Bill Text: CT HB05505 | 2010 | General Assembly | Comm Sub
Bill Title: An Act Concerning Electric Rate Relief.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2010-04-26 - Tabled for the Calendar, House [HB05505 Detail]
Download: Connecticut-2010-HB05505-Comm_Sub.html
General Assembly |
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February Session, 2010 |
*_____HB05505APP___042610____* |
AN ACT CONCERNING ELECTRIC RATE RELIEF.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective from passage) (a) On or before June 30, 2011, the Department of Public Utility Control shall conduct a proceeding regarding development of discounted rates for service provided by gas and electric distribution companies, as defined in section 16-1 of the general statutes, to low-income customers eligible for assistance under any energy assistance program plan adopted pursuant to section 16-41a of the general statutes. Such proceeding shall include, but not be limited to, review of the current and future availability of rate discounts for individuals who receive means-tested assistance administered by the state or federal governments through the electricity purchasing pool operated by the Office of Policy and Management pursuant to section 16a-14e of the general statutes, energy assistance benefits available through any plan adopted pursuant to section 16a-41a of the general statutes, as amended by this act, state funded or administered programs, conservation assistance available pursuant to section 16-32f or 16-245m of the general statutes, as amended by this act, assistance funded or administered by the Department of Social Services or the Office of Policy and Management, renewable energy resource assistance available pursuant to section 16-245n of the general statutes, as amended by this act, or matching payment program benefits available pursuant to subsection (b) of section 16-262c of the general statutes. The Department of Public Utility Control shall (1) coordinate resources and programs, to the extent practicable; (2) develop rates that take into account the indigency of persons of poverty status and allow such persons' households to meet the costs of essential energy needs; (3) require the households to agree to have a home energy audit as a prerequisite to qualification; and (4) prepare an analysis of the benefits and anticipated costs of such discounted rates.
(b) The Department of Public Utility Control shall order (1) filing by each gas or electric company of proposed rates consistent with the department's decision pursuant to subsection (a) of this section not later than sixty days after its issuance; and (2) appropriate modification of existing low-income programs, including the matching payment program. Each company shall conduct outreach to make its low-income discounted rates available to eligible customers and report to the Department of Public Utility Control at least annually regarding its outreach activities and the results of such activities.
(c) The cost of discounted rates and related outreach activities pursuant to this section shall be included in the rates charged to all other customers as follows: (1) An electric distribution company shall recover such costs on a semiannual basis through the systems benefits charge; and (2) a gas company shall recover such costs on a semiannual basis through a public benefits charge developed and approved by the Department of Public Utility Control.
(d) On or before July 1, 2012, the Department of Public Utility Control shall report, in accordance with section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to energy regarding the benefits and costs of the discounted rates established pursuant to subsection (a) of this section and any recommended modifications.
(e) The Department of Public Utility Control shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement the provisions of this section.
Sec. 2. Section 16-19hh of the general statutes is amended by adding subsection (d) as follows (Effective from passage):
(NEW) (d) (1) On or after May 1, 2010, any electricity-intensive industry customer may apply to the department for a special contract as to its electricity distribution rates from an electric distribution company. Such special contract shall be for a term of not more than five years and shall allow a reduction of up to ten per cent of the electricity-intensive industry customer's monthly distribution charge, provided the department may set the actual percentage at a level equal to or below twenty per cent. To be eligible for a special contract, an electricity-intensive industry customer shall participate actively in any conservation and load management fund program for which the customer is eligible, including at its own expense where the program incentive levels require a customer contribution.
(2) Each electric distribution company shall recover the cost of special contracts awarded pursuant to subdivision (1) of this subsection, including prudent costs of administration, with interest, as part of the electric distribution company's subsequent rate case filing with the department. The annual aggregate cost of any special contracts awarded pursuant to this subsection shall not exceed three million dollars.
(3) For the purposes of this subdivision, "electricity-intensive industry customer" means an industrial customer whose usage was among the top twenty-five industrial customers who pay a distribution charge to an electric distribution company during calendar year 2009 or a customer who can demonstrate to the department's satisfaction that its electricity costs constitute not less than one per cent of its total product costs.
Sec. 3. (NEW) (Effective October 1, 2010) (a) There is established a Division of Electricity Policy and Procurement, which shall be within the Public Utilities Control Authority.
(b) The Division of Electricity Policy and Procurement shall, in accordance with the comprehensive plan approved pursuant to section 16a-3a of the general statutes, as amended by this act, (1) increase the state's energy independence by promoting conservation and efficiency and the use of diverse indigenous and regional electric resources; (2) encourage the use of new electric technologies, particularly technologies that support economic development in the state and promote environmental sustainability; (3) minimize costs of electric services to state consumers while maintaining reliable service; (4) discourage undue price volatility of electric service; and (5) encourage competition, if in the interests of state consumers.
(c) The Public Utilities Control Authority shall appoint an executive director, who shall be the chief administrative officer of the Division of Electricity Policy and Procurement and who shall have no less than ten years experience in electric procurement, conservation and renewable energy policy. Said chairperson shall supervise the executive director, who shall serve for a four-year term. The executive director (1) shall conduct comprehensive planning with respect to the functions of the division; (2) shall coordinate the activities of the division; (3) shall cause the administrative organization of the division to be examined with a view to promoting economy and efficiency; (4) may enter into such contractual agreements, in accordance with established procedures, as may be necessary for the discharge of his duties; and (5) may, subject to the provisions of section 4-32 of the general statutes, and unless otherwise provided by law, receive any money, revenue or services from the federal government, corporations, associations or individuals, including payments from the sale of printed matter or any other material or services. Within available funds in any fiscal year, the executive director may appoint a secretary and may employ such accountants, clerical assistants, engineers, inspectors, experts, consultants and agents as the division may require.
(d) The Division of Electricity Policy and Procurement under the direction of the executive director may (1) hire three directors, one each specializing in power procurement, energy conservation and renewables, all of whom shall have no less than five years of experience in their areas of expertise; (2) contract with consultants; and (3) adopt any policies for internal organization as necessary.
