Conn. Gen. Stat. § 16-19a (2026)

(a)(1) The Public Utilities Regulatory Authority shall, at intervals of not more than four years from the last previous general rate hearing of each gas company, electric distribution company or water company having more than seventy-five thousand customers, conduct a complete review and investigation of the financial and operating records of each such company and hold a public hearing to determine whether the rates of each such company are unreasonably discriminatory or more or less than just, reasonable and adequate, or that the service furnished by such company is inadequate to or in excess of public necessity and convenience or that the rates do not conform to the principles and guidelines set forth in section 16-19e. In making such determination, the authority shall consider the gross and net earnings of such company since its last previous general rate hearing, its retained earnings, its actual and proposed capital expenditures, its advertising expenses, the dividends paid to its stockholders, the rate of return paid on its preferred stock, bonds, debentures and other obligations, its credit rating, and such other financial and operating information as the authority may deem pertinent.

(2) The authority may conduct a general rate hearing in accordance with subsection (a) of section 16-19, in lieu of the periodic review and investigation proceedings required under subdivision (1) of this subsection. The authority may convene such general rate hearing at an interval of less than four years at the discretion of the authority, unless convening such general rate hearing at an interval of less than four years violates the terms of any final decision of the authority. Notwithstanding the provisions of section 16-243p, a gas company, electric distribution company or water company may recover reasonable and prudently incurred costs associated with a proceeding convened by the authority pursuant to this section, provided such company demonstrates to the satisfaction of the authority that it is not collecting rates and does not have an authorized rate of return which is or are more than just, reasonable and adequate, as determined by the authority.

(b) In any proceeding required under subdivision (1) of subsection (a) of this section, or in any rate hearing pursuant to section 16-19, the authority shall consider the implementation of financial performance-based incentives and penalties and performance-based metrics. Notwithstanding subsection (a) of this section, if the authority approves such performance-based incentives and penalties for a particular company, the authority shall include in such approval a framework for periodic monitoring and review of the company's performance pursuant to metrics developed by the authority.

(P.A. 74-216, S. 3, 8; P.A. 75-486, S. 9, 69; P.A. 77-614, S. 162, 610; P.A. 80-482, S. 56, 348; P.A. 85-30, S. 1, 2; P.A. 96-42, S. 1, 2; P.A. 98-28, S. 90, 117; P.A. 00-17, S. 2; P.A. 11-80, S. 1, 26; P.A. 14-134, S. 51; Sept. Sp. Sess. P.A. 20-5, S. 3; P.A. 23-102, S. 8.)

History: P.A. 75-486 replaced public utilities commission with public utilities control authority, required review not more than two years after last rate hearing, rather than not less than two years after hearing, included operating records in review and required review to see whether rates conform to guidelines in Sec. 16-19e; P.A. 77-614 replaced authority with division of public utility control within the department of business regulation, effective January 1, 1979; P.A. 80-482 made division an independent department and deleted reference to abolished department of business regulation; P.A. 85-30 required department to conduct reviews and investigations at intervals of not more than four years, instead of not more than two years, from last rate hearing and limited applicability of provisions of section to companies having more than 75,000 customers; P.A. 96-42 lettered existing section as Subsec. (a) and added Subsec. (b) re performance-based incentives and periodic monitoring and review by the Department of Public Utility Control in lieu of a rate proceeding described in Subsec. (a), effective May 2, 1996; P.A. 98-28 amended Subsec. (a) by adding electric distribution companies, effective July 1, 1998; P.A. 00-17 amended Subsec. (a) by designating existing language as Subdiv. (1) and inserting new Subdiv. (2) authorizing department to conduct general rate hearing in lieu of periodic review and investigation proceedings, and amended Subsec. (b) by making conforming technical changes; P.A. 11-80 replaced “Department of Public Utility Control” with “Public Utilities Regulatory Authority” and replaced “department” with “authority”, effective July 1, 2011; P.A. 14-134 amended Subsec. (a)(1) to delete reference to electric company and amended Subsec. (b) to replace “electric company” with “electric distribution company”, effective June 6, 2014; Sept. Sp. Sess. P.A. 20-5 amended Subsec. (b) by adding “, or in any rate hearing pursuant to section 16-19”, replacing “may approve performance-based incentives to encourage a gas or electric distribution company to operate efficiently and provide high quality service at fair and reasonable prices” with “shall consider the implementation of financial performance-based incentives and penalties and performance-based metrics”, adding reference to penalties, deleting provisions re performance criteria specified by authority and periodic review and investigation, adding reference to metrics developed by the authority and by making a technical change, effective November 1, 2020; P.A. 23-102 amended Subsec. (a)(1) by applying provisions to water companies with more than 75,000 customers and amended Subsec. (a)(2) by adding provisions re authority's discretion to convene general rate hearing at interval of less than 4 years and recovery of costs associated with proceedings under the section, effective June 29, 2023.

See Sec. 16-243a(d) re cogeneration generating capacity.

See Sec. 16a-49 re conservation and load management.

Cited. 219 C. 121.

(Return to Chapter Table of Contents)

(Return to List of Chapters)

(Return to List of Titles)