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General Assembly Raised Bill No. 1560
January Session, 2025
LCO No. 7086
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING CONNECTICUT'S ECONOMY, ELECTRICITY
AFFORDABILITY AND BUSINESS COMPETITIVENESS AND
ESTABLISHING THE CONNECTICUT ENERGY PROCUREMENT
AUTHORITY AND THE GREEN BOND FUND.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2025) It is found and declared that: 1
(1) An energy affordability crisis exists in the state that is creating 2
financial strain on households, undermining business competitiveness 3
and hindering state-wide economic growth. Therefore, it is in the public 4
interest to adopt policies designed to reduce the cost of electricity for 5
consumers in the state; 6
(2) Electricity rates in the state are greatly impacted by structural 7
inefficiencies in the procurement of electricity generation services and 8
the recovery of costs related to transmission and distribution 9
infrastructure and operating costs. Ratepayers in the state pay for, in 10
effect, an electric system that meets peak demand usage that is twice the 11
capacity of the average daily use in the state. This inefficient utilization 12
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of the electric transmission and distribution systems directly increases 13
ratepayer costs; 14
(3) In addition to system and regulatory inefficiencies, changes in 15
electric demand also disadvantage ratepayers. While individual electric 16
customers who purchase, install or lease solar photovoltaic systems may 17
derive significant benefits from such systems, the associated reduction 18
in sales of kilowatt hours by electric distribution companies has resulted 19
in increased electric rates for the remaining ratepayers; 20
(4) The adoption of electrification policies can reduce rates across the 21
electric distribution system by increasing the number of kilowatt hours 22
of electricity sold in a way that is responsive to demand and makes 23
efficient use of the existing electrical distribution and transmission 24
infrastructure. Such policies may include (A) supporting the 25
development of high-voltage fast-charging electric vehicle 26
infrastructure, (B) encouraging commercial and residential electric 27
customers to convert heating and cooling systems to heat pump 28
technology, and (C) promoting smart meters to fully enable dynamic 29
electricity pricing structures; and 30
(5) Prior to the adoption of this act, no single entity is responsible for 31
coordinating procurement strategy, grid infrastructure investment, 32
smart electric load growth and consumer engagement to lower electric 33
system costs in the state. The establishment of the Connecticut 34
Electricity Procurement Authority will address this systemic gap. The 35
authority will serve as the state's central architect for building a more 36
efficient, cost-effective electric system that actively aligns procurement, 37
grid operations and customer behavior with the goals of affordability, 38
reliability and decarbonization. Operating with a market-oriented 39
mandate, the authority will harness customer and system load data, 40
assist in developing dynamic pricing and competitive market tools to 41
reduce costs, improve infrastructure utilization through smart electric 42
load growth and lower peak electric demand. 43
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Sec. 2. (NEW) (Effective July 1, 2025) As used in sections 3 to 10, 44
inclusive, of this act: 45
(1) "Authority" means the Connecticut Energy Procurement 46
Authority established pursuant to section 3 of this act; 47
(2) "Board" means the board of directors of the authority; 48
(3) "Commissioner" means the Commissioner of Energy and 49
Environmental Protection; 50
(4) "Demand charge" means an electric billing component that is 51
determined based on an electric customer's peak electricity use during 52
on-peak hours; 53
(5) "Electric distribution company" has the same meaning as 54
provided in section 16-1 of the general statutes, as amended by this act; 55
(6) "Federally mandated congestion charges" has the same meaning 56
as provided in section 16-1 of the general statutes, as amended by this 57
act; 58
(7) "On-peak hours" means the period of time between the hours of 59
four o'clock p.m. to seven o'clock p.m. on weekdays; 60
(8) "Off-peak hours" means any hours that are not on-peak hours; 61
(9) "Regional independent system operator" has the same meaning as 62
provided in section 16-1 of the general statutes, as amended by this act; 63
(10) "Smart meter" means an electric meter that (A) provides real-time 64
electricity consumption data, (B) collects and stores interval load data 65
on a specific customer for purposes of implementing time-of-use rates 66
for both electric generation and electric transmission and distribution 67
services, and (C) provides for customer-specific load interval data when 68
billing for electric generation services; 69
(11) "System load factor" means the ratio of average electric demand 70
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to peak electric demand over a given period of time; and 71
(12) "Time-of-use rate" means a rate structure where electricity prices 72
vary by time of day. 73
Sec. 3. (NEW) (Effective July 1, 2025) (a) There is created a body politic 74
and corporate to be known as the "Connecticut Energy Procurement 75
Authority". Said authority is constituted a public instrumentality and 76
political subdivision of this state and the exercise by the authority of the 77
powers conferred by this chapter shall be deemed and held to be the 78
performance of an essential public and governmental function. The 79
Connecticut Energy Procurement Authority shall not be construed to be 80
a department, institution or agency of the state. 81
(b) The board of directors of the authority shall consist of seven 82
members as follows: 83
(1) One appointed by the Governor, who owns a business domiciled 84
in the state and is a retail customer of an electric distribution company; 85
(2) One appointed by the speaker of the House of Representatives, 86
who has expertise in energy conservation and electric demand-side 87
management; 88
(3) One appointed by the president pro tempore of the Senate, who 89
has expertise in renewable energy economics and electricity storage 90
financing; 91
(4) One appointed by the majority leader of the House of 92
Representatives, who has a background in legal matters concerning 93
electricity transmission and distribution; 94
(5) One appointed by the majority leader of the Senate, who has 95
experience in electricity rate-making methodologies, rate tariff design 96
and revenue recovery methodologies; 97
(6) One appointed by the minority leader of the House of 98
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Representatives, who has expertise in wholesale electricity trading; and 99
(7) One appointed by the minority leader of the Senate, who has 100
experience in data analytics and electric infrastructure investment. 101
(c) The chairperson of the board shall be appointed by the Governor. 102
The board shall annually elect one of its appointed members to serve as 103
vice-chairperson of the board. The Governor or appointing member of 104
the General Assembly, as the case may be, shall fill any vacancy for the 105
unexpired term. A member of the board shall be eligible for 106
reappointment. Any member of the board may be removed by the 107
Governor or appointing member of the General Assembly, as the case 108
may be, for misfeasance, malfeasance or wilful neglect of duty. Each 109
member of the board, before entering upon such member's duties, shall 110
take and subscribe the oath of affirmation required by article XI, section 111
1, of the state Constitution. A record of each such oath shall be filed in 112
the office of the Secretary of the State. The Commissioner of Energy and 113
Environmental Protection, or the commissioner's designee, shall be an 114
ex-officio member of the board and shall attend the board's meetings. 115
The board shall meet not less than quarterly. 116
(d) (1) The powers of the authority shall be vested in the board. The 117
board may hold such meetings and public hearings as the board deems 118
desirable and at locations in the state as determined by the board. The 119
authority shall develop and maintain an Internet web site and, not later 120
than five days before any meeting or public hearing of the board, post 121
on said Internet web site the location of, notice of and the agenda for 122
each such meeting or public hearing. 123
(2) A majority of the board shall constitute a quorum at any meeting 124
of the board. Action may be taken, motions voted and resolutions 125
adopted by the board at any meeting of the board by vote of a majority 126
of the members present, unless in any case any bylaws adopted by the 127
board require a larger number for adoption. 128
(3) The board may adopt, on a prospective basis, methods of voting 129
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for all or specifically designated matters. Any such methods shall be 130
specified in the bylaws unanimously adopted by the board. 131
(4) Not later than five days after a meeting or hearing of the board, 132
the authority shall post the minutes of such meeting or hearing on the 133
authority's Internet web site, including any actions taken, motions voted 134
and resolutions adopted. 135
(e) The board may appoint and employ a chief executive officer, a 136
treasurer, a secretary, a general counsel and such officers, advisors, 137
consultants and other agents and employees as the board may deem 138
necessary, and the board shall determine their qualifications, terms of 139
office, duties and compensation. In selecting such officers, advisors, 140
consultants, agents or employees, the board shall give preference to 141
individuals with experience in wholesale and retail electric procurement 142
and generation services, development of dynamic time-of-use rates, 143
electric load growth strategy development, data analytics concerning 144
customer behaviors, electric rate design, electric transmission and 145
distribution planning, advanced electric metering and economics. 146
(f) Any necessary and related administrative and operational 147
expenses incurred by the authority may be paid from funds from the 148
Energy Infrastructure Transition Fund established pursuant to section 149
35 of this act. 150
(g) All initial appointments to the board shall be made not later than 151
January 1, 2026. The initial terms of the members shall be as follows: (1) 152
Those appointed by the Governor shall serve for one year; (2) those 153
appointed by the minority leaders of the Senate and House of 154
Representatives shall serve for two years; (3) those appointed by the 155
president pro tempore of the Senate and the majority leader of the 156
House of Representatives shall serve for three years; and (4) those 157
appointed by the majority leader of the Senate and the speaker of the 158
House of Representatives shall serve for four years. Terms following the 159
initial terms shall be for four years. Each board member shall hold office 160
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for the term for which the member was appointed and until the 161
member's successor has been appointed and has qualified. A board 162
member may be removed by the appointing authority only for 163
inefficiency or neglect of duty or misconduct in office. Any member to 164
be removed pursuant to this subsection shall be given a written notice 165
of the reason for such proposed removal not sooner than ten days before 166
such removal and the opportunity, in person or by legal counsel, to be 167
heard concerning such removal by the board. 168
(h) Not less than biennially, the authority shall cause a forensic 169
examination to be conducted by a certified forensic auditor, which shall 170
include a review of the revenue and expenditures of the authority for 171
the preceding two years. The auditor shall submit a report including a 172
review of whether such authority's operating procedures conform with 173
the provisions of this chapter and the bylaws adopted by the board and 174
any recommendations for any corrective actions needed to ensure such 175
conformance. The auditor shall not be required to perform a full 176
financial audit of the two-year period or submit an opinion regarding 177
the financial statements or a management letter. Not later than seven 178
days after the authority receives such report from such auditor, the 179
authority shall post such report on its Internet web site. 180
(i) The authority shall annually provide the following, in accordance 181
with the provisions of section 11-4a of the general statutes, to the joint 182
standing committee of the General Assembly having cognizance of 183
matters relating to energy and technology: (1) A list of the current 184
members and officers of the board; (2) a copy of the most recent audited 185
financial statements, management letter and reports of the authority; (3) 186
a copy of any conflicts of interest policy of the authority; (4) a copy of 187
the bylaws adopted by the board, if such bylaws have been adopted or 188
amended in the preceding year; and (5) as to any employee of the 189
authority, a report listing the position of each employee and the amount 190
of the salary, wages and fringe benefit expenses paid to each such 191
employee. 192
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Sec. 4. (NEW) (Effective July 1, 2025) The Connecticut Energy 193
Procurement Authority shall have the powers to: 194
(1) Have perpetual succession as a body politic and corporate and to 195
adopt and from time to time amend and repeal bylaws, policies and 196
procedures for the regulations of its affairs and the conduct of its 197
business; 198
(2) Adopt and have a common seal and to alter the same; 199
(3) Sue and be sued; 200
(4) Contract and be contracted with; 201
(5) Develop and implement a plan that allows for the dynamic 202
procurement of electric generation services and related wholesale 203
electricity market products in a manner that reduces the average cost of 204
standard service while maintaining standard service cost volatility 205
within reasonable levels, as determined by the authority; 206
(6) Investigate the desirability of and necessity for additional sources 207
and supplies of electric power, and to make such studies, surveys and 208
estimates as may be necessary to determine the feasibility and cost of 209
any such additional sources and supplies of electric power for the 210
purpose of developing and implementing an electric procurement 211
portfolio sufficient to provide an alternative to standard service, as 212
described in section 16-244c of the general statutes, which shall include 213
the execution of contracts with electric generators, suppliers, 214
wholesalers or aggregators for the provision of electricity to customers 215
in the state; 216
(7) Cooperate with private electric utilities, municipal electric 217
utilities, the regional independent system operator and other public or 218
private electric power entities, within and without the state, or with any 219
person without the state, in the development of such sources and 220
supplies of electric power; 221
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(8) Study and report on electric customer usage patterns and the 222
efficacy of investments in electrification projects and grid-scale 223
electricity storage projects; 224
(9) Develop and implement policies and incentives to encourage (A) 225
the dispatch of energy generated by distributed solar photovoltaic 226
systems installed behind customer electric meters for the purpose of 227
increasing the system load factor, (B) the adoption of alternative air 228
conditioning technologies, including, but not limited to, ice storage, (C) 229
smart electric load growth by not less than one per cent per year, and 230
(D) the achievement of greenhouse gas reduction goals established 231
under section 22a-200a of the general statutes by promoting the 232
adoption of technologies and policies that will lead to an average annual 233
reduction of greenhouse gas emissions by not less than one million one 234
hundred thousand metric tons of carbon dioxide equivalent for the 235
period between 2022 and 2030; 236
(10) Study and report on methods to promote business growth in the 237
state through electric load growing energy policies; 238
(11) Mandate, develop and recommend to the Public Utilities 239
Regulatory Authority time-of-use rate tariff structures, for both electric 240
generation services and transmission and distribution services, based on 241
on-peak and off-peak usage designed to create electric customer 242
demand elasticity by encouraging electricity usage in off-peak hours 243
and discouraging electricity usage in on-peak hours. For the purposes 244
of time-of-use electric generation rate design, on-peak electric service 245
rates shall be a minimum of three hundred per cent higher than off-peak 246
rates; 247
(12) Administer the Electric Rate Stabilization Fund created pursuant 248
to section 9 of this act for the purpose of reducing the volatility of 249
increases and decreases in electric generation service costs during 250
periods of higher and lower electricity demand throughout the calendar 251
year; 252
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(13) Administer the Energy Infrastructure Transition Fund created 253
pursuant to section 35 of this act for the purpose of supporting (A) the 254
adoption of smart meter infrastructure and electric billing system 255
upgrades, (B) distribution system and substation upgrades, (C) efforts 256
to increase the electrification of transportation in the state, including 257
incentives for the adoption of rapid electric vehicle charging stations 258
and electric distribution infrastructure supporting such stations, (D) 259
efforts to increase the electrification of residential and commercial 260
heating and cooling systems in the state, including incentives for the 261
conversion of such systems into heat pump systems, and (E) the 262
installation of battery storage systems for residential and commercial 263
customers for the purpose of reducing peak electric demand; 264
(14) (A) Mandate and oversee the adoption of smart meters for the 265
purpose of implementing time-of-use rates, (B) design a customer 266
education and engagement program to be implemented by electric 267
distribution companies that informs electric customers of the benefits of 268
smart meters and time-of-use rates, (C) advocate and participate in the 269
development of time-of-use pricing to optimize customer price 270
elasticity, and (D) promote electric load-shifting behavior by customers; 271
(15) Establish a consumer advisory panel for purposes of educating 272
electric consumers on (A) smart meters, including data access and 273
functionality, (B) opportunities to reduce electricity costs through the 274
utilization of time-of-use rates, (C) opportunities for customers to 275
reduce their impact on (i) greenhouse gas emissions, and (ii) the 276
installed capacity payments that constitute a portion of the federally 277
mandated congestion charges, as defined in section 16-1 of the general 278
statutes, as amended by this act, and (D) other opportunities for electric 279
consumers as the authority deems advisable; 280
(16) Procure from any state or federal agency any consents, 281
authorizations or approvals that may be requisite to enable any project 282
within its powers to be carried forward; 283
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(17) Do and perform any acts and things authorized by this act under, 284
through or by means of its board, officers, agents or employees; 285
(18) Acquire, hold, use and dispose of its income, revenues, funds and 286
moneys; 287
(19) Acquire, own, hire, use, operate and dispose of personal 288
property; 289
(20) Acquire, own, use, lease, operate and dispose of real property 290
and interests in real property, and to make improvements thereon; 291
(21) Grant the use, by lease or otherwise, and to make charges for the 292
use, of any property or facility owned or controlled by the authority; 293
(22) Borrow money and to execute promissory notes in the name of 294
the authority; 295
(23) Procure insurance against any losses in connection with its 296
property, operations or assets in such amounts and from such insurers 297
as the board deems desirable; 298
(24) Contract for and to accept any gifts or grants or loans of funds or 299
property or financial or other aid in any form from the United States or 300
any agency or instrumentality thereof, or from any other source, and to 301
comply, subject to the provisions of this chapter, with the terms and 302
conditions thereof; 303
(25) Guarantee, in connection with any project, the punctual payment 304
of the principal of and interest on the indebtedness or other contractual 305
obligations of any of the participants in such project; and 306
(26) To exercise all other powers not inconsistent with the State 307
Constitution or the United States Constitution, which may be 308
reasonably necessary or appropriate for or incidental to the effectuation 309
of its authorized purposes or to the exercise of any of the foregoing 310
powers, and generally to exercise in connection with its property and 311
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affairs, and in connection with property within its control, any and all 312
powers that might be exercised by a natural person or a private 313
corporation in connection with similar property and affairs. 314
Sec. 5. (NEW) (Effective July 1, 2025) No representative, officer or 315
employee of the authority shall have or acquire any personal interest, 316
direct or indirect, in any project or in any property included or planned 317
to be included in any project or in any contract or proposed contract for 318
materials or services to be furnished to or used by the authority, 319
provided the holding of any office or employment in the government of 320
any municipal electric utility or in any municipal electric energy 321