Sec. 4. Section 16a-3b of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) The [Department of Public Utility Control] Division of Electricity Policy and Procurement shall oversee the implementation of the procurement plan approved by the [Department of Public Utility Control] Public Utilities Control Authority pursuant to section 16a-3a. The electric distribution companies shall implement the demand-side measures, including, but not limited to, energy efficiency, load management, demand response, combined heat and power facilities, distributed generation and other emerging energy technologies, specified in said procurement plan through the comprehensive conservation and load management plan prepared pursuant to section 16-245m, as amended by this act, for review by the Energy Conservation Management Board. The electric distribution companies shall submit proposals to appropriate regulatory agencies to address transmission and distribution upgrades as specified in said procurement plan.
(b) If the procurement plan specifies the construction of a generating facility, the [department] division shall develop and issue a request for proposals, shall publish such request for proposals in one or more newspapers or periodicals, as selected by the [department] division, and shall post such request for proposals on its web site. Pursuant to a nondisclosure agreement, the [department] division shall make available to the Office of Consumer Counsel and the Attorney General all confidential bid information it receives pursuant to this subsection, provided the bids and any analysis of such bids shall not be subject to disclosure under the Freedom of Information Act. Three months after the [department] division issues a final decision, it shall make available all financial bid information, provided such information regarding the bidders not selected be presented in a manner that conceals the identities of such bidders.
(1) On and after July 1, 2008, an electric distribution company may submit proposals in response to a request for proposals on the same basis as other respondents to the solicitation. A proposal submitted by an electric distribution company shall include its full projected costs such that any project costs recovered from or defrayed by ratepayers are included in the projected costs. An electric distribution company submitting any such bid shall demonstrate to the satisfaction of the [department] division that its bid is not supported in any form of cross subsidization by affiliated entities. If the [department] division approves such electric distribution company's proposal, the costs and revenues of such proposal shall not be included in calculating such company's earning for purposes of, or in determining whether its rates are just and reasonable under, sections 16-19, 16-19a and 16-19e, as amended by this act. An electric distribution company shall not recover more than the full costs identified in any approved proposal. Affiliates of the electric distribution company may submit proposals pursuant to section 16-244h, regulations adopted pursuant to section 16-244h and other requirements the [department] division may impose.
(2) If the [department] division selects a nonelectric distribution company proposal, an electric distribution company shall, within thirty days of the selection of a proposal by the [department] division, negotiate in good faith the final terms of a contract with a generating facility and shall apply to the [department] division for approval of such contract. Upon [department] the division's approval, the electric distribution company shall enter into such contract.
(3) The [department] division shall determine the appropriate manner of cost recovery for proposals selected pursuant to this section.
(4) The [department] division may retain the services of a third-party entity with expertise in the area of energy procurement to oversee the development of the request for proposals and to assist the department in its approval of proposals pursuant to this section. The reasonable and proper expenses for retaining such third-party entity shall be recoverable through the generation services charge.
(c) The electric distribution companies shall issue requests for proposals to acquire any other resource needs not identified in subsection (a) or (b) of this section but specified in the procurement plan approved by the [Department of Public Utility Control] Public Utilities Control Authority pursuant to section 16a-3a. Such requests for proposals shall be subject to approval by the [department] division.
Sec. 5. Section 16a-3c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
[(a) On and after July 1, 2009, if] If the [Department of Public Utility Control] Division of Electricity Policy and Procurement does not receive and approve proposals pursuant to the requests for proposals processes, pursuant to section 16a-3b, as amended by this act, sufficient to reach the goal set by the plan approved pursuant to section 16a-3a, the [department] division may order an electric distribution company to submit for the [department's] division's review in a contested case proceeding, in accordance with chapter 54, a proposal to build and operate an electric generation facility in the state. An electric distribution company shall be eligible to recover its prudently incurred costs consistent with the principles set forth in section 16-19e, as amended by this act, for any generation project approved pursuant to this section.
[(b) On or before January 1, 2008, the department shall initiate a contested case proceeding to determine the costs and benefits of the state serving as the builder of last resort for the shortfall of megawatts from said request for proposal process.]
Sec. 6. (NEW) (Effective October 1, 2010) The Division of Electricity Policy and Procurement may own and operate electric power plants and may provide financial assistance, including low-interest loans to encourage the development of necessary electric generation facilities by the electric distribution companies or private entities, provided electricity generated at such facilities shall be sold through the electric distribution companies or the Connecticut Municipal Electric Energy Cooperative for use by Connecticut consumers at cost of service with a reasonable rate of return, as determined by the Department of Public Utility Control. The Division of Electricity Policy and Procurement may enter into contracts with electricity generators, suppliers and such other persons as necessary to carry out the purposes of this section.
Sec. 7. (NEW) (Effective October 1, 2010) (a) On or before January 1, 2011, the Division of Electricity Policy and Procurement, in consultation with the Office of Consumer Counsel, shall issue a request for proposals for the retention, for a period of not more than two years, of an entity with expertise in the area of electricity procurement. Such entity shall be responsible for procuring contracts for electric generation services for standard service, as needed, with the goal of achieving the lowest possible standard service price. An electric distribution company may submit a bid in response to such request for proposals, provided the bid of an electric distribution company may not be supported by any cross-subsidization from any affiliate.
(b) In the absence of a successful bid from a procuring entity as described in subsection (a) of this section, on and after January 1, 2011, either the Division of Electricity Policy and Procurement or an electric distribution company may serve as the procurement entity on an interim basis. Any electric distribution company that serves on such an interim basis shall be entitled to appropriate compensation in such form and amount as determined by the Department of Public Utility Control.
(c) Any entity that serves as a procuring entity pursuant to this section shall seek contracts for electric generation services, as frequently as necessary, and shall deliver a list of preferred contracts for electric generation services to the Division of Electricity Policy and Procurement for approval or denial. Upon approval of any such contract by the Division of Electricity Policy and Procurement, the electric distribution company shall enter into such contract.
(d) Any entity serving as a procuring entity pursuant to this section may include on such list of preferred contracts submitted to the Division of Electricity Policy and Procurement proposed contracts for electric generation services that do or do not constitute full requirements service and may include contracts of a length as short as one month or as long as ten years, provided the set of contracts in the aggregate ensure the reliability of standard service and are consistent with the goal of providing standard service at the lowest achievable cost. The procuring entity may, with the approval of the Division of Electricity Policy and Procurement, also arrange through the electricity distribution companies to have some portion of standard service power purchased in the short-term regional electricity market.
