Civil penalties applicable to public utilities - exclusion from rate base.

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(1) (a) In addition to any other penalty otherwise authorized by law and except as otherwise provided in subsections (3), (4), and (5) of this section, a public utility furnishing electric, gas, water, water and sewer, or telecommunications service that intentionally violates any provision of articles 1 to 7 or 15 of this title or of any rule or order of the commission pursuant to such articles, which provision is applicable to such utility, may be assessed a civil penalty of not more than two thousand dollars; except that nothing in this subsection (1) shall be construed to authorize the imposition of civil penalties upon:

  1. A cooperative electric association that has voted to exempt itself from regulationpursuant to section 40-9.5-103;

  2. A cooperative telephone association;

  3. A municipally owned utility; or

  4. A nonprofit generation and transmission electric corporation or association.

(b) Civil penalties assessed pursuant to this section shall be paid and credited to the general fund, in addition to any other sanctions that may be imposed pursuant to law. The amount of any such penalties paid shall not be an allowable expense for rate-making purposes.

(2) (a) The commission shall adopt rules specifying the particular violations, and the amount of the civil penalties to be assessed for each violation, pursuant to subsection (1) of this section.

(b) No public utility shall be assessed a civil penalty if the utility is already subject to an existing reparation due to a commission order, commission rule, or statutory provision for the same violation.

  1. If any public utility receives a second civil penalty assessment for a violation of thesame statute, rule, or order within one year after the first violation, the civil penalty assessed for the second violation shall be no greater than twice the amount specified by rule for such violation.

  2. If any public utility receives more than two civil penalty assessments for violation ofthe same statute, rule, or order within one year, the civil penalty assessed for each such subsequent violation shall be no greater than three times the amount specified by rule for such violation.

  3. Notwithstanding any provision of this section to the contrary, the total amount ofcivil penalties assessed against one public utility under this section shall not exceed the lesser of the following:

  1. One hundred fifty thousand dollars in any six-month period; or

  2. In any twelve-month period, one percent of the utility's gross annual revenues fromservices regulated by the commission, based on the most recent fiscal year for which final revenue figures are available.

Source: L. 2008: Entire section added, p. 1798, § 20, effective July 1.


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