Conn. Gen. Stat. § 16-243n: Design and submission of time-varying rate proposals.

(a) Not later than October 1, 2027, each electric distribution company, as defined in section 16-1, shall submit an application to the Public Utilities Regulatory Authority to implement time-varying rates for (1) residential customers, and (2) commercial and industrial customers.

(b) (1) Time-varying rate proposals for transmission, distribution and all other retail electric rate components submitted pursuant to subsection (a) of this section shall (A) provide for fixed rates across twenty-four-hour cycles within each season, (B) be based on projected seasonal demand and include on-peak rates, and (C) adequately incentivize the cost-effective shifting of load to off-peak periods by applying an appropriate price differential between on-peak and off-peak time-varying rates. The design of such rates, including the price differential between on-peak and off-peak time-varying rates, shall be consistent with empirical research conducted by the electric distribution company and other rate-design experts.

(2) Any application submitted pursuant to subsection (a) of this section that proposes a seasonal rate component to such time-varying rates shall submit the following concerning such proposed seasonal rates: (A) Any proposal for differentiation of generation, transmission and distribution energy and demand rates (i) into summer and nonsummer periods, at a minimum, and if cost differences between summer and nonsummer periods are substantial, (ii) into winter and shoulder month periods, with consideration of projected electric customer acceptance and usage of such rates, and (B) the appropriate phase-in period over which time electric customers may adjust to seasonal rates without experiencing a sudden, significant increase in electricity prices.

(3) Any application submitted pursuant to subsection (a) of this section shall propose to establish (A) such time-varying rates through an approved revenue recovery mechanism for transmission and distribution rates, and (B) a revenue reconciliation mechanism whereby any revenue undercollected or overcollected through such time-varying rates is recovered or refunded, as appropriate, through a subsequent billing reconciliation adjustment.

(4) Time-varying rates submitted pursuant to subsection (a) of this section shall be designed as default rates, with consideration for principles of gradualism and customer acceptance and established exceptions as deemed appropriate by the authority, including, but not limited to, for medically protected and financial hardship customers, and provided the application (A) proposes a comprehensive customer education program that meets the requirements of section 16-243ii; (B) provides for a clearly defined opt-out process concerning such rates; and (C) gives due consideration to the interaction of any time-varying rate design with existing and foreseeable low-income rates and programs.

(c) The authority shall hold a hearing that shall be conducted as a contested case, in accordance with the provisions of chapter 54, to approve, reject or modify applications submitted pursuant to subsection (a) of this section. No application for time-varying rates shall be approved by the authority unless (1) such rates reasonably reflect the cost of service during their respective time-varying periods, (2) the costs associated with implementation, the impact on customers and benefits to the utility system justify implementation of such rates, and (3) such rates are expected to alter patterns of customer consumption of electricity without undue adverse effect on the customer.

(d) Each electric distribution company shall assist customers to help manage loads and reduce peak consumption through the comprehensive plan developed pursuant to section 16-245m.