(e) On or before October 1, 2011, and biennially thereafter, the department shall open a contested case proceeding in accordance with chapter 54 of the general statutes to review the efficacy of the procurement process described in this section and report its findings to the joint standing committee of the General Assembly having cognizance of matters relating to energy.
Sec. 8. (NEW) (Effective October 1, 2010) The Division of Electricity Policy and Procurement may negotiate contracts on behalf of electric distribution companies with electricity generators for the provision of electric generation services offered pursuant to subsection (c) of section 16-244c of the general statutes. Such negotiation may be in connection with the provision of financing or other assistance to an electricity generation services supplier for the construction or reconstruction of a generation facility. Such contracts shall be in the best interests of ratepayers and shall offer a reduction in electricity costs to those consumers receiving electric generation services pursuant to said subsection. The Public Utilities Control Authority, in consultation with the electric distribution companies, shall review such contracts and shall approve a contract if the authority determines that such contract is (1) consistent with the principles of section 16-19e of the general statutes, as amended by this act, (2) in the best interests of ratepayers, and (3) reduces electricity costs to those consumers receiving electric generation services pursuant to said subsection. Upon the authority's approval, an electric distribution company shall enter into such contract with the approved electric generation services supplier.
Sec. 9. Section 16-4 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
No officer, employee, attorney or agent of any public service company, of any certified telecommunications provider or of any electric supplier shall be a member of the Public Utilities Control Authority or an employee of the Department of Public Utility Control or the Division of Electricity Policy and Procurement.
Sec. 10. Section 16a-3 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) There is established a Connecticut Energy Advisory Board consisting of fifteen members, including the Commissioner of Environmental Protection, the chairperson of the Public Utilities Control Authority, the Commissioner of Transportation, the Consumer Counsel, the Commissioner of Agriculture, and the Secretary of the Office of Policy and Management, or their respective designees. The Governor shall appoint a representative of an environmental organization knowledgeable in energy efficiency programs, a representative of a consumer advocacy organization and a representative of a state-wide business association. The president pro tempore of the Senate shall appoint a representative of a chamber of commerce, a representative of a state-wide manufacturing association and a member of the public considered to be an expert in electricity, generation, procurement or conservation programs. The speaker of the House of Representatives shall appoint a representative of low-income ratepayers, a representative of state residents, in general, with expertise in energy issues and a member of the public considered to be an expert in electricity, generation, procurement or conservation programs. All appointed members shall serve in accordance with section 4-1a. No appointee may be employed by, or a consultant of, a public service company, as defined in section 16-1, or an electric supplier, as defined in section 16-1, or an affiliate or subsidiary of such company or supplier.
(b) The board shall (1) represent the state in regional energy system planning processes conducted by the regional independent system operator, as defined in section 16-1; (2) encourage representatives from the municipalities that are affected by a proposed project of regional significance to participate in regional energy system planning processes conducted by the regional independent system operator; (3) participate in a forecast proceeding conducted pursuant to subsection (a) of section 16-50r; (4) participate in a life-cycle proceeding conducted pursuant to subsection (b) of section 16-50r; (5) advise the Division of Electricity Policy and Procurement, and [(5)] (6) review the procurement plan submitted by the electric distribution companies pursuant to section 16a-3a.
(c) The board shall elect a chairman and a vice-chairman from among its members and shall adopt such rules of procedure as are necessary to carry out its functions.
(d) The board shall convene its first meeting not later than September 1, 2003. A quorum of the board shall consist of two-thirds of the members currently serving on the board.
(e) The board shall employ such staff as is required for the proper discharge of its duties. The board may also retain any third-party consultants it deems necessary to accomplish the goals set forth in subsection (b) of this section. The board shall annually submit to the Department of Public Utility Control a proposal regarding the level of funding required for the discharge of its duties, which proposal shall be approved by the department either as submitted or as modified by the department.
(f) The Connecticut Energy Advisory Board shall be within the [Office of Policy and Management] Public Utilities Control Authority for administrative purposes only.
Sec. 11. Subsection (a) of section 4-65a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) There shall be an Office of Policy and Management which shall be responsible for all aspects of state staff planning and analysis in the areas of budgeting, management, planning, energy policy determination and evaluation, except to the extent such policies are under the authority of the Division of Electricity Policy and Procurement, intergovernmental policy, criminal and juvenile justice planning and program evaluation. The department head shall be the Secretary of the Office of Policy and Management, who shall be appointed by the Governor in accordance with the provisions of sections 4-5, 4-6, 4-7 and 4-8, with all the powers and duties therein prescribed. The Secretary of the Office of Policy and Management shall be the employer representative (1) in collective bargaining negotiations concerning changes to the state employees retirement system and health and welfare benefits, and (2) in all other matters involving collective bargaining, including negotiation and administration of all collective bargaining agreements and supplemental understandings between the state and the state employee unions concerning all executive branch employees except (A) employees of the Division of Criminal Justice, and (B) faculty and professional employees of boards of trustees of constituent units of the state system of higher education. The secretary may designate a member of the secretary's staff to act as the employer representative in the secretary's place.
Sec. 12. Subdivision (2) of subsection (e) of section 4a-57 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(2) Any purchase of or contract by the department for electric generation services that are subject to competitive bidding and competitive negotiations shall be conducted in cooperation with the [Office of Policy and Management] Division of Electricity Policy and Procurement pursuant to section 16a-14e.
Sec. 13. Subsection (c) of section 16-19e of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(c) The Department of Public Utility Control shall consult at least once each year with the Commissioner of Environmental Protection, the Connecticut Siting Council, the Division of Electricity Policy and Procurement and the Office of Policy and Management, so as to coordinate and integrate its actions, decisions and policies pertaining to gas and electric companies, so far as possible, with the actions, decisions and policies of said other agencies and instrumentalities in order to further the development and optimum use of the state's energy resources and conform to the greatest practicable extent with the state energy policy as stated in section 16a-35k, taking into account prudent management of the natural environment and continued promotion of economic development within the state. In the performance of its duties, the department shall take into consideration the energy policies of the state as expressed in this subsection and in any annual reports prepared or filed by such other agencies and instrumentalities, and shall defer, as appropriate, to any actions taken by such other agencies and instrumentalities on matters within their respective jurisdictions.
