Connecticut 2021 Regular Session

Connecticut House Bill HB06524 Compare Versions

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Version 2 (New)

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4		-	House Bill No. 6524
	7	+	General Assembly Raised Bill No. 6524
	8	+	January Session, 2021
	9	+	LCO No. 3840
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6		-	Public Act No. 21-162
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	12	+	Referred to Committee on ENERGY AND TECHNOLOGY
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	14	+
	15	+	Introduced by:
	16	+	(ET)
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9	20		AN ACT CONCERNING TH E SOLICITATION OF NEW FUEL CELL
10	21		ELECTRICITY GENERATI ON PROJECTS.
11	22		Be it enacted by the Senate and House of Representatives in General
12	23		Assembly convened:
13	24
14		-	Section 1. Section 16-244y of the general statutes is repealed and the
15		-	following is substituted in lieu thereof (Effective July 1, 2021):
16		-	[An electric distribution company may submit to the Public Utilities
17		-	Regulatory Authority for approval one or more plans to acquire new
18		-	fuel cell electricity generation that began operation on or after July 1,
19		-	2017. Any such plan shall utilize a competitive process for the purpose
20		-	of providing distribution system benefits, including, but not limited to,
21		-	avoiding or deferring distribution capacity upgrades, and enhancing
22		-	distribution system reliability, including, but not limited to, voltage or
23		-	frequency improvements. Any such plan shall give preference to
24		-	proposals that make efficient use of existing sites and supply
25		-	infrastructure. In the event that the authority approves such plan, an
26		-	electric distribution company may submit to the authority (1) one or
27		-	more proposals to build, own and operate new fuel cell generation, (2)
28		-	proposed power purchase agreements negotiated with persons to build,
29		-	own and operate new fuel cell generation, or (3) proposals to provide
30		-	financial incentives for the installation of combined heat and power
31		-	systems powered by fuel cells, provided any such incentives shall be House Bill No. 6524
	25	+	Section 1. Section 16-244y of the general statutes is repealed and the 1
	26	+	following is substituted in lieu thereof (Effective July 1, 2021): 2
	27	+	[An electric distribution company may submit to the Public Utilities 3
	28	+	Regulatory Authority for approval one or more plans to acquire new 4
	29	+	fuel cell electricity generation that began operation on or after July 1, 5
	30	+	2017. Any such plan shall utilize a competitive process for the purpose 6
	31	+	of providing distribution system benefits, including, but not limited to, 7
	32	+	avoiding or deferring distribution capacity upgrades, and enhancing 8
	33	+	distribution system reliability, including, but not limited to, voltage or 9
	34	+	frequency improvements. Any such plan shall give preference to 10
	35	+	proposals that make efficient use of existing sites and supply 11
	36	+	infrastructure. In the event that the authority approves such plan, an 12
	37	+	electric distribution company may submit to the authority (1) one or 13
	38	+	more proposals to build, own and operate new fuel cell generation, (2) 14
	39	+	proposed power purchase agreements negotiated with persons to build, 15 Raised Bill No. 6524
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33		-	Public Act No. 21-162 2 of 4
34	41
35		-	consistent with the Comprehensive Energy Strategy pursuant to section
36		-	16a-3d. The facilities acquired, built pursuant to said power purchase
37		-	agreements and that receive said financial incentives under this section
38		-	shall not exceed a total nameplate capacity rating of thirty megawatts in
39		-	the aggregate. Any proposal submitted by an electric distribution
40		-	company to build, own and operate a fuel cell shall include the electric
41		-	distribution company's full projected costs and shall demonstrate to the
42		-	authority that such facility is not supported in any form of cross
43		-	subsidization by affiliated entities. The authority shall evaluate any
44		-	proposal submitted pursuant to this section in a manner that is
45		-	consistent with the principles of sections 16-19 and 16-19e and may
46		-	approve one or more proposals if it finds that such proposal (A) was
47		-	developed in a manner that is consistent with the acquisition plan
48		-	approved by the authority, (B) serves the long-term interests of
49		-	ratepayers, and (C) cost-effectively avoids or defers distribution system
50		-	costs.]
51		-	(a) Each electric distribution company shall solicit proposals to
52		-	acquire new fuel cell electricity generation projects that began operation
53		-	on or after July 1, 2021. All such projects shall be selected utilizing a
54		-	competitive process that gives preference to fuel cell electricity
55		-	generation projects that utilize equipment manufactured in the state or
56		-	sited on brownfields, as defined in section 32-760, or landfills. On or
57		-	before January 1, 2022, each electric distribution company shall submit
58		-	the selected projects and associated tariffs to the Public Utilities
59		-	Regulatory Authority for approval.
