General Assembly Substitute Bill No. 385
February Session, 2010 *_____SB00385ENV___032210____*
General Assembly
Substitute Bill No. 385
February Session, 2010
*_____SB00385ENV___032210____*
AN ACT CREATING INCENTIVES FOR THE DEVELOPMENT OF SOLAR ENERGY.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective from passage) (a) Each electric distribution company, as defined in section 16-1 of the general statutes, shall, not later than one hundred eighty days after the effective date of this section, propose a ten-year solar solicitation plan that shall include a timetable and methodology for soliciting proposals for long-term solar renewable energy credits or energy contracts from in-state generators. Each electric distribution company's solar solicitation plan shall be subject to the review and approval of the Department of Public Utility Control. On or before January 1, 2012, each electric distribution company shall submit to the department for approval contracts that comprise not less than twenty-five per cent of such company's obligation. On or before July 1, 2014, each such company shall submit to the department for approval contracts than comprise not less than fifty per cent of such company's obligation. On or before July 1, 2016, each such company shall submit to the department for approval contracts that comprise not less than seventy-five per cent of such company's obligation.
(b) Each electric distribution company's approved solar solicitation plan shall be designed to foster a diversity of solar project sizes and participation among all customer classes subject to cost-effectiveness considerations. The plan shall require separate procurement processes to be conducted for (1) nonresidential systems between ten kilowatts and fifty kilowatts, and (2) nonresidential systems greater than fifty kilowatts but less than two thousand kilowatts. For purposes of approval, the department shall give preference to competitive bidding for resources of more than fifty kilowatts, unless the department determines that an alternative methodology is in the best interests of the electric distribution company's customers and the development of a competitive and self-sustaining solar market. Under any such plan, systems up to fifty kilowatts in size shall be eligible to receive a solar renewable energy credit price equivalent to the highest accepted bid price in the most recent solicitation for systems greater than fifty kilowatts but less than two thousand kilowatts, plus an additional incentive of ten per cent.
(c) Each electric distribution company shall execute its approved ten-year solicitation plan and submit for department review and approval its preferred solar procurement plan that is comprised of any proposed contract or contracts with independent solar developers.
(d) The department shall hold a hearing that shall be conducted as an uncontested case, in accordance with the provisions of chapter 54 of the general statutes, to approve, reject or modify an application for approval of the electric distribution company's solar procurement plan. The department shall only approve such proposed plan if the department finds that (1) the solicitation and evaluation conducted by the electric distribution company was the result of a fair, open, competitive and transparent process; (2) approval of the solar procurement plan would result in the greatest expected ratepayer value from solar energy or solar renewable energy credits at the lowest reasonable cost; and (3) such procurement plan satisfies other criteria established in the approved solicitation plan. The department shall not approve any proposal made under such plan unless it determines that the plan and proposals encompass all foreseeable sources of revenue or benefits and that such proposals, together with such revenue or benefits, would result in the greatest expected ratepayer value from solar energy or solar renewable energy credits. The department may, in its discretion, retain the services of an independent consultant with expertise in the area of energy procurement. The independent consultant shall be unaffiliated with the electric distribution company or its affiliates and shall not, directly or indirectly, have benefited from employment or contracts with the electric distribution company or its affiliates in the preceding five years, except as an independent consultant. For purposes of evaluating such plan, the electric distribution company shall provide the independent consultant immediate and continuing access to all documents and data reviewed, used or produced by the electric distribution company in its bid solicitation and evaluation process. The electric distribution company shall make all its personnel, agents and contractors used in the bid solicitation and evaluation available for interview by the consultant. The electric distribution company shall conduct any additional modeling requested by the independent consultant to test the assumptions and results of the bid evaluation process. The independent consultant shall not participate in or advise the electric distribution company with respect to any decisions in the bid solicitation or bid evaluation process. The department's administrative costs in reviewing the electric distribution company's solar procurement plan and the costs of the consultant shall be recovered through a reconciling component of electric rates as determined by the department.
(e) The electric distribution company shall be entitled to recover its reasonable costs of complying with its approved solar procurement plan through a reconciling component of electric rates as determined by the department.
(f) If, by January 1, 2012, the department has not received proposed long-term solar renewable energy credit contracts consisting of at least twenty-five per cent of an electric distribution company's procurement obligation or by July 1, 2014, has not received proposed long-term solar renewable energy contracts consisting of at least fifty per cent of an electric distribution company's procurement obligation, or by July 1, 2016, has not proposed long-term solar renewable energy contracts consisting of at least seventy-five per cent of an electric distribution company's procurement obligation, respectively, the department shall notify the electric distribution company and the Renewable Energy Investments Board of the shortfall. Unless, upon petition by the electric distribution company, the department grants the distribution company an extension not to exceed ninety days to correct this deficiency, the Renewable Energy Investments Board shall issue one or more requests for proposals to address the shortfall. The board shall perform an initial review of each proposal, examine the financial and technical viability of each proposal and analyze project costs and benefits for the purpose of selecting projects that will promote the provision of long-term solar renewable energy contracts. Upon selection of the projects, the board shall forward such projects to such electric distribution company for review. For each project, such electric distribution company shall analyze the interconnection point and costs related thereto, reliability and other impacts of such project to determine whether the project will promote the provision of additional long-term solar renewable energy contracts. Such electric distribution company shall provide the results of its analysis to the department, which shall conduct a proceeding to determine whether to approve or reject each project. The reasonable administrative costs associated with the procurement of long-term solar renewable energy contracts shall be collected by the distribution company, maintained in a separate interest-bearing account and disbursed to the Renewable Energy Investment Fund on a quarterly basis.
(g) Not later than sixty days after its approval of the electric distribution company procurement plans submitted on or before January 1, 2012, the department shall submit a report to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment. The report shall document for each distribution company procurement plan: (1) The total number of solar renewable energy credits bid relative to the number of solar renewable energy credits requested by the distribution company; (2) the total number of bidders in each market segment; (3) the number of contracts awarded; and (4) the total weighted average price of the solar renewable energy credits or energy so purchased. The department shall not report individual bid information or other proprietary information.
This act shall take effect as follows and shall amend the following sections:
Section 1 from passage New section
This act shall take effect as follows and shall amend the following sections:
Section 1
from passage
New section
Statement of Legislative Commissioners:
Technical changes were made throughout the bill for purposes of clarity, internal consistency and adherence to standard drafting conventions.
ENV Joint Favorable Subst.
ENV
Joint Favorable Subst.