Sec. 14. Subsection (d) of section 16a-48 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(d) (1) The [office] Division of Electricity Policy and Procurement, in consultation with the Department of Public Utility Control, shall adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of this section and to establish minimum energy efficiency standards for the types of new products set forth in subsection (b) of this section. The regulations shall provide for the following minimum energy efficiency standards:
(A) Commercial clothes washers shall meet the requirements shown in Table P-3 of section 1605.3 of the California Code of Regulations, Title 20: Division 2, Chapter 4, Article 4;
(B) Commercial refrigerators and freezers shall meet the August 1, 2004, requirements shown in Table A-6 of said California regulation;
(C) Illuminated exit signs shall meet the version 2.0 product specification of the "Energy Star Program Requirements for Exit Signs" developed by the United States Environmental Protection Agency;
(D) Large packaged air-conditioning equipment having not more than seven hundred sixty thousand BTUs per hour of capacity shall meet a minimum energy efficiency ratio of 10.0 for units using both electric heat and air conditioning or units solely using electric air conditioning, and 9.8 for units using both natural gas heat and electric air conditioning;
(E) Large packaged air-conditioning equipment having not less than seven hundred sixty-one thousand BTUs per hour of capacity shall meet a minimum energy efficiency ratio of 9.7 for units using both electric heat and air conditioning or units solely using electric air conditioning, and 9.5 for units using both natural gas heat and electric air conditioning;
(F) Low voltage dry-type distribution transformers shall meet or exceed the energy efficiency values shown in Table 4-2 of the National Electrical Manufacturers Association Standard TP-1-2002;
(G) Torchiere lighting fixtures shall not consume more than one hundred ninety watts and shall not be capable of operating with lamps that total more than one hundred ninety watts;
(H) Traffic signal modules shall meet the product specification of the "Energy Star Program Requirements for Traffic Signals" developed by the United States Environmental Protection Agency that took effect in February, 2001, except where the department, in consultation with the Commissioner of Transportation, determines that such specification would compromise safe signal operation;
(I) Unit heaters shall not have pilot lights and shall have either power venting or an automatic flue damper;
(J) On or after January 1, 2009, residential furnaces and boilers purchased by the state shall meet or exceed the following annual fuel utilization efficiency: (i) For gas and propane furnaces, ninety per cent annual fuel utilization efficiency, (ii) for oil furnaces, eighty-three per cent annual fuel utilization efficiency, (iii) for gas and propane hot water boilers, eighty-four per cent annual fuel utilization efficiency, (iv) for oil-fired hot water boilers, eighty-four per cent annual fuel utilization efficiency, (v) for gas and propane steam boilers, eighty-two per cent annual fuel utilization efficiency, (vi) for oil-fired steam boilers, eighty-two per cent annual fuel utilization efficiency, and (vii) for furnaces with furnace air handlers, an electricity ratio of not more than 2.0, except air handlers for oil furnaces with a capacity of less than ninety-four thousand BTUs per hour shall have an electricity ratio of 2.3 or less;
(K) On or after January 1, 2010, metal halide lamp fixtures designed to be operated with lamps rated greater than or equal to one hundred fifty watts but less than or equal to five hundred watts shall not contain a probe-start metal halide lamp ballast;
(L) Single-voltage external AC to DC power supplies manufactured on or after January 1, 2008, shall meet the energy efficiency standards of table U-1 of section 1605.3 of the January 2006 California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations. This standard applies to single voltage AC to DC power supplies that are sold individually and to those that are sold as a component of or in conjunction with another product. This standard shall not apply to single voltage external AC to DC power supplies sold with products subject to certification by the United States Food and Drug Administration. A single-voltage external AC to DC power supply that is made available by a manufacturer directly to a consumer or to a service or repair facility after and separate from the original sale of the product requiring the power supply as a service part or spare part shall not be required to meet the standards in said table U-1 until five years after the effective dates indicated in the table;
(M) On or after January 1, 2009, state regulated incandescent reflector lamps shall be manufactured to meet the minimum average lamp efficacy requirements for federally-regulated incandescent reflector lamps contained in 42 USC 6295(i)(1)(A). Each lamp shall indicate the date of manufacture;
(N) On or after January 1, 2009, bottle-type water dispensers, commercial hot food holding cabinets, portable electric spas, walk-in refrigerators and walk-in freezers shall meet the efficiency requirements of section 1605.3 of the January 2006 California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations. On or after January 1, 2010, residential pool pumps shall meet said efficiency requirements;
(O) On or after January 1, 2009, pool heaters shall meet the efficiency requirements of sections 1605.1 and 1605.3 of the January 2006 California Code of Regulations, Title 20, Division 2, Chapter 4, Article 4: Appliance Efficiency Regulations.
(2) Such efficiency standards, where in conflict with the State Building Code, shall take precedence over the standards contained in the Building Code. Not later than July 1, 2007, and biennially thereafter, the office, in consultation with the Department of Public Utility Control, shall review and increase the level of such efficiency standards by adopting regulations in accordance with the provisions of chapter 54 upon a determination that increased efficiency standards would serve to promote energy conservation in the state and would be cost-effective for consumers who purchase and use such new products, provided no such increased efficiency standards shall become effective within one year following the adoption of any amended regulations providing for such increased efficiency standards.
(3) The [office] Division of Electricity Policy and Procurement, in consultation with the Department of Public Utility Control, shall adopt regulations, in accordance with the provisions of chapter 54, to designate additional products to be subject to the provisions of this section and to establish efficiency standards for such products upon a determination that such efficiency standards (A) would serve to promote energy conservation in the state, (B) would be cost-effective for consumers who purchase and use such new products, and (C) that multiple products are available which meet such standards, provided no such efficiency standards shall become effective within one year following their adoption pursuant to this subdivision.
Sec. 15. Section 16-246e of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) The Governor may designate the [Department of Public Utility Control] Division of Electricity Policy and Procurement as the agent of the state, subject only to the limitation under subsection (b) of this section, to conduct negotiations and perform all acts necessary to procure electric power capacity, power output from such capacity or both from any out-of-state electric power producer, to transmit it to within the state and to sell or resell it on a nonprofit basis for distribution within the state to electric companies, as defined in section 16-1, municipal electric utilities established under chapter 101, municipal electric energy cooperatives organized under chapter 101a, membership electric cooperatives organized under chapter 597 and such other persons or entities as may be designated by the [governor] Governor. The [department] division, if designated as such agent, shall arrange for the sale or resale of such power on an equitable basis and in such manner as it finds will most effectively promote the objectives of this title, chapters 101, 101a and 597, and section 16a-35k, subject to any conditions or limitations imposed by the out-of-state electric power producer selling such power. The [department] division, if so designated, may also enter into any contracts or other arrangements for the sale or resale of such power for transmission outside the state if such sale or resale is reasonably incidental to and furthers the needs of the state and the purposes of this section.
