LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00952-R01-
SB.docx
1 of 5
General Assembly Substitute Bill No. 952
January Session, 2021
AN ACT CONCERNING EN ERGY STORAGE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) On or before January 1, 2023, 1
and annually thereafter, the Department of Energy and Environmental 2
Protection and the Public Utilities Regulatory Authority shall report, in 3
accordance with section 11-4a of the general statutes, to the joint 4
standing committee of the General Assembly having cognizance of 5
matters relating to energy regarding the quantifiable progress of energy 6
storage deployment against the following goals: 7
(1) Three hundred megawatts by December 31, 2024; 8
(2) Six hundred fifty megawatts by December 31, 2027; and 9
(3) One thousand megawatts by December 31, 2030. 10
Sec. 2. (NEW) (Effective July 1, 2021) (a) On or before January 1, 2022, 11
the Public Utilities Regulatory Authority shall initiate a proceeding to 12
develop and implement one or more programs, and associated funding 13
mechanisms, for electric energy storage resources connected to the 14
electric distribution system. The authority shall establish (1) one or more 15
programs for the residential class of electric customers, (2) one or more 16
programs for commercial and industrial classes of electric customers, 17 Substitute Bill No. 952
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00952-
R01-SB.docx }
2 of 5
and (3) a program for energy storage systems connected to the 18
distribution system in front of the meter and not located at a customer 19
premises. The authority shall solicit input from the Department of 20
Energy and Environmental Protection, the Connecticut Green Bank, the 21
electric distribution companies and the Office of Consumer Counsel in 22
developing such programs. 23
(b) On or before January 1, 2022, the authority shall report the status 24
of the proceeding described in subsection (a) of this section, in 25
accordance with the provisions of section 11-4a of the general statutes, 26
to the joint standing committee of the General Assembly having 27
cognizance of matters relating to energy. 28
(c) In undertaking the proceeding described in subsection (a) of this 29
section, the authority shall consider one or more programs and rate 30
designs to incentivize the deployment of electric energy storage 31
technologies connected to the electric distribution system that most 32
effectively leverage the value of such technologies to achieve objectives 33
including, but not limited to, (1) providing positive net present value to 34
all ratepayers, or a subset of ratepayers paying for the benefits that 35
accrue to that subset of ratepayers; (2) providing multiple types of 36
benefits to the electric grid, including, but not limited to, customer, local, 37
or community resilience, ancillary services, leveling out peaks in 38
electricity use or that support the deployment of other distributed 39
energy resources; (3) fostering the sustained, orderly development of a 40
state-based electric energy storage industry; and (4) maximizing the 41
value from the participation of energy storage systems in capacity 42
markets. The authority shall include consideration of all energy storage 43
configurations that are connected to the distribution system, including 44
systems connected in front of the meter and not located at a customer 45
premises. The authority shall also consider programs and rate designs 46
to incentivize uses of electric energy storage technologies connected to 47
the electric distribution system that avoid or defer investment in 48
traditional electric distribution system capacity upgrades. 49
(d) The authority may select the Connecticut Green Bank, the 50 Substitute Bill No. 952
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00952-
R01-SB.docx }
3 of 5
Department of Energy and Environmental Protection, the electric 51
distribution companies, a third party it deems appropriate or any 52
combination thereof, to implement one or more programs for electric 53
energy storage resources connected to the electric distribution system, 54
as directed by the Public Utilities Regulatory Authority. 55
Sec. 3. (NEW) (Effective July 1, 2021) (a) The Commissioner of Energy 56
and Environmental Protection, in consultation with the procurement 57
manager identified in subsection (l) of section 16-2 of the general 58
statutes and the Office of Consumer Counsel, may issue requests for 59
proposals for energy storage projects connected at the transmission or 60
distribution level, including stand-alone energy storage projects and 61
energy storage projects paired with Class I renewable energy sources, 62
that would achieve the goals in section 1 of this act in combination with 63
programs established by the Public Utilities Regulatory Authority. If the 64
Commissioner of Energy and Environmental Protection determines that 65
procuring energy storage is cost effective, the commissioner shall 66
proceed with the selection of proposals. In making this determination, 67
the commissioner shall publish and make available for public comment 68
a cost-effectiveness test that considers each applicable benefit provided 69
by energy storage. 70
(b) In making any selection of such proposals, the commissioner shall 71
consider factors, including, but not limited to, (1) whether the proposal 72
is in the best interest of ratepayers, including, but not limited to, the 73
delivered price of such sources, (2) whether the proposal promotes 74
electric distribution system reliability, including during winter peak 75
demand, (3) any positive impacts on the state's economic development, 76
(4) whether the proposal is consistent with the requirements to reduce 77
greenhouse gas emissions in accordance with section 22a-200a of the 78
general statutes, and (5) whether the proposal is consistent with the 79
policy goals outlined in the Comprehensive Energy Strategy adopted 80
pursuant to section 16a-3d of the general statutes and the Integrated 81
Resources Plan adopted pursuant to section 16a-3a of the general 82
statutes. In considering whether a proposal has any positive impacts on 83 Substitute Bill No. 952
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00952-
R01-SB.docx }
4 of 5
the state's economic development, the Commissioner of Energy and 84
Environmental Protection shall consult with the Commissioner of 85
Economic and Community Development. 86
(c) Any agreement entered into pursuant to this section shall be 87
subject to review and approval by the Public Utilities Regulatory 88
Authority, which review shall be completed not later than one hundred 89
twenty days after the date on which such agreement is filed with the 90
authority. The authority shall approve any such agreement if it is cost 91
effective and in the best interest of electric ratepayers. The net costs of 92
any such agreement, including costs incurred by the electric distribution 93
companies under the agreement and reasonable costs incurred by the 94
electric distribution companies in connection with the agreement, shall 95
be recovered through a fully reconciling component of electric rates for 96
all customers of electric distribution companies. Any net revenues from 97
the sale of products purchased in accordance with long-term contracts 98
entered into pursuant to this section shall be credited to customers 99
through the same fully reconciling rate component for all customers of 100
the contracting electric distribution company. 101
Sec. 4. (NEW) (Effective July 1, 2021) On or before January 15, 2022, 102
and annually thereafter, each municipal utility, as defined in section 12-103
265 of the general statutes, shall report, in accordance with section 11-4a 104
of the general statutes, on the quantifiable progress of its carbon 105
reduction to the Department of Energy and Environmental Protection. 106
Such report shall be in a manner prescribed by the department to 107
determine such municipal utility's contribution toward the state's 108
emission reduction requirements pursuant to section 22a-200a of the 109
general statutes. 110
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Sec. 2 July 1, 2021 New section
Sec. 3 July 1, 2021 New section Substitute Bill No. 952
LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00952-
R01-SB.docx }
5 of 5
Sec. 4 July 1, 2021 New section
Statement of Legislative Commissioners:
In Section 1(c), technical clarifying changes were made.
ET Joint Favorable Subst.