Researcher: LRH Page 1 4/6/21
OLR Bill Analysis
HB 6523
AN ACT CONCERNING VIRTUAL NET METERING CREDITS FOR
MANUFACTURERS IN DISTRESSED MUNICIPALITIES.
SUMMARY
The state’s virtual net metering law generally allows a state,
municipal, or agricultural “customer host” that owns or leases certain
renewable energy resources (e.g., solar) to (1) generate virtual net
metering billing credits when the host generates more power than it
uses and (2) share the credits with the customer host’s designated
“beneficial accounts” to reduce the beneficial accounts’ electric bills.
This bill increases the annual cap on virtual net metering credits
from $20 million to $30 million, but it requires that at least $10 million
in annual credits be designated for manufacturers in a distressed
municipality (presumably, as beneficial accounts of a state or
municipal customer host). It also requires the manufacturers to
include, in their application to an electric distribution company (EDC)
(i.e., Eversource and United Illuminating), an anticipated plan for
using any energy savings associated with the credits it receives. (The
bill does not specify any criteria that this plan must meet for approval.
In addition, it is unclear how a manufacturer would meet this
requirement, as existing law requires a customer-host to give its EDC
advance written notification about its designated beneficial accounts,
but it does not require the beneficial account holders to apply for an
EDC’s approval (CGS § 16-244u(d)).)
By law, the Department of Economic Community Development
commissioner must annually designate distressed municipalities based
on a combination of economic, education, demographic, and housing
criteria. In 2020, she designated the following 25 municipalities as
distressed: Ansonia, Bridgeport, Bristol, Chaplin, Derby, East Hartford,
East Haven, Griswold, Hartford, Meriden, Montville, New Britain, 2021HB-06523-R000269-BA.DOCX
Researcher: LRH Page 2 4/6/21
New Haven, New London, Norwich, Preston, Putnam, Sprague,
Stratford, Torrington, Voluntown, Waterbury, West Haven,
Winchester, and Windham.
EFFECTIVE DATE: July 1, 2021
COMMITTEE ACTION
Energy and Technology Committee
Joint Favorable
Yea 26 Nay 0 (03/18/2021)