(b) The [department] division shall submit any final action it takes under subsection (a) of this section to the Governor, who may, not later than sixty days after such submission, disapprove such action by notifying the [department] division in writing of such disapproval and the reasons for it.
Sec. 16. Section 16-2 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) There shall continue to be a Public Utilities Control Authority, which shall consist of [five] seven electors of this state, appointed by the Governor with the advice and consent of both houses of the General Assembly. Not more than [three] four members of said authority in office at any one time shall be members of any one political party. On or before July 1, 1983, and quadrennially thereafter, the Governor shall appoint three members to the authority; [and] on or before July 1, 1985, and quadrennially thereafter, the Governor shall appoint two members; and on or before July 1, 2010, and quadrennially thereafter, the Governor shall appoint two members. All such members shall serve for a term of four years. The procedure prescribed by section 4-7 shall apply to such appointments, except that the Governor shall submit each nomination on or before May first, and both houses shall confirm or reject it before adjournment sine die. The commissioners shall be sworn to the faithful performance of their duties.
(b) The authority shall elect a chairperson and vice-chairperson each June for one-year terms starting on July first of the same year. The vice-chairperson shall perform the duties of the chairperson in his absence.
(c) Any matter coming before the authority may be assigned by the chairperson to a panel of [three] five commissioners, not more than [two] four of whom shall be members of the same political party. Except as otherwise provided by statute or regulation, the panel shall determine whether a public hearing shall be held on the matter, and may designate one or two of its members to conduct such hearing or appoint an examiner to ascertain the facts and report thereon to the panel. The decision of the panel, if unanimous, shall be the decision of the authority. If the decision of the panel is not unanimous, the matter shall be referred to the entire authority for decision.
(d) The commissioners of the authority shall serve full time and shall make full public disclosure of their assets, liabilities and income at the time of their appointment, and thereafter each member of the authority shall make such disclosure on or before July thirtieth of each year of such member's term, and shall file such disclosure with the office of the Secretary of the State. Each commissioner shall receive annually a salary equal to that established for management pay plan salary group seventy-five by the Commissioner of Administrative Services, except that the chairperson shall receive annually a salary equal to that established for management pay plan salary group seventy-seven.
(e) To insure the highest standard of public utility regulation, on and after October 1, 2007, any newly appointed commissioner of the authority shall have education or training and three or more years of experience in one or more of the following fields: Economics, engineering, law, accounting, finance, utility regulation, public or government administration, consumer advocacy, business management, and environmental management. On and after July 1, 1997, at least three of these fields shall be represented on the authority by individual commissioners at all times. Any time a commissioner is newly appointed, at least one of the commissioners shall have experience in utility [customer] consumer advocacy, one in environmental management and one in business management.
(f) The chairperson of the authority, with the consent of [two] three or more other members of the authority, shall appoint an executive director, who shall be the chief administrative officer of the Department of Public Utility Control. The executive director shall be supervised by the chairperson of the authority, serve for a term of four years and annually receive a salary equal to that established for management pay plan salary group seventy-two by the Commissioner of Administrative Services. The executive director (1) shall conduct comprehensive planning with respect to the functions of the department; (2) shall coordinate the activities of the department; (3) shall cause the administrative organization of the department to be examined with a view to promoting economy and efficiency; (4) shall, in concurrence with the chairperson of the authority, organize the department into such divisions, bureaus or other units as he deems necessary for the efficient conduct of the business of the department and may from time to time abolish, transfer or consolidate within the department, any division, bureau or other units as may be necessary for the efficient conduct of the business of the department, provided such organization shall include any division, bureau or other unit which is specifically required by the general statutes; (5) shall, for any proceeding on a proposed rate amendment in which staff of the department are to be made a party pursuant to section 16-19j, determine which staff shall appear and participate in the proceedings and which shall serve the members of the authority; (6) may enter into such contractual agreements, in accordance with established procedures, as may be necessary for the discharge of his duties; and (7) may, subject to the provisions of section 4-32, and unless otherwise provided by law, receive any money, revenue or services from the federal government, corporations, associations or individuals, including payments from the sale of printed matter or any other material or services. The executive director shall require the staff of the department to have expertise in public utility engineering and accounting, finance, economics, computers and rate design. Subject to the provisions of chapter 67 and within available funds in any fiscal year, the executive director may appoint a secretary, and may employ such accountants, clerical assistants, engineers, inspectors, experts, consultants and agents as the department may require.
(g) No member of the authority or employee of the department shall, while serving as such, have any interest, financial or otherwise, direct or indirect, or engage in any business, employment, transaction or professional activity, or incur any obligation of any nature, which is in substantial conflict with the proper discharge of his duties or employment in the public interest and of his responsibilities as prescribed in the laws of this state, as defined in section 1-85; provided, no such substantial conflict shall be deemed to exist solely by virtue of the fact that a member of the authority or employee of the department, or any business in which such a person has an interest, receives utility service from one or more Connecticut utilities under the normal rates and conditions of service.
(h) No member of the authority or employee of the department shall accept other employment which will either impair his independence of judgment as to his official duties or employment or require him, or induce him, to disclose confidential information acquired by him in the course of and by reason of his official duties.
(i) No member of the authority or employee of the department shall wilfully and knowingly disclose, for pecuniary gain, to any other person, confidential information acquired by him in the course of and by reason of his official duties or employment or use any such information for the purpose of pecuniary gain.
(j) No member of the authority or employee of the department shall agree to accept, or be in partnership or association with any person, or a member of a professional corporation or in membership with any union or professional association which partnership, association, professional corporation, union or professional association agrees to accept any employment, fee or other thing of value, or portion thereof, in consideration of his appearing, agreeing to appear, or taking any other action on behalf of another person before the authority, the Connecticut Siting Council, the Office of Policy and Management or the Commissioner of Environmental Protection.
