Sec.16-244h-7. Compliance plan filing requirements

(a) Compliance Plans: No later than October 1, 1999, each electric distribution company shall file with the department, for review and approval, a compliance plan demonstrating to the department that there are adequate procedures in place that will preclude the sharing of information with its generation entities or affiliates that is prohibited by sections 16-244h-1 to 16244h-7, inclusive, of the Regulations of Connecticut State Agencies and further demonstrating that access to its transmission and distribution facilities is provided on a nondiscriminatory basis. The compliance plan shall be in effect from filing but may be modified, as determined by the department. Each electric distribution company shall file a subsequent compliance plan no later than July 1, 2000 and annually thereafter.

(1) In its compliance plan filed pursuant to this subsection, the electric distribution company shall demonstrate both the specific mechanisms and procedures that the electric distribution company and holding company have in place to ensure that the electric distribution company is not utilizing the holding company or any of its affiliates not covered by sections 16-244h-1 to 16-244h-7, inclusive, of the Regulations of Connecticut State Agencies as a means to circumvent any of those sections. Examples include, but are not limited to, specific mechanisms and procedures to assure the department that the electric distribution company will not use the holding company or another electric distribution company affiliate not covered by sections 16-244h-1 to 16-244h-7, inclusive, of the Regulations of Connecticut State Agencies as a means to circumvent the purposes and goals of those sections relating to:

(A) Access of information;

(B) Provision of services; or

(C) Access to or employment of electric distribution company employees.

(2) In the compliance plan, a corporate officer from the electric distribution company and holding company shall certify under penalty of false statement the adequacy of these specific mechanisms and procedures to ensure that the electric distribution company is not utilizing the holding company or any of its affiliates not covered by sections 16-244h-1 to 16-244h-7, inclusive, of the Regulations of Connecticut State Agencies as a means to circumvent any of those sections.

(b) New Affiliate Compliance Plans: Upon the creation of a new generation entity or affiliate to which sections 16-244h-1 to 16-244h-7, inclusive, of the Regulations of Connecticut State Agencies applies, the electric distribution company shall immediately notify the department of the creation of the new generation entity or affiliate, and shall post a notice on its web page. No later than 60 days after the creation of this generation entity or affiliate, the electric distribution company shall file notification with the department. The notification shall demonstrate how the electric distribution company will implement sections 16-244h-1 to 16-244h-7, inclusive, of the Regulations of Connecticut State Agencies with respect to the new generation entity or affiliate.

(c) Enforcement Proceedings. If the department, upon its own motion or upon receipt of a complaint from any person alleging a violation of sections 16-244h-1 to 16-244h-7, inclusive, of the Regulations of Connecticut State Agencies by an electric distribution company or any of its generation entities or affiliates, has reason to believe that a violation has occurred, it shall investigate compliance with such sections. The department shall have the power, after notice and opportunity for hearing, and upon a finding that a violation has occurred, to enter any orders as may be in the public interest to enforce such sections, including cease and desist orders and the assessment of civil penalties. However, civil penalties shall only be assessed in accordance with the procedural requirements of section 16-41 of the Connecticut General Statutes.

(d) Assessment of Civil Penalties. In assessing civil penalties pursuant to subsection (c), the department shall take into account, in addition to the nature, extent and gravity of the particular violation:

(1) The electric distribution company's prior history of violations;

(2) The "good faith" efforts, if any, of the electric distribution company or generation entity or affiliate to comply with sections 16-244h-1 to 16244h-7, inclusive, of the Regulations of Connecticut State Agencies;

(3) The nature and degree of economic benefit gained by the electric distribution company or its generation entity or affiliate;

(4) Deterrence of future violations; and

(5) Such other factors deemed appropriate and material to the particular circumstances of the violation.

(Adopted effective July 1, 1999)