Connecticut 2023 Regular Session

Connecticut Senate Bill SB00123 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO No. ~~4332~~ 1 of 49
	3	+	LCO No. 674 1 of 2
4	4
5		-	General Assembly ~~Committee~~ Bill No. 123
	5	+	General Assembly Proposed Bill No. 123
6	6		January Session, 2023
7		-	LCO No. ~~4332~~
	7	+	LCO No. 674
8	8
9	9
10	10		Referred to Committee on ENERGY AND TECHNOLOGY
11	11
12	12
13	13		Introduced by:
14		-	(ET)
	14	+	SEN. FAZIO, 36th Dist.
	15	+	REP. BUCKBEE, 67th Dist.
	16	+
15	17
16	18
17	19
18	20		AN ACT CONCERNING THE PUBLIC UTILITIES REGULATORY
19	21		AUTHORITY, THE REGULATION OF ELECTRIC RATES AND STATE
20	22		PUBLIC POLICY CONCERNING ELECTRICITY GENERATION.
21	23		Be it enacted by the Senate and House of Representatives in General
22	24		Assembly convened:
23	25
24		-	Section 1. Subsection (b) of section 16-19tt of the general statutes is 1
25		-	repealed and the following is substituted in lieu thereof (Effective October 2
26		-	1, 2023): 3
27		-	(b) In any rate case initiated on or after [July 8, 2013] October 1, 2023, 4
28		-	or in a pending rate case for which a final decision has not been issued 5
29		-	prior to [July 8, 2013] October 1, 2023, the Public Utilities Regulatory 6
30		-	Authority [shall] may order the state's gas and electric distribution 7
31		-	companies to decouple distribution revenues from the volume of 8
32		-	natural gas and electricity sales. [For electric distribution companies, the 9
33		-	decoupling mechanism shall be the adjustment of actual distribution 10
34		-	revenues to allowed distribution revenues. For gas distribution 11
35		-	companies, the decoupling mechanism shall be a mechanism that does 12
36		-	not remove the incentive to support the expansion of natural gas use 13
37		-	pursuant to the 2013 Comprehensive Energy Strategy, such as a 14
38		-	mechanism that decouples distribution revenue based on a use-per-15
39		-	Committee Bill No. 123
	26	+	That the general statutes be amended to: (1) Separate the Public 1
	27	+	Utilities Regulatory Authority from the Department of Energy and 2
	28	+	Environmental Protection; (2) provide the authority with the discretion 3
	29	+	to make decoupling orders and determine a decoupling mechanism 4
	30	+	pursuant to such orders that would benefit ratepayers and reduce 5
	31	+	outages; (3) permit settlements of rate cases only if (A) the terms 6
	32	+	conform with the principles in section 16-19e of the general statutes, (B) 7
	33	+	the parties to the settlement appear before the authority to answer 8
	34	+	questions about the settlement, and (C) the settlement is for a period not 9
	35	+	longer than that of the underlying rate case; (4) reduce the public policy 10
	36	+	charges embedded in electric rates or fund such public policies in the 11
	37	+	state budget; (5) require that Combined Public Benefits Charge and the 12
	38	+	Federally Mandated Congestion Charges be separated from Delivery 13
	39	+	Charges on customer electric bills and combined into a new category 14 Proposed Bill No. 123
40	40
41	41
42		-	LCO No. ~~4332~~ 2 of 49
	42	+	LCO No. 674 2 of 2
43	43
44		-	customer basis. In making its determination on this matter, the authority 16
45		-	shall consider the impact of decoupling on the gas or electric 17
46		-	distribution company's return on equity and make any necessary 18
47		-	adjustments thereto.] The authority shall have the discretion to 19
48		-	determine the decoupling mechanism and methodology used in 20
49		-	decoupling orders made pursuant to this subsection. In making such 21
50		-	determination, the authority shall consider factors, including, but not 22
51		-	limited to, (1) whether the decoupling mechanism and methodology is 23
52		-	in the best interest of ratepayers, and (2) whether the decoupling 24
53		-	mechanism and methodology will reduce service outages. 25
54		-	Sec. 2. Section 16-19jj of the general statutes is repealed and the 26
55		-	following is substituted in lieu thereof (Effective October 1, 2023): 27
56		-	(a) The Public Utilities Regulatory Authority shall, whenever it 28
57		-	deems appropriate, [encourage] permit the use of proposed settlements 29
58		-	produced by alternative dispute resolution mechanisms to resolve 30
59		-	contested cases and proceedings. 31
60		-	(b) The effective period of any provision in a proposed settlement 32
61		-	shall be expressly limited to a duration not longer than the duration of 33
62		-	the rate plan existing at the time the settlement is proposed. 34
63		-	(c) Any settlement of a proceeding to amend rates shall not constitute 35
64		-	a general rate hearing and shall not satisfy the requirements for periodic 36
65		-	review of gas and electric distribution companies' rates pursuant to 37
66		-	section 16-19a. 38
67		-	(d) Parties or intervenors to a contested proceeding may propose a 39
68		-	settlement by filing a motion, which shall be filed after the close of the 40
69		-	evidentiary record but not later than three weeks prior to the scheduled 41
70		-	issuance date of the proposed final decision in the proceeding. Motions 42
71		-	made pursuant to this subsection shall include: (1) A detailed analysis 43
72		-	outlining any increases to components of rates resulting from the 44
73		-	proposed settlement and the causal relationship of particular rate 45
74		-	component increases to provisions in the proposed settlement; (2) 46
75		-	Committee Bill No. 123
76		-
77		-
78		-	LCO No. 4332 3 of 49
79		-
80		-	prefiled testimony sponsored by at least one witness representing each 47
81		-	settling party and, if applicable, each intervenor; and (3) a statement of 48
82		-	the position of nonsettling parties and intervenors on the proposed 49
83		-	settlement, such as "support", "oppose" or "no position". 50
84		-	(e) The provisions of any proposed settlement shall be supported 51
85		-	with detailed citations to the evidentiary record. 52
86		-	(f) The provisions of any proposed settlement shall be provided to 53
87		-	any nonsettling parties or intervenors at least three business days before 54
88		-	the filing of a motion pursuant to this section, with a request that the 55
89		-	party or intervenor provide a position on the proposed settlement for 56
90		-	reference in the motion. 57
91		-	(g) The authority may hold evidentiary hearings and may order briefs 58
92		-	to be filed related to any proposed settlement. 59
93		-	Sec. 3. Subsection (a) of section 16-245d of the general statutes is 60
94		-	repealed and the following is substituted in lieu thereof (Effective from 61
95		-	passage): 62
96		-	(a) (1) The Public Utilities Regulatory Authority shall, by regulations 63
97		-	adopted pursuant to chapter 54, develop a standard billing format that 64
98		-	enables customers to compare pricing policies and charges among 65
99		-	electric suppliers. The authority shall alter or repeal any relevant 66
100		-	regulation in conjunction with the implementation of a redesigned 67
101		-	standard billing format described in subdivision [(2)] (3) of this 68
102		-	subsection. The authority shall adopt regulations, in accordance with 69
103		-	the provisions of chapter 54, to provide that an electric supplier shall 70
104		-	provide direct billing and collection services for electric generation 71
105		-	services and related federally mandated congestion charges that such 72
106		-	suppliers provide to their customers or may choose to obtain such 73
107		-	billing and collection service through an electric distribution company 74
108		-	and pay its pro rata share in accordance with the provisions of 75
109		-	subsection (f) of section 16-244c, as amended by this act. Any customer 76
110		-	of an electric supplier, which is choosing to provide direct billing, who 77
111		-	Committee Bill No. 123
112		-
113		-
114		-	LCO No. 4332 4 of 49
115		-
116		-	paid for the cost of billing and other services to an electric distribution 78
117		-	company shall receive a credit on their monthly bill. 79
118		-	(2) On or before July 1, 2014, the authority shall initiate a docket to 80
119		-	redesign (A) the standard billing format for residential customers 81
120		-	implemented pursuant to subdivision (1) of this subsection to better 82
121		-	enable such residential customers to compare pricing policies and 83
122		-	charges among electric suppliers, and (B) the account summary page of 84
123		-	a residential customer located on the electric distribution company's 85
124		-	Internet web site. The authority shall issue a final decision on such 86
125		-	docket not later than six months after its initiation. Such final decision 87
126		-	shall include the placement of the following items on the first page of 88
127		-	each bill for each residential customer receiving electric generation 89
128		-	service from an electric supplier: (i) The electric generation service rate; 90
129		-	(ii) the term and expiration date of such rate; (iii) any change to such rate 91
130		-	effective for the next billing cycle; (iv) the cancellation fee, if applicable, 92
131		-	provided there is such a change; (v) notification that such rate is 93
132		-	variable, if applicable; (vi) the standard service rate; (vii) the term and 94
133		-	expiration date of the standard service rate; (viii) the dollar amount that 95
134		-	would have been billed for the electric generation services component 96
135		-	had the customer been receiving standard service; and (ix) an electronic 97
136		-	link or Internet web site address to the rate board Internet web site 98
137		-	described in section 16-244d and the toll-free telephone number and 99
138		-	other information necessary to enable the customer to obtain standard 100
139		-	service. Such final decision shall also include the feasibility of (I) an 101
140		-	electric distribution company transferring a residential customer 102
141		-	receiving electric generation service from an electric supplier to a 103
142		-	different electric supplier in a timely manner and ensuring that the 104
143		-	electric distribution company and the relevant electric suppliers provide 105
144		-	timely information to each other to facilitate such transfer, and (II) 106
145		-	allowing residential customers to choose how to receive information 107
146		-	related to bill notices, including United States mail, electronic mail, text 108
147		-	message, an application on a cellular telephone or a third-party 109
148		-	notification service approved by the authority. On or before July 1, 2015, 110
149		-	the authority shall implement, or cause to be implemented, the 111
150		-	Committee Bill No. 123
151		-
152		-
153		-	LCO No. 4332 5 of 49
154		-
155		-	redesigned standard billing format and Internet web site for a 112
156		-	customer's account summary. On or before July 1, 2020, and every five 113
157		-	years thereafter, the authority shall reopen such docket to ensure the 114
158		-	standard billing format and Internet web site for a customer's account 115
159		-	summary remains a useful tool for customers to compare pricing 116
160		-	policies and charges among electric suppliers. 117
161		-	(3) Not later than August 1, 2023, the Public Utilities Regulatory 118
162		-	Authority shall initiate a docket to redesign the standard billing format 119
163		-	for all end use customers of electric distribution companies. In the 120
164		-	docket, the authority shall identify each charge comprising the electric 121
165		-	rate and determine which category the charge falls into using the 122
166		-	following categories: (A) Supply; (B) distribution; (C) transmission; and 123
167		-	(D) public policy. The authority shall require that each electric 124
168		-	distribution company's standard billing format identify each charge and 125
169		-	corresponding category in accordance with the authority's 126
170		-	determinations. Not later than January 1, 2024, the authority shall report 127
171		-	on the status of the docket to the joint standing committee of the General 128
172		-	Assembly having cognizance of matters relating to energy and 129
173		-	technology. 130
174		-	[(3)] (4) An electric supplier that chooses to provide billing and 131
175		-	collection services shall, in accordance with the billing format 132
176		-	developed by the authority, include the following information in each 133
177		-	customer's bill: (A) The total amount owed by the customer, which shall 134
178		-	be itemized to show (i) the electric generation services component and 135
179		-	any additional charges imposed by the electric supplier, and (ii) 136
180		-	federally mandated congestion charges applicable to the generation 137
181		-	services; (B) any unpaid amounts from previous bills, which shall be 138
182		-	listed separately from current charges; (C) the rate and usage for the 139
183		-	current month and each of the previous twelve months in bar graph 140
184		-	form or other visual format; (D) the payment due date; (E) the interest 141
185		-	rate applicable to any unpaid amount; (F) the toll-free telephone number 142
186		-	of the Public Utilities Regulatory Authority for questions or complaints; 143
187		-	and (G) the toll-free telephone number and address of the electric 144
188		-	Committee Bill No. 123
189		-
190		-
191		-	LCO No. 4332 6 of 49
192		-
193		-	supplier. On or before October 1, 2013, the authority shall conduct a 145
194		-	review of the costs and benefits of suppliers billing for all components 146
195		-	of electric service, and report, in accordance with the provisions of 147
196		-	section 11-4a, to the joint standing committee of the General Assembly 148
197		-	having cognizance of matters relating to energy regarding the results of 149
198		-	such review. Any such report may be submitted electronically. 150
199		-	[(4)] (5) An electric distribution company shall, in accordance with 151
200		-	the billing format developed by the authority, include the following 152
201		-	information in each customer's bill: (A) The total amount owed by the 153
202		-	customer, which shall be itemized [to show, (i) the electric generation 154
203		-	services component if the customer obtains standard service or last 155
204		-	resort service from the electric distribution company, (ii) the distribution 156
205		-	charge, including all applicable taxes and the systems benefits charge, 157
206		-	as provided in section 16-245l, (iii) the transmission rate as adjusted 158
207		-	pursuant to subsection (d) of section 16-19b, (iv) the competitive 159
208		-	transition assessment, as provided in section 16-245g, (v) federally 160
209		-	mandated congestion charges, and (vi) the conservation and renewable 161
210		-	energy charge, consisting of the conservation and load management 162
211		-	program charge, as provided in section 16-245m, and the renewable 163
212		-	energy investment charge, as provided in section 16-245n] using the 164
213		-	categories identified in subdivision (3) of this subsection; (B) any unpaid 165
214		-	amounts from previous bills which shall be listed separately from 166
215		-	current charges; (C) except for customers subject to a demand charge, 167
216		-	the rate and usage for the current month and each of the previous twelve 168
217		-	months in the form of a bar graph or other visual form; (D) the payment 169
218		-	due date; (E) the interest rate applicable to any unpaid amount; (F) the 170
219		-	toll-free telephone number of the electric distribution company to report 171
220		-	power losses; (G) the toll-free telephone number of the Public Utilities 172
221		-	Regulatory Authority for questions or complaints; and (H) if a customer 173
222		-	has a demand of five hundred kilowatts or less during the preceding 174
