Connecticut Governor Signs Bill Promoting Conservation-Oriented Water Rates

2013-07-18

Connecticut State FlagOn June 5, 2013, Connecticut Governor Dannel P. Malloy signed Substitute Senate Bill No. 807 “Conservation, Municipal Reporting Requirements and Unpaid Utility Accounts at Multi-Family Dwellings,” which removes barriers to water conservation by allowing utilities to set rates that promote more responsible water use. The bill went into effect when signed and serves to further the state’s goals to reduce energy demands, protect natural resources, enhance streamflows, and ensure public health and safety.

The bill includes several provisions and mechanisms to encourage conservation while also protecting the financial viability of the water utility. Authorized rates will consider the use of metering and other measures to provide timely price signals to customers and allow for alternative rate designs that promote conservation and reduce water loss. The Public Utilities Regulatory Authority (PURA) will identify those conservation programs for which water companies will be eligible for cost recovery. Finally, another section creates a revenue adjustment mechanism to allow a water company to make up the difference between its allowed annual revenue and actual annual revenue when actual demands – and revenue - fall short of projections.

Click here for a news release from Governor Malloy’s office.
Click here for a copy of the bill.
Click here for comments on sections 1-3 of the SB 807 by the League of Women Voters of Connecticut.
Click here for a testimony to the Energy and Technology Committee about sections 1-11 of SB 807 by Connecticut Water.