OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-5456
AN ACT AUTHORIZING THE PURCHASE OF THE CAPITOL
DISTRICT ENERGY CENTER COGENERATION ASSOCIATES
ENERGY PRODUCTION PLANT.
As Amended by House "A" (LCO 5519)
House Calendar No.: 353
Primary Analyst: CP 4/28/22
Contributing Analyst(s):
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 23 $ FY 24 $
Treasurer, Debt Serv. GF - None See Below See Below
Department of Administrative
Services; Judicial Dept.;
Legislative Mgmt.
GF – Potential
Savings; Potential
Cost Avoidance
See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill enables the Commissioner of the Department of
Administrative Services (DAS) to purchase the energy production plant
in Hartford which produces and provides steam and heated and chilled
water for the Capitol Area System, including certain state agencies. It is
anticipated that the purchase would produce long-term savings and
cost avoidance to the agencies impacted, according to projections by the
DAS that reflect increasing efficiencies in the facility's operation due to
planned investments in its infrastructure. The DAS projections
demonstrate state agency savings of over $20 million in total over
twenty years relative to the current contract to purchase energy from the
facility, in addition to the avoidance of potential future costs to the
agencies consuming energy from the facility as planned or unplanned
maintenance and repair costs are incurred and passed on to the state. 2022HB-05456-R010685-FN.DOCX Page 2 of 2
There is no anticipated, additional projected cost to the State
Treasurer's debt service line item because General Obligation bond
funds authorized for the program (over $15 million in total) have
already been allocated and made available.
Electric ratepayer impact
The energy production plant in Hartford has been decommissioned
as a generator of electrical energy. However, some electricity is
consumed in operating the facility. Purchase of the facility by the state
would result in a shift in accounting for the cost of electricity to run the
facility. Instead of being a component of the overall cost of procuring
energy from the third-party operator of the facility as it is done
currently, the state agency DAS (as a potential future owner) would
need to negotiate and pay for electricity directly via Northeast Utilities.
Overall usage and rates are uncertain, pending improved efficiencies
and negotiations.
The potential estimated savings indicated above of over $20 million
in total is through calendar year 2040.
House "A" strikes the original bill and its associated fiscal impact,
thus becoming the bill with the above referenced fiscal impact.
The Out Years
The potential estimated savings indicated above of over $20 million
in total is through calendar year 2040.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely
for the purposes of information, summarization and explanation and does not represent the intent of the General
Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of
informational sources, including the analyst’s professional knowledge. Whenever applicable, agency data is
consulted as part of the analysis, however final products do not necessarily reflect an assessment from any
specific department.