223		-	twelve months, a statement about the availability of information 175
224		-	concerning electric suppliers pursuant to section 16-245p. 176
225		-	Sec. 4. Section 16-1 of the general statutes is repealed and the 177
226		-	Committee Bill No. 123
227		-
228		-
229		-	LCO No. 4332 7 of 49
230		-
231		-	following is substituted in lieu thereof (Effective October 1, 2023): 178
232		-	(a) Terms used in this title and in chapters 244, 244a, 244b, 245, 245a 179
233		-	and 245b shall be construed as follows, unless another meaning is 180
234		-	expressed or is clearly apparent from the language or context: 181
235		-	(1) "Authority" means the Public Utilities Regulatory Authority and 182
236		-	"department" means the Department of Energy and Environmental 183
237		-	Protection; 184
238		-	(2) "Utility commissioner" means a member of the Public Utilities 185
239		-	Regulatory Authority; 186
240		-	(3) "Public service company" includes electric distribution, gas, 187
241		-	telephone, pipeline, sewage, water and community antenna television 188
242		-	companies and holders of a certificate of cable franchise authority, 189
243		-	owning, leasing, maintaining, operating, managing or controlling plants 190
244		-	or parts of plants or equipment, but shall not include towns, cities, 191
245		-	boroughs, any municipal corporation or department thereof, whether 192
246		-	separately incorporated or not, a private power producer, as defined in 193
247		-	section 16-243b, or an exempt wholesale generator, as defined in 15 USC 194
248		-	79z-5a; 195
249		-	(4) "Plant" includes all real estate, buildings, tracks, pipes, mains, 196
250		-	poles, wires and other fixed or stationary construction and equipment, 197
251		-	wherever located, used in the conduct of the business of the company; 198
252		-	(5) "Gas company" includes every person owning, leasing, 199
253		-	maintaining, operating, managing or controlling mains, pipes or other 200
254		-	fixtures, in public highways or streets, for the transmission or 201
255		-	distribution of gas for sale for heat or power within this state, or engaged 202
256		-	in the manufacture of gas to be so transmitted or distributed for such 203
257		-	purpose, but shall not include (A) a person manufacturing gas through 204
258		-	the use of a biomass gasification plant provided such person does not 205
259		-	own, lease, maintain, operate, manage or control mains, pipes or other 206
260		-	fixtures in public highways or streets, (B) a municipal gas utility 207
261		-	Committee Bill No. 123
262		-
263		-
264		-	LCO No. 4332 8 of 49
265		-
266		-	established under chapter 101 or any other gas utility owned, leased, 208
267		-	maintained, operated, managed or controlled by any unit of local 209
268		-	government under any general statute or any public or special act, or 210
269		-	(C) an entity approved to submeter pursuant to section 16-19ff; 211
270		-	(6) "Water company" includes every person owning, leasing, 212
271		-	maintaining, operating, managing or controlling any pond, lake, 213
272		-	reservoir, stream, well or distributing plant or system employed for the 214
273		-	purpose of supplying water to fifty or more consumers. A water 215
274		-	company does not include homeowners, condominium associations 216
275		-	providing water only to their members, homeowners associations 217
276		-	providing water to customers at least eighty per cent of whom are 218
277		-	members of such associations, a municipal waterworks system 219
278		-	established under chapter 102, a district, metropolitan district, 220
279		-	municipal district or special services district established under chapter 221
280		-	105, chapter 105a or any other general statute or any public or special 222
281		-	act which is authorized to supply water, or any other waterworks 223
282		-	system owned, leased, maintained, operated, managed or controlled by 224
283		-	any unit of local government under any general statute or any public or 225
284		-	special act; 226
285		-	(7) "Consumer" means any private dwelling, boardinghouse, 227
286		-	apartment, store, office building, institution, mechanical or 228
287		-	manufacturing establishment or other place of business or industry to 229
288		-	which water is supplied by a water company; 230
289		-	(8) "Sewage company" includes every person owning, leasing, 231
290		-	maintaining, operating, managing or controlling, for general use in any 232
291		-	town, city or borough, or portion thereof, in this state, sewage disposal 233
292		-	facilities which discharge treated effluent into any waterway of this 234
293		-	state; 235
294		-	(9) "Pipeline company" includes every person owning, leasing, 236
295		-	maintaining, operating, managing or controlling mains, pipes or other 237
296		-	fixtures through, over, across or under any public land, water, 238
297		-	parkways, highways, parks or public grounds for the transportation, 239
298		-	Committee Bill No. 123
299		-
300		-
301		-	LCO No. 4332 9 of 49
302		-
303		-	transmission or distribution of petroleum products for hire within this 240
304		-	state; 241
305		-	(10) "Community antenna television company" includes every person 242
306		-	owning, leasing, maintaining, operating, managing or controlling a 243
307		-	community antenna television system, in, under or over any public 244
308		-	street or highway, for the purpose of providing community antenna 245
309		-	television service for hire and shall include any municipality which 246
310		-	owns or operates one or more plants for the manufacture or distribution 247
311		-	of electricity pursuant to section 7-213 or any special act and seeks to 248
312		-	obtain or obtains a certificate of public convenience and necessity to 249
313		-	construct or operate a community antenna television system pursuant 250
314		-	to section 16-331 or a certificate of cable franchise authority pursuant to 251
315		-	section 16-331q. "Community antenna television company" does not 252
316		-	include a certified competitive video service provider; 253
317		-	(11) "Community antenna television service" means (A) the one-way 254
318		-	transmission to subscribers of video programming or information that 255
319		-	a community antenna television company makes available to all 256
320		-	subscribers generally, and subscriber interaction, if any, which is 257
321		-	required for the selection of such video programming or information, 258
322		-	and (B) noncable communications service. "Commun ity antenna 259
323		-	television service" does not include video service provided by a certified 260
324		-	competitive video service provider; 261
325		-	(12) "Community antenna television system" means a facility, 262
326		-	consisting of a set of closed transmission paths and associated signal 263
327		-	generation, reception and control equipment that is designed to provide 264
328		-	community antenna television service which includes video 265
329		-	programming and which is provided in, under or over any public street 266
330		-	or highway, for hire, to multiple subscribers within a franchise, but such 267
331		-	term does not include (A) a facility that serves only to retransmit the 268
332		-	television signals of one or more television broadcast stations; (B) a 269
333		-	facility that serves only subscribers in one or more multiple unit 270
334		-	dwellings under common ownership, control or management, unless 271
335		-	Committee Bill No. 123
336		-
337		-
338		-	LCO No. 4332 10 of 49
339		-
340		-	such facility is located in, under or over a public street or highway; (C) 272
341		-	a facility of a common carrier which is subject, in whole or in part, to the 273
342		-	provisions of Subchapter II of Chapter 5 of the Communications Act of 274
343		-	1934, 47 USC 201 et seq., as amended, except that such facility shall be 275
344		-	considered a community antenna television system and the carrier shall 276
345		-	be considered a public service company to the extent such facility is used 277
346		-	in the transmission of video programming directly to subscribers; or (D) 278
347		-	a facility of an electric distribution company which is used solely for 279
348		-	operating its electric distribution company systems. "Community 280
349		-	antenna television system" does not include a facility used by a certified 281
350		-	competitive video service provider to provide video service; 282
351		-	(13) "Video programming" means programming provided by, or 283
352		-	generally considered comparable to programming provided by, a 284
353		-	television broadcast station; 285
354		-	(14) "Noncable communications service" means any 286
355		-	telecommunications service, as defined in section 16-247a, and which is 287
356		-	not included in the definition of "cable service" in the Communications 288
357		-	Act of 1934, 47 USC 522, as amended. Nothing in this definition shall be 289
358		-	construed to affect service which is both authorized and preempted 290
359		-	pursuant to federal law; 291
360		-	(15) "Cogeneration technology" means the use for the generation of 292
361		-	electricity of exhaust steam, waste steam, heat or resultant energy from 293
362		-	an industrial, commercial or manufacturing plant or process, or the use 294
363		-	of exhaust steam, waste steam or heat from a thermal power plant for 295
364		-	an industrial, commercial or manufacturing plant or process, but shall 296
365		-	not include steam or heat developed solely for electrical power 297
366		-	generation; 298
367		-	(16) "Renewable fuel resources" means energy sources described in 299
368		-	[subdivisions (20) and (21)] subdivision (20) of this subsection; 300
369		-	(17) "Telephone company" means a telecommunications company 301
370		-	that provides one or more noncompetitive or emerging competitive 302
371		-	Committee Bill No. 123
372		-
373		-
374		-	LCO No. 4332 11 of 49
375		-
376		-	services, as defined in section 16-247a; 303
377		-	(18) "Domestic telephone company" includes any telephone company 304
378		-	which has been chartered by or organized or constituted within or 305
379		-	under the laws of this state; 306
380		-	(19) "Telecommunications company" means a person that provides 307
381		-	telecommunications service, as defined in section 16-247a, within the 308
382		-	state, but shall not mean a person that provides only (A) private 309
383		-	telecommunications service, as defined in section 16-247a, (B) the one-310
384		-	way transmission of video programming or other programming 311
385		-	services to subscribers, (C) subscriber interaction, if any, which is 312
386		-	required for the selection of such video programming or other 313
387		-	programming services, (D) the two-way transmission of educational or 314
388		-	instructional programming to a public or private elementary or 315
389		-	secondary school, or a public or independent institution of higher 316
390		-	education, as required by the authority pursuant to a community 317
391		-	antenna television company franchise agreement, or provided pursuant 318
392		-	to a contract with such a school or institution which contract has been 319
393		-	filed with the authority, or (E) a combination of the services set forth in 320
394		-	subparagraphs (B) to (D), inclusive, of this subdivision; 321
395		-	(20) "Class I renewable energy source" means (A) electricity derived 322
396		-	from (i) solar power, (ii) wind power, (iii) a fuel cell, (iv) geothermal, (v) 323
397		-	landfill methane gas, anaerobic digestion or other biogas derived from 324
398		-	biological sources, (vi) thermal electric direct energy conversion from a 325
399		-	certified Class I renewable energy source, (vii) ocean thermal power, 326
400		-	(viii) wave or tidal power, (ix) low emission advanced renewable energy 327
401		-	conversion technologies, including, but not limited to, zero emission 328
402		-	low grade heat power generation systems based on organic oil free 329
403		-	rankine, kalina or other similar nonsteam cycles that use waste heat 330
404		-	from an industrial or commercial process that does not generate 331
405		-	electricity, (x) [(I) a run-of-the-river hydropower facility that began 332
406		-	operation after July 1, 2003, and has a generating capacity of not more 333
407		-	than thirty megawatts, or (II) a run-of-the-river hydropower facility that 334
408		-	Committee Bill No. 123
409		-
410		-
411		-	LCO No. 4332 12 of 49
412		-
413		-	received a new license after January 1, 2018, under the Federal Energy 335
414		-	Regulatory Commission rules pursuant to 18 CFR 16, as amended from 336
415		-	time to time, and provided a facility that applies for certification under 337
416		-	this clause after January 1, 2013, shall not be based on a new dam or a 338
417		-	dam identified by the commissioner as a candidate for removal, and 339
418		-	shall meet applicable state and federal requirements, including 340
419		-	applicable site-specific standards for water quality and fish passage, or] 341
420		-	hydropower, (xi) a biomass facility that uses sustainable biomass fuel 342
421		-	and has an average emission rate of equal to or less than .075 pounds of 343
422		-	nitrogen oxides per million BTU of heat input for the previous calendar 344
423		-	quarter, except that energy derived from a biomass facility with a 345
424		-	capacity of less than five hundred kilowatts that began construction 346
425		-	before July 1, 2003, may be considered a Class I renewable energy 347
426		-	source, (xii) nuclear power, or (xiii) a trash-to-energy facility that has 348
427		-	obtained a permit pursuant to section 22a-208a and section 22a-174-33 349
428		-	of the regulations of Connecticut state agencies, or (B) any electrical 350
429		-	generation, including distributed generation, generated from a Class I 351
430		-	renewable energy source, provided, on and after January 1, 2014, any 352
431		-	megawatt hours of electricity from a renewable energy source described 353
432		-	under this subparagraph that are claimed or counted by a load-serving 354
433		-	entity, province or state toward compliance with renewable portfolio 355
434		-	standards or renewable energy policy goals in another province or state, 356
435		-	other than the state of Connecticut, shall not be eligible for compliance 357
436		-	with the renewable portfolio standards established pursuant to section 358
437		-	16-245a, as amended by this act; 359
438		-	[(21) "Class II renewable energy source" means electricity derived 360
439		-	from a trash-to-energy facility that has obtained a permit pursuant to 361
440		-	section 22a-208a and section 22a-174-33 of the regulations of 362
441		-	Connecticut state agencies;] 363
442		-	[(22)] (21) "Electric distribution services" means the owning, leasing, 364
443		-	maintaining, operating, managing or controlling of poles, wires, 365
444		-	conduits or other fixtures along public highways or streets for the 366
445		-	distribution of electricity, or electric distribution-related services; 367
446		-	Committee Bill No. 123
447		-
448		-
449		-	LCO No. 4332 13 of 49
450		-
451		-	[(23)] (22) "Electric distribution company" or "distribution company" 368
452		-	means any person providing electric transmission or distribution 369
453		-	services within the state, but does not include: (A) A private power 370
454		-	producer, as defined in section 16-243b; (B) a municipal electric utility 371
455		-	established under chapter 101, other than a participating municipal 372
456		-	electric utility; (C) a municipal electric energy cooperative established 373
457		-	under chapter 101a; (D) an electric cooperative established under 374
458		-	chapter 597; (E) any other electric utility owned, leased, maintained, 375
