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General Assembly Raised Bill No. 6524
January Session, 2021
LCO No. 3840
Referred to Committee on ENERGY AND TECHNOLOGY
Introduced by:
(ET)
AN ACT CONCERNING TH E SOLICITATION OF NEW FUEL CELL
ELECTRICITY GENERATI ON PROJECTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 16-244y of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2021): 2
[An electric distribution company may submit to the Public Utilities 3
Regulatory Authority for approval one or more plans to acquire new 4
fuel cell electricity generation that began operation on or after July 1, 5
2017. Any such plan shall utilize a competitive process for the purpose 6
of providing distribution system benefits, including, but not limited to, 7
avoiding or deferring distribution capacity upgrades, and enhancing 8
distribution system reliability, including, but not limited to, voltage or 9
frequency improvements. Any such plan shall give preference to 10
proposals that make efficient use of existing sites and supply 11
infrastructure. In the event that the authority approves such plan, an 12
electric distribution company may submit to the authority (1) one or 13
more proposals to build, own and operate new fuel cell generation, (2) 14
proposed power purchase agreements negotiated with persons to build, 15 Raised Bill No. 6524
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own and operate new fuel cell generation, or (3) proposals to provide 16
financial incentives for the installation of combined heat and power 17
systems powered by fuel cells, provided any such incentives shall be 18
consistent with the Comprehensive Energy Strategy pursuant to section 19
16a-3d. The facilities acquired, built pursuant to said power purchase 20
agreements and that receive said financial incentives under this section 21
shall not exceed a total nameplate capacity rating of thirty megawatts in 22
the aggregate. Any proposal submitted by an electric distribution 23
company to build, own and operate a fuel cell shall include the electric 24
distribution company's full projected costs and shall demonstrate to the 25
authority that such facility is not supported in any form of cross 26
subsidization by affiliated entities. The authority shall evaluate any 27
proposal submitted pursuant to this section in a manner that is 28
consistent with the principles of sections 16-19 and 16-19e and may 29
approve one or more proposals if it finds that such proposal (A) was 30
developed in a manner that is consistent with the acquisition plan 31
approved by the authority, (B) serves the long-term interests of 32
ratepayers, and (C) cost-effectively avoids or defers distribution system 33
costs.] 34
(a) Each electric distribution company shall solicit proposals to 35
acquire new fuel cell electricity generation projects that began operation 36
on or after July 1, 2021. All such projects shall be selected utilizing a 37
competitive process that gives preference to fuel cell electricity 38
generation projects manufactured in the state and sited on brownfields, 39
as defined in section 32-760, or landfills. On or before January 1, 2022, 40
each electric distribution company shall submit the selected projects and 41
associated tariffs to the Public Utilities Regulatory Authority for 42
approval. 43
(b) On or before August 1, 2021, all electric distribution companies 44
shall jointly file with the authority for approval a proposed tariff for use 45
in the solicitation authorized in subsection (a) of this section. The 46
facilities acquired under this section shall not exceed a total nameplate 47
capacity rating of thirty megawatts in the aggregate apportioned among 48
each electric distribution company in proportion to distribution load. 49 Raised Bill No. 6524
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Any proposed projects submitted by an electric distribution company 50
shall include the electric distribution company's full projected costs and 51
shall demonstrate to the authority that such facility is not supported in 52
any form of cross subsidization by affiliated entities, except that the 53
costs associated with those benefits which the authority determines that 54
a proposed fuel cell project confers on the natural gas system may be 55
recovered from all gas customers through the purchased gas adjustment 56
clause established pursuant to section 16-19b and such costs shall be 57
apportioned relative to the revenues of each gas company as reported 58
to the authority pursuant to section 16-49 for the most recent fiscal year. 59
(c) The authority may approve any such projects for the purpose of 60
(1) providing commercial or industrial electric or gas customers with on-61
site generation that increases power quality or resilience, as defined in 62
section 16-243y, provides back-up power or reduces energy costs for 63
such customers, (2) providing emergency service facilities with back-up 64
power, or (3) enhancing distribution system reliability, including, but 65
not limited to, electric voltage or frequency improvements, support of 66
microgrids or other measures that support electric or gas system 67
resiliency. The authority shall evaluate any projects submitted pursuant 68
to this section in a manner that is consistent with the provisions of 69
sections 16-19 and 16-19e. 70
(d) The costs prudently incurred by an electric distribution company 71
under this section shall be recovered from all customers of the electric 72
distribution company through a fully reconciling component of electric 73
rates for all customers of the electric distribution company, until the 74
electric distribution company's next rate case, at which time any costs 75
and investments for new fuel cell generation owned by the electric 76
distribution company pursuant to [subdivision (1) of] this section [shall] 77
may be recoverable through base distribution rates, as determined by 78
the authority. Nothing in this section shall preclude the resale or other 79
disposition of any energy products, capacity and associated 80
environmental attributes purchased by the electric distribution 81
company, [provided the electric distribution company shall net the cost 82
of payments made to projects under any long-term contracts entered 83 Raised Bill No. 6524
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into pursuant to subdivision (2) of this section against the proceeds of 84
the sale of any energy products, capacity and environmental attributes 85
and the difference thereof plus any net costs incurred pursuant to 86
subdivision (3) of this section shall be credited or charged to distribution 87
customers through a reconciling component of electric rates, as 88
determined by the authority, that is nonbypassable when switching 89
electric suppliers] if so ordered by the authority. The electric 90
distribution company may use any energy products, capacity and 91
environmental attributes produced by such facility to meet the needs of 92
customers served pursuant to section 16-244c, and as determined by the 93
authority. Notwithstanding the provisions of subdivision (1) of 94
subsection (h) of section 16-244c, certificates issued by the New England 95
Power Pool Generation Information System for any Class I renewable 96
energy source acquired pursuant to this section may be retained by the 97
electric distribution company to meet the requirements of section 16-98
245a, and as determined by the authority. 99
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2021 16-244y
Statement of Purpose:
To expand the existing solicitation process for new fuel cell generation
projects.
[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.]