General Assembly Substitute Bill No. 5365
February Session, 2010 *_____HB05365ET____032410____*
General Assembly
Substitute Bill No. 5365
February Session, 2010
*_____HB05365ET____032410____*
AN ACT CONCERNING ELECTRIC DISTRIBUTION COMPANIES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 16-243v of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
(a) For purposes of this section: (1) "Connecticut electric efficiency partner program" means the coordinated effort among the Department of Public Utility Control, persons and entities providing enhanced demand-side management technologies, and electric consumers to conserve electricity and reduce demand in Connecticut through the purchase and deployment of energy efficient technologies; (2) "enhanced demand-side management technologies" means demand-side management solutions, customer-side emergency dispatchable generation resources, customer-side renewable energy generation, load shifting technologies and conservation and load management technologies that reduce electric distribution company customers' electric demand, and high efficiency natural gas and oil boilers and furnaces; and (3) "Connecticut electric efficiency partner" means (A) an electric distribution company customer who acquires an enhanced demand-side management technology, [or] (B) a person, [other than] including an electric distribution company, that provides enhanced demand-side management technologies to electric distribution company customers, or (C) such a customer or person working together to develop, implement or monitor approved technologies, proposals and programs.
(b) The Energy Conservation Management Board, in consultation with the Renewable Energy Investments Advisory Committee, shall evaluate and approve enhanced demand-side management technologies that can be deployed by Connecticut electric efficiency partners to reduce electric distribution company customers' electric demand. Such evaluation shall include an examination of the potential to reduce customers' demand, federally mandated congestion charges and other electric costs. On or before October 15, 2007, the Energy Conservation Management Board shall file such evaluation with the Department of Public Utility Control for the department to review and approve or to review, modify and approve on or before October 15, 2007.
(c) Not later than October 15, 2007, the Energy Conservation Management Board shall file with the department, for the department to review and approve or to review, modify and approve, an analysis of the state's electric demand, peak electric demand and growth forecasts for electric demand and peak electric demand. Such analysis shall identify the principal drivers of electric demand and peak electric demand, associated electric charges tied to electric demand and peak electric demand growth, including, but not limited to, federally mandated congestion charges and other electric costs, and any other information the department deems appropriate. The analysis shall include, but not be limited to, an evaluation of the costs and benefits of the enhanced demand-side management technologies approved pursuant to subsection (b) of this section and establishing suggested funding levels for said individual technologies.
(d) Commencing April 1, 2008, any person may apply to the department for certification and funding as a Connecticut electric efficiency partner. Such application shall include the technologies that the applicant shall purchase or provide and that have been approved pursuant to subsection (b) of this section. In evaluating the application, the department shall (1) consider the applicant's potential to reduce customers' electric demand, including peak electric demand, and associated electric charges tied to electric demand and peak electric demand growth, (2) determine the portion of the total cost of each project that shall be paid for by the customer participating in this program and the portion of the total cost of each project that shall be paid for by all electric ratepayers and collected pursuant to subsection (h) of this section. In making such determination, the department shall ensure that all ratepayer investments maintain a minimum two-to-one payback ratio, provided the department may reduce the minimum payback ratio to between one-to-one and two-to-one, inclusive, when the department finds that such reduction is necessary to achieve the annual ratepayer contribution level pursuant to this subsection, and (3) specify that participating Connecticut electric efficiency partners shall maintain the technology for a period sufficient to achieve such investment payback ratio. The annual ratepayer contribution for projects approved pursuant to this section shall not exceed sixty million dollars. Not less than seventy-five per cent of such annual ratepayer investment shall be used for the technologies themselves. No person shall receive electric ratepayer funding pursuant to this subsection if such person has received or is receiving funding from the Energy Conservation and Load Management Funds for the projects included in said person's application. No person shall receive electric ratepayer funding without receiving a certificate of public convenience and necessity as a Connecticut electric efficiency partner by the department. The department may grant an applicant a certificate of public convenience if it possesses and demonstrates adequate financial resources, managerial ability and technical competency. The department may conduct additional requests for proposals from time to time as it deems appropriate. The department shall specify the manner in which a Connecticut electric efficiency partner shall address measures of effectiveness and shall include performance milestones. For each project that has been supported by ratepayer contribution, the department shall require the applicable Connecticut electric efficiency partner to submit data sufficient to enable the department to monitor the efficacy and cost effectiveness of such project at least annually, commencing in the year after the project has become operational. In conducting such monitoring, the department may work in conjunction with the Energy Conservation Management Board or may use a third-party consultant, provided the costs of monitoring shall be included as recoverable costs pursuant to subsection (f) of this section. The department shall review the results of the monitoring in an uncontested proceeding and include the decision in the proceeding as part of the department's report under subsection (i) of this section.
(e) Beginning February 1, 2010, a certified Connecticut electric efficiency partner may only receive funding if selected in a request for proposal developed, issued and evaluated by the department. In evaluating a proposal, the department shall take into consideration the potential to reduce customers' electric demand including peak electric demand and energy consumption, and associated electric charges tied to electric demand, energy and peak electric demand growth, including, but not limited to, federally mandated congestion charges and other electric costs, and shall utilize a cost benefit test established pursuant to subsection (c) of this section to rank responses for selection. The department shall determine the portion of the total cost of each project that shall be paid by the customer participating in this program and the portion of the total cost of each project that shall be paid by all electric ratepayers and collected pursuant to the provisions of this subsection. In making such determination, the department shall (1) ensure that all ratepayer investments maintain a minimum two-to-one payback ratio, and (2) specify that participating Connecticut electric efficiency partners shall maintain the technology for a period sufficient to achieve such investment payback ratio. The annual ratepayer contribution shall not exceed sixty million dollars. Not less than seventy-five per cent of such annual ratepayer investment shall be used for the technologies themselves. No Connecticut electric efficiency partner shall receive funding pursuant to this subsection if such partner has received or is receiving funding from the Energy Conservation and Load Management Funds for such technology. The department may conduct additional requests for proposals from time to time as it deems appropriate. The department shall specify the manner in which a Connecticut electric efficiency partner shall address measures of effectiveness and shall include performance milestones. For each project that has been paid by electric ratepayer contribution, the department shall require the applicable Connecticut electric efficiency partner to submit data sufficient to enable the department to monitor the efficacy and cost effectiveness of such project at least annually, commencing in the year after the project has become operational. In conducting such monitoring, the department may work in conjunction with the Energy Conservation Management Board or may use a third-party consultant, provided the costs of monitoring shall be included as recoverable costs pursuant to subsection (f) of this section. The department shall review the results of the monitoring in an uncontested proceeding and include the decision in the proceeding as part of the department's report under subsection (i) of this section.
