LCO No. 5049 1 of 3 General Assembly Raised Bill No. 7252 January Session, 2019 LCO No. 5049 Referred to Committee on ENERGY AND TECHNOLOGY Introduced by: (ET) AN ACT CONCERNING TH E CONSERVATION ADJUSTMENT MECHANISM AND COMMER CIAL AND INDUSTRIAL CUSTOMERS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subdivision (1) of subsection (d) of section 16-245m of the 1 general statutes, as amended by section 9 of public act 18-50, is 2 repealed and the following is substituted in lieu thereof (Effective 3 January 1, 2020): 4 (d) (1) Not later than November 1, 2012, and every three years 5 thereafter, electric distribution companies, as defined in section 16-1, in 6 coordination with the gas companies, as defined in section 16-1, shall 7 submit to the Energy Conservation Management Board a combined 8 electric and gas Conservation and Load Management Plan, in 9 accordance with the provisions of this section, to implement cost-10 effective energy conservation programs, demand management and 11 market transformation initiatives. All supply and conservation and 12 load management options shall be evaluated and selected within an 13 integrated supply and demand planning framework. Services 14 provided under the plan shall be available to all customers of electric 15 Raised Bill No. 7252 LCO No. 5049 2 of 3 distribution companies and gas companies, provided a customer of an 16 electric distribution company may not be denied such services based 17 on the fuel such customer uses to heat such customer's home. The 18 Energy Conservation Management Board shall advise and assist the 19 electric distribution companies and gas companies in the development 20 of such plan. The Energy Conservation Management Board shall 21 approve the plan before transmitting it to the Commissioner of Energy 22 and Environmental Protection for approval. The commissioner shall, in 23 an uncontested proceeding during which the commissioner may hold 24 a public meeting, approve, modify or reject said plan prepared 25 pursuant to this subsection. Following approval by the commissioner, 26 the board shall assist the companies in implementing the plan and 27 collaborate with the Connecticut Green Bank to further the goals of the 28 plan. Said plan shall include a detailed budget sufficient to fund all 29 energy efficiency that is cost-effective or lower cost than acquisition of 30 equivalent supply, and shall be reviewed and approved by the 31 commissioner. The Public Utilities Regulatory Authority shall, not 32 later than sixty days after the plan is approved by the commissioner, 33 ensure that the balance of revenues required to fund such plan is 34 provided through fully reconciling conservation adjustment 35 mechanisms. Electric distribution companies shall collect a 36 conservation adjustment mechanism that ensures the plan is fully 37 funded by collecting an amount that is not more than the sum of six 38 mills per kilowatt hour of electricity sold to each end use customer of 39 an electric distribution company during the three years of any 40 Conservation and Load Management Plan , provided any such 41 conservation adjustment mechanism shall only be applied to the first 42 ___ kilowatt hours of electricity sold to commercial and industrial end 43 use customers. The authority shall ensure that the revenues required to 44 fund such plan with regard to gas companies are provided through a 45 fully reconciling conservation adjustment mechanism for each gas 46 company of not more than the equivalent of four and six-tenth cents 47 per hundred cubic feet during the three years of any Conservation and 48 Load Management Plan. Said plan shall include steps that would be 49 needed to achieve the goal of weatherization of eighty per cent of the 50 Raised Bill No. 7252 LCO No. 5049 3 of 3 state's residential units by 2030 and to reduce energy consumption by 51 1.6 million MMBtu, or the equivalent megawatts of electricity, as 52 defined in subdivision (4) of section 22a-197, annually each year for 53 calendar years commencing on and after January 1, 2020, up to and 54 including calendar year 2025. Each program contained in the plan shall 55 be reviewed by such companies and accepted, modified or rejected by 56 the Energy Conservation Management Board prior to submission to 57 the commissioner for approval. The Energy Conservation Management 58 Board shall, as part of its review, examine opportunities to offer joint 59 programs providing similar efficiency measures that save more than 60 one fuel resource or otherwise to coordinate programs targeted at 61 saving more than one fuel resource. Any costs for joint programs shall 62 be allocated equitably among the conservation programs. The Energy 63 Conservation Management Board shall give preference to projects that 64 maximize the reduction of federally mandated congestion charges. 65 This act shall take effect as follows and shall amend the following sections: Section 1 January 1, 2020 16-245m(d)(1) Statement of Purpose: To require that the conservation adjustment mechanism is only charged on the first ___ kilowatt-hours of monthly usage for commercial and industrial customers. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]