459		-	operated, managed or controlled by any unit of local government under 376
460		-	any general statute or special act; (F) an electric supplier; (G) an entity 377
461		-	approved to submeter pursuant to section 16-19ff; or (H) a municipality, 378
462		-	state or federal governmental entity authorized to distribute electricity 379
463		-	across a public highway or street pursuant to section 16-243aa; 380
464		-	[(24)] (23) "Electric supplier" means any person, including an electric 381
465		-	aggregator or participating municipal electric utility that is licensed by 382
466		-	the Public Utilities Regulatory Authority in accordance with section 16-383
467		-	245, as amended by this act, that provides electric generation services to 384
468		-	end use customers in the state using the transmission or distribution 385
469		-	facilities of an electric distribution company, regardless of whether or 386
470		-	not such person takes title to such generation services, but does not 387
471		-	include: (A) A municipal electric utility established under chapter 101, 388
472		-	other than a participating municipal electric utility; (B) a municipal 389
473		-	electric energy cooperative established under chapter 101a; (C) an 390
474		-	electric cooperative established under chapter 597; or (D) any other 391
475		-	electric utility owned, leased, maintained, operated, managed or 392
476		-	controlled by any unit of local government under any general statute or 393
477		-	special act; 394
478		-	[(25)] (24) "Electric aggregator" means (A) a person, municipality or 395
479		-	regional water authority that gathers together electric customers for the 396
480		-	purpose of negotiating the purchase of electric generation services from 397
481		-	an electric supplier, or (B) the Materials Innovation and Recycling 398
482		-	Authority, if it gathers together electric customers for the purpose of 399
483		-	negotiating the purchase of electric generation services from an electric 400
484		-	Committee Bill No. 123
485		-
486		-
487		-	LCO No. 4332 14 of 49
488		-
489		-	supplier, provided such person, municipality or authority is not 401
490		-	engaged in the purchase or resale of electric generation services, and 402
491		-	provided further such customers contract for electric generation 403
492		-	services directly with an electric supplier, and may include an electric 404
493		-	cooperative established pursuant to chapter 597; 405
494		-	[(26)] (25) "Electric generation services" means electric energy, electric 406
495		-	capacity or generation-related services; 407
496		-	[(27)] (26) "Electric transmission services" means electric transmission 408
497		-	or transmission-related services; 409
498		-	[(28)] (27) "Generation entity or affiliate" means a corporate affiliate 410
499		-	or a separate division of an electric distribution company that provides 411
500		-	electric generation services; 412
501		-	[(29)] (28) "Participating municipal electric utility" means a municipal 413
502		-	electric utility established under chapter 101 or any other electric utility 414
503		-	owned, leased, maintained, operated, managed or controlled by any 415
504		-	unit of local government under any general statute or any public or 416
505		-	special act, that is authorized by the authority in accordance with section 417
506		-	16-245c to provide electric generation services to end use customers 418
507		-	outside its service area, as defined in section 16-245c; 419
508		-	[(30)] (29) "Person" means an individual, business, firm, corporation, 420
509		-	association, joint stock association, trust, partnership or limited liability 421
510		-	company; 422
511		-	[(31)] (30) "Regional independent system operator" means the "ISO - 423
512		-	New England, Inc.", or its successor organization as approved by the 424
513		-	Federal Energy Regulatory Commission; 425
514		-	[(32)] (31) "Certified telecommunications provider" means a person 426
515		-	certified by the authority to provide intrastate telecommunications 427
516		-	services, as defined in section 16-247a, pursuant to sections 16-247f to 428
517		-	16-247h, inclusive; 429
518		-	Committee Bill No. 123
519		-
520		-
521		-	LCO No. 4332 15 of 49
522		-
523		-	[(33)] (32) "Gas registrant" means a person registered to sell natural 430
524		-	gas pursuant to section 16-258a; 431
525		-	[(34)] (33) "Customer-side distributed resources" means (A) the 432
526		-	generation of electricity from a unit with a rating of not more than sixty-433
527		-	five megawatts on the premises of a retail end user within the 434
528		-	transmission and distribution system including, but not limited to, fuel 435
529		-	cells, photovoltaic systems or small wind turbines, or (B) a reduction in 436
530		-	the demand for electricity on the premises of a retail end user in the 437
531		-	distribution system through methods of conservation and load 438
532		-	management, including, but not limited to, peak reduction systems and 439
533		-	demand response systems; 440
534		-	[(35)] (34) "Federally mandated congestion charges" means any cost 441
535		-	approved by the Federal Energy Regulatory Commission as part of New 442
536		-	England Standard Market Design including, but not limited to, 443
537		-	locational marginal pricing, locational installed capacity payments, any 444
538		-	cost approved by the Public Utilities Regulatory Authority to reduce 445
539		-	federally mandated congestion charges in accordance with section 7-446
540		-	233y, this section, sections 16-32f, 16-50i, 16-50k, 16-50x, 16-243i to 16-447
541		-	243q, inclusive, 16-244c, as amended by this act, 16-245m, 16-245n and 448
542		-	16-245z, section 21 of public act 05-1 of the June special session*, 449
543		-	subsection (f) of section 16a-3j and reliability must run contracts; 450
544		-	[(36)] (35) "Combined heat and power system" means a system that 451
545		-	produces, from a single source, both electric power and thermal energy 452
546		-	used in any process that results in an aggregate reduction in electricity 453
547		-	use; 454
548		-	[(37)] (36) "Grid-side distributed resources" means the generation of 455
549		-	electricity from a unit with a rating of not more than sixty-five 456
550		-	megawatts that is connected to the transmission or distribution system, 457
551		-	which units may include, but are not limited to, units used primarily to 458
552		-	generate electricity to meet peak demand; 459
553		-	[(38)] (37) "Class III source" means the electricity output from 460
554		-	Committee Bill No. 123
555		-
556		-
557		-	LCO No. 4332 16 of 49
558		-
559		-	combined heat and power systems with an operating efficiency level of 461
560		-	no less than fifty per cent that are part of customer-side distributed 462
561		-	resources developed at commercial and industrial facilities in this state 463
562		-	on or after January 1, 2006, a waste heat recovery system installed on or 464
563		-	after April 1, 2007, that produces electrical or thermal energy by 465
564		-	capturing preexisting waste heat or pressure from industrial or 466
565		-	commercial processes, or the electricity savings created in this state from 467
566		-	conservation and load management programs begun on or after January 468
567		-	1, 2006, provided on and after January 1, 2014, no such programs 469
568		-	supported by ratepayers, including programs overseen by the Energy 470
569		-	Conservation Management Board or third-party programs pursuant to 471
570		-	section 16-245m, shall be considered a Class III source, except that any 472
571		-	demand-side management project awarded a contract pursuant to 473
572		-	section 16-243m shall remain eligible as a Class III source for the term of 474
573		-	such contract; 475
574		-	[(39)] (38) "Sustainable biomass fuel" means biomass that is cultivated 476
575		-	and harvested in a sustainable manner. "Sustainable biomass fuel" does 477
576		-	not mean construction and demolition waste, as defined in section 22a-478
577		-	208x, finished biomass products from sawmills, paper mills or stud 479
578		-	mills, organic refuse fuel derived separately from municipal solid waste, 480
579		-	or biomass from old growth timber stands, except where (A) such 481
580		-	biomass is used in a biomass gasification plant that received funding 482
581		-	prior to May 1, 2006, from the Clean Energy Fund established pursuant 483
582		-	to section 16-245n, or (B) the energy derived from such biomass is 484
583		-	subject to a long-term power purchase contract pursuant to subdivision 485
584		-	(2) of subsection (j) of section 16-244c entered into prior to May 1, 2006; 486
585		-	[(40)] (39) "Video service" means video programming services 487
586		-	provided through wireline facilities, a portion of which are located in 488
587		-	the public right-of-way, without regard to delivery technology, 489
588		-	including Internet protocol technology. "Video service" does not include 490
589		-	any video programming provided by a commercial mobile service 491
590		-	provider, as defined in 47 USC 332(d), any video programming 492
591		-	provided as part of community antenna television service in a franchise 493
592		-	Committee Bill No. 123
593		-
594		-
595		-	LCO No. 4332 17 of 49
596		-
597		-	area as of October 1, 2007, any video programming provided as part of 494
598		-	and via a service that enables users to access content, information, 495
599		-	electronic mail or other services over the public Internet; 496
600		-	[(41)] (40) "Certified competitive video service provider" means an 497
601		-	entity providing video service pursuant to a certificate of video 498
602		-	franchise authority issued by the authority in accordance with section 499
603		-	16-331e. "Certified competitive video service provider" does not mean 500
604		-	an entity issued a certificate of public convenience and necessity in 501
605		-	accordance with section 16-331 or the affiliates, successors and assigns 502
606		-	of such entity or an entity issued a certificate of cable franchise authority 503
607		-	in accordance with section 16-331p or the affiliates, successors and 504
608		-	assignees of such entity; 505
609		-	[(42)] (41) "Certificate of video franchise authority" means an 506
610		-	authorization issued by the Public Utilities Regulatory Authority 507
611		-	conferring the right to an entity or person to own, lease, maintain, 508
612		-	operate, manage or control facilities in, under or over any public 509
613		-	highway to offer video service to any subscribers in the state; 510
614		-	[(43)] (42) "Certificate of cable franchise authority" means an 511
615		-	authorization issued by the Public Utilities Regulatory Authority 512
616		-	pursuant to section 16-331q conferring the right to a community antenna 513
617		-	television company to own, lease, maintain, operate, manage or control 514
618		-	a community antenna television system in, under or over any public 515
619		-	highway to (A) offer community antenna television service in a 516
620		-	community antenna television company's designated franchise area, or 517
621		-	(B) use the public rights-of-way to offer video service in a designated 518
622		-	franchise area. The certificate of cable franchise authority shall be issued 519
623		-	as an alternative to a certificate of public convenience and necessity 520
624		-	pursuant to section 16-331 and shall only be available to a community 521
625		-	antenna television company under the terms specified in sections 16-522
626		-	331q to 16-331aa, inclusive; 523
627		-	[(44)] (43) "Thermal energy transportation company" means any 524
628		-	person authorized under any provision of the general statutes or special 525
629		-	Committee Bill No. 123
630		-
631		-
632		-	LCO No. 4332 18 of 49
633		-
634		-	act to furnish heat or air conditioning or both, by means of steam, heated 526
635		-	or chilled water or other medium, to lay and maintain mains, pipes or 527
636		-	other conduits, and to erect such other fixtures necessary or convenient 528
637		-	in and on the streets, highways and public grounds of any municipality 529
638		-	to carry steam, heated or chilled water or other medium from such plant 530
639		-	to the location to be served and to return the same; 531
640		-	[(45)] (44) "The Connecticut Television Network" means the General 532
641		-	Assembly's state-wide twenty-four-hour state public affairs 533
642		-	programming service, separate and distinct from community access 534
643		-	channels; 535
644		-	[(46)] (45) "Commissioner of Energy and Environmental Protection" 536
645		-	means the Commissioner of Energy and Environmental Protection 537
646		-	appointed pursuant to title 4, or the commissioner's designee; 538
647		-	[(47)] (46) "Large-scale hydropower" means any hydropower facility 539
648		-	that (A) began operation on or after January 1, 2003, (B) is located in the 540
649		-	New England Power Pool Generation Information System geographic 541
650		-	eligibility area in accordance with Rule 2.3 of said system or an area 542
651		-	abutting the northern boundary of the New England Power Pool 543
652		-	Generation Information System geographic eligibility area that is not 544
653		-	interconnected with any other control area that is not a part of the New 545
654		-	England Power Pool Generation Information System geographic 546
655		-	eligibility area, (C) delivers power into such geographic eligibility area, 547
656		-	and (D) has a generating capacity of more than thirty megawatts; 548
657		-	[(48)] (47) "Energy storage system" means any commercially available 549
658		-	technology that is capable of absorbing energy, storing it for a period of 550
659		-	time and thereafter dispatching the energy, and that is capable of either: 551
660		-	(A) Using mechanical, chemical or thermal processes to store electricity 552
661		-	that is generated at one time for use at a later time; (B) storing thermal 553
662		-	energy for direct use for heating or cooling at a later time in a manner 554
663		-	that avoids the need to use electricity at a later time; (C) using 555
664		-	mechanical, chemical or thermal processes to store electricity generated 556
665		-	from renewable energy sources for use at a later time; or (D) using 557
666		-	Committee Bill No. 123
667		-
668		-
669		-	LCO No. 4332 19 of 49
670		-
671		-	mechanical, chemical or thermal processes to capture or harness waste 558
672		-	electricity and to store such electricity generated from mechanical 559
673		-	processes for delivery at a later time; 560
674		-	[(49)] (48) "Distributed energy resource" means any (A) customer-561
675		-	side distributed resource or grid-side distributed resource that 562
676		-	generates electricity from a Class I renewable energy source or Class III 563
677		-	source, and (B) customer-side distributed resource that reduces demand 564
678		-	for electricity through conservation and load management, energy 565
679		-	storage system which is located on the customer-side of the meter or is 566
680		-	connected to the distribution system or microgrid; and 567
681		-	[(50)] (49) "Grid-side system enhancement" means an investment in 568
682		-	distribution system infrastructure, technology and systems designed to 569
683		-	enable the deployment of distributed energy resources and allow for 570
684		-	grid management and system balancing, including, but not limited to, 571
685		-	energy storage systems, distribution system automation and controls, 572
686		-	intelligent field systems, advanced distribution system metering, and 573
687		-	communication and systems that enable two-way power flow. 574
688		-	(b) Notwithstanding any provision of the general statutes, the terms 575