(k) No commissioner of the authority shall, for a period of one year following the termination of his or her service as a commissioner, accept employment: (1) By a public service company or by any person, firm or corporation engaged in lobbying activities with regard to governmental regulation of public service companies; (2) by a certified telecommunications provider or by any person, firm or corporation engaged in lobbying activities with regard to governmental regulation of persons, firms or corporations so certified; or (3) by an electric supplier or by any person, firm or corporation engaged in lobbying activities with regard to governmental regulation of electric suppliers. No such commissioner who is also an attorney shall in any capacity, appear or participate in any matter, or accept any compensation regarding a matter, before the authority, for a period of one year following the termination of his or her service as a commissioner.
Sec. 17. Section 16-245l of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):
(a) The Department of Public Utility Control shall establish and each electric distribution company shall collect a systems benefits charge to be imposed against all end use customers of each electric distribution company beginning January 1, 2000. The department shall hold a hearing that shall be conducted as a contested case in accordance with chapter 54 to establish the amount of the systems benefits charge. The department may revise the systems benefits charge or any element of said charge as the need arises. The systems benefits charge shall be used to fund (1) the expenses of the public education outreach program developed under subsections (a), (f) and (g) of section 16-244d other than expenses for department staff, (2) the reasonable and proper expenses of the education outreach consultant pursuant to subsection (d) of section 16-244d, (3) the cost of hardship protection measures under sections 16-262c and 16-262d and other hardship protections, including, but not limited to, electric service bill payment programs, funding and technical support for energy assistance, fuel bank and weatherization programs and weatherization services, (4) the payment program to offset tax losses described in section 12-94d, (5) any sums paid to a resource recovery authority pursuant to subsection (b) of section 16-243e, (6) low income conservation programs approved by the Department of Public Utility Control, (7) displaced worker protection costs, (8) unfunded storage and disposal costs for spent nuclear fuel generated before January 1, 2000, approved by the appropriate regulatory agencies, (9) postretirement safe shutdown and site protection costs that are incurred in preparation for decommissioning, (10) decommissioning fund contributions, (11) the costs of temporary electric generation facilities incurred pursuant to section 16-19ss, (12) operating expenses for the Connecticut Energy Advisory Board, (13) costs associated with the Connecticut electric efficiency partner program established pursuant to section 16-243v, (14) reinvestments and investments in energy efficiency programs and technologies pursuant to section 16a-38l, costs associated with the electricity conservation incentive program established pursuant to section 119 of public act 07-242, (15) operating expenses and costs associated with the Division of Electricity Policy and Procurement, and [(15)] (16) legal, appraisal and purchase costs of a conservation or land use restriction and other related costs as the department in its discretion deems appropriate, incurred by a municipality on or before January 1, 2000, to ensure the environmental, recreational and scenic preservation of any reservoir located within this state created by a pump storage hydroelectric generating facility. As used in this subsection, "displaced worker protection costs" means the reasonable costs incurred, prior to January 1, 2008, (A) by an electric supplier, exempt wholesale generator, electric company, an operator of a nuclear power generating facility in this state or a generation entity or affiliate arising from the dislocation of any employee other than an officer, provided such dislocation is a result of (i) restructuring of the electric generation market and such dislocation occurs on or after July 1, 1998, or (ii) the closing of a Title IV source or an exempt wholesale generator, as defined in 15 USC 79z-5a, on or after January 1, 2004, as a result of such source's failure to meet requirements imposed as a result of sections 22a-197 and 22a-198 and this section or those Regulations of Connecticut State Agencies adopted by the Department of Environmental Protection, as amended from time to time, in accordance with Executive Order Number 19, issued on May 17, 2000, and provided further such costs result from either the execution of agreements reached through collective bargaining for union employees or from the company's or entity's or affiliate's programs and policies for nonunion employees, and (B) by an electric distribution company or an exempt wholesale generator arising from the retraining of a former employee of an unaffiliated exempt wholesale generator, which employee was involuntarily dislocated on or after January 1, 2004, from such wholesale generator, except for cause. "Displaced worker protection costs" includes costs incurred or projected for severance, retraining, early retirement, outplacement, coverage for surviving spouse insurance benefits and related expenses. "Displaced worker protection costs" does not include those costs included in determining a tax credit pursuant to section 12-217bb.
(b) The amount of the systems benefits charge shall be determined by the department in a general and equitable manner and shall be imposed on all end use customers of each electric distribution company at a rate that is applied equally to all customers of the same class in accordance with methods of allocation in effect on July 1, 1998, provided the system benefits charge shall not be imposed on customers receiving services under a special contract which is in effect on July 1, 1998, until such special contracts expire. The system benefits charge shall be imposed beginning on January 1, 2000, on all customers receiving services under a special contract which are entered into or renewed after July 1, 1998. The systems benefits charge shall have a generally applicable manner of determination that may be measured on the basis of percentages of total costs of retail sales of generation services. The systems benefits charge shall be payable on an equal basis on the same payment terms and shall be eligible or subject to prepayment on an equal basis. Any exemption of the systems benefits charge by customers under a special contract shall not result in an increase in rates to any customer.
Sec. 18. (NEW) (Effective October 1, 2010) Notwithstanding any provision of the general statutes, each full-time employee or permanent part-time employee of the Office of Policy and Management whose primary duties involve electricity policies and programs shall be transferred to the Division of Electricity Policy and Procurement, in accordance with the provisions of this section and sections 4-38d, 4-38e and 4-39 of the general statutes.
Sec. 19. (NEW) (Effective July 1, 2010) (a) The Division of Electricity Policy and Procurement shall appoint and convene an Energy Conservation Management Board, which shall be within the division for administrative purposes only and shall include: (1) A representative of an environmental group knowledgeable in energy conservation programs; (2) the Consumer Counsel or the Consumer Counsel's designee; (3) the Attorney General or the Attorney General's designee; (4) the Commissioner of Environmental Protection or the commissioner's designee; (5) the Commissioner of Social Services or the commissioner's designee; (6) a representative of a state-wide manufacturing association; (7) a representative of a chamber of commerce; (8) a representative of a state-wide business association; (9) a representative of a state-wide retail organization; (10) a representative of a municipal electric energy cooperative created pursuant to chapter 101a of the general statutes; (11) two representatives, one each selected by the electric distribution companies, as defined in section 16-1 of the general statutes; (12) two representatives selected by the gas companies, as defined in section 16-1 of the general statutes; (13) a representative of residential customers; (14) a fuel oil dealer selected by the Independent Connecticut Petroleum Association; (15) a Connecticut propane dealer selected by the Propane Gas Association of New England; and (16) a representative of the Renewable Energy Investment Fund selected by such fund. The members of the Energy Conservation Management Board on June 30, 2010, shall continue to serve on the board established pursuant to this section until the expiration of their current term. Members shall serve for a period of five years from the date of appointment and may be reappointed. Representatives of the gas companies, electric distribution companies, municipal electric energy cooperative, fuel oil dealers, propane dealers and the Renewable Energy Investment Fund shall not vote on matters unrelated to their industry.