cooperative under any law of the state shall not be deemed a 322
disqualification for board membership or employment by the authority. 323
Sec. 6. (NEW) (Effective July 1, 2025) The authority may, by vote of the 324
board, reimburse members of the board for necessary expenses incurred 325
in the discharge of their duties and pay a reasonable, uniformly 326
applicable stipend to such board member for their service on the board 327
as provided in this section. 328
Sec. 7. (NEW) (Effective July 1, 2025) The Connecticut Energy 329
Procurement Authority shall, for the purposes of chapter 62 of the 330
general statutes, be subject to the authority of the State Contracting 331
Standards Board established under section 4e-2 of the general statutes. 332
Sec. 8. (NEW) (Effective July 1, 2025) (a) The Connecticut Energy 333
Procurement Authority shall, in consultation with the Public Utilities 334
Regulatory Authority, design a customer education and engagement 335
program for the purpose of informing electric distribution customers of 336
the benefits of smart meters and time-of-use rates and encouraging such 337
customers to utilize such meters and such rates. The program design 338
shall include (1) approved methods of customer outreach, education 339
and engagement activities, (2) a requirement that electric distribution 340
companies develop an electronic application that notifies customers of 341
the electric distribution company, in real time, of energy saving 342
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opportunities based on electric transmission and distribution system 343
factors, (3) objective performance standards regarding the program 344
implementation, (4) mandatory reporting requirements for electric 345
distribution companies concerning such companies' compliance with 346
the program requirements, including the submission of documentation 347
or data as required by the Public Utilities Regulatory Authority, and (5) 348
a process under which the Connecticut Energy Procurement Authority 349
certifies that an electric distribution company is in compliance with this 350
section. 351
(b) Upon approval by the Connecticut Energy Procurement 352
Authority and the Public Utilities Regulatory Authority, the program 353
shall be administered by the electric distribution companies. 354
Sec. 9. (NEW) (Effective July 1, 2025) (a) There is established a fund to 355
be known as the "Electric Rate Stabilization Fund". The fund shall be 356
administered by the Connecticut Energy Procurement Authority for the 357
purpose of reducing volatility in electric generation service costs for 358
residents and businesses in the state who receive standard service as 359
described in section 16-244c of the general statutes. 360
(b) The authority shall develop and implement a methodology for 361
accumulating excess electric generation service revenues during lower 362
cost off-peak periods, on both a seasonal and hourly basis, and 363
disbursing funds to offset higher electric generation prices during peak 364
summer and winter months for the purpose of ensuring stable electric 365
generation prices to ratepayers across all customer classes. 366
(c) Amounts in the fund shall be derived from the following sources: 367
(1) Assessments collected in connection with power purchase 368
agreements approved by the Connecticut Energy Procurement 369
Authority; 370
(2) Allocations from any federal funds designated for energy cost 371
stabilization, grid resilience or consumer rate relief; 372
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(3) Interest derived from the investment of the fund; and 373
(4) Voluntary contributions from electric distribution companies. 374
(d) Not later than January first of each year, the authority shall submit 375
a report, in accordance with the provisions of section 11-4a of the general 376
statutes, to the joint standing committee of the General Assembly 377
having cognizance of matters relating to energy and technology, 378
detailing the financial status of the fund, sources of revenue, 379
disbursements made and recommendations for future appropriations or 380
modifications. 381
(e) The Office of Policy and Management, in coordination with the 382
authority, shall conduct a biennial review of the fund to assess its 383
effectiveness in stabilizing electric rates and recommend any necessary 384
statutory or regulatory adjustments. 385
Sec. 10. (NEW) (Effective July 1, 2025) (a) (1) On and after July 1, 2027, 386
and annually thereafter, the Connecticut Energy Procurement Authority 387
shall, in consultation with each electric distribution company, and 388
others at the authority's discretion, including, but not limited to, the 389
Commissioner of Energy and Environmental Protection, a municipal 390
energy cooperative established pursuant to chapter 101a of the general 391
statutes, other than entities, individuals and companies or their affiliates 392
potentially involved in bidding on standard service, shall develop a plan 393
for the procurement of electric generation services and related 394
wholesale electricity market products in a manner that reduces the 395
average cost of standard service while maintaining standard service cost 396
volatility within reasonable levels. Each procurement plan shall provide 397
for the competitive solicitation for load-following electric service and 398
may include a provision for the use of other contracts, including, but not 399
limited to, contracts for generation or other electricity market products 400
and financial contracts and may provide for the use of varying lengths 401
of contracts. If such plan includes the purchase of full requirements 402
contracts, it shall include an explanation of why such purchases are in 403
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the best interests of standard service customers. 404
(2) All reasonable costs associated with the development of the 405
procurement plan by the authority shall be paid from the Green Bond 406
Fund established pursuant to section 16-245l of the general statutes, as 407
amended by this act. 408
(b) The costs of procurement for standard service shall be borne solely 409
by the standard service customers. 410
(c) The authority shall report annually, in accordance with the 411
provisions of section 11-4a of the general statutes, to the joint standing 412
committee of the General Assembly having cognizance of matters 413
relating to commerce, energy and technology, and finance, revenue and 414
bonding regarding the procurement plan and its implementation. Any 415
such report may be submitted electronically. 416
Sec. 11. Subdivision (1) of subsection (a) of section 16-244m of the 417
general statutes is repealed and the following is substituted in lieu 418
thereof (Effective July 1, 2025): 419
(a) (1) On or before January 1, 2012, and annually thereafter, until July 420
1, 2027, the procurement manager of the Public Utilities Regulatory 421
Authority, in consultation with each electric distribution company, and 422
others at the procurement manager's discretion, including, but not 423
limited to, the Commissioner of Energy and Environmental Protection, 424
a municipal energy cooperative established pursuant to chapter 101a, 425
other than entities, individuals and companies or their affiliates 426
potentially involved in bidding on standard service, shall develop a plan 427
for the procurement of electric generation services and related 428
wholesale electricity market products that will enable each electric 429
distribution company to manage a portfolio of contracts to reduce the 430
average cost of standard service while maintaining standard service cost 431
volatility within reasonable levels. Each Procurement Plan shall provide 432
for the competitive solicitation for load-following electric service and 433
may include a provision for the use of other contracts, including, but not 434
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limited to, contracts for generation or other electricity market products 435
and financial contracts, and may provide for the use of varying lengths 436
of contracts. If such plan includes the purchase of full requirements 437
contracts, it shall include an explanation of why such purchases are in 438
the best interests of standard service customers. 439
Sec. 12. Subdivision (20) of section 16-1 of the general statutes is 440
repealed and the following is substituted in lieu thereof (Effective July 1, 441
2025): 442
(20) "Class I renewable energy source" means (A) electricity derived 443
from (i) solar power, (ii) wind power, (iii) a fuel cell, (iv) geothermal, (v) 444
landfill methane gas, anaerobic digestion or other biogas derived from 445
biological sources, (vi) thermal electric direct energy conversion from a 446
certified Class I renewable energy source, (vii) ocean thermal power, 447
(viii) wave or tidal power, (ix) low emission advanced renewable energy 448
conversion technologies, including, but not limited to, zero emission 449
low grade heat power generation systems based on organic oil free 450
rankine, kalina or other similar nonsteam cycles that use waste heat 451
from an industrial or commercial process that does not generate 452
electricity, (x) (I) a run-of-the-river hydropower facility that began 453
operation after July 1, 2003, has a generating capacity of not more than 454
sixty megawatts, is not based on a new dam or a dam identified by the 455
Commissioner of Energy and Environmental Protection as a candidate 456
for removal, and meets applicable state and federal requirements, 457
including state dam safety requirements and applicable site-specific 458
standards for water quality and fish passage, or (II) a run-of-the-river 459
hydropower facility that received a new license after January 1, 2018, 460
under the Federal Energy Regulatory Commission rules pursuant to 18 461
CFR 16, as amended from time to time, is not based on a new dam or a 462
dam identified by the Commissioner of Energy and Environmental 463
Protection as a candidate for removal, and meets applicable state and 464
federal requirements, including state dam safety requirements and 465
applicable site-specific standards for water quality and fish passage, (xi) 466
a biomass facility that uses sustainable biomass fuel and has an average 467
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emission rate of equal to or less than .075 pounds of nitrogen oxides per 468
million BTU of heat input for the previous calendar quarter, except that 469
energy derived from a biomass facility with a capacity of less than five 470
hundred kilowatts that began construction before July 1, 2003, may be 471
considered a Class I renewable energy source, or (xii) a nuclear power 472
generating facility [constructed on or after October 1, 2023] located in 473
the state, or (B) any electrical generation, including distributed 474
generation, generated from a Class I renewable energy source, 475
provided, on and after January 1, 2014, any megawatt hours of 476
electricity from a renewable energy source described under this 477
subparagraph that are claimed or counted by a load-serving entity, 478
province or state toward compliance with renewable portfolio 479
standards or renewable energy policy goals in another province or state, 480
other than the state of Connecticut, shall not be eligible for compliance 481
with the renewable portfolio standards established pursuant to section 482
16-245a; 483
Sec. 13. (NEW) (Effective July 1, 2025) In any proceeding of the Public 484
Utilities Regulatory Authority on and after July 1, 2025, to establish or 485
approve tariffs that include a credit for any amount of energy produced 486
by a facility and not consumed, such credit shall be allowed against 487
electric supply costs for an end use customer and shall not be allowed 488
against any distribution cost, transmission cost or any other cost 489
associated with the delivery of electric service to such customer, 490
including any component of the charge known as the "combined public 491
benefits charge" on consumer electric bills. Nothing in this section shall 492
be construed to require the alteration of any such tariff approved by the 493
authority before July 1, 2025. 494
Sec. 14. Subdivision (3) of subsection (a) of section 16-245d of the 495
general statutes is repealed and the following is substituted in lieu 496
thereof (Effective July 1, 2025): 497
(3) Not later than August 1, [2023] 2025, each electric distribution 498
company shall use a total of four categories as part of the standard 499
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billing format for all residential customers, one of which shall relate to 500
charges for generation of electricity, one of which shall relate to charges 501
for local distribution of electricity, and one of which shall relate to 502
charges for transmission of electricity, and one of which shall relate to 503
[system benefits and the subset of federally mandated congesting] any 504
other charges approved by the authority pursuant to any provision of 505
the general statutes, public act or special act. The authority shall require 506
that each electric distribution company's standard billing format for 507
residential customers identify each charge and the corresponding 508
category in accordance with the authority's determinations. The 509
authority, in a docket reopened pursuant to subdivision (2) of this 510
subsection, may modify the categories described in this subdivision if 511
the authority finds that such modification improves customer 512
understanding of the components of the electric bill or customer 513
understanding of what costs are causing increases to the total amount 514
of a customer's bill. 515
Sec. 15. (NEW) (Effective July 1, 2025) Notwithstanding any provision 516
of title 16 of the general statutes, on and after October 1, 2025, any costs 517
associated with federally mandated congestion charges, as defined in 518
section 16-1 of the general statutes, as amended by this act, shall be (1) 519
removed from consumer electric bills, and (2) paid from the Green Bond 520
Fund established pursuant to section 16-245l of the general statutes, as 521
amended by this act. 522
Sec. 16. Section 16-245l of the general statutes is repealed and the 523
following is substituted in lieu thereof (Effective July 1, 2025): 524
(a) As used in this section: 525
(1) "Green Bond Fund" or "fund" means the fund established by the 526
Public Utilities Regulatory Authority pursuant to subsection (b) of this 527
section; 528
(2) "Displaced worker protection costs" means the reasonable costs 529
incurred, prior to January 1, 2008, (A) by an electric supplier, exempt 530
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wholesale generator, electric company, an operator of a nuclear power 531
generating facility in this state or a generation entity or affiliate arising 532
from the dislocation of any employee other than an officer, provided 533
such dislocation is a result of (i) restructuring of the electric generation 534
market and such dislocation occurs on or after July 1, 1998, or (ii) the 535
closing of a Title IV source or an exempt wholesale generator, as defined 536
in 15 USC 79z-5a, on or after January 1, 2004, as a result of such source's 537
failure to meet requirements imposed as a result of sections 22a-197 and 538
22a-198 and this section or those Regulations of Connecticut State 539
Agencies adopted by the Department of Energy and Environmental 540
Protection, as amended from time to time, in accordance with Executive 541
Order Number 19, issued on May 17, 2000, and provided further such 542
costs result from either the execution of agreements reached through 543
collective bargaining for union employees or from the company's or 544
entity's or affiliate's programs and policies for nonunion employees, and 545
(B) by an electric distribution company or an exempt wholesale 546
generator arising from the retraining of a former employee of an 547
unaffiliated exempt wholesale generator, which employee was 548
involuntarily dislocated on or after January 1, 2004, from such wholesale 549
generator, except for cause. "Displaced worker protection costs" 550
includes costs incurred or projected for severance, retraining, early 551
retirement, outplacement, coverage for surviving spouse insurance 552
benefits and related expenses. 553
[(a)] (b) The Public Utilities Regulatory Authority shall establish and 554
[each electric distribution company shall collect a systems benefits 555
charge to be imposed against all end use customers of each electric 556
distribution company beginning January 1, 2000. The authority shall 557
hold a hearing that shall be conducted as a contested case in accordance 558
with chapter 54 to establish the amount of the systems benefits charge. 559
The authority may revise the systems benefits charge or any element of 560
said charge as the need arises] administer a fund to be known as the 561
"Green Bond Fund" to pay expenses incurred in connection with 562
programs that benefit the operation of the electric grid in the state, 563
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promote energy efficiency and benefit ratepayers as set forth in 564
subsections (c) and (d) of this section. Not later than October 1, 2025, the 565
authority shall develop and implement a methodology for disbursing 566
funds to pay for such expenses. The authority shall administer the fund 567
in such a way as to limit the annual expenditures from the fund to eight 568
hundred million dollars or less. 569
(c) [Commencing on July 1, 2015, and annually thereafter, the sum of 570
two million one hundred thousand dollars shall be transferred from the 571
systems benefits charge to Operation Fuel, Incorporated, for energy 572
assistance, provided two hundred thousand dollars of such sum may be 573
used for administrative purposes. The systems benefits charge] The 574
Green Bond Fund shall [also] be used to fund (1) the expenses of the 575
public education outreach program developed under section 16-244d 576
other than expenses for authority staff, (2) the cost of hardship 577
protection measures under sections 16-262c, as amended by this act, and 578
16-262d and other hardship protections, including, but not limited to, 579
electric service bill payment programs, funding and technical support 580
for energy assistance, fuel bank and weatherization programs and 581
weatherization services, (3) the payment program to offset tax losses 582
described in section 12-94d, as amended by this act, (4) any sums paid 583
to a resource recovery authority pursuant to subsection (b) of section 16-584
243e, as amended by this act, (5) low income conservation programs 585
approved by the Public Utilities Regulatory Authority, (6) displaced 586
worker protection costs, (7) unfunded storage and disposal costs for 587
spent nuclear fuel generated before January 1, 2000, approved by the 588
appropriate regulatory agencies, (8) postretirement safe shutdown and 589
site protection costs that are incurred in preparation for 590
decommissioning, (9) decommissioning fund contributions, (10) costs 591
associated with the Connecticut electric efficiency partner program 592
established pursuant to section 16-243v, as amended by this act, (11) 593
reinvestments and investments in energy efficiency programs and 594
technologies pursuant to section 16a-38l, as amended by this act, costs 595
associated with the electricity conservation incentive program 596
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established pursuant to section 119 of public act 07-242, (12) legal, 597
appraisal and purchase costs of a conservation or land use restriction 598
and other related costs as the authority in its discretion deems 599
appropriate, incurred by a municipality on or before January 1, 2000, to 600
ensure the environmental, recreational and scenic preservation of any 601
reservoir located within this state created by a pump storage 602
hydroelectric generating facility, [and] (13) the residential furnace and 603
boiler replacement program pursuant to subsection (k) of section 16-604
243v, as amended by this act, [. As used in this subsection, "displaced 605
worker protection costs" means the reasonable costs incurred, prior to 606
January 1, 2008, (A) by an electric supplier, exempt wholesale generator, 607
electric company, an operator of a nuclear power generating facility in 608
this state or a generation entity or affiliate arising from the dislocation 609
of any employee other than an officer, provided such dislocation is a 610
result of (i) restructuring of the electric generation market and such 611
dislocation occurs on or after July 1, 1998, or (ii) the closing of a Title IV 612
source or an exempt wholesale generator, as defined in 15 USC 79z-5a, 613
on or after January 1, 2004, as a result of such source's failure to meet 614
requirements imposed as a result of sections 22a-197 and 22a-198 and 615
this section or those Regulations of Connecticut State Agencies adopted 616
by the Department of Energy and Environmental Protection, as 617
amended from time to time, in accordance with Executive Order 618
Number 19, issued on May 17, 2000, and provided further such costs 619
result from either the execution of agreements reached through 620
collective bargaining for union employees or from the company's or 621
entity's or affiliate's programs and policies for nonunion employees, and 622
(B) by an electric distribution company or an exempt wholesale 623
generator arising from the retraining of a former employee of an 624
unaffiliated exempt wholesale generator, which employee was 625
involuntarily dislocated on or after January 1, 2004, from such wholesale 626
generator, except for cause. "Displaced worker protection costs" 627
includes costs incurred or projected for severance, retraining, early 628
retirement, outplacement, coverage for surviving spouse insurance 629
benefits and related expenses] (14) the federally mandated congestion 630
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charges, as defined in section 16-1, as amended by this act, (15) expenses 631
associated with any power purchase agreement between an electric 632