689		-	"utility", "public utility" and "public service company" shall be deemed 576
690		-	to include a community antenna television company and a holder of a 577
691		-	certificate of cable franchise authority, except (1) as otherwise provided 578
692		-	in sections 16-8, 16-27, 16-28 and 16-43, (2) that no provision of the 579
693		-	general statutes, including but not limited to, the provisions of sections 580
694		-	16-6b and 16-19, shall subject a community antenna television company 581
695		-	to regulation as a common carrier or utility by reason of providing 582
696		-	community antenna television service, other than noncable 583
697		-	communications service, as provided in Subchapter V-A of Chapter 5 of 584
698		-	the Communications Act of 1934, 47 USC 521 et seq., as amended, and 585
699		-	(3) that no provision of the general statutes, including but not limited to, 586
700		-	sections 16-6b and 16-19, shall apply to community antenna television 587
701		-	companies to the extent any such provision is preempted pursuant to 588
702		-	any other provision of the Communications Act of 1934, 47 USC 151 et 589
703		-	Committee Bill No. 123
704		-
705		-
706		-	LCO No. 4332 20 of 49
707		-
708		-	seq., as amended, any other federal act or any regulation adopted 590
709		-	thereunder. 591
710		-	(c) An owner of an electric vehicle charging station, as defined in 592
711		-	section 16-19f, shall not be deemed to be a utility, public utility or public 593
712		-	service company solely by virtue of the fact that such owner is an owner 594
713		-	of an electric vehicle charging station. 595
714		-	Sec. 5. Subsections (b) to (h), inclusive, of section 16-244c of the 596
715		-	general statutes are repealed and the following is substituted in lieu 597
716		-	thereof (Effective October 1, 2023): 598
717		-	(b) (1) Notwithstanding the provisions of this section regarding the 599
718		-	procurement of electric generation services under standard service, 600
719		-	section 16-244h or 16-245o, the Department of Energy and 601
720		-	Environmental Protection may, from time to time, direct an electric 602
721		-	distribution company to offer, through an electric supplier or electric 603
722		-	suppliers, one or more alternative standard service options. Such 604
723		-	alternative options shall include, but not be limited to, an option that 605
724		-	consists of the provision of electric generation services that exceed the 606
725		-	renewable portfolio standards established in section 16-245a, as 607
726		-	amended by this act, and may include an option that utilizes strategies 608
727		-	or technologies that reduce the overall consumption of electricity of the 609
728		-	customer. 610
729		-	(2) (A) The authority shall develop such alternative option or options 611
730		-	in a contested case conducted in accordance with the provisions of 612
731		-	chapter 54. The authority shall determine the terms and conditions of 613
732		-	such alternative option or options, including, but not limited to, (i) the 614
733		-	minimum contract terms, including pricing, length and termination of 615
734		-	the contract, and (ii) the minimum percentage of electricity derived from 616
735		-	Class I [or Class II] renewable energy sources, if applicable. The electric 617
736		-	distribution company shall, under the supervision of the authority, 618
737		-	subsequently conduct a bidding process in order to solicit electric 619
738		-	suppliers to provide such alternative option or options. 620
739		-	Committee Bill No. 123
740		-
741		-
742		-	LCO No. 4332 21 of 49
743		-
744		-	(B) The authority may reject some or all of the bids received pursuant 621
745		-	to the bidding process. 622
746		-	(3) The authority may require an electric supplier to provide forms of 623
747		-	assurance to satisfy the authority that the contracts resulting from the 624
748		-	bidding process will be fulfilled. 625
749		-	(4) An electric supplier who fails to fulfill its contractual obligations 626
750		-	resulting from this subdivision shall be subject to civil penalties, in 627
751		-	accordance with the provisions of section 16-41, or the suspension or 628
752		-	revocation of such supplier's license or a prohibition on the acceptance 629
753		-	of new customers, following a hearing that is conducted as a contested 630
754		-	case, in accordance with the provisions of chapter 54. 631
755		-	(c) (1) On and after January 1, 2007, an electric distribution company 632
756		-	shall serve customers that are not eligible to receive standard service 633
757		-	pursuant to subsection (a) of this section as the supplier of last resort. 634
758		-	This subsection shall not apply to customers purchasing power under 635
759		-	contracts entered into pursuant to section 16-19hh. 636
760		-	(2) An electric distribution company shall procure electricity at least 637
761		-	every calendar quarter to provide electric generation services to 638
762		-	customers pursuant to this subsection. The Public Utilities Regulatory 639
763		-	Authority shall determine a price for such customers that reflects the 640
764		-	full cost of providing the electricity on a monthly basis. Each electric 641
765		-	distribution company shall recover the actual net costs of procuring and 642
766		-	providing electric generation services pursuant to this subsection, 643
767		-	provided such company mitigates the costs it incurs for the 644
768		-	procurement of electric generation services for customers that are no 645
769		-	longer receiving service pursuant to this subsection. 646
770		-	(d) On and after January 1, 2000, and until such time the regional 647
771		-	independent system operator implements procedures for the provision 648
772		-	of back-up power to the satisfaction of the Public Utilities Regulatory 649
773		-	Authority, each electric distribution company shall provide electric 650
774		-	generation services to any customer who has entered into a service 651
775		-	Committee Bill No. 123
776		-
777		-
778		-	LCO No. 4332 22 of 49
779		-
780		-	contract with an electric supplier that fails to provide electric generation 652
781		-	services for reasons other than the customer's failure to pay for such 653
782		-	services. Between January 1, 2000, and December 31, 2006, an electric 654
783		-	distribution company may procure electric generation services through 655
784		-	a competitive bidding process or through any of its generation entities 656
785		-	or affiliates. On and after January 1, 2007, such company shall procure 657
786		-	electric generation services through a competitive bidding process 658
787		-	pursuant to a plan submitted by the electric distribution company and 659
788		-	approved by the authority. Such company may procure electric 660
789		-	generation services through any of its generation entities or affiliates, 661
790		-	provided such entity or affiliate is the lowest qualified bidder and 662
791		-	provided further any such entity or affiliate is licensed pursuant to 663
792		-	section 16-245, as amended by this act. 664
793		-	(e) An electric distribution company is not required to be licensed 665
794		-	pursuant to section 16-245, as amended by this act, to provide standard 666
795		-	service pursuant to subsection (a) of this section, supplier of last resort 667
796		-	service pursuant to subsection (c) of this section or back-up electric 668
797		-	generation service pursuant to subsection (d) of this section. 669
798		-	(f) The electric distribution company shall be entitled to recover 670
799		-	reasonable costs incurred as a result of providing standard service 671
800		-	pursuant to subsection (a) of this section or back-up electric generation 672
801		-	service pursuant to subsection (d) of this section. 673
802		-	(g) The Public Utilities Regulatory Authority shall establish, by 674
803		-	regulations adopted pursuant to chapter 54, procedures for when and 675
804		-	how a customer is notified that his electric supplier has defaulted and 676
805		-	of the need for the customer to choose a new electric supplier within a 677
806		-	reasonable period of time or to return to standard service. 678
807		-	(h) (1) Notwithstanding the provisions of subsection (b) of this 679
808		-	section regarding an alternative standard service option, an electric 680
809		-	distribution company providing standard service, supplier of last resort 681
810		-	service or back-up electric generation service in accordance with this 682
811		-	section shall contract with its wholesale suppliers to comply with the 683
812		-	Committee Bill No. 123
813		-
814		-
815		-	LCO No. 4332 23 of 49
816		-
817		-	renewable portfolio standards. The Public Utilities Regulatory 684
818		-	Authority shall annually conduct an uncontested proceeding in order to 685
819		-	determine whether the electric distribution company's wholesale 686
820		-	suppliers met the renewable portfolio standards during the preceding 687
821		-	year. [On or before December 31, 2013, the authority shall issue a 688
822		-	decision on any such proceeding for calendar years up to and including 689
823		-	2012, for which a decision has not already been issued. Not later than 690
824		-	December 31, 2014, and annually thereafter, the authority shall, 691
825		-	following such proceeding,] Each year, following such proceeding, the 692
826		-	authority shall issue a decision as to whether the electric distribution 693
827		-	company's wholesale suppliers met the renewable portfolio standards 694
828		-	during the preceding year. An electric distribution company shall 695
829		-	include a provision in its contract with each wholesale supplier that 696
830		-	requires the wholesale supplier to pay the electric distribution company 697
831		-	an amount of [: (A) For calendar years up to and including calendar year 698
832		-	2017, five and one-half cents per kilowatt hour if the wholesale supplier 699
833		-	fails to comply with the renewable portfolio standards during the 700
834		-	subject annual period, (B) for calendar years commencing on January 1, 701
835		-	2018, up to and including the calendar year commencing on January 1, 702
836		-	2020, five and one-half cents per kilowatt hour if the wholesale supplier 703
837		-	fails to comply with the renewable portfolio standards during the 704
838		-	subject annual period for Class I renewable energy sources, and two and 705
839		-	one-half cents per kilowatt hour if the wholesale supplier fails to comply 706
840		-	with the renewable portfolio standards during the subject annual period 707
841		-	for Class II renewable energy sources, and (C) for calendar years 708
842		-	commencing on and after January 1, 2021,] four cents per kilowatt hour 709
843		-	if the wholesale supplier fails to comply with the renewable portfolio 710
844		-	standards during the subject annual period for Class I renewable energy 711
845		-	sources. [, and two and one-half cents per kilowatt hour if the wholesale 712
846		-	supplier fails to comply with the renewable portfolio standards during 713
847		-	the subject annual period for Class II renewable energy sources.] The 714
848		-	electric distribution company shall promptly [transfer] refund any 715
849		-	payment received from the wholesale supplier for the failure to meet the 716
850		-	renewable portfolio standards [to the Clean Energy Fund for the 717
851		-	Committee Bill No. 123
852		-
853		-
854		-	LCO No. 4332 24 of 49
855		-
856		-	development of Class I renewable energy sources, provided, on and 718
857		-	after June 5, 2013, any such payment shall be refunded] to ratepayers by 719
858		-	using such payment to offset the costs to all customers of electric 720
859		-	distribution companies of the costs of contracts and tariffs entered into 721
860		-	pursuant to sections 16-244r, 16-244t and 16-244z. [, except that, on or 722
861		-	after January 1, 2023, any such payment that is attributable to a failure 723
862		-	to comply with the Class II renewable portfolio standards shall be 724
863		-	deposited in the sustainable materials management account established 725
864		-	pursuant to section 16-244bb.] Any excess amount remaining from such 726
865		-	payment shall be applied to reduce the costs of contracts entered into 727
866		-	pursuant to subdivision (2) of this subsection, and if any excess amount 728
867		-	remains, such amount shall be applied to reduce costs collected through 729
868		-	nonbypassable, federally mandated congestion charges, as defined in 730
869		-	section 16-1, as amended by this act. 731
870		-	(2) Notwithstanding the provisions of subsection (b) of this section 732
871		-	regarding an alternative standard service option, an electric distribution 733
872		-	company providing transitional standard offer service, standard 734
873		-	service, supplier of last resort service or back-up electric generation 735
874		-	service in accordance with this section shall, not later than July 1, 2008, 736
875		-	file with the Public Utilities Regulatory Authority for its approval one 737
876		-	or more long-term power purchase contracts from Class I renewable 738
877		-	energy source projects with a preference for projects located in 739
878		-	Connecticut that receive funding from the Clean Energy Fund and that 740
879		-	are not less than one megawatt in size, at a price that is either, at the 741
880		-	determination of the project owner, (A) not more than the total of the 742
881		-	comparable wholesale market price for generation plus five and one-743
882		-	half cents per kilowatt hour, or (B) fifty per cent of the wholesale market 744
883		-	electricity cost at the point at which transmission lines intersect with 745
884		-	each other or interface with the distribution system, plus the project cost 746
885		-	of fuel indexed to natural gas futures contracts on the New York 747
886		-	Mercantile Exchange at the natural gas pipeline interchange located in 748
887		-	Vermillion Parish, Louisiana that serves as the delivery point for such 749
888		-	futures contracts, plus the fuel delivery charge for transporting fuel to 750
889		-	the project, plus five and one-half cents per kilowatt hour. In its 751
890		-	Committee Bill No. 123
891		-
892		-
893		-	LCO No. 4332 25 of 49
894		-
895		-	approval of such contracts, the authority shall give preference to 752
896		-	purchase contracts from those projects that would provide a financial 753
897		-	benefit to ratepayers and would enhance the reliability of the electric 754
898		-	transmission system of the state. Such projects shall be located in this 755
899		-	state. The owner of a fuel cell project principally manufactured in this 756
900		-	state shall be allocated all available air emissions credits and tax credits 757
901		-	attributable to the project and no less than fifty per cent of the energy 758
902		-	credits in the Class I renewable energy credits program established in 759
903		-	section 16-245a, as amended by this act, attributable to the project. On 760
904		-	and after October 1, 2007, and until September 30, 2008, such contracts 761
905		-	shall be comprised of not less than a total, apportioned among each 762
906		-	electric distribution company, of one hundred twenty-five megawatts; 763
907		-	and on and after October 1, 2008, such contracts shall be comprised of 764
908		-	not less than a total, apportioned among each electrical distribution 765
909		-	company, of one hundred fifty megawatts. The Public Ut ilities 766
910		-	Regulatory Authority shall not issue any order that results in the 767
911		-	extension of any in-service date or contractual arrangement made as a 768
912		-	part of Project 100 or Project 150 beyond the termination date previously 769