(b) The Energy Conservation Management Board shall:
(1) Advise the municipal electric energy cooperatives regarding programs developed pursuant to section 21 of this act and section 7-233y of the general statutes, as amended by this act;
(2) Advise the natural gas companies regarding programs developed pursuant to section 21 of this act and section 16-32f of the general statutes, as amended by this act;
(3) Advise the electric distribution companies regarding programs developed pursuant to section 21 of this act and section 16-245m of the general statutes, as amended by this act;
(4) Collaborate with the Department of Social Services regarding coordination of energy and weatherization assistance administered or funded by said department with conservation assistance available under the plan developed pursuant to section 21 of this act and sections 7-233y, 16-32f and 16-245m of the general statutes, as amended by this act;
(5) Collaborate, in accordance with the provisions of subsection (d) of this section, with the Renewable Energy Investment Fund to examine opportunities to coordinate with the programs and activities funded by said fund pursuant to section 16-245n of the general statutes, as amended by this act, and with programs and activities developed pursuant to section 21 of this act and sections 7-233y, 16-32f and 16-245m of the general statutes, as amended by this act;
(6) Oversee the administrator retained pursuant to subsection (c) of this section and the development and implementation of conservation assistance regarding deliverable fuels pursuant to section 21 of this act;
(7) Facilitate, to the extent practicable, the coordination and integration of energy, conservation and renewable resources programs to simplify consumer access to integrated services of all available resources, minimize expenses in the administration of each program and reduce environmental impacts and security risks of energy in this state;
(8) Conduct an annual public hearing regarding conservation plans and the implementation of such plans. All public comments shall be summarized for the purposes of consideration in the board's deliberations on future conservation plans;
(9) Retain and direct expert consultants regarding the board's duties pursuant to section 21 of this act and sections 16-32f and 16-245m of the general statutes, as amended by this act;
(10) Evaluate programs contained in the comprehensive conservation plan and pursuant to sections 16-32f and 16-245m of the general statutes, as amended by this act; and
(11) Consolidate annual reports to the joint standing committees of the General Assembly having cognizance of matters relating to energy, the environment and commerce, documenting conservation and renewable resources program operations, pursuant to section 22 of this act and sections 7-233y, 16-32f, 16-245m and 16-245n of the general statutes, as amended by this act.
(c) On or before January 1, 2011, to the extent funding is available, after issuing a request for proposals, the Energy Conservation Management Board shall select an administrator qualified to develop recommendations for conservation of deliverable fuel and for administering and implementing conservation and energy efficiency programs for deliverable fuel customers. The board may enter into a contract with the administrator for a period not to exceed three years. The costs for such administrator shall be paid from the fuel oil conservation account established pursuant to subsection (b) of section 20 of this act or any other funds as may become available for this purpose.
(d) There shall be a joint committee of the Energy Conservation Management Board and the Renewable Energy Investments Board. Each board shall appoint members to such joint committee. The joint committee shall examine opportunities to coordinate the programs and activities funded by the Renewable Energy Investment Fund pursuant to section 16-245n of the general statutes, as amended by this act, with the programs and activities contained in the comprehensive conservation plan approved pursuant to section 21 of this act to reduce the long-term cost, environmental impacts and security risks of energy in the state.
(e) As used in this section, sections 20 and 21 of this act and section 16a-41a of the general statutes, as amended by this act, "deliverable fuel" includes fuel oil, propane, wood, coal and kerosene used for space heating or to heat hot water, and as used in this section "fuel oil" means the product designated by the American Society for Testing and Materials as "Specifications for Heating Oil D396-69", commonly known as number 2 heating oil, and grade number 4, grade number 5 and grade number 6 fuel oil, provided such heating and fuel oils are used for purposes other than generating power to propel motor vehicles or for generating electricity.
Sec. 20. (NEW) (Effective July 1, 2010) (a) There is established, within the Energy Conservation and Load Management Fund established pursuant to subsection (b) of section 16-245m of the general statutes, as amended by this act, a natural gas subaccount. The Energy Conservation Management Board may receive any amount required by law to be deposited into the subaccount and may receive any federal or other funds as may become available for conservation and load management and renewable resources. Any balance remaining in such subaccount at the end of any fiscal year shall be carried forward in the fiscal year next succeeding. Disbursement from such subaccount shall be in accordance with the comprehensive conservation plan approved by the Department of Public Utility Control pursuant to section 21 of this act.
(b) Each fiscal year, an amount equal to the annual revenue from the tax imposed by section 12-264 of the general statutes on the gross receipts of sales of all public services companies that is in excess of the revenue estimate for said tax that is approved by the General Assembly in the appropriations act for that fiscal year shall be deposited by the Comptroller in the natural gas subaccount, provided the amount of such excess revenue shall not exceed ten million dollars. Such amount shall be used for natural gas programs contained in the comprehensive conservation plan, natural gas allocations of joint programs and such administrative expenses as provided in such plan.
(c) There is established a fuel oil conservation account, which shall be a separate, nonlapsing account within the Restricted Grant Fund and shall be funded by annual revenue from the tax imposed by section 12-587 of the general statutes on the sale of petroleum products gross earnings that is in excess of said revenue collected during fiscal year 2006, provided the amount of such revenue that shall be allocated to said account in the fiscal year commencing July 1, 2010, shall not exceed five million dollars. Such amount shall be used for deliverable fuel programs in accordance with the comprehensive conservation plan approved pursuant to section 21 of this act. The Energy Conservation Management Board shall notify the State Comptroller of an approved amount to be drawn from such account for the purposes of this act. Not later than two business days following notification by the board, the State Comptroller shall draw an order on the State Treasurer for payment of any such requested amount from the fund.
