Governor Malloy signed SB573/P.A. 15-90 on June 22nd. The new law bans residential electric variable rate contracts. The law specifically provides that, "On and after October 1, 2015, no electric supplier shall (A) enter into a contract to charge a residential customer a variable rate for electric generation services; or (B) automatically renew or cause to be automatically renewed a contract with a residential customer and, pursuant to such contract, charge such customer a variable rate for electric generation services." However the law also charged the Connecticut PURA with opening a, "proceeding to develop recommendations and guidance regarding (1) what type of generation services rate structure is best suited for residential customers who allow a fixed contract with an electric supplier to expire and begin paying a month-to-month rate for generation services from such supplier; and (2) what rate increase is just and reasonable if a generation services rate increase is necessary after the expiration of a fixed contract and such customer begins paying a month-to-month rate. The authority shall report, in accordance with the provisions of section 11-4a, the findings of such proceeding to the joint standing committee of the General Assembly having cognizance of matters relating to energy, on or before January 1, 2016." A case has been opened at the PURA for these purposes under Docket No. 15-06-15. The full text of P.A. 15-90 is available on the NEM Website.

The Commission has launched a new investigation,"to identify technologies and policies that can modernize our energy delivery system for increased sustainability and will make our system more reliable, efficient, cost-effective and interactive." The Commission is first seeking stakeholder input on the scope of the proceeding to be filed by August 31, 2015. Subsequent to the filing of comments, the Commission will convene a kickoff workshop on September 22, 2015. The purpose of the kickoff meeting is to provide an initial overview of the current energy distribution network in D.C. and to discuss next steps in the investigation. The full text of the Order Opening Investigation is available on the NEM Website.

The Commission issued an Order adopting a symmetrical rate of interest to be applicable to over- and under-collections resulting from the reconciliation of default service providers (DSPs) actual costs and revenue collected through automatic adjustment clauses regarding electric default service. The Commission took this action because of concerns that traditional methods of reconciliation resulted in unnecessary electric rate volatility for DSPs and also to remove the incentive for DSPs to inaccurately forecast costs and sales to improperly increase interest earnings.

The regulatory language adopted by the Commission is as follows:
"When revenues exceed costs, the over collections shall be refunded to customers with interest. When costs exceed revenues, the under collections shall be collected from customers with interest. Interest on over collections and under collections shall be computed at the prime rate of interest for commercial banking, not to exceed the legal rate of interest, in effect on the last day of the month the overcollection or under collection occurs, as reported in the Wall Street Journal. Interest shall be computed monthly from the month the over collection or under collection occurs to the effective month that the over collection is refunded or the under collection is collected."

The full text of the Order is available on the NEM Website.