60		-	(b) On or before August 1, 2021, all electric distribution companies
61		-	shall jointly file with the authority for approval a proposed tariff for use
62		-	in the solicitation authorized in subsection (a) of this section. The
63		-	facilities acquired under this section shall not exceed a total nameplate
64		-	capacity rating of thirty megawatts in the aggregate apportioned among
65		-	each electric distribution company in proportion to distribution load. House Bill No. 6524
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	46	+	own and operate new fuel cell generation, or (3) proposals to provide 16
	47	+	financial incentives for the installation of combined heat and power 17
	48	+	systems powered by fuel cells, provided any such incentives shall be 18
	49	+	consistent with the Comprehensive Energy Strategy pursuant to section 19
	50	+	16a-3d. The facilities acquired, built pursuant to said power purchase 20
	51	+	agreements and that receive said financial incentives under this section 21
	52	+	shall not exceed a total nameplate capacity rating of thirty megawatts in 22
	53	+	the aggregate. Any proposal submitted by an electric distribution 23
	54	+	company to build, own and operate a fuel cell shall include the electric 24
	55	+	distribution company's full projected costs and shall demonstrate to the 25
	56	+	authority that such facility is not supported in any form of cross 26
	57	+	subsidization by affiliated entities. The authority shall evaluate any 27
	58	+	proposal submitted pursuant to this section in a manner that is 28
	59	+	consistent with the principles of sections 16-19 and 16-19e and may 29
	60	+	approve one or more proposals if it finds that such proposal (A) was 30
	61	+	developed in a manner that is consistent with the acquisition plan 31
	62	+	approved by the authority, (B) serves the long-term interests of 32
	63	+	ratepayers, and (C) cost-effectively avoids or defers distribution system 33
	64	+	costs.] 34
	65	+	(a) Each electric distribution company shall solicit proposals to 35
	66	+	acquire new fuel cell electricity generation projects that began operation 36
	67	+	on or after July 1, 2021. All such projects shall be selected utilizing a 37
	68	+	competitive process that gives preference to fuel cell electricity 38
	69	+	generation projects manufactured in the state and sited on brownfields, 39
	70	+	as defined in section 32-760, or landfills. On or before January 1, 2022, 40
	71	+	each electric distribution company shall submit the selected projects and 41
	72	+	associated tariffs to the Public Utilities Regulatory Authority for 42
	73	+	approval. 43
	74	+	(b) On or before August 1, 2021, all electric distribution companies 44
	75	+	shall jointly file with the authority for approval a proposed tariff for use 45
	76	+	in the solicitation authorized in subsection (a) of this section. The 46
	77	+	facilities acquired under this section shall not exceed a total nameplate 47
	78	+	capacity rating of thirty megawatts in the aggregate apportioned among 48 Raised Bill No. 6524
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69		-	Any proposed projects submitted by an electric distribution company
70		-	shall include the electric distribution company's full projected costs and
71		-	shall demonstrate to the authority that such facility is not supported in
72		-	any form of cross subsidization by affiliated entities, except that the
73		-	costs associated with those benefits which the authority determines that
74		-	a proposed fuel cell project confers on the natural gas system may be
75		-	recovered from all gas customers through the purchased gas adjustment
76		-	clause established pursuant to section 16-19b and such costs shall be
77		-	apportioned relative to the revenues of each gas company as reported
78		-	to the authority pursuant to section 16-49 for the most recent fiscal year.
79		-	(c) The authority may approve any such projects for the purpose of
80		-	(1) providing commercial or industrial electric or gas customers with on-
81		-	site generation that increases power quality or resilience, as defined in
82		-	section 16-243y, or reduces energy costs for such customers, (2)
83		-	providing emergency service facilities or commercial or industrial
84		-	electric or gas customers with back-up power, or (3) enhancing
85		-	distribution system reliability, including, but not limited to, electric
86		-	voltage or frequency improvements, support of microgrids or other
87		-	measures that support electric or gas system resiliency. The authority
88		-	shall evaluate any projects submitted pursuant to this section in a
89		-	manner that is consistent with the provisions of sections 16-19 and 16-
90		-	19e.
