CT HB07105

Modifies the review period for determining when water companies earn excess returns from "six consecutive months" to "the rolling twelve-month period ending with the two most recent consecutive financial quarters," effective October 1, 2017

Allows the public utilities authority to hold hearings and order interim rate decreases when companies exceed authorized return on equity by at least one percentage point under the new measurement period

Changes the Water Infrastructure and Conservation Adjustment (WICA) mechanism to reset to zero upon approval of new base rates and requires an earnings sharing mechanism when companies exceed allowed returns by more than 100 basis points

Mandates that any excess earnings exceeding 100 basis points above the allowed return on equity be shared equally between ratepayers and shareholders

Establishes that companies must demonstrate excess returns or high rates are directly beneficial to customers before rate adjustments are approved