913		-	approved by the authority established by the contract, provided any 770
914		-	party to such contract may provide a notice of termination in accordance 771
915		-	with the terms of, and to the extent permitted under, its contract, except 772
916		-	the authority shall grant, upon request, an extension of the latest of any 773
917		-	such in-service date by (i) twelve months for any project located in a 774
918		-	distressed municipality, as defined in section 32-9p, with a population 775
919		-	of more than one hundred twenty-five thousand, and (ii) not more than 776
920		-	thirty-six months for any project having a capacity of less than five 777
921		-	megawatts, provided any such project (I) commences construction by 778
922		-	April 30, 2015, and (II) the authority has provided previous approval of 779
923		-	such contract. The cost of such contracts and the administrative costs for 780
924		-	the procurement of such contracts directly incurred shall be eligible for 781
925		-	inclusion in the adjustment to any subsequent rates for standard service, 782
926		-	provided such contracts are for a period of time sufficient to provide 783
927		-	financing for such projects, but not less than ten years, and are for 784
928		-	projects which began operation on or after July 1, 2003. Except as 785
929		-	Committee Bill No. 123
930		-
931		-
932		-	LCO No. 4332 26 of 49
933		-
934		-	provided in this subdivision, the amount from Class I renewable energy 786
935		-	sources contracted under such contracts shall be applied to reduce the 787
936		-	applicable Class I renewable energy source portfolio standards. For 788
937		-	purposes of this subdivision, the authority's determination of the 789
938		-	comparable wholesale market price for generation shall be based upon 790
939		-	a reasonable estimate. On or before September 1, 2011, the authority, in 791
940		-	consultation with the Office of Consumer Counsel and the Connecticut 792
941		-	Green Bank, shall study the operation of such renewable energy 793
942		-	contracts and report its findings and recommendations to the joint 794
943		-	standing committee of the General Assembly having cognizance of 795
944		-	matters relating to energy. 796
945		-	(3) Notwithstanding the provisions of subsection (b) of this section 797
946		-	regarding an alternative standard service option, an electric distribution 798
947		-	company providing transitional standard offer service, standard 799
948		-	service, supplier of last resort service or back-up electric generation 800
949		-	service in accordance with this section that has within its service 801
950		-	territory a biomass facility that is a Class I renewable energy source and 802
951		-	began operation after December 1, 2013, shall, not later than July 1, 2018, 803
952		-	file with the Public Utilities Regulatory Authority for its approval a ten-804
953		-	year power purchase contract not to exceed nine cents per kilowatt hour 805
954		-	for energy and renewable energy certificates with such facility for 806
955		-	generation equivalent to seven and one-half megawatts of electric 807
956		-	capacity. The costs incurred by an electric distribution company 808
957		-	pursuant to this subdivision shall be recovered on a timely basis 809
958		-	through a nonbypassable fully reconciling component of electric rates 810
959		-	for all customers of such electric distribution company. 811
960		-	Sec. 6. Subsection (a) of section 16-244bb of the general statutes is 812
961		-	repealed and the following is substituted in lieu thereof (Effective October 813
962		-	1, 2023): 814
963		-	(a) There is established an account to be known as the sustainable 815
964		-	materials management account which shall be a separate, nonlapsing 816
965		-	account within the General Fund. [The account shall contain moneys 817
966		-	Committee Bill No. 123
967		-
968		-
969		-	LCO No. 4332 27 of 49
970		-
971		-	collected by the alternative compliance payment for Class II renewable 818
972		-	portfolio standards pursuant to subsection (h) of section 16-244c and 819
973		-	subsection (k) of section 16-245.] The Commissioner of Energy and 820
974		-	Environmental Protection shall expend moneys from the account for the 821
975		-	purposes of the program established under this section. 822
976		-	Sec. 7. Subsection (k) of section 16-245 of the general statutes is 823
977		-	repealed and the following is substituted in lieu thereof (Effective October 824
978		-	1, 2023): 825
979		-	(k) Any licensee who fails to comply with a license condition or who 826
980		-	violates any provision of this section, except for the renewable portfolio 827
981		-	standards contained in subsection (g) of this section, shall be subject to 828
982		-	civil penalties by the Public Utilities Regulatory Authority in accordance 829
983		-	with section 16-41, including direction that a portion of the civil penalty 830
984		-	be paid to a nonprofit agency engaged in energy assistance programs 831
985		-	named by the authority in its decision or notice of violation, the 832
986		-	suspension or revocation of such license and a prohibition on accepting 833
987		-	new customers following a hearing that is conducted as a contested case 834
988		-	in accordance with chapter 54. Notwithstanding the provisions of 835
989		-	subsection (b) of section 16-244c, as amended by this act, regarding an 836
990		-	alternative transitional standard offer option or an alternative standard 837
991		-	service option, the authority shall require a payment by a licensee that 838
992		-	fails to comply with the renewable portfolio standards in accordance 839
993		-	with subdivision (4) of subsection (g) of this section in the amount of [: 840
994		-	(1) For calendar years up to and including calendar year 2017, five and 841
995		-	one-half cents per kilowatt hour, (2) for calendar years commencing on 842
996		-	January 1, 2018, and up to and including the calendar year commencing 843
997		-	on January 1, 2020, five and one-half cents per kilowatt hour if the 844
998		-	licensee fails to comply with the renewable portfolio standards during 845
999		-	the subject annual period for Class I renewable energy sources, and two 846
1000		-	and one-half cents per kilowatt hour if the licensee fails to comply with 847
1001		-	the renewable portfolio standards during the subject annual period for 848
1002		-	Class II renewable energy sources, and (3) for calendar years 849
1003		-	commencing on and after January 1, 2021, four cents per kilowatt hour 850
1004		-	Committee Bill No. 123
1005		-
1006		-
1007		-	LCO No. 4332 28 of 49
1008		-
1009		-	if the licensee fails to comply with the renewable portfolio standards 851
1010		-	during the subject annual period for Class I renewable energy sources, 852
1011		-	and two and one-half cents per kilowatt hour if the licensee fails to 853
1012		-	comply with the renewable portfolio standards during the subject 854
1013		-	annual period for Class II renewable energy sources. On or before 855
1014		-	December 31, 2013, the authority shall issue a decision, following an 856
1015		-	uncontested proceeding, on whether any licensee has failed to comply 857
1016		-	with the renewable portfolio standards for calendar years up to and 858
1017		-	including 2012, for which a decision has not already been issued] four 859
1018		-	cents per kilowatt hour. On and after [June 5, 2013] October 1, 2023, the 860
1019		-	Public Utilities Regulatory Authority shall annually conduct an 861
1020		-	uncontested proceeding in order to determine whether any licensee has 862
1021		-	failed to comply with the renewable portfolio standards during the 863
1022		-	preceding year. [Not later than December 31, 2014, and annually 864
1023		-	thereafter] Each year, the authority shall, following such proceeding, 865
1024		-	issue a decision as to whether the licensee has failed to comply with the 866
1025		-	renewable portfolio standards during the preceding year. The authority 867
1026		-	shall [allocate] refund such payment [to the Clean Energy Fund for the 868
1027		-	development of Class I renewable energy sources, provided, on and 869
1028		-	after June 5, 2013, any such payment shall be refunded] to ratepayers by 870
1029		-	using such payment to offset the costs to all customers of electric 871
1030		-	distribution companies of the costs of contracts and tariffs entered into 872
1031		-	pursuant to sections 16-244r, 16-244t and section 16-244z. [, except that, 873
1032		-	on and after January 1, 2023, any such payment that is attributable to a 874
1033		-	failure to comply with the Class II renewable portfolio standards shall 875
1034		-	be deposited in the sustainable materials management account 876
1035		-	established pursuant to section 16-244bb.] Any excess amount 877
1036		-	remaining from such payment shall be applied to reduce the costs of 878
1037		-	contracts entered into pursuant to subdivision (2) of subsection (j) of 879
1038		-	section 16-244c, and if any excess amount remains, such amount shall be 880
1039		-	applied to reduce costs collected through nonbypassable, federally 881
1040		-	mandated congestion charges, as defined in section 16-1, as amended by 882
1041		-	this act. 883
1042		-	Sec. 8. Section 16-245a of the general statutes is repealed and the 884
1043		-	Committee Bill No. 123
1044		-
1045		-
1046		-	LCO No. 4332 29 of 49
1047		-
1048		-	following is substituted in lieu thereof (Effective October 1, 2023): 885
1049		-	(a) Subject to any modifications required by the Public Utilities 886
1050		-	Regulatory Authority for retiring renewable energy certificates on 887
1051		-	behalf of all electric ratepayers pursuant to subsection (h) of this section 888
1052		-	and sections 16a-3f, 16a-3g, as amended by this act, 16a-3h, 16a-3i, as 889
1053		-	amended by this act, 16a-3j, as amended by this act, 16a-3m, as amended 890
1054		-	by this act, and 16a-3n, an electric supplier and an electric distribution 891
1055		-	company providing standard service or supplier of last resort service, 892
1056		-	pursuant to section 16-244c, as amended by this act, shall demonstrate: 893
1057		-	[(1) On and after January 1, 2006, that not less than two per cent of 894
1058		-	the total output or services of any such supplier or distribution company 895
1059		-	shall be generated from Class I renewable energy sources and an 896
1060		-	additional three per cent of the total output or services shall be from 897
1061		-	Class I or Class II renewable energy sources; 898
1062		-	(2) On and after January 1, 2007, not less than three and one-half per 899
1063		-	cent of the total output or services of any such supplier or distribution 900
1064		-	company shall be generated from Class I renewable energy sources and 901
1065		-	an additional three per cent of the total output or services shall be from 902
1066		-	Class I or Class II renewable energy sources; 903
1067		-	(3) On and after January 1, 2008, not less than five per cent of the total 904
1068		-	output or services of any such supplier or distribution company shall be 905
1069		-	generated from Class I renewable energy sources and an additional 906
1070		-	three per cent of the total output or services shall be from Class I or Class 907
1071		-	II renewable energy sources; 908
1072		-	(4) On and after January 1, 2009, not less than six per cent of the total 909
1073		-	output or services of any such supplier or distribution company shall be 910
1074		-	generated from Class I renewable energy sources and an additional 911
1075		-	three per cent of the total output or services shall be from Class I or Class 912
1076		-	II renewable energy sources; 913
1077		-	(5) On and after January 1, 2010, not less than seven per cent of the 914
1078		-	Committee Bill No. 123
1079		-
1080		-
1081		-	LCO No. 4332 30 of 49
1082		-
1083		-	total output or services of any such supplier or distribution company 915
1084		-	shall be generated from Class I renewable energy sources and an 916
1085		-	additional three per cent of the total output or services shall be from 917
1086		-	Class I or Class II renewable energy sources; 918
1087		-	(6) On and after January 1, 2011, not less than eight per cent of the 919
1088		-	total output or services of any such supplier or distribution company 920
1089		-	shall be generated from Class I renewable energy sources and an 921
1090		-	additional three per cent of the total output or services shall be from 922
1091		-	Class I or Class II renewable energy sources; 923
1092		-	(7) On and after January 1, 2012, not less than nine per cent of the total 924
1093		-	output or services of any such supplier or distribution company shall be 925
1094		-	generated from Class I renewable energy sources and an additional 926
1095		-	three per cent of the total output or services shall be from Class I or Class 927
1096		-	II renewable energy sources; 928
1097		-	(8) On and after January 1, 2013, not less than ten per cent of the total 929
1098		-	output or services of any such supplier or distribution company shall be 930
1099		-	generated from Class I renewable energy sources and an additional 931
1100		-	three per cent of the total output or services shall be from Class I or Class 932
1101		-	II renewable energy sources; 933
1102		-	(9) On and after January 1, 2014, not less than eleven per cent of the 934
1103		-	total output or services of any such supplier or distribution company 935
1104		-	shall be generated from Class I renewable energy sources and an 936
1105		-	additional three per cent of the total output or services shall be from 937
1106		-	Class I or Class II renewable energy sources; 938
1107		-	(10) On and after January 1, 2015, not less than twelve and one-half 939
1108		-	per cent of the total output or services of any such supplier or 940
1109		-	distribution company shall be generated from Class I renewable energy 941
1110		-	sources and an additional three per cent of the total output or services 942
1111		-	shall be from Class I or Class II renewable energy sources; 943
1112		-	(11) On and after January 1, 2016, not less than fourteen per cent of 944
1113		-	Committee Bill No. 123
1114		-
1115		-
1116		-	LCO No. 4332 31 of 49
1117		-
1118		-	the total output or services of any such supplier or distribution company 945
1119		-	shall be generated from Class I renewable energy sources and an 946
1120		-	additional three per cent of the total output or services shall be from 947
1121		-	Class I or Class II renewable energy sources; 948
1122		-	(12) On and after January 1, 2017, not less than fifteen and one-half 949
1123		-	per cent of the total output or services of any such supplier or 950
1124		-	distribution company shall be generated from Class I renewable energy 951
1125		-	sources and an additional three per cent of the total output or services 952
1126		-	shall be from Class I or Class II renewable energy sources; 953
1127		-	(13) On and after January 1, 2018, not less than seventeen per cent of 954
1128		-	the total output or services of any such supplier or distribution company 955
1129		-	shall be generated from Class I renewable energy sources and an 956
1130		-	additional four per cent of the total output or services shall be from Class 957
1131		-	I or Class II renewable energy sources; 958
1132		-	(14) On and after January 1, 2019, not less than nineteen and one-half 959
1133		-	per cent of the total output or services of any such supplier or 960
1134		-	distribution company shall be generated from Class I renewable energy 961
1135		-	sources and an additional four per cent of the total output or services 962
1136		-	shall be from Class I or Class II renewable energy sources; 963