91		-	(d) The costs prudently incurred by an electric distribution company
92		-	under this section shall be recovered from all customers of the electric
93		-	distribution company through a fully reconciling component of electric
94		-	rates for all customers of the electric distribution company, until the
95		-	electric distribution company's next rate case, at which time any costs
96		-	and investments for new fuel cell generation owned by the electric
97		-	distribution company pursuant to [subdivision (1) of] this section [shall]
98		-	may be recoverable through base distribution rates, as determined by
99		-	the authority. Nothing in this section shall preclude the resale or other House Bill No. 6524
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101		-	Public Act No. 21-162 4 of 4
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103		-	disposition of any energy products, capacity and associated
104		-	environmental attributes purchased by the electric distribution
105		-	company, [provided the electric distribution company shall net the cost
106		-	of payments made to projects under any long-term contracts entered
107		-	into pursuant to subdivision (2) of this section against the proceeds of
108		-	the sale of any energy products, capacity and environmental attributes
109		-	and the difference thereof plus any net costs incurred pursuant to
110		-	subdivision (3) of this section shall be credited or charged to distribution
111		-	customers through a reconciling component of electric rates, as
112		-	determined by the authority, that is nonbypassable when switching
113		-	electric suppliers] if so ordered by the authority. The electric
114		-	distribution company may use any energy products, capacity and
115		-	environmental attributes produced by such facility to meet the needs of
116		-	customers served pursuant to section 16-244c, and as determined by the
117		-	authority. Notwithstanding the provisions of subdivision (1) of
118		-	subsection (h) of section 16-244c, certificates issued by the New England
119		-	Power Pool Generation Information System for any Class I renewable
120		-	energy source acquired pursuant to this section may be retained by the
121		-	electric distribution company to meet the requirements of section 16-
122		-	245a, and as determined by the authority.
	85	+	each electric distribution company in proportion to distribution load. 49
	86	+	Any proposed projects submitted by an electric distribution company 50
	87	+	shall include the electric distribution company's full projected costs and 51
	88	+	shall demonstrate to the authority that such facility is not supported in 52
	89	+	any form of cross subsidization by affiliated entities, except that the 53
	90	+	costs associated with those benefits which the authority determines that 54
	91	+	a proposed fuel cell project confers on the natural gas system may be 55
	92	+	recovered from all gas customers through the purchased gas adjustment 56
	93	+	clause established pursuant to section 16-19b and such costs shall be 57
	94	+	apportioned relative to the revenues of each gas company as reported 58
	95	+	to the authority pursuant to section 16-49 for the most recent fiscal year. 59
	96	+	(c) The authority may approve any such projects for the purpose of 60
	97	+	(1) providing commercial or industrial electric or gas customers with on-61
	98	+	site generation that increases power quality or resilience, as defined in 62
	99	+	section 16-243y, provides back-up power or reduces energy costs for 63
	100	+	such customers, (2) providing emergency service facilities with back-up 64
	101	+	power, or (3) enhancing distribution system reliability, including, but 65
	102	+	not limited to, electric voltage or frequency improvements, support of 66
	103	+	microgrids or other measures that support electric or gas system 67
	104	+	resiliency. The authority shall evaluate any projects submitted pursuant 68
	105	+	to this section in a manner that is consistent with the provisions of 69
	106	+	sections 16-19 and 16-19e. 70
	107	+	(d) The costs prudently incurred by an electric distribution company 71
	108	+	under this section shall be recovered from all customers of the electric 72
	109	+	distribution company through a fully reconciling component of electric 73
	110	+	rates for all customers of the electric distribution company, until the 74
	111	+	electric distribution company's next rate case, at which time any costs 75
	112	+	and investments for new fuel cell generation owned by the electric 76
	113	+	distribution company pursuant to [subdivision (1) of] this section [shall] 77
	114	+	may be recoverable through base distribution rates, as determined by 78
	115	+	the authority. Nothing in this section shall preclude the resale or other 79
	116	+	disposition of any energy products, capacity and associated 80
	117	+	environmental attributes purchased by the electric distribution 81 Raised Bill No. 6524
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	124	+	company, [provided the electric distribution company shall net the cost 82
	125	+	of payments made to projects under any long-term contracts entered 83
	126	+	into pursuant to subdivision (2) of this section against the proceeds of 84
	127	+	the sale of any energy products, capacity and environmental attributes 85
	128	+	and the difference thereof plus any net costs incurred pursuant to 86
	129	+	subdivision (3) of this section shall be credited or charged to distribution 87
	130	+	customers through a reconciling component of electric rates, as 88
	131	+	determined by the authority, that is nonbypassable when switching 89
	132	+	electric suppliers] if so ordered by the authority. The electric 90
	133	+	distribution company may use any energy products, capacity and 91
	134	+	environmental attributes produced by such facility to meet the needs of 92
	135	+	customers served pursuant to section 16-244c, and as determined by the 93
	136	+	authority. Notwithstanding the provisions of subdivision (1) of 94
	137	+	subsection (h) of section 16-244c, certificates issued by the New England 95
	138	+	Power Pool Generation Information System for any Class I renewable 96
	139	+	energy source acquired pursuant to this section may be retained by the 97
	140	+	electric distribution company to meet the requirements of section 16-98
	141	+	245a, and as determined by the authority. 99
	142	+	This act shall take effect as follows and shall amend the following
	143	+	sections:
	144	+
	145	+	Section 1 July 1, 2021 16-244y
	146	+
	147	+	ET Joint Favorable
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