distribution company and a nuclear power generating facility approved 633
by the authority pursuant to section 16a-3m, as amended by this act, (16) 634
expenses associated with the Conservation and Load Management Plan, 635
as approved pursuant to section 16-245m, as amended by this act, and 636
(17) expenses associated with the operation of the Clean Energy Fund 637
pursuant to section 16-245n, as amended by this act. 638
[(b) The amount of the systems benefits charge shall be determined 639
by the authority in a general and equitable manner and shall be imposed 640
on all end use customers of each electric distribution company at a rate 641
that is applied equally to all customers of the same class in accordance 642
with methods of allocation in effect on July 1, 1998, provided the system 643
benefits charge shall not be imposed on customers receiving services 644
under a special contract which is in effect on July 1, 1998, until such 645
special contracts expire. The system benefits charge shall be imposed 646
beginning on January 1, 2000, on all customers receiving services under 647
a special contract which are entered into or renewed after July 1, 1998. 648
The systems benefits charge shall have a generally applicable manner of 649
determination that may be measured on the basis of percentages of total 650
costs of retail sales of generation services. The systems benefits charge 651
shall be payable on an equal basis on the same payment terms and shall 652
be eligible or subject to prepayment on an equal basis. Any exemption 653
of the systems benefits charge by customers under a special contract 654
shall not result in an increase in rates to any customer.] 655
(d) Commencing on July 1, 2025, and annually thereafter, the sum of 656
two million one hundred thousand dollars shall be transferred from the 657
Green Bond Fund to Operation Fuel, Incorporated, for energy 658
assistance, provided two hundred thousand dollars of such sum may be 659
used for administrative purposes. 660
Sec. 17. Subsection (d) of section 12-94d of the general statutes is 661
repealed and the following is substituted in lieu thereof (Effective July 1, 662
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LCO No. 7086 23 of 80
2025): 663
(d) On or before June fifteenth, annually, following the assessment 664
date for which the value of an electric generation facility decreases as a 665
direct result of restructuring of the electric industry, the assessor or 666
board of assessors of a municipality in which such a facility is located 667
shall certify to the Secretary of the Office of Policy and Management, on 668
a form furnished by the secretary, the amount as computed in 669
subsection (c) of this section together with supporting information as 670
the secretary may require. The secretary may reevaluate any such 671
facility when, in the secretary's judgment, the valuation is inaccurate. 672
The secretary shall review each claim and modify the value of any 673
facility included therein when, in the secretary's judgment, the value is 674
inaccurate or the facility did not decrease in value as a direct result of 675
restructuring of the electric industry. Not later than July first next 676
succeeding the assessment date for which the amount was approved by 677
the assessor or assessors, the secretary shall notify the municipality in 678
which the facility is located of the modification, in accordance with the 679
procedure set forth in subsection (e) of this section. The secretary shall, 680
on or before July fifteenth, annually, certify to the Public Utilities 681
Regulatory Authority the amount due the municipality under the 682
provisions of this section, including any modification of such amount 683
made prior to July first, and the authority shall order the payment of 684
such amount by the appropriate electric distribution company to the 685
municipality in which the facility is located according to the following 686
formula: Not later than five business days following the date on which 687
the taxes are paid by the owner of an electric generation facility in July, 688
but in no case prior to July fifteenth, the balance required to equal an 689
amount equal to half of the amount of tax for which the owner of an 690
electric generation facility is liable under this chapter with respect to 691
such facility plus half of the amount calculated in subsection (c) of this 692
section; on or before the thirty-first day of January immediately 693
following, the balance required to equal an amount equal to half of the 694
amount of tax for which the owner of an electric generation facility is 695
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LCO No. 7086 24 of 80
liable under this chapter with respect to such facility plus half of the 696
amount calculated in subsection (c) of this section. Following the 697
payment of taxes by the owner of an electric generation facility in July, 698
the town shall certify to the Public Utilities Regulatory Authority the 699
amount paid by such owner of an electric generation facility. The 700
amount paid shall be recovered by the electric distribution company 701
[through the systems benefits charge] from the Green Bond Fund 702
established pursuant to section 16-245l, as amended by this act. If any 703
modification is made as the result of the provisions of this section on or 704
after the July fifteenth following the date on which the assessor has 705
provided the amount in question, any adjustments to the amount due 706
to a municipality for the period for which such modification was made 707
shall be made in the next payment the electric distribution company 708
shall make to such municipality pursuant to this section. 709
Sec. 18. Subdivision (2) of subsection (c) of section 12-264 of the 710
general statutes is repealed and the following is substituted in lieu 711
thereof (Effective July 1, 2025): 712
(2) For purposes of this subsection, gross earnings from providing 713
electric transmission services or electric distribution services shall 714
include (A) all income classified as income from providing electric 715
transmission services or electric distribution services, as determined by 716
the Commissioner of Revenue Services in consultation with the Public 717
Utilities Regulatory Authority, and (B) the competitive transition 718
assessment collected pursuant to section 16-245g, as amended by this 719
act, other than any component of such assessment that constitutes 720
transition property as to which an electric distribution company has no 721
right, title or interest pursuant to subsection (a) of section 16-245h, as 722
amended by this act, [the systems benefits charge collected pursuant to 723
section 16-245l, the conservation adjustment mechanisms charged 724
under section 16-245m,] and the assessments charged under section 16-725
245n, as amended by this act. Such gross earnings shall not include 726
income from providing electric transmission services or electric 727
distribution services to a company described in subsection (c) of section 728
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LCO No. 7086 25 of 80
12-265. 729
Sec. 19. Subsection (d) of section 16-24a of the general statutes is 730
repealed and the following is substituted in lieu thereof (Effective July 1, 731
2025): 732
(d) The cost of low-income and discounted rates and related outreach 733
activities pursuant to this section shall be paid (1) through the normal 734
rate-making procedures of the department, (2) on a semiannual basis 735
[through the systems benefits charge for an electric distribution 736
company] from the Green Bond Fund established under section 16-245l, 737
as amended by this act, and (3) solely from the funds of the programs 738
modified, terminated or reduced by the department pursuant to this 739
section and the reduced cost of providing service to those eligible for 740
such discounted or low-income rates, any available energy assistance 741
and other sources of coverage for such rates, including, but not limited 742
to, generation available through the electricity purchasing pool 743
operated by the department. 744
Sec. 20. Subsection (b) of section 16-243e of the general statutes is 745
repealed and the following is substituted in lieu thereof (Effective July 1, 746
2025): 747
(b) Not later than October 1, 2000, and annually thereafter, the 748
authority shall calculate the difference between the amount paid by the 749
electric distribution company pursuant to each such contract in effect 750
during the preceding fiscal year for electricity generated at the facility 751
from waste that originated within such franchise area and the amount 752
that would have been paid had the company been obligated to pay the 753
rate in effect during calendar year 1999, as determined by the authority. 754
The difference, if positive, shall be recovered [through the systems 755
benefits charge] from the Green Bond Fund established under section 756
16-245l, as amended by this act, and remitted to the regional resource 757
recovery authority acting on behalf of member municipalities. 758
Sec. 21. Section 16-243h of the general statutes is repealed and the 759
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following is substituted in lieu thereof (Effective July 1, 2025): 760
On and after January 1, 2000, and until December 31, 2021, each 761
electric supplier or any electric distribution company providing 762
standard offer, transitional standard offer, standard service or back-up 763
electric generation service, pursuant to section 16-244c, shall give a 764
credit for any electricity generated by a customer from a Class I 765
renewable energy source or a hydropower facility that has a nameplate 766
capacity rating of two megawatts or less for a term ending on December 767
31, 2041, provided any customer that has a contract approved by the 768
Public Utilities Regulatory Authority pursuant to section 16-244r on or 769
before December 31, 2021, shall be eligible for such credit. The electric 770
distribution company providing electric distribution services to such a 771
customer shall make such interconnections necessary to accomplish 772
such purpose. An electric distribution company, at the request of any 773
residential customer served by such company and if necessary to 774
implement the provisions of this section, shall provide for the 775
installation of metering equipment that (1) measures electricity 776
consumed by such customer from the facilities of the electric 777
distribution company, (2) deducts from the measurement the amount of 778
electricity produced by the customer and not consumed by the 779
customer, and (3) registers, for each billing period, the net amount of 780
electricity either (A) consumed and produced by the customer, or (B) the 781
net amount of electricity produced by the customer. If, in a given 782
monthly billing period, a customer-generator supplies more electricity 783
to the electric distribution system than the electric distribution company 784
or electric supplier delivers to the customer-generator, the electric 785
distribution company or electric supplier shall credit the customer-786
generator for the excess by reducing the customer-generator's bill for the 787
next monthly billing period to compensate for the excess electricity from 788
the customer-generator in the previous billing period at a rate of one 789
kilowatt-hour for one kilowatt-hour produced. The electric distribution 790
company or electric supplier shall carry over the credits earned from 791
monthly billing period to monthly billing period, and the credits shall 792
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accumulate until the end of the annualized period. At the end of each 793
annualized period, the electric distribution company or electric supplier 794
shall compensate the customer-generator for any excess kilowatt-hours 795
generated, at the avoided cost of wholesale power. A customer who 796
generates electricity from a generating unit with a nameplate capacity 797
of more than ten kilowatts of electricity pursuant to the provisions of 798
this section shall be assessed for the competitive transition assessment, 799
pursuant to section 16-245g, as amended by this act, [and the systems 800
benefits charge, pursuant to section 16-245l,] based on the amount of 801
electricity consumed by the customer from the facilities of the electric 802
distribution company without netting any electricity produced by the 803
customer. For purposes of this section, "residential customer" means a 804
customer of a single-family dwelling or multifamily dwelling consisting 805
of two to four units. The Public Utilities Regulatory Authority shall 806
establish a rate on a cents-per-kilowatt-hour basis for the electric 807
distribution company to purchase the electricity generated by a 808
customer pursuant to this section after December 31, 2041. 809
Sec. 22. Section 16-243v of the general statutes is repealed and the 810
following is substituted in lieu thereof (Effective July 1, 2025): 811
(a) For purposes of this section: (1) "Connecticut electric efficiency 812
partner program" means the coordinated effort among the Public 813
Utilities Regulatory Authority, persons and entities providing enhanced 814
demand-side management technologies, and electric consumers to 815
conserve electricity and reduce demand in Connecticut through the 816
purchase and deployment of energy efficient technologies; (2) 817
"enhanced demand-side management technologies" means demand-818
side management solutions, customer-side emergency dispatchable 819
generation resources, customer-side renewable energy generation, load 820
shifting technologies and conservation and load management 821
technologies that reduce electric distribution company customers' 822
electric demand, and high efficiency natural gas and oil boilers and 823
furnaces; and (3) "Connecticut electric efficiency partner" means an 824
electric distribution company customer who acquires an enhanced 825
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demand-side management technology or a person, other than an electric 826
distribution company, that provides enhanced demand -side 827
management technologies to electric distribution company customers. 828
(b) The Energy Conservation Management Board, in consultation 829
with the Renewable Energy Investments Advisory Committee, shall 830
evaluate and approve enhanced demand -side management 831
technologies that can be deployed by Connecticut electric efficiency 832
partners to reduce electric distribution company customers' electric 833
demand. Such evaluation shall include an examination of the potential 834
to reduce customers' demand, federally mandated congestion charges 835
and other electric costs. On or before October 15, 2007, the Energy 836
Conservation Management Board shall file such evaluation with the 837
Public Utilities Regulatory Authority for the authority to review and 838
approve or to review, modify and approve on or before October 15, 839
2007. 840
(c) Not later than October 15, 2007, the Energy Conservation 841
Management Board shall file with the authority for the authority to 842
review and approve or to review, modify and approve, an analysis of 843
the state's electric demand, peak electric demand and growth forecasts 844
for electric demand and peak electric demand. Such analysis shall 845
identify the principal drivers of electric demand and peak electric 846
demand, associated electric charges tied to electric demand and peak 847
electric demand growth, including, but not limited to, federally 848
mandated congestion charges and other electric costs, and any other 849
information the authority deems appropriate. The analysis shall 850
include, but not be limited to, an evaluation of the costs and benefits of 851
the enhanced demand-side management technologies approved 852
pursuant to subsection (b) of this section and establishing suggested 853
funding levels for said individual technologies. 854
(d) Commencing April 1, 2008, any person may apply to the authority 855
for certification and funding as a Connecticut electric efficiency partner. 856
Such application shall include the technologies that the applicant shall 857
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purchase or provide and that have been approved pursuant to 858
subsection (b) of this section. In evaluating the application, the authority 859
shall (1) consider the applicant's potential to reduce customers' electric 860
demand, including peak electric demand, and associated electric 861
charges tied to electric demand and peak electric demand growth, (2) 862
determine the portion of the total cost of each project that shall be paid 863
for by the customer participating in this program and the portion of the 864
total cost of each project that shall be paid for by all electric ratepayers 865
and collected pursuant to subsection (h) of this section. In making such 866
determination, the authority shall ensure that all ratepayer investments 867
maintain a minimum two-to-one payback ratio, and (3) specify that 868
participating Connecticut electric efficiency partners shall maintain the 869
technology for a period sufficient to achieve such investment payback 870
ratio. The annual ratepayer contribution for projects approved pursuant 871
to this section shall not exceed sixty million dollars. Not less than 872
seventy-five per cent of such annual ratepayer investment shall be used 873
for the technologies themselves. No person shall receive electric 874
ratepayer funding pursuant to this subsection if such person has 875
received or is receiving funding from the Conservation and Load 876
Management Plan for the projects included in said person's application. 877
No person shall receive electric ratepayer funding without receiving a 878
certificate of public convenience and necessity as a Connecticut electric 879
efficiency partner by the authority. The authority may grant an 880
applicant a certificate of public convenience if it possesses and 881
demonstrates adequate financial resources, managerial ability and 882
technical competency. The authority may conduct additional requests 883
for proposals from time to time as it deems appropriate. The authority 884
shall specify the manner in which a Connecticut electric efficiency 885
partner shall address measures of effectiveness and shall include 886
performance milestones. 887
(e) Beginning February 1, 2010, a certified Connecticut electric 888
efficiency partner may only receive funding if selected in a request for 889
proposal developed, issued and evaluated by the authority. In 890
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evaluating a proposal, the authority shall take into consideration the 891
potential to reduce customers' electric demand including peak electric 892
demand, and associated electric charges tied to electric demand and 893
peak electric demand growth, including, but not limited to, federally 894
mandated congestion charges and other electric costs, and shall utilize 895
a cost benefit test established pursuant to subsection (c) of this section 896
to rank responses for selection. The authority shall determine the 897
portion of the total cost of each project that shall be paid by the customer 898
participating in this program and the portion of the total cost of each 899
project that shall be paid by all electric ratepayers and collected 900
pursuant to the provisions of this subsection. In making such 901
determination, the authority shall (1) ensure that all ratepayer 902
investments maintain a minimum two-to-one payback ratio, and (2) 903
specify that participating Connecticut electric efficiency partners shall 904
maintain the technology for a period sufficient to achieve such 905
investment payback ratio. The annual ratepayer contribution shall not 906
exceed sixty million dollars. Not less than seventy-five per cent of such 907
annual ratepayer investment shall be used for the technologies 908
themselves. No Connecticut electric efficiency partner shall receive 909
funding pursuant to this subsection if such partner has received or is 910
receiving funding from the Conservation and Load Management Plan 911
for such technology. The authority may conduct additional requests for 912
proposals from time to time as it deems appropriate. The authority shall 913
specify the manner in which a Connecticut electric efficiency partner 914
shall address measures of effectiveness and shall include performance 915
milestones. 916
(f) The authority may retain the services of a third party entity with 917
expertise in areas such as demand-side management solutions, 918
customer-side renewable energy generation, customer-side distributed 919
generation resources, customer-side emergency dispatchable 920
generation resources, load shifting technologies and conservation and 921
load management investments to assist in the development and 922
operation of the Connecticut electric efficiency partner program. The 923
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costs for obtaining third party services pursuant to this subsection shall 924
be recoverable [through the systems benefits charge] from the Green 925
Bond Fund established under section 16-245l, as amended by this act. 926
(g) The authority shall develop a long-term low-interest loan 927
program to assist certified Connecticut electric efficiency partners in 928
financing the customer portion of the capital costs of approved 929
enhanced demand-side management technologies. The authority may 930
establish such financing mechanism by the use of one or more of the 931
following strategies: (1) Modifying the existing long-term customer-side 932
distributed generation financing mechanism established pursuant to 933
section 16-243j, (2) negotiating and entering into an agreement with 934
Connecticut Innovations, Incorporated to establish a credit facility or to 935
utilize grants, loans or loan guarantees for the purposes of this section 936
upon such terms and conditions as Connecticut Innovations, 937
Incorporated may prescribe including provisions regarding the rights 938