1137		-	(15) On and after January 1, 2020, not less than twenty-one per cent 964
1138		-	of the total output or services of any such supplier or distribution 965
1139		-	company shall be generated from Class I renewable energy sources and 966
1140		-	an additional four per cent of the total output or services shall be from 967
1141		-	Class I or Class II renewable energy sources, except that for any electric 968
1142		-	supplier that has entered into or renewed a retail electric supply contract 969
1143		-	on or before May 24, 2018, on and after January 1, 2020, not less than 970
1144		-	twenty per cent of the total output or services of any such electric 971
1145		-	supplier shall be generated from Class I renewable energy sources; 972
1146		-	(16) On and after January 1, 2021, not less than twenty-two and one-973
1147		-	half per cent of the total output or services of any such supplier or 974
1148		-	distribution company shall be generated from Class I renewable energy 975
1149		-	Committee Bill No. 123
1150		-
1151		-
1152		-	LCO No. 4332 32 of 49
1153		-
1154		-	sources and an additional four per cent of the total output or services 976
1155		-	shall be from Class I or Class II renewable energy sources; 977
1156		-	(17) On and after January 1, 2022, not less than twenty-four per cent 978
1157		-	of the total output or services of any such supplier or distribution 979
1158		-	company shall be generated from Class I renewable energy sources and 980
1159		-	an additional four per cent of the total output or services shall be from 981
1160		-	Class I or Class II renewable energy sources;] 982
1161		-	[(18)] (1) On and after January 1, 2023, not less than [twenty-six] thirty 983
1162		-	per cent of the total output or services of any such supplier or 984
1163		-	distribution company shall be generated from Class I [renewable energy 985
1164		-	sources and an additional four per cent of the total output or services 986
1165		-	shall be from Class II] renewable energy sources; 987
1166		-	[(19)] (2) On and after January 1, 2024, not less than [twenty-eight] 988
1167		-	thirty-two per cent of the total output or services of any such supplier 989
1168		-	or distribution company shall be generated from Class I [renewable 990
1169		-	energy sources and an additional four per cent of the total output or 991
1170		-	services shall be from Class II] renewable energy sources; 992
1171		-	[(20)] (3) On and after January 1, 2025, not less than [thirty] thirty-993
1172		-	four per cent of the total output or services of any such supplier or 994
1173		-	distribution company shall be generated from Class I [renewable energy 995
1174		-	sources and an additional four per cent of the total output or services 996
1175		-	shall be from Class II] renewable energy sources; 997
1176		-	[(21)] (4) On and after January 1, 2026, not less than [thirty-two] 998
1177		-	thirty-six per cent of the total output or services of any such supplier or 999
1178		-	distribution company shall be generated from Class I [renewable energy 1000
1179		-	sources and an additional four per cent of the total output or services 1001
1180		-	shall be from Class II] renewable energy sources; 1002
1181		-	[(22)] (5) On and after January 1, 2027, not less than [thirty-four] 1003
1182		-	thirty-eight per cent of the total output or services of any such supplier 1004
1183		-	or distribution company shall be generated from Class I [renewable 1005
1184		-	Committee Bill No. 123
1185		-
1186		-
1187		-	LCO No. 4332 33 of 49
1188		-
1189		-	energy sources and an additional four per cent of the total output or 1006
1190		-	services shall be from Class II] renewable energy sources; 1007
1191		-	[(23)] (6) On and after January 1, 2028, not less than [thirty-six] forty 1008
1192		-	per cent of the total output or services of any such supplier or 1009
1193		-	distribution company shall be generated from Class I [renewable energy 1010
1194		-	sources and an additional four per cent of the total output or services 1011
1195		-	shall be from Class II] renewable energy sources; 1012
1196		-	[(24)] (7) On and after January 1, 2029, not less than [thirty-eight] 1013
1197		-	forty-two per cent of the total output or services of any such supplier or 1014
1198		-	distribution company shall be generated from Class I [renewable energy 1015
1199		-	sources and an additional four per cent of the total output or services 1016
1200		-	shall be from Class II] renewable energy sources; 1017
1201		-	[(25)] (8) On and after January 1, 2030, not less than [forty] forty-four 1018
1202		-	per cent of the total output or services of any such supplier or 1019
1203		-	distribution company shall be generated from Class I [renewable energy 1020
1204		-	sources and an additional four per cent of the total output or services 1021
1205		-	shall be from Class II] renewable energy sources. 1022
1206		-	(b) [(1)] An electric supplier or electric distribution company may 1023
1207		-	satisfy the requirements of this section (A) by purchasing certificates 1024
1208		-	issued by the New England Power Pool Generation Information System, 1025
1209		-	provided the certificates are for (i) energy produced by a generating unit 1026
1210		-	using Class I [or Class II] renewable energy sources and the generating 1027
1211		-	unit is located in the jurisdiction of the regional independent system 1028
1212		-	operator, or (ii) energy imported into the control area of the regional 1029
1213		-	independent system operator pursuant to New England Power Pool 1030
1214		-	Generation Information System Rule 2.7(c), as in effect on January 1, 1031
1215		-	2006; (B) for those renewable energy certificates under contract to serve 1032
1216		-	end use customers in the state on or before October 1, 2006, by 1033
1217		-	participating in a renewable energy trading program within said 1034
1218		-	jurisdictions as approved by the Public Utilities Regulatory Authority; 1035
1219		-	or (C) by purchasing eligible renewable electricity and associated 1036
1220		-	attributes from residential customers who are net producers. [(2) Not 1037
1221		-	Committee Bill No. 123
1222		-
1223		-
1224		-	LCO No. 4332 34 of 49
1225		-
1226		-	more than one per cent of the total output or services of an electric 1038
1227		-	supplier or electric distribution company shall be generated from Class 1039
1228		-	I renewable energy sources eligible as described in subparagraph 1040
1229		-	(A)(x)(II) of subdivision (20) of subsection (a) of section 16-1.] 1041
1230		-	(c) Any supplier who provides electric generation services solely 1042
1231		-	from a [Class II renewable energy source] trash-to-energy facility that 1043
1232		-	has obtained a permit pursuant to section 22a-208a and section 22a-174-1044
1233		-	33 of the regulations of Connecticut state agencies shall not be required 1045
1234		-	to comply with the provisions of this section. 1046
1235		-	(d) An electric supplier or an electric distribution company shall base 1047
1236		-	its demonstration of generation sources, as required under subsection 1048
1237		-	(a) of this section on historical data, which may consist of data filed with 1049
1238		-	the regional independent system operator. 1050
1239		-	(e) The authority shall adopt regulations, in accordance with the 1051
1240		-	provisions of chapter 54, to implement the provisions of this section. 1052
1241		-	(f) Notwithstanding the provisions of this section and section 16-244c, 1053
1242		-	as amended by this act, for periods beginning on and after January 1, 1054
1243		-	2008, each electric distribution company may procure renewable energy 1055
1244		-	certificates from Class I [, Class II] and Class III renewable energy 1056
1245		-	sources through long-term contracting mechanisms. The electric 1057
1246		-	distribution companies may enter into long-term contracts for not more 1058
1247		-	than fifteen years to procure such renewable energy certificates. The 1059
1248		-	electric distribution companies shall use any renewable energy 1060
1249		-	certificates obtained pursuant to this section to meet their standard 1061
1250		-	service and supplier of last resort renewable portfolio standard 1062
1251		-	requirements. 1063
1252		-	(g) On or before January 1, 2014, the Commissioner of Energy and 1064
1253		-	Environmental Protection shall, in developing or modifying an 1065
1254		-	Integrated Resources Plan in accordance with sections 16a-3a and 16a-1066
1255		-	3e, establish a schedule to commence on January 1, 2015, for assigning a 1067
1256		-	gradually reduced renewable energy credit value to all biomass or 1068
1257		-	Committee Bill No. 123
1258		-
1259		-
1260		-	LCO No. 4332 35 of 49
1261		-
1262		-	landfill methane gas facilities that qualify as a Class I renewable energy 1069
1263		-	source pursuant to section 16-1, as amended by this act, provided this 1070
1264		-	subsection shall not apply to anaerobic digestion or other biogas 1071
1265		-	facilities, and further provided any reduced renewable energy credit 1072
1266		-	value established pursuant to this section shall not apply to any biomass 1073
1267		-	or landfill methane gas facility that has entered into a power purchase 1074
1268		-	agreement (1) with an electric supplier or electric distribution company 1075
1269		-	in the state of Connecticut on or before June 5, 2013, or (2) executed in 1076
1270		-	accordance with section 16a-3f or 16a-3h. The Commissioner of Energy 1077
1271		-	and Environmental Protection may review the schedule established 1078
1272		-	pursuant to this subsection in preparation of each subsequent Integrated 1079
1273		-	Resources Plan developed pursuant to section 16a-3a and make any 1080
1274		-	necessary changes thereto to ensure that the rate of reductions in 1081
1275		-	renewable energy credit value for biomass or landfill methane gas 1082
1276		-	facilities is appropriate given the availability of other Class I renewable 1083
1277		-	energy sources. 1084
1278		-	(h) The authority shall establish procedures for the disposition of 1085
1279		-	renewable energy certificates purchased pursuant to section 16-244z, 1086
1280		-	which may include procedures for selling renewable energy certificates 1087
1281		-	consistent with section 16-244z or, if renewable energy certificates 1088
1282		-	procured pursuant to section 16-244z are retired and never used for 1089
1283		-	compliance in any other jurisdiction, reductions to the percentage of the 1090
1284		-	total output or services of an electric supplier or an electric distribution 1091
1285		-	company generated from Class I renewable energy sources required 1092
1286		-	pursuant to subsection (a) of this section. Any such reduction shall be 1093
1287		-	based on the energy production that the authority forecasts will be 1094
1288		-	procured pursuant to subsections (a) and (b) of section 16-244z. The 1095
1289		-	authority shall determine any such reduction of an annual renewable 1096
1290		-	portfolio standard not later than one year prior to the effective date of 1097
1291		-	such annual renewable portfolio standard. An electric distribution 1098
1292		-	company shall not be responsible for any administrative or other costs 1099
1293		-	or expenses associated with any difference between the number of 1100
1294		-	renewable energy certificates planned to be retired pursuant to the 1101
1295		-	authority's reduction and the actual number of renewable energy 1102
1296		-	Committee Bill No. 123
1297		-
1298		-
1299		-	LCO No. 4332 36 of 49
1300		-
1301		-	certificates retired. 1103
1302		-	Sec. 9. Subsection (c) of section 16a-3j of the general statutes is 1104
1303		-	repealed and the following is substituted in lieu thereof (Effective October 1105
1304		-	1, 2023): 1106
1305		-	(c) In any solicitation issued pursuant to this subsection, the 1107
1306		-	commissioner shall seek proposals from (1) Class I renewable energy 1108
1307		-	sources, as defined in section 16-1, as amended by this act, having a 1109
1308		-	nameplate capacity rating of twenty megawatts or more, and any 1110
1309		-	associated transmission; and (2) verifiable large-scale hydropower, as 1111
1310		-	defined in section 16-1, as amended by this act, and any associated 1112
1311		-	transmission. The commissioner may also seek proposals for energy 1113
1312		-	storage systems, as defined in section 16-1, as amended by this act, 1114
1313		-	having a nameplate capacity rating of twenty megawatts or more. 1115
1314		-	Proposals under this subsection shall not have a contract term exceeding 1116
1315		-	twenty years. [In soliciting Class I renewable energy sources, and any 1117
1316		-	associated transmission, pursuant to this subsection, the commissioner 1118
1317		-	may, for the purpose of balancing such Class I energy deliveries and 1119
1318		-	improving the economic viability of such proposals, also seek proposals 1120
1319		-	for electricity and capacity from Class II renewable energy sources, as 1121
1320		-	defined in section 16-1, and existing hydropower resources other than 1122
1321		-	those described under section 16-1, provided such resources are 1123
1322		-	interconnected to such associated transmission and are located in the 1124
1323		-	control area of the regional independent system operator or imported 1125
1324		-	into the control area of the regional independent system operator from 1126
1325		-	resources located in an adjacent regional independent system operator's 1127
1326		-	control area.] 1128
1327		-	Sec. 10. Subdivision (57) of section 12-81 of the general statutes is 1129
1328		-	repealed and the following is substituted in lieu thereof (Effective October 1130
1329		-	1, 2023): 1131
1330		-	(57) (A) (i) Any Class I renewable energy source, as defined in section 1132
1331		-	16-1, [or hydropower facility described in subdivision (21) of subsection 1133
1332		-	(a) of section 16-1] as amended by this act, including any run-of-the-1134
1333		-	Committee Bill No. 123
1334		-
1335		-
1336		-	LCO No. 4332 37 of 49
1337		-
1338		-	river hydropower facility that began operation after July 1, 2003, and 1135
1339		-	has a generating capacity of not more than thirty megawatts, and any 1136
1340		-	run-of-the-river hydropower facility that received a new license after 1137
1341		-	January 1, 2018, under the Federal Energy Regulatory Commission rules 1138
1342		-	pursuant to 18 CFR 16, as amended from time to time, meets applicable 1139
1343		-	state and federal requirements and site-specific standards for water 1140
1344		-	quality and fish passage and is not based on a new dam or a dam 1141
1345		-	identified by the Commissioner of Energy and Environmental 1142
1346		-	Protection as a candidate for removal, but excluding any other 1143
1347		-	hydropower facility, any trash-to-energy facility and any nuclear power 1144
1348		-	generation facility, installed for the generation of electricity where such 1145
1349		-	electricity is intended for private residential use or on a farm, as defined 1146
1350		-	in subsection (q) of section 1-1, provided (I) such installation occurs on 1147
1351		-	or after October 1, 2007, (II) the estimated annual production of such 1148
1352		-	source or facility does not exceed the estimated annual load for the 1149
1353		-	location where such source or facility is located, where such load and 1150
1354		-	production are estimated as of the date of installation of the source or 1151
1355		-	facility as indicated in the written application filed pursuant to 1152
1356		-	subparagraph (E) of this subdivision, and (III) such installation is for a 1153
1357		-	single family dwelling, a multifamily dwelling consisting of two to four 1154
1358		-	units or a farm; (ii) any passive or active solar water or space heating 1155