(f) The department may retain the services of a third party entity with expertise in areas such as demand-side management solutions, customer-side renewable energy generation, customer-side distributed generation resources, customer-side emergency dispatchable generation resources, load shifting technologies and conservation and load management investments to assist in the development and operation of the Connecticut electric efficiency partner program. The costs for obtaining third party services pursuant to this subsection shall be recoverable through the systems benefits charge.
(g) The department shall develop a long-term low-interest loan program to assist certified Connecticut electric efficiency partners in financing the customer portion of the capital costs of approved enhanced demand-side management technologies. The department may establish such financing mechanism by the use of one or more of the following strategies: (1) Modifying the existing long-term customer-side distributed generation financing mechanism established pursuant to section 16-243j, (2) negotiating and entering into an agreement with the Connecticut Development Authority to establish a credit facility or to utilize grants, loans or loan guarantees for the purposes of this section upon such terms and conditions as the authority may prescribe including provisions regarding the rights and remedies available to the authority in case of default, or (3) selecting by competitive bid one or more entities that can provide such long-term financing. Upon the request of an electric distribution company, the department shall authorize the cost of projects using approved enhanced demand-side management technologies, including capital costs, for recovery in accordance with subsection (h) of this section.
(h) The department shall provide for the payment of electric ratepayers' portion of the costs of deploying enhanced demand-side management technologies by implementing a contractual financing agreement with the Connecticut Development Authority or a private financing entity selected through an appropriate open competitive selection process or by allowing recovery of such costs incurred by an electric distribution company over time with a return of unamortized balances through the systems benefits charge over an amortized period to be established by the department based upon the expected useful life of the projects. No contractual financing agreements entered into with the Connecticut Development Authority shall exceed ten million dollars. Any electric ratepayer costs resulting from such financing agreement shall be recovered from all electric ratepayers through the systems benefits charge.
(i) On or before February 15, 2009, and annually thereafter, the department shall report to the joint standing committee of the General Assembly having cognizance of matters relating to energy regarding the effectiveness of the Connecticut electric efficiency partner program established pursuant to this section. Said report shall include, but not be limited to, an accounting of all benefits and costs to ratepayers, a description of the approved technologies, the payback ratio of all investments, the number of programs deployed and a list of proposed projects compared to approved projects and reasons for not being approved.
(j) On or before April 1, 2011, the Department of Public Utility Control shall initiate a proceeding to review the effectiveness of the program and perform a ratepayer cost-benefit analysis. Based upon the department's findings in the proceeding, the department may modify or discontinue the partnership program established pursuant to this section.
Sec. 2. Subdivision (4) of subsection (a) of section 16-244e of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
(4) The unbundling plan and order shall provide for the allocation of the rights and responsibilities pursuant to sections 16-245e to 16-245k, inclusive, between the electric distribution company and any generation entities or affiliates and shall provide for the allocation of revenue under a special contract among those components of a customer's bill specified in subparagraph (A) of subdivision [(1)] (2) of subsection (a) of section 16-245d. Such plan shall include a proposed modification or elimination to the adjustment pursuant to section 16-19b. Such plan shall not allow the transfer of assets or liabilities allocable or belonging to transmission or distribution functions or facilities to the generation entity or affiliate of an electric company, nor allow the transfer of assets or liabilities, other than financial assets or liabilities to be funded by the competitive transition assessment pursuant to section 16-245g or the systems benefits charge pursuant to section 16-245l, allocable or belonging to generation functions or facilities to the electric distribution company, as defined in section 16-1, unless federal law or regulation requires such a transfer with regard to nuclear generation assets. All entitlements and obligations from any purchased power contract or independent power producer contract entered into before July 1, 1998, by the predecessor electric company which are not bought out shall succeed to the electric distribution company. Such plan shall include a discussion of the impacts of the proposed plan on the company's employees and plans for mitigating such impact.
Sec. 3. (NEW) (Effective July 1, 2010) Notwithstanding any other provision of the general statutes, an electric distribution company may provide notice of the identity of any nursing home or other long-term care facility to which the electric distribution company has sent a shut-off notice as a result of the facility's payment delinquency to the Department of Public Utility Control, the Department of Social Services and the Department of Public Health. Such notice shall include the name and address of the facility, the amount due to the electric distribution company, the dates and amounts of the last five payments by the facility and a copy of the shut-off notice.
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2010 16-243v
Sec. 2 July 1, 2010 16-244e(a)(4)
Sec. 3 July 1, 2010 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2010
16-243v
Sec. 2
July 1, 2010
16-244e(a)(4)
Sec. 3
July 1, 2010
New section
Statement of Legislative Commissioners:
In sections 1 (d) and 1 (e), "energy efficiency partner" was changed to "electric efficiency partner" for internal consistency.
ET Joint Favorable Subst.
ET
Joint Favorable Subst.