and remedies available to Connecticut Innovations, Incorporated in case 939
of default, or (3) selecting by competitive bid one or more entities that 940
can provide such long-term financing. 941
(h) The authority shall provide for the payment of electric ratepayers' 942
portion of the costs of deploying enhanced demand-side management 943
technologies by implementing a contractual financing agreement with 944
Connecticut Innovations, Incorporated or a private financing entity 945
selected through an appropriate open competitive selection process. No 946
contractual financing agreements entered into with Connecticut 947
Innovations, Incorporated shall exceed ten million dollars. Any electric 948
ratepayer costs resulting from such financing agreement shall be 949
[recovered from all electric ratepayers through the systems benefits 950
charge] paid from the Green Bond Fund established under section 16-951
245l, as amended by this act. 952
(i) On or before February 15, 2009, and annually thereafter, the 953
authority shall report to the joint standing committee of the General 954
Assembly having cognizance of matters relating to energy regarding the 955
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effectiveness of the Connecticut electric efficiency partner program 956
established pursuant to this section. Said report shall include, but not be 957
limited to, an accounting of all benefits and costs to ratepayers, a 958
description of the approved technologies, the payback ratio of all 959
investments, the number of programs deployed and a list of proposed 960
projects compared to approved projects and reasons for not being 961
approved. 962
(j) On or before April 1, 2011, the Public Utilities Regulatory 963
Authority shall initiate a proceeding to review the effectiveness of the 964
program and perform a ratepayer cost-benefit analysis. Based upon the 965
authority's findings in the proceeding, the authority may modify or 966
discontinue the partnership program established pursuant to this 967
section. 968
(k) (1) As used in this section: 969
(A) "Residential retail end use customer" means any electric, gas or 970
heating fuel customer, regardless of heating source, who wishes to 971
replace heating furnace or boiler equipment, or purchase either an 972
underground or above ground propane fuel tank, including, but not 973
limited to, a propane fuel tank that the residential retail end use 974
customer leases, provided a residential retail end use customer (i) shall 975
be a customer of an electric distribution company, and (ii) shall not 976
include a customer who occupies leased premises or who does not own 977
the premises on which the replacement heating furnace or boiler 978
equipment is located or on which the underground or above ground 979
propane tank to be purchased is located or will be located; 980
(B) "Heating furnace or boiler equipment" means the primary heating 981
equipment for space and hot water needs, along with the ancillary 982
piping, pumps, duct work and associated other equipment that may be 983
required as part of the replacement of a heating furnace or boiler; 984
(C) "Furnace or boiler replacement and propane fuel tank purchase 985
funds" means any funds approved by the third-party administrator 986
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pursuant to this subsection, provided (i) such funds may be used for the 987
loan principal in an amount not to exceed fifteen thousand dollars, 988
excluding interest expense associated with such loan and the expense 989
for any loan default, and (ii) participating residential retail end use 990
customers may be charged interest on the loan principal in an amount 991
not to exceed three per cent, based on income eligibility as determined 992
by the third-party administrator; 993
(D) "Electric distribution company" and "gas company" have the 994
same meanings as provided in section 16-1, as amended by this act; 995
(E) "Propane fuel tank" means a tank used to store propane fuel that 996
is used in connection with residential heating of space, hot water needs, 997
operation of an emergency generator for such space or the performance 998
of indoor installed-appliance-based cooking in such space. 999
(2) Not later than September 1, 2013, the electric distribution and gas 1000
companies shall develop a residential furnace or boiler replacement and 1001
propane fuel tank purchase program funded by the [systems benefits 1002
charge] Green Bond Fund established pursuant to section 16-245l, as 1003
amended by this act, in a manner that minimizes the impact on 1004
ratepayers. Said program shall be reviewed and approved or modified 1005
by the Department of Energy and Environmental Protection, in 1006
consultation with the Energy Conservation Management Board, within 1007
sixty days of receipt of the plan for said program. Said program shall 1008
include a contract for retention of a third-party administrator to become 1009
effective upon approval of the program by the department. Said 1010
program shall continue until the end of the eleventh year of the 1011
program. On or before January 1, 2014, the electric distribution and gas 1012
companies shall retain the services of a third-party administrator with 1013
expertise in developing, implementing and administering residential 1014
lending programs, including credit evaluation, to provide financing for 1015
improvement projects by property owners, loan servicing and program 1016
administration. The third-party administrator shall, in conjunction with 1017
the electric distribution companies and gas companies, develop the 1018
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program. On and after December 29, 2015, said program shall be 1019
amended to provide such residential lending to residential retail end use 1020
customers who seek to purchase either an underground or above 1021
ground propane fuel tank, including, but not limited to, a propane fuel 1022
tank that the residential retail end use customer leases. 1023
(3) The third-party administrator shall be responsible for extending 1024
loans and administering the residential furnace or boiler replacement 1025
and propane fuel tank purchase program to assist residential retail end 1026
use customers in funding heating furnace or boiler equipment 1027
replacements and propane fuel tank purchases that meet all of the 1028
program requirements. (A) For heating furnace or boiler equipment 1029
replacements, the program requirements shall include, but not be 1030
limited to, (i) the total projected direct cost savings to the eligible 1031
residential retail end use customer resulting from the heating furnace or 1032
boiler replacement, calculated on an annual basis commencing from the 1033
month that the replacement furnace or boiler is projected to be in 1034
service, shall be greater than the total cost of the replacement funds over 1035
the term of the program in order to qualify for the program, (ii) the 1036
eligible customer shall pay a contribution of not less than ten per cent of 1037
the total cost of the replacement or conversion of the heating furnace or 1038
boiler and any additional amounts that are required in order to meet the 1039
program requirements, (iii) eligible customers shall have six consecutive 1040
months of timely utility payments and shall not have any past due 1041
balance owed to any electric distribution company or gas company, (iv) 1042
the term of the repayment of the replacement funds shall be the lesser 1043
of (I) the simple payback period of the replacement funds plus two 1044
years, or (II) ten years, and (v) the replacement furnace or boiler shall 1045
meet or exceed federal Energy Star standards. (B) For propane fuel tank 1046
purchases, the program requirements shall include, but not be limited 1047
to, (i) eligible customers shall have six consecutive months of timely 1048
utility payments and shall not have any past due balance owed to any 1049
electric distribution company, propane seller or gas company, (ii) the 1050
term of the repayment of the replacement funds shall be not longer than 1051
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ten years, and (iii) the loan recipient shall have such propane tank 1052
inspected on an annual basis and forward a certificate of inspection to 1053
the third-party administrator. In the event that such propane tank is 1054
found to need repair as a result of such inspection, any person 1055
performing such inspection shall inform the homeowner and the 1056
applicable local fire marshal. If the requisite repair is not made in a 1057
timely fashion or as otherwise recommended or ordered by the local fire 1058
marshal, said fire marshal shall render such propane tank inoperable. 1059
Eligible residential retail end use customers may apply to the third-1060
party administrator for participation in the program. The third-party 1061
administrator shall screen each applicant to ensure that the applicant 1062
meets the eligibility requirements and such program requirements prior 1063
to accepting the customer into the program. The third -party 1064
administrator shall create awareness of the propane fuel tank purchase 1065
provisions of the program by the general public and, in particular, by 1066
residential propane purchasers. 1067
(4) Program participants shall repay the furnace or boiler 1068
replacement and propane fuel tank purchase funds through a monthly 1069
charge on the customer's residential electric or gas utility bill, provided 1070
heating fuel customers shall be able to repay such replacement and 1071
propane fuel tank purchase funds through a monthly charge on such 1072
customer's electric or gas utility bill. Furnace or boiler replacement and 1073
propane fuel tank purchase funds provided shall be reflected on the 1074
residential retail end use customer's electric service or gas account, as 1075
applicable, for the premises on which the replacement heating furnace 1076
or boiler equipment or propane fuel tank is located. If the premises are 1077
sold, the amount of replacement or propane fuel tank purchase funds 1078
remaining to be repaid shall be transferred to subsequent service 1079
account holders at such premises, who may become program 1080
participants for purposes of the repayment obligation, unless the seller 1081
and buyer agree that the loan will not be transferred. 1082
(5) Furnace or boiler replacement and propane fuel tank purchase 1083
funds shall be recovered [through the systems benefits charge of the 1084
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respective electric distribution company where the heating furnace or 1085
boiler equipment or propane tank is located] from the Green Bond Fund 1086
established under section 16-245l, as amended by this act. Any program 1087
costs incurred by the third-party administrator or the propane or gas 1088
company and funds not repaid by customers who default on their 1089
repayment obligations and other costs associated with the program or 1090
customers' failure to repay replacement or propane fuel tank purchase 1091
funds to the third-party administrator shall be recovered [through the 1092
systems benefits charge] from the fund. All administrative and capital 1093
carrying costs of the electric distribution companies associated with the 1094
program shall be recovered by the companies through a reconciling 1095
component [, such as the systems benefits charge as] approved by the 1096
Public Utilities Regulatory Authority. 1097
(6) On or before January 1, 2016, and on or before January 1, 2018, the 1098
Department of Energy and Environmental Protection and the Energy 1099
Conservation Management Board shall engage an independent third 1100
party to evaluate and submit a report, in accordance with section 11-4a, 1101
to the joint standing committees of the General Assembly having 1102
cognizance of matters relating to energy and finance, revenue and 1103
bonding on the status of the program. Such report shall also include an 1104
evaluation of the program developed pursuant to section 16a-40m. The 1105
report shall include, but not be limited to, for each program, a review of 1106
(A) cost effectiveness of the program, (B) number of customers served 1107
and potential for growth, (C) the customer classes served, and (D) the 1108
fuel type of the financed equipment. 1109
(7) The third-party administrator shall be entitled to take all available 1110
legal action as may be necessary to secure the furnace or boiler 1111
replacement and propane fuel tank purchase funds and repayment of 1112
the funds, including, but not limited to, attaching liens and requiring 1113
filings to be made on applicable land records or as otherwise necessary 1114
or required. 1115
Sec. 23. Subsection (e) of section 16-245c of the general statutes is 1116
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repealed and the following is substituted in lieu thereof (Effective July 1, 1117
2025): 1118
(e) Any municipal electric utility created on or after July 1, 1998, 1119
pursuant to section 7-214 or a special act and any municipal electric 1120
utility that expands its service area on or after July 1, 1998, shall collect 1121
from its new customers the competitive transition assessment imposed 1122
pursuant to section 16-245g, as amended by this act, [the systems 1123
benefits charge imposed pursuant to section 16-245l, three mills per 1124
kilowatt hour of electricity sold for the conservation adjustment 1125
mechanisms described in section 16-245m, and the assessments charged 1126
under section 16-245n] in such manner and at such rate as the authority 1127
prescribes, provided the authority shall order the collection of said 1128
assessment [and said charge] in a manner and rate equal to that to which 1129
the customers would have been subject had the municipal electric utility 1130
not been created or expanded. 1131
Sec. 24. Subdivision (3) of subsection (h) of section 16-245e of the 1132
general statutes is repealed and the following is substituted in lieu 1133
thereof (Effective July 1, 2025): 1134
(3) The authority shall calculate the stranded costs for each 1135
nondivested nuclear generation asset described in subdivision (1) of 1136
subsection (d) of section 16-244g to be the difference between its book 1137
value and the market value of a prudently and efficiently managed 1138
nuclear generating facility of comparable size, age and technical 1139
characteristics in a competitive market. In determining the market value 1140
of any such asset, the authority may consider (A) the dollars per kilowatt 1141
received from the sale of similar generation facilities, if any, (B) income 1142
capitalization based on the operating history and capacity of the facility, 1143
the market rates for power, and any existing long-term contracts for the 1144
sale of power or capacity, (C) the provision for decommissioning and 1145
related costs to be paid from the [systems benefits charge] Green Bond 1146
Fund as provided in section 16-245l, as amended by this act, (D) 1147
independent market appraisals, or (E) other relevant factors. At least 1148
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every four years after the date when the authority issues an initial 1149
finding of the calculation of the stranded costs for such nondivested 1150
nuclear generation assets as provided in this subdivision until the earlier 1151
of (i) the expiration of the collection of the competitive transition 1152
assessment, or (ii) the date when such an asset is divested, the authority 1153
shall hold a hearing and issue a finding to adjust the stranded cost 1154
calculation of each such asset and to adjust the competitive transition 1155
assessment accordingly to true up the stranded cost recovery for the 1156
difference between the market value projected in such initial finding 1157
and the actual market value of a prudently and efficiently managed 1158
nuclear generating facility of comparable size, age and technical 1159
characteristics during the time period between the initial finding and 1160
the adjustment date, provided the second and subsequent adjustments 1161
shall reflect the difference during the time period since the most recent 1162
true-up. The authority shall calculate the value of each such asset in 1163
accordance with the methodology provided in this subdivision. Any 1164
hearing shall be conducted as a contested case in accordance with 1165
chapter 54. 1166
Sec. 25. Subdivision (3) of subsection (h) of section 16-245o of the 1167
general statutes is repealed and the following is substituted in lieu 1168
thereof (Effective July 1, 2025): 1169
(3) No electric supplier, aggregator or agent of an electric supplier or 1170
aggregator shall (A) advertise or disclose the price of electricity to 1171
mislead a reasonable person into believing that the electric generation 1172
services portion of the bill will be the total bill amount for the delivery 1173
of electricity to the customer's location, or (B) make any statement, oral 1174
or written, suggesting a prospective customer is required to choose a 1175
supplier. When advertising or disclosing the price for electricity, the 1176
electric supplier, aggregator or agent of an electric supplier or 1177
aggregator shall (i) disclose the electric distribution company's current 1178
charges, including the competitive transition assessment, [and the 1179
systems benefits charge,] for that customer class, and (ii) indicate, using 1180
at least a ten-point font size, in a conspicuous part of any advertisement 1181
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or disclosure that includes an advertised price, (I) the expiration of such 1182
advertised price, and (II) any fixed or recurring charge, including, but 1183
not limited to, any minimum monthly charge. 1184
Sec. 26. Subsections (b) to (d), inclusive, of section 16-245w of the 1185
general statutes are repealed and the following is substituted in lieu 1186
thereof (Effective July 1, 2025): 1187
(b) The Public Utilities Regulatory Authority shall design a process 1188
for determining a fee to be paid by customers who have installed self-1189
generation facilities in order to offset any loss or potential loss in 1190
revenue from such facilities toward the competitive transition 1191
assessment. [, the systems benefits charge, the conservation adjustment 1192
mechanisms collected under section 16-245m and the Clean Energy 1193
Fund assessment collected under section 16-245n.] Except as provided 1194
in subsection (c) of this section, such fee shall apply to customers who 1195
have installed self-generation facilities that begin operation on or after 1196
July 1, 1998. 1197
(c) An exit fee shall not apply to a customer who has installed a self-1198
generation facility that (1) exclusively services the load of one to four 1199
residential units, or (2) is installed in conjunction with the expansion of 1200
an industrial plant that began operation before July 1, 1998, if the self-1201
generation facility predominantly services such industrial plant and the 1202
expansion of said industrial plant results in economic development, as 1203
determined by the authority. The exemption under subdivision (2) of 1204
this subsection shall only apply to the amount of any new load provided 1205
by the self-generation facility to service the expansion. 1206
(d) The authority shall develop criteria for excluding units based on 1207
size or specialized use, balancing concerns of the potential impact on 1208
small businesses, equity among customer classes, and the need to offset 1209
losses to the competitive transition assessment. [and the systems 1210
benefits charge.] The authority shall establish procedures for 1211
distinguishing between existing load and new load for purposes of self-1212
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generation facilities described in subdivision (2) of subsection (c) of this 1213
section. The authority shall determine how to identify self-generation 1214
facilities, such as through a registration process, and how to enforce the 1215
collection of such fees. The authority shall establish criteria to determine 1216
how such fee shall be valued and the process for its collection, which 1217
shall include the ability of self-generation facilities to pay the fee over a 1218
period of time. 1219
Sec. 27. Subsection (f) of section 16-262c of the general statutes is 1220
repealed and the following is substituted in lieu thereof (Effective July 1, 1221
2025): 1222
(f) If an electric supplier suffers a loss of revenue by operation of this 1223
section, the supplier may make a claim for such revenue to the authority. 1224
The electric distribution company shall reimburse the electric supplier 1225
for such losses found to be reasonable by the authority at the lower of 1226
(1) the price of the contract between the supplier and the customer, or 1227
(2) the electric distribution company's price to customers for default 1228
service, as determined by the authority. The electric distribution 1229
company may recover such reimbursement, along with transaction 1230
costs, [through the systems benefits charge] from the Green Bond Fund 1231
established under section 16-245l, as amended by this act. 1232
Sec. 28. Subsection (b) of section 16a-38l of the general statutes is 1233
repealed and the following is substituted in lieu thereof (Effective July 1, 1234
2025): 1235
(b) Any savings achieved through the implementation of said plan 1236
shall be allocated as follows: (1) Seventy-five per cent shall be retained 1237
by electric ratepayers, and (2) twenty-five per cent shall be divided 1238
equally between (A) reinvestment into energy efficiency programs in 1239
state buildings, and (B) investment into energy efficiency programs and 1240
technologies on behalf of participants of energy assistance programs 1241
administered by the Department of Social Services. Any reinvestments 1242
or investments made in programs pursuant to this section shall be paid 1243
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[through the systems benefits charge] from the Green Bond Fund 1244
established under section 16-245l, as amended by this act. 1245
Sec. 29. Subsection (b) of section 33-219 of the general statutes is 1246
