State Seeks Comment on Applicability of Gross Receipts Tax, SUT to Electric Customers

The Connecticut Public Utilities Regulatory Authority sought comments regarding the current practice employed by Connecticut electric and gas utilities to assign Gross Receipts Tax (GRT) and Sales and Use Taxes (SUT) to customer bills.

In specific interrogatories to the utilities, PURA asked what GRT is assigned to non-distribution charges included on customer bills, and asked whether non-distribution charges on customer bills reflect the nature-of-use or tariff classification GRT?

The Authority also requested written comments on the following:

1. Define a residential customer and cite the applicable statutes, regulations, and decisions.

2. Define nature-of-use as it is used to determine what GRT rate a utility should charge for providing service to residential and non-residential type customers.

3. Regarding a business such as a nursing home, should the entity be:

a. Considered a commercial or residential customer? Explain.

b. Assessed a GRT charge as a residential or commercial customer? Explain and cite the appropriate legal authority.

4. Regarding utility regulation governed by the Authority, what statutes, regulations, and/or rules govern the assignment of the GRT to the different classes of utility customer bills? Include residential customers and nature-of-use such as dwellings serviced under non-residential tariffs. Cite the relevant law(s), if applicable.

5. Are the utilities currently assessing the appropriate GRT? Explain.

6. Regarding utility regulation governed by the Authority, what statutes, regulations, and/or rules govern the assignment of the SUT to the different classes of utility customer bills? Include residential customers and nature-of-use such as dwellings serviced under non-residential tariffs. Cite the relevant law(s), if applicable.

7. Are the utilities currently assessing the appropriate SUT on customer's bills? Explain.

8. Any other relevant issues.

Docket 14-09-09