1359		-	system; or (iii) any geothermal energy resource. In the case of clause (i) 1156
1360		-	of this subparagraph, the utilization of or participation in any net 1157
1361		-	metering or tariff policy or program implemented by the state or 1158
1362		-	ownership of such source or facility by a party other than the owner of 1159
1363		-	the real property upon which such source or facility is installed shall not 1160
1364		-	disqualify such source or facility from exemption pursuant to this 1161
1365		-	section. In the case of clause (ii) or (iii) of this subparagraph, such 1162
1366		-	exemption shall apply only to the amount by which the assessed 1163
1367		-	valuation of the real property equipped with such system or resource 1164
1368		-	exceeds the assessed valuation of such real property equipped with the 1165
1369		-	conventional portion of the system or resource; 1166
1370		-	(B) For assessment years commencing on and after October 1, 2013, 1167
1371		-	any solar thermal or geothermal renewable energy source or Class I 1168
1372		-	Committee Bill No. 123
1373		-
1374		-
1375		-	LCO No. 4332 38 of 49
1376		-
1377		-	renewable energy source, as defined in section 16-1, [hydropower 1169
1378		-	facility described in subdivision (21) of subsection (a) of section 16-1, or 1170
1379		-	solar thermal or geothermal renewable energy source] as amended by 1171
1380		-	this act, including any run-of-the-river hydropower facility that began 1172
1381		-	operation after July 1, 2003, and has a generating capacity of not more 1173
1382		-	than thirty megawatts, and any run-of-the-river hydropower facility 1174
1383		-	that received a new license after January 1, 2018, under the Federal 1175
1384		-	Energy Regulatory Commission rules pursuant to 18 CFR 16, as 1176
1385		-	amended from time to time, meets applicable state and federal 1177
1386		-	requirements and site-specific standards for water quality and fish 1178
1387		-	passage and is not based on a new dam or a dam identified by the 1179
1388		-	Commissioner of Energy and Environmental Protection as a candidate 1180
1389		-	for removal, but excluding any other hydropower facility, any trash-to-1181
1390		-	energy facility and any nuclear power generation facility, installed for 1182
1391		-	generation or displacement of energy, provided (i) such installation 1183
1392		-	occurs on or after January 1, 2010, (ii) such installation is for commercial 1184
1393		-	or industrial purposes, (iii) the nameplate capacity of such source or 1185
1394		-	facility does not exceed the load for the location where such generation 1186
1395		-	or displacement is located, and (iv) such source or facility is located in a 1187
1396		-	distressed municipality, as defined in section 32-9p, with a population 1188
1397		-	between one hundred twenty-five thousand and one hundred thirty-1189
1398		-	five thousand; 1190
1399		-	(C) For assessment years commencing on and after October 1, 2013, 1191
1400		-	any municipality may, upon approval by its legislative body or in any 1192
1401		-	town in which the legislative body is a town meeting, by the board of 1193
1402		-	selectmen, abate up to one hundred per cent of property tax for any solar 1194
1403		-	thermal or geothermal renewable energy source or any Class I 1195
1404		-	renewable energy source, as defined in section 16-1, [hydropower 1196
1405		-	facility described in subdivision (21) of subsection (a) of section 16-1, or 1197
1406		-	solar thermal or geothermal renewable energy source] as amended by 1198
1407		-	this act, including any run-of-the-river hydropower facility that began 1199
1408		-	operation after July 1, 2003, and has a generating capacity of not more 1200
1409		-	than thirty megawatts, and any run-of-the-river hydropower facility 1201
1410		-	that received a new license after January 1, 2018, under the Federal 1202
1411		-	Committee Bill No. 123
1412		-
1413		-
1414		-	LCO No. 4332 39 of 49
1415		-
1416		-	Energy Regulatory Commission rules pursuant to 18 CFR 16, as 1203
1417		-	amended from time to time, meets applicable state and federal 1204
1418		-	requirements and site-specific standards for water quality and fish 1205
1419		-	passage and is not based on a new dam or a dam identified by the 1206
1420		-	Commissioner of Energy and Environmental Protection as a candidate 1207
1421		-	for removal, but excluding any other hydropower facility, any trash-to-1208
1422		-	energy facility and any nuclear power generation facility, installed for 1209
1423		-	generation or displacement of energy, provided (i) such installation 1210
1424		-	occurs between January 1, 2010, and December 31, 2013, (ii) such 1211
1425		-	installation is for commercial or industrial purposes, (iii) the nameplate 1212
1426		-	capacity of such source or facility does not exceed the load for the 1213
1427		-	location where such generation or displacement is located, and (iv) such 1214
1428		-	source or facility is not located in a municipality described in 1215
1429		-	subparagraph (B) of this subdivision; 1216
1430		-	(D) For assessment years commencing on and after October 1, 2014, 1217
1431		-	any (i) Class I renewable energy source, as defined in section 16-1, [(ii) 1218
1432		-	hydropower facility described in subdivision (21) of subsection (a) of 1219
1433		-	section 16-1, or (iii)] as amended by this act, including any run-of-the-1220
1434		-	river hydropower facility that began operation after July 1, 2003, and 1221
1435		-	has a generating capacity of not more than thirty megawatts, and any 1222
1436		-	run-of-the-river hydropower facility that received a new license after 1223
1437		-	January 1, 2018, under the Federal Energy Regulatory Commission rules 1224
1438		-	pursuant to 18 CFR 16, as amended from time to time, meets applicable 1225
1439		-	state and federal requirements and site-specific standards for water 1226
1440		-	quality and fish passage and is not based on a new dam or a dam 1227
1441		-	identified by the Commissioner of Energy and Environmental 1228
1442		-	Protection as a candidate for removal, but excluding any other 1229
1443		-	hydropower facility, any trash-to-energy facility and any nuclear power 1230
1444		-	generation facility, or (ii) solar thermal or geothermal renewable energy 1231
1445		-	source, installed for generation or displacement of energy, provided (I) 1232
1446		-	such installation occurs on or after January 1, 2014, (II) is for commercial 1233
1447		-	or industrial purposes, (III) the nameplate capacity of such source or 1234
1448		-	facility does not exceed the load for the location where such generation 1235
1449		-	or displacement is located or the aggregated load of the beneficial 1236
1450		-	Committee Bill No. 123
1451		-
1452		-
1453		-	LCO No. 4332 40 of 49
1454		-
1455		-	accounts for any Class I renewable energy source participating in virtual 1237
1456		-	net metering pursuant to section 16-244u, and (IV) in the case of clause 1238
1457		-	[(iii)] (ii) of this subparagraph, such exemption shall apply only to the 1239
1458		-	amount by which the assessed valuation of the real property equipped 1240
1459		-	with such source exceeds the assessed valuation of such real property 1241
1460		-	equipped with the conventional portion of the source; 1242
1461		-	(E) Any person claiming the exemption provided in this subdivision 1243
1462		-	for any assessment year shall, on or before the first day of November in 1244
1463		-	such assessment year, file with the assessor or board of assessors in the 1245
1464		-	town in which such [hydropower facility,] Class I renewable energy 1246
1465		-	source, solar thermal or geothermal renewable energy source or passive 1247
1466		-	or active solar water or space heating system or geothermal energy 1248
1467		-	resource is located, a written application claiming such exemption. Such 1249
1468		-	application shall be made on a form prepared for such purpose by the 1250
1469		-	Secretary of the Office of Policy and Management, in consultation with 1251
1470		-	the Connecticut Association of Assessing Officers and the Connecticut 1252
1471		-	Green Bank established pursuant to section 16-245n, and shall include, 1253
1472		-	but not be limited to, a statement of the estimated annual load and 1254
1473		-	production of a source or facility described in clause (i) of subparagraph 1255
1474		-	(A) of this subdivision as of the date of the installation of such source or 1256
1475		-	facility. Said secretary shall make such application available to the 1257
1476		-	public on the Internet web site of the Office of Policy and Management. 1258
1477		-	Failure to file such application in the manner and form as provided by 1259
1478		-	the secretary within the time limit prescribed shall constitute a waiver 1260
1479		-	of the right to such exemption for such assessment year. Such 1261
1480		-	application shall not be required for any assessment year following that 1262
1481		-	for which the initial application is filed, provided if such [hydropower 1263
1482		-	facility,] Class I renewable energy source, solar thermal or geothermal 1264
1483		-	renewable energy source or passive or active solar water or space 1265
1484		-	heating system or geothermal energy resource is altered in a manner 1266
1485		-	which would require a building permit, such alteration shall be deemed 1267
1486		-	a waiver of the right to such exemption until a new application, 1268
1487		-	applicable with respect to such altered source, is filed and the right to 1269
1488		-	such exemption is established as required initially. In the event that a 1270
1489		-	Committee Bill No. 123
1490		-
1491		-
1492		-	LCO No. 4332 41 of 49
1493		-
1494		-	person owns more than one such source or facility in a municipality, 1271
1495		-	such person may file a single application identifying each source or 1272
1496		-	facility; 1273
1497		-	(F) For assessment years commencing on and after October 1, 2015, 1274
1498		-	any municipality may, by vote of its legislative body or, in a 1275
1499		-	municipality where the legislative body is a town meeting, by vote of 1276
1500		-	the board of selectmen, abate up to one hundred per cent of the property 1277
1501		-	taxes due for any tax year, for not longer than the term of the power 1278
1502		-	purchase agreement, with respect to any Class I renewable energy 1279
1503		-	source, as defined in section 16-1, as amended by this act, including any 1280
1504		-	run-of-the-river hydropower facility that began operation after July 1, 1281
1505		-	2003, and has a generating capacity of not more than thirty megawatts, 1282
1506		-	and any run-of-the-river hydropower facility that received a new license 1283
1507		-	after January 1, 2018, under the Federal Energy Regulatory Commission 1284
1508		-	rules pursuant to 18 CFR 16, as amended from time to time, meets 1285
1509		-	applicable state and federal requirements and site-specific standards for 1286
1510		-	water quality and fish passage and is not based on a new dam or a dam 1287
1511		-	identified by the Commissioner of Energy and Environmental 1288
1512		-	Protection as a candidate for removal, but excluding any other 1289
1513		-	hydropower facility, any trash-to-energy facility and any nuclear power 1290
1514		-	generation facility, that is the subject of such power purchase agreement 1291
1515		-	approved by the Public Utilities Regulatory Authority pursuant to 1292
1516		-	section 16a-3f; 1293
1517		-	Sec. 11. Section 16a-3g of the general statutes is repealed and the 1294
1518		-	following is substituted in lieu thereof (Effective October 1, 2023): 1295
1519		-	On or after July 1, 2013, the Commissioner of Energy and 1296
1520		-	Environmental Protection, in consultation with the procurement 1297
1521		-	manager identified in subsection (l) of section 16-2, the Office of 1298
1522		-	Consumer Counsel and the Attorney General, may, in coordination 1299
1523		-	with other states in the region of the regional independent system 1300
1524		-	operator, as defined in section 16-1, as amended by this act, or on the 1301
1525		-	commissioner's own, solicit proposals, in one solicitation or multiple 1302
1526		-	Committee Bill No. 123
1527		-
1528		-
1529		-	LCO No. 4332 42 of 49
1530		-
1531		-	solicitations, from providers of Class I renewable energy sources, as 1303
1532		-	defined in section 16-1, as amended by this act, [or] including verifiable 1304
1533		-	large-scale hydropower, as defined in section 16-1, as amended by this 1305
1534		-	act. If the commissioner finds such proposals to be in the interest of 1306
1535		-	ratepayers, including, but not limited to, the delivered price of such 1307
1536		-	sources, and consistent with the requirements to reduce greenhouse gas 1308
1537		-	emissions in accordance with section 22a-200a, and in accordance with 1309
1538		-	the policy goals outlined in the Comprehensive Energy Strategy, 1310
1539		-	adopted pursuant to section 16a-3d, and section 129 of public act 11-80*, 1311
1540		-	including, but not limited to, base load capacity, peak load shaving and 1312
1541		-	promotion of wind, solar and other renewable and low carbon energy 1313
1542		-	technologies, the commissioner may select proposals from such 1314
1543		-	resources to meet up to five per cent of the load distributed by the state's 1315
1544		-	electric distribution companies. The commissioner may on behalf of all 1316
1545		-	customers of electric distribution companies, direct the electric 1317
1546		-	distribution companies to enter into power purchase agreements for 1318
1547		-	energy, capacity and any environmental attributes, or any combination 1319
1548		-	thereof, for periods of not more than (1) fifteen years, if any such 1320
1549		-	agreement is with a provider of verifiable large-scale hydropower, or (2) 1321
1550		-	twenty years, if any such agreement is with a provider of a Class I 1322
1551		-	renewable energy source other than large-scale hydropower. 1323
1552		-	Certificates issued by the New England Power Pool Generation 1324
1553		-	Information System for any Class I renewable energy sources procured 1325
1554		-	under this section shall be sold in the New England Power Pool 1326
1555		-	Generation Information System renewable energy credit market to be 1327
1556		-	used by any electric supplier or electric distribution company to meet 1328
1557		-	the requirements of section 16-245a, as amended by this act. Any such 1329
1558		-	agreement shall be subject to review and approval by the Public Utilities 1330
1559		-	Regulatory Authority, which review shall (A) include a public hearing, 1331
1560		-	and (B) be completed not later than sixty days after the date on which 1332
1561		-	such agreement is filed with the authority. The net costs of any such 1333
1562		-	agreement, including costs incurred by the electric distribution 1334
1563		-	companies under the agreement and reasonable costs incurred by the 1335
1564		-	electric distribution companies in connection with the agreement, shall 1336
1565		-	Committee Bill No. 123
1566		-
1567		-
1568		-	LCO No. 4332 43 of 49
1569		-
1570		-	be recovered through a fully reconciling component of electric rates for 1337
1571		-	all customers of electric distribution companies. 1338
1572		-	Sec. 12. Subsection (e) of section 16a-3i of the general statutes is 1339
1573		-	repealed and the following is substituted in lieu thereof (Effective October 1340
1574		-	1, 2023): 1341
1575		-	(e) [Notwithstanding subdivision (1) of subsection (b) of section 16-1342
1576		-	245a, in the event that (1) for any calendar year commencing on or after 1343
1577		-	January 1, 2014, there is such a presumption pursuant to subsection (a) 1344