repealed and the following is substituted in lieu thereof (Effective July 1, 1247
2025): 1248
(b) Notwithstanding the provisions of subsection (a) of this section, 1249
cooperative, nonprofit, membership corporations may be organized 1250
under this chapter for the purpose of generating electric energy by 1251
means of cogeneration technology, renewable energy resources or both 1252
and supplying it to any member or supplying it to, purchasing it from 1253
or exchanging it with a public service company, electric supplier, as 1254
defined in section 16-1, as amended by this act, municipal aggregator, 1255
as defined in said section, municipal utility or municipal electric energy 1256
cooperative, in accordance with an agreement with the company, 1257
electric supplier, electric aggregator, municipal utility or cooperative. 1258
No membership corporation under this subsection may exercise those 1259
powers contained in subsection (i) or (j) of section 33-221 unless the prior 1260
approval of the Public Utilities Regulatory Authority is obtained, after 1261
opportunity for hearing in accordance with title 16 and chapter 54. Any 1262
cooperative organized on or after July 1, 1998, pursuant to this 1263
subsection shall collect from its members the competitive transition 1264
assessment levied pursuant to section 16-245g, as amended by this act, 1265
[and the systems benefits charge levied pursuant to section 16-245l] in 1266
such manner and at such rate as the Public Utilities Regulatory 1267
Authority prescribes, provided the authority shall order the collection 1268
of said assessment and said charge in a manner and rate equal to that to 1269
which the members of the cooperative would have been subject had the 1270
cooperative not been organized. 1271
Sec. 30. Subdivision (3) of subsection (e) of section 16a-3m of the 1272
general statutes is repealed and the following is substituted in lieu 1273
thereof (Effective July 1, 2025): 1274
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(3) Any agreement entered into pursuant to subdivision (2) of this 1275
subsection shall be subject to review and approval by the Public Utilities 1276
Regulatory Authority. The electric distribution company shall file an 1277
application for the approval of any such agreement with the authority. 1278
The authority's review shall commence upon the filing of the signed 1279
power purchase agreement with the authority. The authority shall 1280
approve agreements that it determines (A) provide for the delivery of 1281
adequate and reliable products and services, for which there is a clear 1282
public need, at a just and reasonable price, (B) are prudent and cost 1283
effective, and (C) that the respondent to the solicitation has the technical, 1284
financial and managerial capabilities to perform pursuant to such 1285
agreement. For any eligible nuclear power generating facility selected in 1286
any solicitation described in subsection (g) of this section, the authority 1287
shall require any such agreement to be conditioned upon the approval 1288
of such a power purchase agreement or other agreement for energy, 1289
capacity and any environmental attributes, or any combination thereof, 1290
with such eligible nuclear power generating facility, in at least two other 1291
states, by the applicable officials of such states or by electric utilities or 1292
other entities designated by the applicable officials of such states. The 1293
authority shall issue a decision not later than one hundred eighty days 1294
after such filing. If the authority does not issue a decision within one 1295
hundred eighty days after such filing, the agreement shall be deemed 1296
approved. The net costs of any such agreement, including costs incurred 1297
by the electric distribution company under the agreement and 1298
reasonable costs incurred by the electric distribution company in 1299
connection with the agreement, shall be [recovered on a timely basis 1300
through a nonbypassable fully reconciling component of electric rates 1301
for all customers of the electric distribution company] paid from the 1302
Green Bond Fund established pursuant to section 16-245l, as amended 1303
by this act. Any net revenues from the sale of products purchased in 1304
accordance with long-term contracts entered into pursuant to this 1305
subsection shall be credited to [customers through the same 1306
nonbypassable fully reconciling rate component for all customers of the 1307
contracting electric distribution company] said fund. 1308
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Sec. 31. Subdivision (2) of subsection (c) of section 12-264 of the 1309
general statutes is repealed and the following is substituted in lieu 1310
thereof (Effective July 1, 2025): 1311
(2) For purposes of this subsection, gross earnings from providing 1312
electric transmission services or electric distribution services shall 1313
include (A) all income classified as income from providing electric 1314
transmission services or electric distribution services, as determined by 1315
the Commissioner of Revenue Services in consultation with the Public 1316
Utilities Regulatory Authority, and (B) the competitive transition 1317
assessment collected pursuant to section 16-245g, as amended by this 1318
act, other than any component of such assessment that constitutes 1319
transition property as to which an electric distribution company has no 1320
right, title or interest pursuant to subsection (a) of section 16-245h, as 1321
amended by this act. [, the systems benefits charge collected pursuant to 1322
section 16-245l, the conservation adjustment mechanisms charged 1323
under section 16-245m, and the assessments charged under section 16-1324
245n.] Such gross earnings shall not include income from providing 1325
electric transmission services or electric distribution services to a 1326
company described in subsection (c) of section 12-265. 1327
Sec. 32. Section 16-243n of the general statutes is repealed and the 1328
following is substituted in lieu thereof (Effective July 1, 2025): 1329
(a) Not later than [October 1, 2005] July 1, 2026, each electric 1330
distribution company, as defined in section 16-1, as amended by this act, 1331
shall submit an application to the Public Utilities Regulatory Authority 1332
to [(1) on or before January 1, 2007,] implement time-of-use rates for (1) 1333
residential customers, [that have a maximum demand of not less than 1334
three hundred fifty kilowatts that may include, but not be limited to, 1335
mandatory peak, shoulder and off-peak time-of-use rates, and (2) on or 1336
before June 1, 2006, offer optional interruptible or load response rates 1337
for customers that have a maximum demand of not less than three 1338
hundred fifty kilowatts and offer optional seasonal and time-of-use 1339
rates for all customers. The application shall propose to establish time-1340
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of-use rates through a procurement plan, revenue neutral adjustments 1341
to delivery rates, or both] and (2) commercial and industrial customers. 1342
(b) [Not later than November 1, 2005, each electric distribution 1343
company shall submit an application to the Public Utilities Regulatory 1344
Authority to implement mandatory seasonal rates for all customers 1345
beginning April 1, 2007.] (1) Transmission and distribution time-of-use 1346
rates submitted pursuant to subsection (a) of this section shall provide 1347
for fixed rates across twenty-four-hour cycles based on projected 1348
seasonal demand that include on-peak rates for the period between the 1349
hours of four o'clock p.m. and seven o'clock p.m. each weekday. Such 1350
peak rates shall be not less than three hundred per cent higher than rates 1351
for off-peak hours. Such time-of-use rates shall be based on revenue 1352
recovery for hourly kilowatt sales and shall not include any demand 1353
charge for any rate tariff. 1354
(2) Each application shall propose to establish (A) such time-of-use 1355
rates through an approved revenue recovery mechanism for 1356
transmission and distribution rates, and (B) a monthly revenue 1357
reconciliation mechanism whereby any revenue undercollected or 1358
overcollected through such time-of-use rates is recovered or refunded, 1359
as appropriate, through a subsequent billing reconciliation adjustment. 1360
Such adjustment shall adhere to an approved recovery mechanism that 1361
adds or deducts from the hourly time-of-use base rates. 1362
(c) The authority shall hold a hearing that shall be conducted as a 1363
contested case, in accordance with the provisions of chapter 54, to 1364
approve, reject or modify applications submitted pursuant to subsection 1365
(a) [or (b)] of this section. No application for time-of-use rates shall be 1366
approved by the authority unless (1) such rates reasonably reflect the 1367
cost of service during their respective time-of-use periods, [and] (2) the 1368
Connecticut Energy Procurement Authority has provided an 1369
assessment or recommendations concerning such rates, (3) the costs 1370
associated with implementation, the impact on customers and benefits 1371
to the utility system justify implementation of such rates, and [(3)] (4) 1372
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such rates alter patterns of customer consumption of electricity without 1373
undue adverse effect on the customer. 1374
(d) Each electric distribution company shall assist customers to help 1375
manage loads and reduce peak consumption through the 1376
comprehensive plan developed pursuant to section 16-245m, as 1377
amended by this act. 1378
Sec. 33. Subsections (a) and (b) of section 16-19f of the general statutes 1379
are repealed and the following is substituted in lieu thereof (Effective July 1380
1, 2025): 1381
(a) As used in this section and section 16-243n, as amended by this 1382
act: 1383
(1) "Cost of service" means an electric utility rate for a class of 1384
consumer which is designed, to the maximum extent practicable, to 1385
reflect the cost to the utility in providing electric service to such class; 1386
(2) "Declining block rate" means an electric utility rate for a class of 1387
consumer which prices successive blocks of electricity consumed by 1388
such consumer at lower per-unit prices; 1389
(3) ["Time of day rate"] "Time-of-use rate" means an electric utility 1390
rate for a class of consumer [which] that is designed to (A) reflect the 1391
cost to the utility of providing electricity to such consumer at different 1392
times of the day, and (B) create adequate price elasticity that incentivizes 1393
targeted electric load growth and system efficiency; 1394
[(4) "Seasonal rate" means an electric utility rate for a class of 1395
consumer designed to reflect the cost to the utility in providing 1396
electricity to such consumer during different seasons of the year; 1397
(5) "Electric vehicle time of day rate" means an electric utility rate for 1398
a class of consumer designed to reflect the cost to the utility of providing 1399
electricity to such consumer charging an electric vehicle at an electric 1400
vehicle charging station at different times of the day, but shall not 1401
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include demand charges;] 1402
[(6)] (4) "Electric vehicle charging station" means an electric 1403
component assembly or cluster of component assemblies designed 1404
specifically to charge batteries within electric vehicles by permitting the 1405
transfer of electric energy to a battery or other storage device in an 1406
electric vehicle; 1407
[(7)] (5) "Public electric vehicle charging station" means an electric 1408
vehicle charging station located at a publicly available parking space; 1409
[(8)] (6) "Publicly available parking space" means a parking space that 1410
has been designated by a property owner or lessee to be available to, 1411
and accessible by, the public and may include on-street parking spaces 1412
and parking spaces in surface lots or parking garages, but shall not 1413
include: (A) A parking space that is part of, or associated with, a private 1414
residence; (B) a parking space that is reserved for the exclusive use of an 1415
individual driver or vehicle or for a group of drivers or vehicles, such as 1416
employees, tenants, visitors, residents of a common interest 1417
development, or residents of an adjacent building; or (C) a parking 1418
space reserved for persons who are blind and persons with disabilities 1419
as described in section 14-253a; 1420
[(9) "Interruptible rate" means an electric utility rate designed to 1421
reflect the cost to the utility in providing service to a consumer where 1422
such consumer permits his service to be interrupted during periods of 1423
peak electrical demand; and] 1424
[(10)] (7) "Load management techniques" means cost-effective 1425
techniques used by an electric utility to reduce the maximum kilowatt 1426
demand on the utility; and 1427
(8) "On-peak" means the period between the hours of four o'clock 1428
p.m. and seven o'clock p.m. each weekday. 1429
(b) [The] Not later than October 1, 2026, the Public Utilities 1430
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Regulatory Authority shall, with respect to each electric public service 1431
company, [shall (1) within two years, consider and determine whether 1432
it is appropriate to implement any of the following rate design 1433
standards: (A) Cost of service; (B) prohibition of declining block rates; 1434
(C) time of day rates; (D) seasonal rates; (E) interruptible rates; and (F) 1435
load management techniques, and (2) not later than June 1, 2017, 1436
consider and determine whether it is appropriate to implement electric 1437
vehicle time of day rates] implement time-of-use hourly rates for 1438
residential and commercial customers. The consideration of said 1439
standards by the authority shall be made after public notice and hearing. 1440
Such hearing may be held concurrently with a hearing required 1441
pursuant to subsection (b) of section 16-19e. The authority shall make a 1442
determination on whether it is appropriate to implement any of said 1443
standards. Said determination shall be in writing, shall take into 1444
consideration the evidence presented at the hearing and shall be 1445
available to the public. A standard shall be deemed to be appropriate 1446
for implementation if such implementation would encourage energy 1447
conservation, optimal and efficient use of facilities and resources by an 1448
electric public service company and equitable rates for electric 1449
consumers approved by the authority. If the authority does not approve 1450
such rates on or before October 1, 2026, the time-of-use-hourly rates 1451
submitted to the authority by the Connecticut Energy Procurement 1452
Authority pursuant to section 4 of this act shall be deemed approved. 1453
Sec. 34. Section 16-243w of the general statutes is repealed and the 1454
following is substituted in lieu thereof (Effective July 1, 2025): 1455
(a) On or before [July 1, 2007] January 1, 2026, each electric 1456
distribution company shall submit a plan to the Public Utilities 1457
Regulatory Authority to deploy an advanced metering system. [In lieu 1458
of submitting a plan pursuant to this section, an electric distribution 1459
company may seek a determination by the authority that] If such 1460
company's existing metering system meets the requirements of this 1461
section, such company shall use such existing metering system. Such 1462
metering systems shall support net metering and be capable of tracking 1463
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hourly consumption to support proactive customer pricing signals 1464
through innovative time-of-use rate design [, such as time-of-day or 1465
real-time pricing of electric service for all customer classes] as described 1466
in section 16-243n, as amended by this act. 1467
(b) Each plan to implement an advanced metering system 1468
developedPle pursuant to subsection (a) of this section shall outline an 1469
implementation schedule whereby meters and any network necessary 1470
to support such meters are fully deployed on or before January 1, [2009. 1471
On] 2027, provided on or after January 1, [2009] 2027, any customer may 1472
obtain a meter on demand. 1473
(c) The cost of the advanced metering system, including, but not 1474
limited to, the meters, the network to support the meters, software and 1475
vendor costs to obtain the required information from the metering 1476
system and administrative, installation, operation maintenance costs, 1477
shall be borne by the electric distribution company and shall be 1478
recoverable in rates if the Connecticut Energy Procurement Authority 1479
has certified such company's compliance with the requirements of the 1480
customer education and engagement program pursuant to section 8 of 1481
this act. Any unrecovered cost of the current metering system shall 1482
continue to be reflected in rates. 1483
(d) Not later than [six months after June 4, 2007] January 1, 2028, 1484
electric distribution companies, competitive electric suppliers and 1485
aggregators shall offer time-of-use pricing options to all customer 1486
classes. These pricing options shall include, but not be limited to, hourly 1487
and real-time pricing options. 1488
Sec. 35. (NEW) (Effective July 1, 2025) (a) There is established a fund 1489
to be known as the "Energy Infrastructure Transition Fund". The fund 1490
shall be administered by the Connecticut Energy Procurement 1491
Authority for the purpose of supporting the adoption of smart meter 1492
infrastructure and electric billing system upgrades, electric vehicle 1493
infrastructure adoption, distribution system and substation upgrades, 1494
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efforts to increase the electrification of heating and cooling systems, and 1495
the deployment of battery storage technologies located behind customer 1496
electric meters in the state. 1497
(b) Not later than December 1, 2025, and every three years thereafter, 1498
each electric distribution company, as defined in section 16-1 of the 1499
general statutes, as amended by this act, shall submit to the authority an 1500
energy infrastructure transition plan, in accordance with the provisions 1501
of this section, to implement smart metering programs and 1502
infrastructure upgrades, load settlement and billing system upgrades, 1503
distribution system updates and load factor optimization investments. 1504
The authorities shall advise and assist the electric distribution 1505
companies in the development of such plan. 1506
(c) Programs included in the plan developed and submitted pursuant 1507
to subsection (b) of this section may include, but not be limited to: 1508
(1) Advanced metering infrastructure to support the collection, 1509
storage and utilization of hourly interval usage data from customer 1510
electricity consumption for the purpose of procuring, settlement and 1511
billing of time-of-use electric rates; 1512
(2) Billing system upgrades that allow an electric distribution 1513
company to incorporate time-of-use rates and accurately bill end use 1514
customers according to such rates on a monthly basis, provided each 1515
electric distribution company shall publish detailed hourly usage by 1516
each such customer and prices on an Internet-based application that can 1517
be accessed by such customer; 1518
(3) Distribution system and substation infrastructure upgrades to 1519
improve or replace existing infrastructure to accommodate additional 1520
electric loads resulting from heat pump conversions, battery storage 1521
installations and electric vehicle charging infrastructure, provided such 1522
plan includes proposed performance metrics related to investments and 1523
load-growth metrics and plans to include such conversions, installations 1524
and infrastructure; 1525
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(4) Residential demand response solutions including (A) smart 1526
inverter controls whereby the output of solar photovoltaic systems is 1527
modulated by an electric distribution company based on electric system 1528
demand; (B) smart thermostats, water heaters or electric vehicle 1529
chargers that can shift or pause electricity usage to benefit customers 1530
based on time-of-use rates or to reduce electric system demand; and 1531
(5) Electric vehicle fleet battery dispatch technologies that allow 1532
electric vehicle fleets to dispatch energy stored by such vehicles back to 1533
the electric grid during times of peak electricity demand. 1534
(d) Any plan submitted pursuant to this section shall include a 1535
detailed budget sufficient to fund the programs described in such plan, 1536
in whole, in part, or in increments, as applicable, and be evaluated and 1537
selected within an integrated supply and demand planning framework 1538
developed by the authority. The authority shall, in an uncontested 1539
proceeding during which the authority shall hold a public meeting, 1540
approve, modify or reject any such plan. Following approval by the 1541
authority, the authority shall assist the companies in implementing such 1542
plan. Not later than sixty days after the approval of a plan under this 1543
section, the authority shall disburse payments to the electric distribution 1544
company in accordance with the approved plan. 1545
(e) In addition to the purposes set out in subsections (b) and (c) of this 1546
section, moneys from the fund may be used for the payment of any 1547
administrative and operational expenses incurred by the authority. 1548
(f) Each electric distribution company shall collect an energy 1549
infrastructure transition adjustment mechanism to capitalize the fund 1550
by collecting an amount equal to seven mills per kilowatt hour of 1551
electricity sold to each end use customer of an electric distribution 1552
company. Each electric distribution company shall remit the funds 1553
collected through such mechanism to the authority for deposit in the 1554
fund on a monthly basis. 1555
(g) The authority may negotiate and enter into an agreement with a 1556
