder group seeks advance payment of an award of compensation in order to initiate, continue or complete participation in the proceeding, the stakeholder group shall include substantial evidence of significant financial hardship in its application.
(4) Any other requirements, as determined by the authority.
(e) (1) Not later than thirty days after receiving a stakeholder group’s application, the authority shall decide if the stakeholder group’s participation constitutes a substantial contribution. If the authority finds that such participation is a substantial contribution, the authority shall describe this substantial contribution and determine if the stakeholder group has significant financial hardship pursuant to subdivision (2) of this subsection.
(2) Notwithstanding subsection (f) of this section, if the authority finds that the stakeholder group has significant financial hardship, the authority may direct the public service company or companies subject to the proceeding to pay all or part of the expected compensation, as determined by the authority, to the stakeholder group before the end of the proceeding. If the stakeholder group discontinues its participation in the proceeding without the consent of the authority, the authority shall recover all or part of any payments made to such stakeholder and refund such payments to the public service company or companies that made the payments.
(3) Any determination by the authority to direct payment of all or part of a stakeholder group’s expected compensation before the end of a proceeding pursuant to subdivision (2) of this subsection shall take into consideration the compensation paid to attorneys, expert witnesses and other persons of comparable training and experience who offer similar services as the services relevant to the stakeholder group’s application and compensation.
(4) Each stakeholder group shall return any unused compensation to the authority, which the authority shall refund to the public service company or companies that provided the compensation.
(5) The authority shall require that every stakeholder group maintain an itemized record of all expenditures incurred as a result of the proceeding. The authority may use the record to verify the stakeholder group’s claim of financial hardship and to determine if any unused funds remain at the completion of a proceeding.
(6) If the authority determines that two or more stakeholder groups have substantially similar interests, the authority may require such stakeholder groups to apply jointly in order to receive compensation.
(f) Any compensation shall be paid at the conclusion of the proceeding by the public service company, in a manner determined by the authority. Compensation shall be paid by all relevant public service companies in proportion to such companies’ relative annual load, number of customers or revenue, as determined by the authority.
(g) The authority shall not award compensation to any stakeholder group that delays or obstructs, or attempts to delay or obstruct, the orderly and timely fulfillment of the authority’s duties under this title.
(h) Nothing in this section shall be construed as restricting, diminishing or otherwise altering the provisions of section 16-2a concerning the Office of Consumer Counsel.