1578		-	of this section, (2) the commissioner finds material shortage of Class I 1345
1579		-	renewable energy sources pursuant to subsection (b) of this section, (3) 1346
1580		-	there is a determination of inadequacy pursuant to subsection (c) of this 1347
1581		-	section, and (4) any contracts for Class I renewable energy sources 1348
1582		-	approved by the Public Utilities Regulatory Authority pursuant to 1349
1583		-	subsection (d) of this section yield an amount of Class I renewable 1350
1584		-	energy sources that is insufficient to rectify any projected shortage 1351
1585		-	pursuant to subsection (c) of this section, then commencing on or after 1352
1586		-	January 1, 2016, the commissioner may allow not more than one 1353
1587		-	percentage point of the Class I renewable portfolio standards 1354
1588		-	established pursuant to section 16-245a effective for the succeeding and 1355
1589		-	subsequent calendar years to be satisfied by large-scale hydropower 1356
1590		-	procured pursuant to section 16a-3g. The requirements applicable to 1357
1591		-	electric suppliers and electric distribution companies pursuant to 1358
1592		-	section 16-245a shall consequently be reduced by not more than one 1359
1593		-	percentage point in proportion to the commissioner's action, provided 1360
1594		-	(A) the] On and after October 1, 2023, the commissioner shall not allow 1361
1595		-	a total of more than [five] fifteen percentage points of the Class I 1362
1596		-	renewable portfolio standard to be met by large-scale hydropower, [by 1363
1597		-	December 31, 2020, and (B) no such large-scale hydropower shall be 1364
1598		-	eligible to trade in the New England Power Pool Generation 1365
1599		-	Information System renewable energy credit market] as defined in 1366
1600		-	section 16-1, as amended by this act. 1367
1601		-	Sec. 13. Subsections (d) and (e) of section 16a-3m of the general 1368
1602		-	Committee Bill No. 123
1603		-
1604		-
1605		-	LCO No. 4332 44 of 49
1606		-
1607		-	statutes are repealed and the following is substituted in lieu thereof 1369
1608		-	(Effective October 1, 2023): 1370
1609		-	(d) After completing the appraisal, if the results of such appraisal 1371
1610		-	demonstrate that action is necessary, the commissioner shall act and 1372
1611		-	may issue one or more solicitations, in consultation with the 1373
1612		-	procurement manager identified in subsection (l) of section 16-2 and the 1374
1613		-	Office of Consumer Counsel established in section 16-2a, for zero-1375
1614		-	carbon electricity generating resources, including, but not limited to, 1376
1615		-	[eligible nuclear power generation facilities, hydropower,] Class I 1377
1616		-	renewable energy sources, as defined in section 16-1, as amended by this 1378
1617		-	act, including eligible nuclear power generation facilities and 1379
1618		-	hydropower, and energy storage systems, provided (1) the total annual 1380
1619		-	energy output of any proposals selected, in the aggregate, shall be not 1381
1620		-	more than twelve million megawatt hours of electricity, (2) any 1382
1621		-	agreement entered into pursuant to this subdivision with an eligible 1383
1622		-	nuclear power generation facility or hydropower shall be for a period of 1384
1623		-	not less than three years and not more than ten years, and (3) any 1385
1624		-	agreement entered into pursuant to this subdivision with (A) Class I 1386
1625		-	renewable energy sources, as defined in section 16-1, as amended by this 1387
1626		-	act, other than an eligible nuclear power generation facility or 1388
1627		-	hydropower, and (B) energy storage systems shall be for a period of not 1389
1628		-	more than twenty years. On or before May 1, 2018, if the results of such 1390
1629		-	appraisal demonstrate that one or more solicitations pursuant to this 1391
1630		-	subsection are necessary, the commissioner shall initiate such 1392
1631		-	solicitation process pursuant to this subsection, in accordance with 1393
1632		-	subsection (e) of this section, provided any changes made, contracts 1394
1633		-	entered into or agreements entered into are in the best interest of 1395
1634		-	ratepayers. 1396
1635		-	(e) (1) Any solicitation issued pursuant to subsection (d) of this 1397
1636		-	section for zero-carbon electricity generating resources, including, but 1398
1637		-	not limited to, [eligible nuclear power generation facilities, 1399
1638		-	hydropower,] Class I renewable energy sources, as defined in section 1400
1639		-	16-1, as amended by this act, including eligible nuclear power 1401
1640		-	Committee Bill No. 123
1641		-
1642		-
1643		-	LCO No. 4332 45 of 49
1644		-
1645		-	generation facilities and hydropower, and energy storage systems, shall 1402
1646		-	be for resources delivered into the control area of the regional 1403
1647		-	independent system operator, as defined in section 16-1, as amended by 1404
1648		-	this act, and any agreement entered into pursuant to subdivision (2) of 1405
1649		-	this subsection shall be in the best interest of ratepayers. If the 1406
1650		-	commissioner finds proposals received pursuant to such solicitations to 1407
1651		-	be in the best interest of ratepayers, the commissioner may select any 1408
1652		-	such proposal or proposals, provided (A) the total annual energy output 1409
1653		-	of any proposals selected, in the aggregate, shall be not more than 1410
1654		-	twelve million megawatt hours of electricity, (B) any agreement entered 1411
1655		-	into pursuant to this subdivision with an eligible nuclear power 1412
1656		-	generation facility or hydropower shall be for a period of not less than 1413
1657		-	three years and not more than ten years, and (C) any agreement entered 1414
1658		-	into pursuant to this subdivision with (i) Class I renewable energy 1415
1659		-	sources, as defined in section 16-1, as amended by this act, other than an 1416
1660		-	eligible nuclear power generation facility or hydropower, and (ii) 1417
1661		-	energy storage systems shall be for a period of not more than twenty 1418
1662		-	years. 1419
1663		-	(2) If the commissioner has made the determination and finding 1420
1664		-	pursuant to subdivision (1) of this subsection, the commissioner shall, 1421
1665		-	on behalf of all customers of electric distribution companies, direct the 1422
1666		-	electric distribution companies to enter into agreements for energy, 1423
1667		-	capacity and any environmental attributes, or any combination thereof, 1424
1668		-	from proposals submitted pursuant to this subdivision. 1425
1669		-	(3) Any agreement entered into pursuant to subdivision (2) of this 1426
1670		-	subsection shall be subject to review and approval by the Public Utilities 1427
1671		-	Regulatory Authority. The electric distribution company shall file an 1428
1672		-	application for the approval of any such agreement with the authority. 1429
1673		-	The authority's review shall commence upon the filing of the signed 1430
1674		-	power purchase agreement with the authority. The authority shall 1431
1675		-	approve agreements that it determines (A) provide for the delivery of 1432
1676		-	adequate and reliable products and services, for which there is a clear 1433
1677		-	public need, at a just and reasonable price, (B) are prudent and cost 1434
1678		-	Committee Bill No. 123
1679		-
1680		-
1681		-	LCO No. 4332 46 of 49
1682		-
1683		-	effective, and (C) that the respondent to the solicitation has the technical, 1435
1684		-	financial and managerial capabilities to perform pursuant to such 1436
1685		-	agreement. The authority shall issue a decision not later than one 1437
1686		-	hundred eighty days after such filing. If the authority does not issue a 1438
1687		-	decision within one hundred eighty days after such filing, the 1439
1688		-	agreement shall be deemed approved. The net costs of any such 1440
1689		-	agreement, including costs incurred by the electric distribution 1441
1690		-	company under the agreement and reasonable costs incurred by the 1442
1691		-	electric distribution company in connection with the agreement, shall be 1443
1692		-	recovered on a timely basis through a nonbypassable fully reconciling 1444
1693		-	component of electric rates for all customers of the electric distribution 1445
1694		-	company. Any net revenues from the sale of products purchased in 1446
1695		-	accordance with long-term contracts entered into pursuant to this 1447
1696		-	section shall be credited to customers through the same nonbypassable 1448
1697		-	fully reconciling rate component for all customers of the contracting 1449
1698		-	electric distribution company. 1450
1699		-	Sec. 14. Subsection (a) of section 16a-51 of the general statutes is 1451
1700		-	repealed and the following is substituted in lieu thereof (Effective October 1452
1701		-	1, 2023): 1453
1702		-	(a) As used in this section, (1) "qualifying project" means a combined 1454
1703		-	heat and power system, as [described] defined in [subdivision (38) of 1455
1704		-	subsection (a) of] section 16-1, as amended by this act, that (A) provides 1456
1705		-	commercial, industrial or residential facilities with both electrical 1457
1706		-	generation and heat output, (B) has a nameplate capacity of between 1458
1707		-	five hundred and five thousand kilowatts, (C) is placed into service 1459
1708		-	between January 1, 2012, and January 1, 2015, and (D) is not eligible 1460
1709		-	under section 16-245hh or section 103 of public act 11-80, and (2) "electric 1461
1710		-	distribution company" has the same meaning as provided in section 16-1462
1711		-	1, as amended by this act. 1463
1712		-	Sec. 15. (Effective from passage) (a) There is established a task force to 1464
1713		-	study electric distribution companies' procurement of electric 1465
1714		-	generation services for standard service. Such study shall include, but 1466
1715		-	Committee Bill No. 123
1716		-
1717		-
1718		-	LCO No. 4332 47 of 49
1719		-
1720		-	need not be limited to, (1) reviewing electric distribution companies' 1467
1721		-	procurement policies for standard service, (2) reviewing the procedures 1468
1722		-	used by municipal electric utilities to procure electric generation 1469
1723		-	services and identifying practices that could be adopted by electric 1470
1724		-	distribution companies to lower rates for ratepayers in the state, (3) 1471
1725		-	reviewing the procurement practices of electric distribution companies 1472
1726		-	in other deregulated states and identifying practices that could result in 1473
1727		-	lower rates for ratepayers in the state, (4) reviewing the process for 1474
1728		-	power purchase agreements in the state and identifying best practices 1475
1729		-	to increase stability in the market, and (5) reviewing the state's gas 1476
1730		-	supply system and evaluating whether current supply and capacity is 1477
1731		-	adequate to meet the energy needs of residences and power plants in 1478
1732		-	the state. 1479
1733		-	(b) The task force shall consist of the following members: 1480
1734		-	(1) One appointed by the president pro tempore of the Senate, who 1481
1735		-	has expertise in energy procurement; 1482
1736		-	(2) A representative of a municipal electric utility, who shall be 1483
1737		-	appointed by the majority leader of the Senate; 1484
1738		-	(3) A representative of a municipal electric utility, who shall be 1485
1739		-	appointed by the minority leader of the Senate; 1486
1740		-	(4) A representative of a customer advocacy organization, who shall 1487
1741		-	be appointed by the majority leader of the House of Representatives; 1488
1742		-	(5) A representative of an electric distribution company that has a 1489
1743		-	service area of eighteen or more cities and towns, who shall be 1490
1744		-	appointed by the speaker of the House of Representatives; 1491
1745		-	(6) A representative of an electric distribution company that has a 1492
1746		-	service area of not more than seventeen cities and towns, who shall be 1493
1747		-	appointed by the minority leader of the House of Representatives; 1494
1748		-	(7) The chairperson of the Public Utilities Regulatory Authority, or 1495
1749		-	Committee Bill No. 123
1750		-
1751		-
1752		-	LCO No. 4332 48 of 49
1753		-
1754		-	the chairperson's designee; 1496
1755		-	(8) The procurement manager of the Public Utilities Regulatory 1497
1756		-	Authority; 1498
1757		-	(9) The Commissioner of Energy and Environmental Protection, or 1499
1758		-	the commissioner's designee; 1500
1759		-	(10) The Consumer Counsel; and 1501
1760		-	(11) The chairpersons and ranking members of the joint standing 1502
1761		-	committee of the General Assembly having cognizance of matters 1503
1762		-	relating to energy. 1504
1763		-	(c) All initial appointments to the task force shall be made not later 1505
1764		-	than thirty days after the effective date of this section. Any vacancy shall 1506
1765		-	be filled by the appointing authority. 1507
1766		-	(d) The speaker of the House of Representatives and the president 1508
1767		-	pro tempore of the Senate shall select the chairpersons of the task force 1509
1768		-	from among the members of the task force. Such chairpersons shall 1510
1769		-	schedule the first meeting of the task force, which shall be held not later 1511
1770		-	than sixty days after the effective date of this section. 1512
1771		-	(e) The administrative staff of the joint standing committee of the 1513
1772		-	General Assembly having cognizance of matters relating to energy shall 1514
1773		-	serve as administrative staff of the task force. 1515
1774		-	(f) Not later than January 1, 2024, the task force shall submit a report 1516
1775		-	on its findings and recommendations, including recommended 1517
1776		-	legislation, to the joint standing committee of the General Assembly 1518
1777		-	having cognizance of matters relating to energy, in accordance with the 1519
1778		-	provisions of section 11-4a of the general statutes. The task force shall 1520
1779		-	terminate on the date that it submits such report or January 1, 2024, 1521
1780		-	whichever is later. 1522
1781		-	Committee Bill No. 123
1782		-
1783		-
1784		-	LCO No. 4332 49 of 49
1785		-
1786		-	This act shall take effect as follows and shall amend the following
1787		-	sections:
1788		-
1789		-	Section 1 October 1, 2023 16-19tt(b)
1790		-	Sec. 2 October 1, 2023 16-19jj
1791		-	Sec. 3 from passage 16-245d(a)
1792		-	Sec. 4 October 1, 2023 16-1
1793		-	Sec. 5 October 1, 2023 16-244c(b) to (h)
1794		-	Sec. 6 October 1, 2023 16-244bb(a)
1795		-	Sec. 7 October 1, 2023 16-245(k)
1796		-	Sec. 8 October 1, 2023 16-245a
1797		-	Sec. 9 October 1, 2023 16a-3j(c)
1798		-	Sec. 10 October 1, 2023 12-81(57)
1799		-	Sec. 11 October 1, 2023 16a-3g
1800		-	Sec. 12 October 1, 2023 16a-3i(e)
1801		-	Sec. 13 October 1, 2023 16a-3m(d) and (e)
1802		-	Sec. 14 October 1, 2023 16a-51(a)
1803		-	Sec. 15 from passage New section
1804		-
	44	+	called "State Policy Charges"; (6) redefine "Class I renewable energy 15
	45	+	source" to include trash-to-energy facilities, conventional hydropower 16
	46	+	facilities, and nuclear power facilities and eliminate the "Class II 17
	47	+	renewable energy source" category; and (7) create a task force to study 18
	48	+	the procurement of standard service electricity contracts. 19
1805	49		Statement of Purpose:
1806	50		To lower the cost of energy for ratepayers in the state.
1807		-	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
1808		-	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
1809		-	underlined.]
1810		-
1811		-	Co-Sponsors: SEN. FAZIO, 36th Dist.; REP. BUCKBEE, 67th Dist.
1812		-	REP. DELNICKI, 14th Dist.; REP. ANDERSON, 62nd Dist.
1813		-
1814		-	S.B. 123
1815		-
1816		-