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financial institution, as defined in section 36a-41 of the general statutes, 1557
whereby the funds collected, or projected to be collected, pursuant to 1558
subsection (f) of this section are pledged as security pursuant to a 1559
financial instrument or instruments under which the authority obtains 1560
operating capital for the purposes set forth in this section, provided the 1561
term of any such instrument or instruments shall not exceed twenty 1562
years. 1563
(h) The authority shall administer the funds in a manner designed to 1564
offset designated infrastructure investments made by electric 1565
distribution companies and approved recovery through rates by electric 1566
distribution companies for investments allowed under the fund. 1567
Sec. 36. Subdivision (1) of subsection (d) of section 16-245m of the 1568
general statutes is repealed and the following is substituted in lieu 1569
thereof (Effective July 1, 2025): 1570
(d) (1) Not later than November 1, 2012, and every three years 1571
thereafter, electric distribution companies, as defined in section 16-1, as 1572
amended by this act, in coordination with the gas companies, as defined 1573
in section 16-1, as amended by this act, shall submit to the Energy 1574
Conservation Management Board a combined electric and gas 1575
Conservation and Load Management Plan, in accordance with the 1576
provisions of this section, to implement cost-effective energy 1577
conservation programs, demand management and market 1578
transformation initiatives. All supply and conservation and load 1579
management options shall be evaluated and selected within an 1580
integrated supply and demand planning framework. Services provided 1581
under the plan shall be available to all customers of electric distribution 1582
companies and gas companies, provided a customer of an electric 1583
distribution company may not be denied such services based on the fuel 1584
such customer uses to heat such customer's home. The Energy 1585
Conservation Management Board shall advise and assist the electric 1586
distribution companies and gas companies in the development of such 1587
plan. The Energy Conservation Management Board shall approve the 1588
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plan before transmitting it to the Commissioner of Energy and 1589
Environmental Protection for approval. The commissioner shall, in an 1590
uncontested proceeding during which the commissioner may hold a 1591
public meeting, approve, modify or reject said plan prepared pursuant 1592
to this subsection. Following approval by the commissioner, the board 1593
shall assist the companies in implementing the plan and collaborate 1594
with the Connecticut Green Bank to further the goals of the plan. Said 1595
plan shall include a detailed budget sufficient to fund all energy 1596
efficiency that is cost-effective or lower cost than acquisition of 1597
equivalent supply, and shall be reviewed and approved by the 1598
commissioner. [The Public Utilities Regulatory Authority shall, not later 1599
than sixty days after the plan is approved by the commissioner, ensure 1600
that the balance of revenues required to fund such plan is provided 1601
through fully reconciling conservation adjustment mechanisms. Electric 1602
distribution companies shall collect a conservation adjustment 1603
mechanism that ensures the plan is fully funded by collecting an 1604
amount that is not more than the sum of six mills per kilowatt hour of 1605
electricity sold to each end use customer of an electric distribution 1606
company during the three years of any Conservation and Load 1607
Management Plan. The authority shall ensure that the revenues 1608
required to fund such plan with regard to gas companies are provided 1609
through a fully reconciling conservation adjustment mechanism for 1610
each gas company of not more than the equivalent of four and six-tenth 1611
cents per hundred cubic feet during the three years of any Conservation 1612
and Load Management Plan.] The costs of said plan shall be funded 1613
from the Green Bond Fund established pursuant to section 16-245l, as 1614
amended by this act. Said plan shall include steps that would be needed 1615
to achieve the goal of weatherization of eighty per cent of the state's 1616
residential units by 2030 and to reduce energy consumption by 1.6 1617
million MMBtu, or the equivalent megawatts of electricity, as defined in 1618
subdivision (4) of section 22a-197, annually each year for calendar years 1619
commencing on and after January 1, 2020, up to and including calendar 1620
year 2025. Each program contained in the plan shall be reviewed by such 1621
companies and accepted, modified or rejected by the Energy 1622
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Conservation Management Board prior to submission to the 1623
commissioner for approval. The Energy Conservation Management 1624
Board shall, as part of its review, examine opportunities to offer joint 1625
programs providing similar efficiency measures that save more than 1626
one fuel resource or otherwise to coordinate programs targeted at 1627
saving more than one fuel resource. Any costs for joint programs shall 1628
be allocated equitably among the conservation programs. The Energy 1629
Conservation Management Board shall give preference to projects that 1630
maximize the reduction of federally mandated congestion charges. 1631
Sec. 37. Subsection (b) of section 16-245n of the general statutes is 1632
repealed and the following is substituted in lieu thereof (Effective July 1, 1633
2025): 1634
(b) On and after July 1, [2004] 2025, the Public Utilities Regulatory 1635
Authority shall [assess or cause to be assessed a charge of not less than 1636
one mill per kilowatt hour charged to each end use customer of electric 1637
services in this state which shall be deposited] deposit into the Clean 1638
Energy Fund established under subsection (c) of this section funds from 1639
the Green Bond Fund established pursuant to section 16-245l, as 1640
amended by this act, that the authority determines are necessary for the 1641
operation of the Clean Energy Fund. 1642
Sec. 38. Section 16-245e of the general statutes is repealed and the 1643
following is substituted in lieu thereof (Effective July 1, 2025): 1644
(a) As used in this section, sections 16-245f to 16-245k, inclusive, as 1645
amended by this act, and section 16-245m, as amended by this act: 1646
(1) "Rate reduction bonds" means bonds, notes, certificates of 1647
participation or beneficial interest, or other [evidences] evidence of 1648
indebtedness or ownership, issued pursuant to an executed indenture 1649
or other agreement of a financing entity, in accordance with this section 1650
and sections 16-245f to 16-245k, inclusive, as amended by this act, the 1651
proceeds of which are used, directly or indirectly, to provide, recover, 1652
finance, or refinance stranded costs, storm costs or economic recovery 1653
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transfer, or to sustain funding of conservation and load management 1654
and renewable energy investment programs by substituting for 1655
disbursements to the General Fund from the Conservation and Load 1656
Management Plan established by section 16-245m, as amended by this 1657
act, and from the Clean Energy Fund established by section 16-245n, as 1658
amended by this act, and which, directly or indirectly, are secured by, 1659
evidence ownership interests in, or are payable from, transition 1660
property; 1661
(2) "Competitive transition assessment" means those nonbypassable 1662
rates and other charges, that are authorized by the authority (A) in a 1663
financing order in respect to the economic recovery transfer, or in a 1664
financing order, to sustain funding of conservation and load 1665
management and renewable energy investment programs by 1666
substituting disbursements to the General Fund from proceeds of rate 1667
reduction bonds for such disbursements from the Conservation and 1668
Load Management Plan established by section 16-245m, as amended by 1669
this act, and from the Clean Energy Fund established by section 16-245n, 1670
as amended by this act, or to recover those stranded costs or storm costs 1671
that are eligible to be funded with the proceeds of rate reduction bonds 1672
pursuant to section 16-245f, as amended by this act, and the costs of 1673
providing, recovering, financing, or refinancing the economic recovery 1674
transfer or such substitution of disbursements to the General Fund or 1675
such stranded costs or storm costs through a plan approved by the 1676
authority in the financing order, including the costs of issuing, servicing, 1677
and retiring rate reduction bonds, (B) to recover those stranded costs or 1678
storm costs determined under this section but not eligible to be funded 1679
with the proceeds of rate reduction bonds pursuant to section 16-245f, 1680
as amended by this act, or (C) to recover costs determined under 1681
subdivision (1) of subsection (e) of section 16-244g. If requested by the 1682
electric distribution company, the authority shall include in the 1683
competitive transition assessment nonbypassable rates and other 1684
charges to recover federal and state taxes whose recovery period is 1685
modified by the transactions contemplated in this section and sections 1686
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16-245f to 16-245k, inclusive, as amended by this act; 1687
(3) "Customer" means any individual, business, firm, corporation, 1688
association, tax-exempt organization, joint stock association, trust, 1689
partnership, limited liability company, the United States or its agencies, 1690
this state, any political subdivision thereof or state agency that 1691
purchases electric generation or distribution services as a retail end user 1692
in the state from any electric supplier or electric distribution company; 1693
(4) "Finance authority" means the state, acting through the office of 1694
the State Treasurer; 1695
(5) "Net proceeds" means the book income from the sale or divestiture 1696
of assets, consisting of sales price less reasonable expenses of sale, 1697
related income and other; 1698
(6) "Stranded costs" means that portion of generation assets, 1699
generation-related regulatory assets or long-term contract costs 1700
determined by the authority in accordance with the provisions of 1701
subsections (e), (f), (g) and (h) of this section; 1702
(7) "Generation assets" means the total construction and other capital 1703
asset costs of generation facilities approved for inclusion in rates before 1704
July 1, 1997, but does not include any costs relating to the 1705
decommissioning of any such facility or any costs which the authority 1706
found during a proceeding initiated before July 1, 1998, were incurred 1707
because of imprudent management; 1708
(8) "Generation-related regulatory assets" means generation-related 1709
costs authorized or mandated before July 1, 1998, by the Public Utilities 1710
Regulatory Authority, approved for inclusion in the rates, and include, 1711
but are not limited to, costs incurred for deferred taxes, conservation 1712
programs, environmental protection programs, public policy costs and 1713
research and development costs, net of any applicable credits payable 1714
to customers, but does not include any costs which the authority found 1715
during a proceeding initiated before July 1, 1998, were incurred because 1716
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of imprudent management; 1717
(9) "Long-term contract costs" mean the above-market portion of the 1718
costs of contractual obligations approved for inclusion in the rates that 1719
were entered into before January 1, 2000, arising from independent 1720
power producer contracts required by law or purchased power 1721
contracts approved by the Federal Energy Regulatory Commission; 1722
(10) "Financing entity" means the finance authority or any special 1723
purpose trust or other entity that is authorized by the finance authority, 1724
or, in the case of rate reduction bonds to recover storm costs, authorized 1725
by the Public Utilities Regulatory Authority pursuant to a financing 1726
order, to issue rate reduction bonds or acquire transition property 1727
pursuant to such terms and conditions as the finance authority, or said 1728
authority, if applicable, may specify, or both; 1729
(11) "Financing order" means an order of the authority adopted in 1730
accordance with this section and sections 16-245f to 16-245k, inclusive, 1731
as amended by this act; 1732
(12) "Transition property" means the irrevocable property right 1733
created pursuant to this section and sections 16-245f to 16-245k, 1734
inclusive, as amended by this act, in respect to the economic recovery 1735
transfer or in respect of disbursements to the General Fund to sustain 1736
funding of conservation and load management and renewable energy 1737
investment programs or those stranded costs or storm costs that are 1738
eligible to be funded with the proceeds of rate reduction bonds pursuant 1739
to section 16-245f, as amended by this act, including, without limitation, 1740
the right, title, and interest of an electric distribution company or its 1741
transferee or the financing entity (A) in and to the rates and charges 1742
established pursuant to a financing order, as adjusted from time to time 1743
in accordance with subdivision (2) of subsection (b) of section 16-245i, 1744
as amended by this act, and the financing order, (B) to be paid the 1745
amount that is determined in a financing order to be the amount that 1746
the electric distribution company or its transferee or the financing entity 1747
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is lawfully entitled to receive pursuant to the provisions of this section 1748
and sections 16-245f to 16-245k, inclusive, as amended by this act, and 1749
the proceeds thereof, and in and to all revenues, collections, claims, 1750
payments, money, or proceeds of or arising from the rates and charges 1751
or constituting the competitive transition assessment that is the subject 1752
of a financing order including those nonbypassable rates and other 1753
charges referred to in subdivision (2) of this subsection, and (C) in and 1754
to all rights to obtain adjustments to the rates and charges pursuant to 1755
the terms of subdivision (2) of subsection (b) of section 16-245i, as 1756
amended by this act, and the financing order. "Transition property" shall 1757
constitute a current and irrevocable property right notwithstanding the 1758
fact that the value of the property right will depend on consumers using 1759
electricity or, in those instances where consumers are customers of a 1760
particular electric distribution company, the electric distribution 1761
company performing certain services; 1762
(13) "State rate reduction bonds" means the rate reduction bonds 1763
issued on June 23, 2004, by the state to sustain funding of conservation 1764
and load management and renewable energy investment programs by 1765
substituting for disbursements to the General Fund from the 1766
Conservation and Load Management Plan, established by section 16-1767
245m, as amended by this act, and from the Clean Energy Fund, 1768
established by section 16-245n, as amended by this act. The state rate 1769
reduction bonds for the purposes of section 4-30a shall be deemed to be 1770
outstanding indebtedness of the state; 1771
(14) "Operating expenses" means, with respect to state rate reduction 1772
bonds or economic recovery revenue bonds, (A) all expenses, costs and 1773
liabilities of the state or the trustee incurred in connection with the 1774
administration or payment of the state rate reduction bonds or economic 1775
recovery revenue bonds, or in discharge of its obligations and duties 1776
under the state rate reduction bonds or economic recovery revenue 1777
bonds, or bond documents, expenses and other costs and expenses 1778
arising in connection with the state rate reduction bonds or economic 1779
recovery revenue bonds, or pursuant to the financing order providing 1780
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for the issuance of such bonds including any arbitrage rebate and 1781
penalties payable under the code in connection with such bonds, and 1782
(B) all fees and expenses payable or disbursable to the servicers or others 1783
under the bond documents; 1784
(15) "Bond documents" means, with respect to state rate reduction 1785
bonds or economic recovery revenue bonds, the following documents: 1786
The servicing agreements, the tax compliance agreement and certificate, 1787
and the continuing disclosure agreement and indenture entered into in 1788
connection with the state rate reduction bonds or the economic recovery 1789
revenue bonds; 1790
(16) "Indenture" means the indenture executed in connection with the 1791
state rate reduction bonds or the economic recovery revenue bonds, or, 1792
with respect to state rate reduction bonds, the RRB Indenture, dated as 1793
of June 23, 2004, by and between the state and the trustee, as amended 1794
from time to time; 1795
(17) "Trustee" means, with respect to state rate reduction bonds, the 1796
trustee appointed under the indenture; 1797
(18) "Economic recovery transfer" means the disbursement to the 1798
General Fund of nine hundred fifty-six million dollars from proceeds of 1799
the issuance of the economic recovery revenue bonds; and 1800
(19) "Economic recovery revenue bonds" means rate reduction bonds 1801
issued to fund the economic recovery transfer, the costs of issuance, 1802
credit enhancements, operating expenses and such other costs as the 1803
finance authority deems necessary or advisable, and which shall be 1804
payable from competitive transition assessment charges that replace the 1805
competitive transition assessment charges funding stranded costs; [.] 1806
and 1807
(20) "Storm costs" means (A) costs determined by the Public Utilities 1808
Regulatory Authority, after a hearing conducted as a contested case in 1809
accordance with chapter 54, to have been prudently incurred by an 1810
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electric distribution company for preparation, restoration and response 1811
to storm damage disrupting the normal operation of the electric system; 1812
and (B) in each case, all related fees, expenses and transaction costs 1813
incurred in connection with the issuance, servicing, retirement or 1814
refinancing of rate reduction bonds whose proceeds are used to pay off 1815
storm costs. 1816
(b) The authority shall, in accordance with the provisions of this 1817
section, identify and calculate, upon application by an electric 1818
distribution company, those stranded costs or storm costs that may be 1819
collected through the competitive transition assessment which shall be 1820
calculated and collected in accordance with the provisions of section 16-1821
245g, as amended by this act. No electric distribution company shall be 1822
eligible to claim stranded costs unless a public auction has been held to 1823
divest itself of all nonnuclear generation assets or the electric 1824
distribution company has sold its nonnuclear generation assets in 1825
accordance with section 16-43. 1826
(c) (1) Notwithstanding subdivision (1) of subsection (e) of section 16-1827
244g, any electric distribution company seeking to claim stranded costs 1828
shall, in accordance with this subsection, mitigate such costs to the 1829
fullest extent possible. Prior to the approval by the authority of any 1830
stranded costs, the electric distribution company shall show to the 1831
satisfaction of the authority that the electric distribution company has 1832
taken all reasonable steps to mitigate to the maximum extent possible 1833
the total amount of stranded costs that it seeks to claim and to minimize 1834
the cost to be recovered from customers. Mitigation shall include: (A) 1835
Except to the extent provided in collective bargaining agreements or 1836
agreements to purchase generation assets entered into prior to July 1, 1837
1998, the obtaining of written commitments from purchasers of 1838
generation facilities divested pursuant to section 16-244g, that the 1839
purchasers will offer employment to persons who were employed in 1840
nonmanagerial positions by a divested generation facility at any time 1841
during the three-month period prior to the divestiture, at levels of wages 1842
and overall compensation not lower than the employees' lowest level 1843
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during the six-month period prior to the date the contract to divest the 1844
asset was entered into; (B) good faith efforts to negotiate the buyout, 1845
buydown or renegotiation of independent power producer contracts 1846
and purchased power contracts approved by the Federal Energy 1847
Regulatory Commission, provided the fixed present value of any 1848
contract to which a political subdivision of the state is a party shall be 1849
calculated using the political subdivision's tax-exempt borrowing rate 1850
as the discount rate; and (C) the reasonable costs of the consultants 1851
appointed to conduct the auctions of generation assets pursuant to 1852
section 16-244g. Mitigation may include, but is not limited to, 1853
reallocation of depreciation reserves to existing generation assets to the 1854
extent consistent with generally accepted accounting principles; 1855
reduction of book assets by application of net proceeds of any sale of 1856
existing assets; maximization of market revenues from existing 1857
generation assets; efforts to maximize current and future operating 1858
efficiency, including appropriate and timely maintenance, trouble 1859
shooting, aggressive identification and correction of potential problem 1860
areas; voluntary write-offs of above-market generation assets; the 1861
decision to retire uneconomical generation assets and efforts to divest 1862
generating sites at market prices reflective of best use of sites. Mitigation 1863
shall not include any expenditures to restart a nuclear generation asset 1864
that was not operating for reasons other than scheduled maintenance or 1865
