Performance-based regulation of electric distribution companies

(a)(1) For the purposes of this section, “electric distribution company” has the same meaning as provided in section 16-1 and “emergency” has the same meaning as provided in section 16-32e. (2) “Resilience” means the ability to prepare for and adapt to changing conditions and withstand and recover rapidly from deliberate attacks, accidents or naturally occurring threats or incidents, including, but not limited to, threats or incidents associated with the impacts of climate change. (b) Not later than June 1, 2021, the Public Utilities Regulatory Authority shall initiate a proceeding to investigate, develop and adopt a framework for implementing performance-based regulation of each electric distribution company. Such framework adopted by the authority shall: (1) Establish standards and metrics for measuring such electric distribution company's performance of objectives that are in the interest of ratepayers or benefit the public, which may include, but not be limited to, safety, reliability, emergency response, cost efficiency, affordability, equity, customer satisfaction, municipal engagement, resilience and advancing the state's environmental and policy goals, including, but not limited to, those goals established in section 22a-200a, in the Integrated Resources Plan approved pursuant to section 16a-3a and in the Comprehensive Energy Strategy prepared pursuant to section 16a-3d; (2) identify the manner, including the timeframe and extent, in which such standards and metrics shall be used to apply the principles and guidelines set forth in section 16-19e and to determine the relative adequacy of the company's service and the reasonableness and adequacy of rates proposed and considered pursuant to section 16-19a; and (3) identify specific mechanisms to be implemented to align utility performance with the standards and metrics adopted pursuant to this section and subsection (b) of section 16-19a, including, but not limited to, reviewing the effectiveness of the electric distribution company's revenue decoupling mechanism. The authority may also initiate a proceeding to investigate, develop and adopt a framework for implementation of performance-based regulation for gas and water companies, as defined by section 16-1, consistent with the requirements and provisions of this section.