Sec.16a-49-3. Department review and action on gas conservation and load management investments

(a) The Department shall conduct a public hearing to review the conservation and load management plans filed pursuant to Section 16a-49-2 (a) and 16a-49-2 (b) of these regulations and shall issue a decision including but not limited to the following determinations:

(1) Which of the conservation and load management programs are cost efficient and consistent with the provisions of state conservation and energy policy and with provisions of Section 16a-35k of the Connecticut General Statutes;

(2) Which of the proposed multi-year conservation and load management investments qualify as investments for inclusion in the rate base of the gas public service company which may be recovered pursuant to provisions of Section 16a-49 of the Connecticut General Statutes, and

(3) The interim accounting mechanism for recovery of conservation and load management investments pending determination in the company's next filed application for rate adjustment.

(b) The appropriateness of the return on rate base requested by the gas public service company above its authorized rate of return for recovery of its approved multi-year conservation and load management investments shall be made by the Department in its consideration of the gas public service company's next application for amendment of rates. Such allowed return on the rate base for multi-year conservation and load management investments shall be at a rate of no less than one per cent and no greater than five per cent above the gas public service company's authorized rate of return.

(c) No costs incurred by a gas public service company in connection with any plan or program under which the company offers direct cash or energy source credit incentives or imposes undue economic burdens which are intended to promote the conversion of primary residential or commercial oil heating systems to gas heating systems shall be placed in the rate base of the gas public service company or included, directly or indirectly, as operating expenses of that company for the purposes of rate making.

(d) Nothing in these regulations shall be construed to preclude or restrain the company's short term management decisions made to improve the economics or reliability of its system or fuel mix through wholesale or retail supply or demand opportunities made in the operation of its gas distribution franchise.

(Effective October 26, 1989)