Bill > HB06777

This bill allows water companies to charge a water quality and treatment surcharge to recover costs for specific capital infrastructure projects required to meet state and federal drinking water regulations. The bill defines an "eligible project" as a major water infrastructure upgrade necessary to comply with new drinking water regulations adopted after December 16, 2021, which has not previously been authorized in the company's rate base. Water companies can file a request with the Public Utilities Regulatory Authority (PURA) to impose a surcharge that covers project expenses, including costs related to treating contaminants like PFAS (perfluoroalkyl and polyfluoroalkyl substances) and lead. The surcharge will be calculated as a percentage based on the project's actual cost, approved rate of return, and associated expenses, and cannot exceed 15% of the company's annual retail water revenues between rate case filings. Water companies must submit an annual reconciliation report detailing the costs and will be required to refund customers with carrying costs if they overcollect the surcharge. The bill mandates that water companies notify customers about the surcharge through bill inserts or direct communication, and the surcharge must appear as a separate line item on customer bills. The provisions of this bill are set to take effect on July 1, 2025, providing a framework for water utilities to invest in critical infrastructure and water quality improvements while transparently recovering associated costs.

Budget and Finance, Transportation and Infrastructure

Energy and Technology Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB06777&which_year=2025