OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-4
AN ACT CONCERNING ENERGY AFFORDABILITY, ACCESS AND
ACCOUNTABILITY.
Primary Analyst: SB 3/31/25
Contributing Analyst(s): LG, EMG, CR
Reviewer: PR
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
Treasurer, Debt Serv. GF - Cost See Below See Below
DEEP/PURA
1
CC&PUCF- Cost 345,811 345,811
Note: GF=General Fund; CC&PUCF=Consumer Counsel and Public Utility Control Fund
Municipal Impact: None
Explanation
The bill makes various changes related to nuclear energy, energy
procurements, and renewable thermal energy networks. The
corresponding fiscal impacts are described below.
Nuclear Energy
The bill creates a new moratorium exception for advanced nuclear
reactors, and also requires the Commissioner of the Department of
Energy and Environmental Protection (DEEP) to be a point of contact
for requirements related to atomic development. These changes are not
anticipated to result in a fiscal impact to the state or municipalities, as
1
The fringe benefit costs for employees funded out of other appropriated funds are
budgeted within the fringe benefit account of those funds, as opposed to the fringe
benefit accounts within the Office of the State Comptroller. The estimated active
employee fringe benefit cost associated with most personnel changes for other
appropriated fund employees is 83.26% of payroll in FY 26. 2025SB-00004-R000325-FN.DOCX Page 2 of 3
DEEP has the staff and expertise necessary to implement the changes.
Additionally, the bill authorizes $5 million in General Obligation
bonds for the purpose of funding grants or loans through the advanced
nuclear reactor and offshore wind energy facility site readiness funding
program, which is established in the bill. To the extent bonds are fully
allocated when available, total debt repayment is anticipated to be
approximately $7.2 million over the 20-year duration of the bonds, with
the earliest annual payment of up to $250,000 possible in FY 27.
Energy Procurements
The bill requires DEEP to make various procedural and
administrative changes to procurement authorization to include active
demand response projects and gas demand response projects .
Additionally, the bill creates a process to allow electric distribution
companies to use power and related products purchased from nuclear
facilities to meet standard service requirements. These modifications are
not anticipated to result in a fiscal impact as DEEP has the staff and
expertise necessary to implement the changes.
Renewable Thermal Energy Networks
The bill results in additional annual costs to the Public Utilities
Regulatory Authority (PURA), beginning in FY 26, of approximately
$345,811, associated with the establishment of a utility-scale renewable
thermal energy network program, which includes a pilot component,
working group, and a study of various issues.
PURA would require two additional full-time staff to complete the
requirements contained within the bill. The new positions would
include: one full-time Economist, with an approximate annual salary of
$85,700 (plus 71,353 in fringe benefits) and one full-time Associate
Research Analyst, with an approximate annual salary of $103,000
($85,758 in fringe benefits). The new staff would be responsible for
developing parameters and procedures or filing proposals for the
networks as well as standardizing a data collection system that allows 2025SB-00004-R000325-FN.DOCX Page 3 of 3
PURA and the public to track a network’s status and performance.
The bill makes various other changes to emergency service
restoration planning committees and line and restoration crew members
safety, which do not have a fiscal impact to the state or municipalities,
as the changes impact electric distribution companies.
Rate Payer Impact
There are several mechanisms within the bill that could impact rate
payers. However, it is estimated that the various changes within the bill
will (on average) result in a potential savings to rate payers. The bill is
likely to expand efficiency and demand response programs that have
provided bill reductions for direct program participants and avoids
costs at the system level.
Allowing active demand response projects and gas demand response
projects to settle Renewable Energy Certificates instead of reselling them
in the market, would likely save administrative fees, which could be passed
on to rate payers in the form of savings. Additionally, the bill seeks to avoid
costs associated with gas expansion through the development of thermal
energy networks, which could also result in savings to the rate payer.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation and the terms of any bonds
issued.