refueling at the time such expenditure was made. Any mitigation efforts 1866
and associated costs shall be subject to approval by the authority. 1867
(2) The authority shall allow the cost of such mitigation efforts to be 1868
included in the calculation of stranded costs to the extent that such 1869
mitigation costs are reasonable relative to the amount of the reduction 1870
in stranded costs resulting from the mitigation. 1871
(d) An electric distribution company shall submit to the authority an 1872
application for recovery of that portion of generation-related regulatory 1873
assets, long-term contract costs, generation assets and mitigation costs 1874
which are determined by the authority in accordance with subsections 1875
(c), (e), (f) and (g) of this section and subdivision (1) of subsection (e) of 1876
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section 16-244g. The application shall include a description of mitigation 1877
efforts and a request for recovery through the competitive transition 1878
assessment and may include a request for a financing order. The 1879
authority shall hold a hearing for each electric distribution company and 1880
issue a finding of the calculation of stranded costs in a time frame that 1881
allows for collection of the competitive transition assessment to begin 1882
on January 1, 2000. Any hearing shall be conducted as a contested case 1883
in accordance with chapter 54. 1884
(e) The authority shall calculate the stranded costs for generation-1885
related regulatory assets to be their book value as of January 1, 2000. In 1886
calculating the value of generation-related regulatory assets that are 1887
being provided in a lump sum as the result of a funding with the 1888
proceeds of rate reduction bonds, the authority shall adjust the value of 1889
each such asset to reflect the time value of such lump sum, if any. 1890
(f) (1) The authority shall calculate the stranded costs for long-term 1891
contract costs that have been reduced to a fixed present value through 1892
the buyout, buydown, or renegotiation of independent power producer 1893
contracts and purchased power contracts approved by the Federal 1894
Energy Regulatory Commission as such present value. In making such 1895
calculation, the authority shall net purchased power contracts approved 1896
by the Federal Energy Regulatory Commission that are below market 1897
value against any such contracts that are above-market value. 1898
(2) The authority shall calculate the stranded costs for any portion of 1899
a long-term contract cost that has not been reduced to a fixed present 1900
value by comparing the contract price to the market price at least 1901
annually. In making such calculation, the authority shall net purchased 1902
power contracts approved by the Federal Energy Regulatory 1903
Commission that are below market value against any such contracts that 1904
are above-market value. The costs described in this subdivision shall be 1905
included in the competitive transition assessment pursuant to section 1906
16-245g, as amended by this act, but shall not be included in any funding 1907
with the proceeds of rate reduction bonds. 1908
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(g) The authority shall calculate the stranded cost for each generation 1909
asset to be the difference between its book value and the market value 1910
of a prudently and efficiently managed nonnuclear generating facility 1911
of comparable size, age and technical characteristics in a competitive 1912
market. In determining the market value of any such asset, the authority 1913
may consider (A) the dollars per kilowatt received from the sale of 1914
similar generation facilities, if any, (B) income capitalization based on 1915
the operating history and capacity of the facility, the market rates for 1916
power, and any existing long-term contracts for the sale of power or 1917
capacity, (C) independent market appraisals, or (D) other relevant 1918
factors. The authority shall calculate the stranded costs for generation 1919
assets at least every three years. The costs described in this subsection 1920
shall be included in the competitive transition assessment pursuant to 1921
section 16-245g, as amended by this act, but shall not be included in any 1922
funding with the proceeds of rate reduction bonds. 1923
(h) (1) On or before January 1, 2004, an electric distribution company 1924
may submit to the authority an application for recovery of that portion 1925
of nuclear generation assets which is determined by the authority in 1926
accordance with this subsection, which application shall include a 1927
request for recovery through the competitive transition assessment. The 1928
authority shall hold a hearing for each electric distribution company and 1929
issue a finding of the calculation of such nuclear generation assets in 1930
accordance with the provisions of this subsection. Any hearing shall be 1931
conducted as a contested case proceeding in accordance with chapter 1932
54. The costs described in this subsection shall be included in the 1933
competitive transition assessment pursuant to section 16-245g, as 1934
amended by this act, but shall not be included in any funding with 1935
proceeds of rate reduction bonds. 1936
(2) The authority shall calculate the stranded costs for each nuclear 1937
generation asset that was divested at a price less than book value as 1938
described in subdivision (5) of subsection (c) of section 16-244g as the 1939
difference between the book value of this asset and the final bid price of 1940
the asset. The authority's calculation of stranded costs pursuant to this 1941
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subdivision shall be final and shall not be subject to further adjustment 1942
by the authority. 1943
(3) The authority shall calculate the stranded costs for each 1944
nondivested nuclear generation asset described in subdivision (1) of 1945
subsection (d) of section 16-244g to be the difference between its book 1946
value and the market value of a prudently and efficiently managed 1947
nuclear generating facility of comparable size, age and technical 1948
characteristics in a competitive market. In determining the market value 1949
of any such asset, the authority may consider (A) the dollars per kilowatt 1950
received from the sale of similar generation facilities, if any, (B) income 1951
capitalization based on the operating history and capacity of the facility, 1952
the market rates for power, and any existing long-term contracts for the 1953
sale of power or capacity, (C) the provision for decommissioning and 1954
related costs to be paid from the systems benefits charge provided in 1955
section 16-245l, as amended by this act, (D) independent market 1956
appraisals, or (E) other relevant factors. At least every four years after 1957
the date when the authority issues an initial finding of the calculation of 1958
the stranded costs for such nondivested nuclear generation assets as 1959
provided in this subdivision until the earlier of (i) the expiration of the 1960
collection of the competitive transition assessment, or (ii) the date when 1961
such an asset is divested, the authority shall hold a hearing and issue a 1962
finding to adjust the stranded cost calculation of each such asset and to 1963
adjust the competitive transition assessment accordingly to true up the 1964
stranded cost recovery for the difference between the market value 1965
projected in such initial finding and the actual market value of a 1966
prudently and efficiently managed nuclear generating facility of 1967
comparable size, age and technical characteristics during the time 1968
period between the initial finding and the adjustment date, provided the 1969
second and subsequent adjustments shall reflect the difference during 1970
the time period since the most recent true-up. The authority shall 1971
calculate the value of each such asset in accordance with the 1972
methodology provided in this subdivision. Any hearing shall be 1973
conducted as a contested case in accordance with chapter 54. 1974
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(4) After the authority has calculated the total value of stranded costs 1975
for all nuclear generation assets, the authority shall (A) reduce such 1976
amount by the net proceeds that are above book value realized by an 1977
electric distribution company from the sale of nonnuclear generation 1978
assets, (B) reduce such valuation to reflect the total net proceeds that are 1979
above book value realized by an electric distribution company from the 1980
sale of any nuclear generation assets pursuant to subsection (c) of 1981
section 16-244g, and (C) reduce such amount by the net proceeds that 1982
are above book value received by an electric distribution company for 1983
the sale or lease of any real property after July 1, 1998. 1984
(i) If any net proceeds described in subdivision (4) of subsection (h) 1985
of this section remain after the reduction in the calculation of nuclear 1986
generation assets pursuant to said subdivision (4) or are realized after 1987
said reduction is calculated, the additional amount of such net proceeds 1988
shall be netted against long-term contract costs described in subdivision 1989
(2) of subsection (f) of this section, and the competitive transition 1990
assessment shall be adjusted accordingly. 1991
(j) No electric distribution company shall be eligible to claim any 1992
stranded costs for a nuclear generation asset or for any generation-1993
related regulatory asset related to such generation asset, if the 1994
generation asset is not operating as a result of an order issued by the 1995
United States Nuclear Regulatory Commission that applies specifically 1996
to such asset. Any such asset that is not eligible to be claimed as a 1997
stranded cost shall be eligible after it is permitted to and has resumed 1998
operation and is selling power. 1999
(k) If an electric distribution company elected to transfer any of its 2000
nuclear generation assets and related operations and functions to a 2001
separate corporate affiliate or to a division that is functionally separate 2002
from the electric distribution company pursuant to section 16-244g and 2003
subsequently sold any such assets in an arm's length transaction to an 2004
unrelated entity prior to January 1, 2012, the net proceeds realized from 2005
such sale that exceed book value for such assets shall be netted against 2006
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the total amount of stranded costs, and the competitive transition 2007
assessment shall be adjusted accordingly and, if appropriate, other 2008
reimbursement shall be ordered by the authority. 2009
(l) Storm costs incurred by an electric distribution company shall be 2010
paid off with the proceeds of rate reduction bonds, and the costs of the 2011
rate reduction bonds, including all principal, interest, premium, costs, 2012
and arrearages on such bonds, shall be recovered through the 2013
competitive transition assessment without reduction, delay or 2014
impairment in accordance with subsections (d) and (e) of section 16-2015
245g, as amended by this act, subsection (b) of section 16-245i, as 2016
amended by this act, and subsection (b) of section 16-245j, as amended 2017
by this act. 2018
(m) Notwithstanding any provision to the contrary, the net benefits 2019
of accumulated deferred income taxes relating to amounts that will be 2020
recovered through the issuance of rate reduction bonds for storm costs 2021
shall be credited to retail customers of electric distribution companies 2022
by reducing the amount of such rate reduction bonds that would 2023
otherwise be issued by the net present value of the related tax cash 2024
flows, using a discount rate equal to the expected interest rate on such 2025
rate reduction bonds. 2026
Sec. 39. Subsection (a) of section 16-245f of the general statutes is 2027
repealed and the following is substituted in lieu thereof (Effective July 1, 2028
2025): 2029
(a) (1) An electric distribution company shall submit to the authority 2030
an application for a financing order with respect to any proposal to 2031
sustain funding of conservation and load management and renewable 2032
energy investment programs by substituting disbursements to the 2033
General Fund from proceeds of rate reduction bonds for such 2034
disbursements from the Conservation and Load Management Plan 2035
established by section 16-245m, as amended by this act, and from the 2036
Clean Energy Fund established by section 16-245n, as amended by this 2037
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act, and may submit to the authority an application for a financing order 2038
with respect to the following stranded costs: [(1)] (A) The cost of 2039
mitigation efforts, as calculated pursuant to subsection (c) of section 16-2040
245e, as amended by this act; [(2)] (B) generation-related regulatory 2041
assets, as calculated pursuant to subsection (e) of section 16-245e, as 2042
amended by this act; and [(3)] (C) those long-term contract costs that 2043
have been reduced to a fixed present value through the buyout, 2044
buydown, or renegotiation of such contracts, as calculated pursuant to 2045
subsection (f) of section 16-245e, as amended by this act. No stranded 2046
costs shall be funded with the proceeds of rate reduction bonds unless 2047
[(A)] (i) the electric distribution company proves to the satisfaction of 2048
the authority that the savings attributable to such funding will be 2049
directly passed on to customers through lower rates, and [(B)] (ii) the 2050
authority determines such funding will not result in giving the electric 2051
distribution company or any generation entities or affiliates an unfair 2052
competitive advantage. 2053
(2) An electric distribution company may submit to the authority an 2054
application for a financing order with respect to incurred storm costs. 2055
Storm costs shall be paid off with the proceeds of rate reduction bonds 2056
if the authority determines that the interests of customers are served by 2057
such financing for reasons including, but not limited to, a showing that 2058
customers would experience lower overall costs as compared to 2059
traditional recovery calculated over the same time period, or would 2060
mitigate bill impacts to customers as compared with alternative 2061
methods of financing or direct rate recovery of such storm costs. The 2062
authority shall issue a final decision on such application for financing of 2063
storm costs not more than sixty days after its receipt of an application 2064
by an electric distribution company for a financing order. 2065
(3) The authority shall hold a hearing for each such electric 2066
distribution company to determine the amount of disbursements to the 2067
General Fund from proceeds of rate reduction bonds that may be 2068
substituted for such disbursements from the Conservation and Load 2069
Management Plan established by section 16-245m, as amended by this 2070
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act, and from the Clean Energy Fund established by section 16-245n, as 2071
amended by this act, and thereby constitute transition property and the 2072
portion of stranded costs or storm costs that may be included in such 2073
funding and thereby constitute transition property. Any hearing shall 2074
be conducted as a contested case in accordance with chapter 54, except 2075
that any hearing with respect to a financing order or other order to 2076
sustain funding for conservation and load management and renewable 2077
energy investment programs by substituting the disbursement to the 2078
General Fund from the Conservation and Load Management Plan 2079
established by section 16-245m, as amended by this act, and from the 2080
Clean Energy Investment Fund established by section 16-245n, as 2081
amended by this act, shall not be a contested case, as defined in section 2082
4-166. The authority shall not include any rate reduction bonds as debt 2083
of an electric distribution company in determining the capital structure 2084
of the company in a rate-making proceeding, for calculating the 2085
company's return on equity or in any manner that would impact the 2086
electric distribution company for rate-making purposes, and shall not 2087
approve such rate reduction bonds that include covenants that have 2088
provisions prohibiting any change to their appointment of an 2089
administrator of the Conservation and Load Management Plan. 2090
Sec. 40. Section 16-245g of the general statutes is repealed and the 2091
following is substituted in lieu thereof (Effective July 1, 2025): 2092
(a) The Public Utilities Regulatory Authority shall assess and 2093
beginning January 1, 2000, or a later date determined by the authority 2094
in a finance order with respect to any subsequent issuance of rate 2095
reduction bonds, impose the competitive transition assessment which 2096
shall be imposed on all customers of each electric distribution company 2097
to provide funds for the purposes described in subsection (d) of this 2098
section. The authority shall hold a hearing that shall be conducted as a 2099
contested case in accordance with chapter 54, except as otherwise 2100
provided in section 16-245f, as amended by this act, to determine the 2101
amount of the competitive transition assessment. 2102
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(b) The authority shall consider the effect on all customer rates and 2103
other factors relevant to reducing rates in determining the amount of the 2104
competitive transition assessment and the manner in which and the 2105
period over which it shall be imposed in any decision of the authority 2106
to set or adjust the competitive transition assessment. 2107
(c) The competitive transition assessment shall be determined by the 2108
authority in a general and equitable manner and, in accordance with the 2109
provisions of subsection (b) of section 16-245f, shall be imposed on all 2110
customers at a rate that is applied equally to all customers of the same 2111
class in accordance with methods of allocation in effect on July 1, 1998, 2112
or a later date determined by the authority in a finance order with 2113
respect to any subsequent issuance of rate reduction bonds, provided 2114
the competitive transition assessment shall not be imposed on 2115
customers receiving services under a special contract which is in effect 2116
on July 1, 1998, or a later date determined by the authority in a finance 2117
order with respect to any subsequent issuance of rate reduction bonds, 2118
until such special contract expires. The competitive transition 2119
assessment shall be imposed beginning on January 1, 2000, or a later 2120
date determined by the authority in a finance order with respect to any 2121
subsequent issuance of rate reduction bonds, on all customers receiving 2122
services under a special contract [which] that is entered into or renewed 2123
after July 1, 1998, or a later date determined by the authority in a finance 2124
order with respect to any subsequent issuance of rate reduction bonds. 2125
The competitive transition assessment shall have a generally applicable 2126
manner of determination that may be measured on the basis of 2127
percentages of total costs of retail sales of electric generation services. 2128
Subject to the provisions of subsection (b) of section 16-245f, the 2129
competitive transition assessment shall be payable by customers on an 2130
equal basis on the same payment terms and shall be eligible or subject 2131
to prepayment on an equal basis. Any exemption of the competitive 2132
transition assessment by customers under a special contract shall not 2133
result in an increase in rates to any customer. 2134
(d) The authority shall establish, fix and revise the competitive 2135
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transition assessment in an amount sufficient at all times to: (1) Pay the 2136
principal of and the interest and any credit enhancement or premium 2137
on rate reduction bonds as the same shall become due and payable; (2) 2138
to pay all reasonable and necessary expenses relating to the financing; 2139
and (3) to pay an electric distribution company stranded costs or storm 2140
costs that are not funded with the proceeds of rate reduction bonds and 2141
interim capital costs determined under subdivision (1) of subsection (e) 2142
of section 16-244g. 2143
(e) The competitive transition assessment shall be charged to 2144
customers until the rate reduction bonds are paid in full, including all 2145
principal, interest, premium, costs and arrearages on such bonds, by the 2146
financing entity and stranded costs and storm costs not funded with the 2147
proceeds of rate reduction bonds are fully recovered by the electric 2148
distribution company. Amounts collected from a customer shall be 2149
allocated on a pro rata basis among (1) rates and charges described in 2150
subparagraph (A) of subdivision (2) of subsection (a) of section 16-245e, 2151
as amended by this act, (2) rates and charges described in subparagraph 2152
(B) of subdivision (2) of subsection (a) of section 16-245e, as amended by 2153
this act, and (3) other charges. To the extent that the authority, when 2154
issuing a financing order, determines that special treatment on 2155
customers' bills is necessary or desirable to distinguish rates and charges 2156
described in subparagraph (A) of subdivision (2) of subsection (a) of 2157
section 16-245e, as amended by this act, from rates and charges 2158
described in subparagraph (B) of subdivision (2) of subsection (a) of 2159
section 16-245e, as amended by this act, in order to facilitate the 2160
successful issuance and sale of rate reduction bonds, it may so provide 2161
as part of such financing order. 2162
Sec. 41. Subsection (a) of section 16-245h of the general statutes is 2163
repealed and the following is substituted in lieu thereof (Effective July 1, 2164
2025): 2165
(a) The competitive transition assessment described in subparagraph 2166
(A) of subdivision (2) of subsection (a) of section 16-245e, as amended 2167
