Office of Consumer Counsel

At a Glance

MARY J. HEALEY, Consumer Counsel

Established – 1975

Statutory authority – CGS Sec. 16-2a

Central office – Ten Franklin Square,

New Britain, CT 06051

Average number of full-time employees – 12

Recurring operating expenses - $1,809,766

Capital expenditures - $0

Mission

The mission of the Office of Consumer Counsel (OCC) is to represent customers of Connecticut’s five regulated utilities – electric, gas, water, telephone, and to some extent, cable television – primarily in matters that go before the Department of Public Utility Control (DPUC), and to advocate that they receive the lowest utility rates possible commensurate with the highest level of utility services. This is accomplished mainly through OCC’s participation on behalf of all consumer interests, with regard to public utility matters, in regulatory or judicial proceedings, federal or state, affecting such interest.

Improvements/Achievements 2003-04

Last year, OCC said that as competition develops for the traditional electric monopoly utilities, the needs of utility ratepayers would change and with it so would OCC activities. Well, this year bore that out as OCC spent a great deal of time representing ratepayer interests at the Federal Regulatory Commission (FERC) in Washington D.C. A number of successes were achieved on the federal level most notably the Standard Market Design Settlement which OCC, along with the Connecticut Attorney General and the Department of Public Utility Control (“DPUC”), negotiated on behalf of the electric ratepayers of The Connecticut Light and Power Company (CL&P) and The United Illuminating Company (UI) resulting in a refund of $83 million. OCC is actively participating in the ISO-New England Regional Transmission Operator (RTO) filing at FERC and its companion filing by the northeast transmission owners who are requesting large rate increases for assigning their transmission assets to the RTO. The Connecticut Yankee Decommissioning Case at FERC will be an ongoing case of great importance to Connecticut ratepayers as the costs of decommissioning relating to the cleanup of the property will be scrutinized for prudency. Current estimates for additional cleanup costs are about $400 million, double the current costs. Additional FERC initiatives at designing a wholesale electric market that works well, is free from market abuses and addresses costly power congestion areas like that of Southwest Connecticut will continue to occupy much of OCC’s attention as the ratepayer advocate.

OCC continues its effective representation of the ratepayer in traditional litigation at the DPUC by development of policy and legal positions by the Consumer Counsel in consultation with staff and by thorough preparation of its cases including comprehensive analysis of the evidence filed by other parties or intervenors, cross-examination of utility witnesses, presentation of its own evidence through senior staff or outside experts and constant honing of its oral and written skills. This year at the DPUC, OCC had many successful cases particularly the CL&P Rate Case and several successful appeals of cases at the Superior Court including appeals of the Yankee Gas Rate Case and the United Illuminating Rate Case. Also of note, one of two possible cases will be heard at the Connecticut Supreme Court during which OCC will seek clarification on several important issues to utility ratepayers and utility practitioners. OCC also was involved in several settlements which brought benefits to ratepayers as well as the utility and eliminated the need for protracted and costly litigation whose outcome was uncertain.

On the telephone front, the OCC scored a victory at the Connecticut Supreme Court in a case directly protecting consumers from an unscrupulous pay phone provider; argued at the Federal Communications Commission (FCC) this year in a case to promote competition for all forms of telecommunications (telephone, cable TV, and Internet service); and issued comments, which will soon be available on our website, on the dismal status of telecommunications competition in this state, advocating the steps needed to bring competition to this market.

In terms of cable TV, which is narrowly regulated by the DPUC under state law (e.g., rates are regulated by the FCC under federal law), in addition to assuring that Adelphia customers are not negatively impacted by the legal and financial troubles affecting the company due to the fraud of its corporate officers, the OCC is preparing for several franchise renewal challenges expected later this year affecting several providers.

OCC also serves on various boards which affect ratepayer issues such as the Consumer Education Advisory Council. OCC is chair of this Board that advises the DPUC on the implementation of the legislative mandate to educate electric consumers about the changes in the electric industry in Connecticut. This year and last, the Board worked closely with DPUC to enhance its electric outreach website, Wattsnewct.com, for easier navigation and “one stop shopping” for electric restructuring information. OCC also is an active member of the Energy Conservation Management Board which is an advisory board assisting the utility administrators of the ratepayer funded Conservation Fund. Another Board membership of note is our role as a member of the newly reconstituted Connecticut Energy Advisory Board (“CEAB”). This Board, created by statute last year, is charged with developing the state’s annual energy plan, developing preferential criteria for energy projects and has the power to initiate requests for proposal for energy projects to address the state’s needs, short or long-term, on a more sustainable, strategic basis. CEAB will work closely with ISO-NE and the Connecticut Siting Council which are the agencies that must approve aspects of these types of projects.

Last year, OCC met its responsibilities with success despite the budget impacts with the able assistance of an experienced staff and outside experts as necessary and we were extremely fortunate to have been able to fill one of our four vacancies with a much needed litigation attorney. We look for continued good results for utility consumers in the year ahead.

Information Reported as Required by State Statute

The OCC is an equal opportunity employer committed to the letter and the spirit of affirmative action.