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by this act, shall constitute transition property when, and to the extent 2168
that, a financing order authorizing such portion of the competitive 2169
transition assessment has become effective in accordance with sections 2170
16-245e to 16-245k, inclusive, as amended by this act, and the transition 2171
property shall thereafter continuously exist as property for all purposes 2172
with all of the rights and privileges of sections 16-245e to 16-245k, 2173
inclusive, as amended by this act, for the period and to the extent 2174
provided in the financing order, but in any event until the rate reduction 2175
bonds are paid in full, including all principal, interest, premium, costs, 2176
and arrearages on such bonds. Prior to its sale or other transfer by the 2177
electric distribution company pursuant to sections 16-245e to 16-245k, 2178
inclusive, as amended by this act, transition property, other than 2179
transition property in respect of the economic recovery transfer or in 2180
respect to disbursements to the General Fund to sustain funding of 2181
conservation and load management and renewable energy investment 2182
programs, shall be a vested contract right of the electric distribution 2183
company, notwithstanding any contrary treatment thereof for 2184
accounting, tax, or other purpose. Transition property in respect of 2185
disbursements to the General Fund to sustain funding of conservation 2186
and load management and renewable energy investment programs 2187
shall immediately upon its creation vest solely in the financing entity. 2188
Transition property in respect to the economic recovery transfer shall 2189
immediately upon its creation vest solely in the financing entity. 2190
Transition property in respect of storm costs shall immediately upon its 2191
creation vest solely in the applicable electric distribution company. The 2192
electric distribution company shall have no right, title or interest in 2193
transition property in respect to the economic recovery transfer or in 2194
respect of disbursements to the General Fund to sustain funding of 2195
conservation and load management and renewable energy investment 2196
programs, and in respect of such transition property shall be only a 2197
collection agent on behalf of the financing entity. 2198
Sec. 42. Section 16-245i of the general statutes is repealed and the 2199
following is substituted in lieu thereof (Effective July 1, 2025): 2200
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(a) The authority may issue financing orders in accordance with 2201
sections 16-245e to 16-245k, inclusive, as amended by this act, to fund 2202
the economic recovery transfer, to sustain funding of conservation and 2203
load management and renewable energy investment programs by 2204
substituting disbursements to the General Fund from proceeds of rate 2205
reduction bonds for such disbursements in furtherance of the 2206
Conservation and Load Management Plan established by section 16-2207
245m, as amended by this act, and from the Clean Energy Fund 2208
established by section 16-245n, as amended by this act, and to facilitate 2209
the provision, recovery, financing, or refinancing of stranded costs and 2210
storm costs. Except for a financing order in respect to the economic 2211
recovery revenue bonds, a financing order may be adopted only upon 2212
the application of an electric distribution company, pursuant to section 2213
16-245f, as amended by this act, and shall become effective in 2214
accordance with its terms only after the electric distribution company 2215
files with the authority the electric distribution company's written 2216
consent to all terms and conditions of the financing order. Any financing 2217
order in respect to the economic recovery revenue bonds shall be 2218
effective on issuance. 2219
(b) (1) Notwithstanding any general or special law, rule, or regulation 2220
to the contrary, except as otherwise provided in this subsection with 2221
respect to transition property that has been made the basis for the 2222
issuance of rate reduction bonds, the financing orders and the 2223
competitive transition assessment shall be irrevocable and the authority 2224
shall not have authority either by rescinding, altering, or amending the 2225
financing order or otherwise, to revalue or revise for rate-making 2226
purposes the stranded costs and storm costs, or the costs of providing, 2227
recovering, financing, or refinancing the stranded costs and storm costs, 2228
the amount of the economic recovery transfer or the amount of 2229
disbursements to the General Fund from proceeds of rate reduction 2230
bonds substituted for such disbursements in furtherance of the 2231
Conservation and Load Management Plan established by section 16-2232
245m, as amended by this act, and from the Clean Energy Fund 2233
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established by section 16-245n, as amended by this act, determine that 2234
the competitive transition assessment is unjust or unreasonable, or in 2235
any way reduce or impair the value of transition property either directly 2236
or indirectly by taking the competitive transition assessment into 2237
account when setting other rates for the electric distribution company; 2238
nor shall the amount of revenues arising with respect thereto be subject 2239
to reduction, impairment, postponement, or termination. 2240
(2) Notwithstanding any other provision of this section, the authority 2241
shall approve the adjustments to the competitive transition assessment 2242
as may be necessary to ensure timely recovery of all stranded costs and 2243
storm costs that are the subject of the pertinent financing order, and the 2244
costs of capital associated with the provision, recovery, financing, or 2245
refinancing thereof, including the costs of issuing, servicing, and retiring 2246
the rate reduction bonds issued to recover stranded costs and storm 2247
costs contemplated by the financing order and to ensure timely recovery 2248
of the costs of issuing, servicing, and retiring the rate reduction bonds 2249
issued to sustain funding of conservation and load management and 2250
renewable energy investment programs contemplated by the financing 2251
order, and to ensure timely recovery of the costs of issuing, servicing 2252
and retiring the economic recovery revenue bonds issued to fund the 2253
economic recovery transfer contemplated by the financing order. 2254
(3) Notwithstanding any general or special law, rule, or regulation to 2255
the contrary, any requirement under sections 16-245e to 16-245k, 2256
inclusive, as amended by this act, or a financing order that the authority 2257
take action with respect to the subject matter of a financing order shall 2258
be binding upon the authority, as it may be constituted from time to 2259
time, and any successor agency exercising functions similar to the 2260
authority and the authority shall have no authority to rescind, alter, or 2261
amend that requirement in a financing order. Section 16-43 shall not 2262
apply to any sale, assignment, or other transfer of or grant of a security 2263
interest in any transition property or the issuance of rate reduction 2264
bonds under sections 16-245e to 16-245k, inclusive, as amended by this 2265
act. 2266
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(c) The authority shall provide in any financing order for a procedure 2267
for the timely approval by the authority of periodic adjustments to the 2268
competitive transition assessment that is the subject of the pertinent 2269
financing order, as required by subdivision (2) of subsection (b) of this 2270
section. The procedure shall require the authority to determine whether 2271
the adjustments are required on [each anniversary of the issuance of the 2272
financing order] an annual basis, and at the additional intervals as may 2273
be provided for in the financing order, and for the adjustments, if 2274
required, to be approved within ninety days of [each anniversary of the 2275
issuance of the financing order, or of each additional interval] the filing 2276
of each adjustment or within such shorter period as may be provided 2277
for in the financing order. 2278
Sec. 43. Subsections (b) and (c) of section 16-245j of the general 2279
statutes are repealed and the following is substituted in lieu thereof 2280
(Effective July 1, 2025): 2281
(b) Except as otherwise provided in this subsection, the state of 2282
Connecticut does hereby pledge and agree with the owners of transition 2283
property and holders of and trustees for rate reduction bonds that 2284
neither the state nor any agency of the state shall [neither] limit, [nor] 2285
alter, amend, reduce or impair the competitive transition assessment, 2286
transition property, financing orders, and all rights thereunder until the 2287
obligations, together with the interest thereon, are fully met and 2288
discharged, provided nothing contained in this subsection shall 2289
preclude the limitation or alteration if and when adequate provision 2290
shall be made by law for the protection of the owners, [and] holders and 2291
trustees. The finance authority as agent for the state is authorized to 2292
include this pledge and undertaking for the state in these obligations. 2293
(c) (1) Financing orders and rate reduction bonds shall not be deemed 2294
to constitute a debt or liability of the state or of any political subdivision 2295
thereof, other than the financing entity, shall not constitute a pledge of 2296
the full faith and credit of the state or any of its political subdivisions, 2297
other than the financing entity, but shall be payable solely from the 2298
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funds provided under sections 16-245e to 16-245k, inclusive, as 2299
amended by this act, and shall not constitute an indebtedness of the state 2300
within the meaning of any constitutional or statutory debt limitation or 2301
restriction and, accordingly, shall not be subject to any statutory 2302
limitation on the indebtedness of the state and shall not be included in 2303
computing the aggregate indebtedness of the state in respect to and to 2304
the extent of any such limitation. This subsection shall in no way 2305
preclude bond guarantees or enhancements pursuant to sections 16-2306
245e to 16-245k, inclusive, as amended by this act. All rate reduction 2307
bonds shall contain on the face thereof a statement to the following 2308
effect: "Neither the full faith and credit nor the taxing power of the State 2309
of Connecticut is pledged to the payment of the principal of, or interest 2310
on, this bond." 2311
(2) The issuance of rate reduction bonds under sections 16-245e to 16-2312
245k, inclusive, as amended by this act, shall not directly, indirectly, or 2313
contingently obligate the state or any political subdivision thereof to 2314
levy or to pledge any form of taxation therefor or to make any 2315
appropriation for their payment. 2316
(3) The exercise of the powers granted by sections 16-245e to 16-245k, 2317
inclusive, as amended by this act, shall be in all respects for the benefit 2318
of the people of this state, for the increase of their commerce, welfare, 2319
and prosperity, and as the exercise of such powers shall constitute the 2320
performance of an essential public function, neither the finance 2321
authority, any electric distribution company, any affiliate of any electric 2322
distribution company, any financing entity, or any collection or other 2323
agent of any of the foregoing shall be required to pay any taxes or 2324
assessments upon or in respect of any revenues or property received, 2325
acquired, transferred, or used by the finance authority, any electric 2326
distribution company, any affiliate of any electric distribution company, 2327
any financing entity, or any collection or other agent of any of the 2328
foregoing under the provisions of sections 16-245e to 16-245k, inclusive, 2329
as amended by this act, or upon or in respect of the income therefrom, 2330
and any rate reduction bonds shall be treated as issued by or on behalf 2331
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of a public instrumentality created under the laws of the state for 2332
purposes of chapter 229. 2333
(4) (A) The proceeds of any rate reduction bonds, other than 2334
economic recovery revenue bonds, shall be used for the purposes 2335
approved by the authority in the financing order, including, but not 2336
limited to, disbursements to the General Fund in substitution for such 2337
disbursements in furtherance of the Conservation and Load 2338
Management Plan established by section 16-245m, as amended by this 2339
act, and from the Clean Energy Fund established by section 16-245n, as 2340
amended by this act, the costs of refinancing or retiring of debt of the 2341
electric distribution company, and associated federal and state tax 2342
liabilities; provided such proceeds shall not be applied to purchase 2343
generation assets or to purchase or redeem stock or to pay dividends to 2344
parent company shareholders or to pay operating expenses other than 2345
taxes resulting from the receipt of such proceeds. 2346
(B) The proceeds of any economic recovery revenue bonds shall be 2347
used for the purposes approved by the authority in the financing order, 2348
including, but not limited to, funding the economic recovery transfer, 2349
provided such proceeds shall not be applied to purchase generation 2350
assets or to purchase or redeem stock or to pay dividends to 2351
shareholders or operating expenses other than taxes resulting from the 2352
receipt of such proceeds. 2353
(5) Rate reduction bonds are made and declared (A) securities in 2354
which all public officers and public bodies of the state and its political 2355
subdivisions, all insurance companies, state banks and trust companies, 2356
national banking associations, savings banks, savings and loan 2357
associations, investment companies, executors, administrators, trustees 2358
and other fiduciaries may properly and legally invest funds, including 2359
capital in their control or belonging to them, and (B) securities which 2360
may properly and legally be deposited with and received by any state 2361
or municipal officer or any agency or political subdivision of the state 2362
for any purpose for which the deposit of bonds or obligations of the state 2363
Raised Bill No. 1560
LCO No. 7086 76 of 80
is now or may be authorized. 2364
(6) Rate reduction bonds, other than economic recovery revenue 2365
bonds, shall mature at such time or times approved by the authority in 2366
the financing order; provided that such maturity shall not be later than 2367
December 31, 2011. Economic recovery revenue bonds shall mature at 2368
such time or times approved by the authority in the financing order, 2369
provided such maturity shall not be later than eight years after the date 2370
of issuance, provided such maturity may be extended for economic 2371
reasons, upon the advice of the financing entity. 2372
(7) Rate reduction bonds issued and at any time outstanding may, if 2373
and to the extent permitted under the indenture or other agreement 2374
pursuant to which they are issued, be refunded by other rate reduction 2375
bonds. 2376
Sec. 44. Subsection (l) of section 16-245k of the general statutes is 2377
repealed and the following is substituted in lieu thereof (Effective July 1, 2378
2025): 2379
(l) [The authority of the Public Utilities Regulatory Authority to issue 2380
financing orders pursuant to sections 16-245e to 16-245k, inclusive, shall 2381
expire on December 31, 2008, with respect to bonds other than economic 2382
recovery revenue bonds.] The authority of the Public Utilities 2383
Regulatory Authority to issue financing orders pursuant to sections 16-2384
245e to 16-245k, inclusive, as amended by this act, with respect to 2385
economic recovery revenue bonds shall expire on December 31, 2012. 2386
The expiration of such authority shall have no effect upon any other 2387
financing orders adopted by the Public Utilities Regulatory Authority 2388
pursuant to sections 16-245e to 16-245k, inclusive, as amended by this 2389
act, or upon any financing orders adopted by the Public Utilities 2390
Regulatory Authority pursuant to sections 16-245e to 16-245k, inclusive, 2391
as amended by this act, with respect to economic recovery bonds prior 2392
to December 31, 2012, or any transition property arising [therefrom] 2393
from any such financing orders, or upon the charges authorized to be 2394
Raised Bill No. 1560
LCO No. 7086 77 of 80
levied thereunder, or the rights, interests, and obligations of the electric 2395
distribution company or a financing entity or holders of rate reduction 2396
bonds pursuant to [the] any such financing order, or the authority of the 2397
Public Utilities Regulatory Authority to monitor, supervise, or take 2398
further action with respect to [the] any such financing order in 2399
accordance with the terms of sections 16-245e to 16-245k, inclusive, as 2400
amended by this act, and of [the] any such financing order. 2401
Sec. 45. Section 12-412 of the general statutes is amended by adding 2402
subdivision (127) as follows (Effective July 1, 2025, and applicable to sales 2403
occurring on or after July 1, 2025): 2404
(NEW) (127) Any electricity used at a commercial or industrial 2405
property, as defined in section 12-62u. 2406
Sec. 46. (Effective July 1, 2025) (a) For the purposes described in 2407
subsection (b) of this section, the State Bond Commission shall have the 2408
power from time to time to authorize the issuance of bonds of the state 2409
in one or more series and in principal amounts not exceeding in the 2410
aggregate two billion four hundred million dollars. 2411
(b) The proceeds of the sale of such bonds, to the extent of the amount 2412
stated in subsection (a) of this section, shall be used by the Public 2413
Utilities Regulatory Authority for the purpose of administering the 2414
Green Bond Fund established pursuant to section 16-245l of the general 2415
statutes, as amended by this act. 2416
(c) All provisions of section 3-20 of the general statutes, or the exercise 2417
of any right or power granted thereby, that are not inconsistent with the 2418
provisions of this section are hereby adopted and shall apply to all 2419
bonds authorized by the State Bond Commission pursuant to this 2420
section. Temporary notes in anticipation of the money to be derived 2421
from the sale of any such bonds so authorized may be issued in 2422
accordance with section 3-20 of the general statutes and from time to 2423
time renewed. Such bonds shall mature at such time or times not 2424
exceeding twenty years from their respective dates as may be provided 2425
Raised Bill No. 1560
LCO No. 7086 78 of 80
in or pursuant to the resolution or resolutions of the State Bond 2426
Commission authorizing such bonds. None of such bonds shall be 2427
authorized except upon a finding by the State Bond Commission that 2428
there has been filed with it a request for such authorization that is signed 2429
by or on behalf of the Secretary of the Office of Policy and Management 2430
and states such terms and conditions as said commission, in its 2431
discretion, may require. Such bonds issued pursuant to this section shall 2432
be general obligations of the state and the full faith and credit of the state 2433
of Connecticut are pledged for the payment of the principal of and 2434
interest on such bonds as the same become due, and accordingly and as 2435
part of the contract of the state with the holders of such bonds, 2436
appropriation of all amounts necessary for punctual payment of such 2437
principal and interest is hereby made, and the State Treasurer shall pay 2438
such principal and interest as the same become due. 2439
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2025 New section
Sec. 2 July 1, 2025 New section
Sec. 3 July 1, 2025 New section
Sec. 4 July 1, 2025 New section
Sec. 5 July 1, 2025 New section
Sec. 6 July 1, 2025 New section
Sec. 7 July 1, 2025 New section
Sec. 8 July 1, 2025 New section
Sec. 9 July 1, 2025 New section
Sec. 10 July 1, 2025 New section
Sec. 11 July 1, 2025 16-244m(a)(1)
Sec. 12 July 1, 2025 16-1(20)
Sec. 13 July 1, 2025 New section
Sec. 14 July 1, 2025 16-245d(a)(3)
Sec. 15 July 1, 2025 New section
Sec. 16 July 1, 2025 16-245l
Sec. 17 July 1, 2025 12-94d(d)
Sec. 18 July 1, 2025 12-264(c)(2)
Sec. 19 July 1, 2025 16-24a(d)
Raised Bill No. 1560
LCO No. 7086 79 of 80
Sec. 20 July 1, 2025 16-243e(b)
Sec. 21 July 1, 2025 16-243h
Sec. 22 July 1, 2025 16-243v
Sec. 23 July 1, 2025 16-245c(e)
Sec. 24 July 1, 2025 16-245e(h)(3)
Sec. 25 July 1, 2025 16-245o(h)(3)
Sec. 26 July 1, 2025 16-245w(b) to (d)
Sec. 27 July 1, 2025 16-262c(f)
Sec. 28 July 1, 2025 16a-38l(b)
Sec. 29 July 1, 2025 33-219(b)
Sec. 30 July 1, 2025 16a-3m(e)(3)
Sec. 31 July 1, 2025 12-264(c)(2)
Sec. 32 July 1, 2025 16-243n
Sec. 33 July 1, 2025 16-19f(a) and (b)
Sec. 34 July 1, 2025 16-243w
Sec. 35 July 1, 2025 New section
Sec. 36 July 1, 2025 16-245m(d)(1)
Sec. 37 July 1, 2025 16-245n(b)
Sec. 38 July 1, 2025 16-245e
Sec. 39 July 1, 2025 16-245f(a)
Sec. 40 July 1, 2025 16-245g
Sec. 41 July 1, 2025 16-245h(a)
Sec. 42 July 1, 2025 16-245i
Sec. 43 July 1, 2025 16-245j(b) and (c)
Sec. 44 July 1, 2025 16-245k(l)
Sec. 45 July 1, 2025, and
applicable to sales
occurring on or after July
1, 2025
12-412(127)
Sec. 46 July 1, 2025 New section
Statement of Purpose:
To (1) establish the Connecticut Energy Procurement Authority; (2)
establish the Electric Rate Stabilization Fund; (3) redefine "Class I
renewable energy source" to include electricity generated from any
nuclear power generating facility in the state; (4) require the Public
Utilities Regulatory Authority to incorporate time-of-use components
into electric rates; (5) establish the Energy Infrastructure Transition
Fund; (6) allow for electric distribution companies to issue securities
Raised Bill No. 1560
LCO No. 7086 80 of 80
concerning certain storm remediation costs; and (7) authorize bonds of
the state to fund the Green Bond Fund.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]