Sec. 21. (NEW) (Effective July 1, 2010) (a) On October 1, 2010, and annually thereafter, (1) the deliverable fuels administrator regarding deliverable fuels; (2) the natural gas companies regarding natural gas; and (3) the electric distribution companies regarding electricity shall submit their recommendations for energy conservation to the Department of Public Utility Control, which shall include plans to integrate and coordinate conservation and renewable energy resources pursuant to subsection (b) of this section. Upon receipt of the recommendations, the department, in an uncontested proceeding, shall hold a public hearing and, after such hearing, approve, modify or reject the recommendations and consolidate the approved or modified recommendations into a comprehensive conservation plan.
(b) Not less than sixty days before the submission of such recommendations, the deliverable fuels administrator, the gas companies and the electric distribution companies shall submit the recommendations to the Energy Conservation Management Board for review and comment. In its review of these recommendations, the board shall examine opportunities to offer integrated efficiency and renewable programs that save more than one fuel resource, or otherwise coordinate programs targeted at saving more than one fuel resource to ensure available conservation and renewable resources are integrated, to the extent practicable, to simplify consumer access to integrated services of all available resources, to minimize expenses in the administration of each program and to reduce environmental impacts and security risks of energy in the state. The board shall consult with the Connecticut Electric Authority regarding electricity programs to ensure that such programs are consistent with the goals of the procurement plan approved pursuant to section 16a-3a of the general statutes. The electric distribution companies shall review each program contained in the plan and the Energy Conservation Management Board shall either accept or reject such plan prior to submission to the department for approval.
(c) The comprehensive conservation plan approved by the department shall contain specific goals for reducing energy use in this state that are consistent with the procurement plan approved pursuant to section 16a-3a of the general statutes and shall contain a description of each program that is proposed to meet such goals, the amount of funds in the Energy Conservation and Load Management Fund established pursuant to subsection (b) of section 16-245m of the general statutes, as amended by this act, and, if applicable, other sources to be used for each program and an estimate of the systemic savings that will be achieved if such goals are met. Programs included in the plan shall be reviewed using cost-effectiveness testing that compares the value and payback period of program benefits to program costs to ensure that the programs contained in the comprehensive conservation plan will reduce customer bills for energy and obtain energy savings and system benefits, including mitigation of federally mandated congestion charges. The value of the program benefits shall be greater than the costs of the program. Any costs for joint programs shall be allocated equitably among the conservation programs. The plan shall give preference to electric efficiency and load management projects funded pursuant to section 16-245m of the general statutes, as amended by this act, that maximize the reduction of federally mandated congestion charges. The plan shall also provide for reimbursement for services provided by the deliverable fuels administrator and disbursements from the Energy Conservation and Load Management Fund established pursuant to section 16-245m of the general statutes, as amended by this act, to develop and carry out the comprehensive conservation plan, including the retention of expert consultants and the board's reasonable administrative costs. No consultant shall be employed by, or have any contractual relationship with, an electric distribution company, gas company or deliverable fuel company or the administrator. The total cost of such board consultants and the board's administrative costs shall not exceed five per cent of the total cost of the plan. Program cost-effectiveness shall be reviewed annually, or otherwise as is practicable. If a program is determined to fail the cost-effectiveness test as part of the review process, it shall be modified to meet the test or terminated.
(d) Programs included in the comprehensive conservation plan may include, but not be limited to: (1) Conservation programs, including programs that benefit low-income persons; (2) commercialization of products or processes that are more energy-efficient than those generally available; (3) development of markets for such products and processes; (4) support for energy use assessment, real-time monitoring systems, engineering studies and services related to new construction or major building renovations; (5) program planning and evaluation; (6) joint fuel conservation initiatives and programs targeted at saving more than one fuel resource; (7) promotion of practices to optimize efficiency; (8) assistance in meeting state climate change and environmental and public health goals; (9) promotion of sustainable economic development and employment; (10) public education regarding conservation; and (11) demand-side technology programs recommended by the procurement plan approved by the Department of Public Utility Control pursuant to section 16a-3a of the general statutes. Support may be by direct funding, manufacturers' rebates, sale price and loan subsidies, leases and promotional and educational activities.
Sec. 22. (NEW) (Effective July 1, 2010) On or before March 1, 2010, and annually thereafter, the Energy Conservation Management Board shall provide a consolidated report documenting conservation and renewable resource program operation and activities developed pursuant to section 21 of this act and sections 7-233y, 16-32f, 16-245m and 16-245n of the general statutes, as amended by this act, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to energy, the environment and commerce. The report shall document: (1) Expenditures and funding for such programs; (2) program integration, including the extent to and manner in which said board collaborated and cooperated with municipal electric energy cooperative programs established pursuant to section 7-233y of the general statutes, as amended by this act, the Department of Social Services programs, and the joint or collaborative activities with the Renewable Energy Investment Fund established pursuant to section 16-245n of the general statutes, as amended by this act; (3) evaluation of the cost-effectiveness of conservation programs and activities conducted in the preceding year, including any increased cost-effectiveness, including reduced administrative expenses, achieved by offering programs that save more than one fuel resource and integrating programs; (4) the extent to which plan goals and systemic savings were achieved for reducing energy use in the state; and (5) in detail, the activities of the Renewable Energy Investment Fund. Any costs for the consolidated annual report shall be allocated equitably among the entities with responsibility for such report.
Sec. 23. Section 7-233y of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
(a) Each municipal electric utility created pursuant to chapter 101 or by special act shall, for investment in renewable energy sources and for conservation and load management programs pursuant to this section, accrue from each kilowatt hour of its metered firm electric retail sales, exclusive of such sales to United States government naval facilities in this state, no less than the following amounts during the following periods, in a manner conforming to the requirement of this section: (1) 1.0 mills on and after January 1, 2006; (2) 1.3 mills on and after January 1, 2007; (3) 1.6 mills on and after January 1, 2008; (4) 1.9 mills on and after January 1, 2009; (5) 2.2 mills on and after January 1, 2010; and (6) 2.5 mills on and after January 1, 2011.
(b) There is hereby created a municipal energy conservation and load management fund in each municipal electric energy cooperative created pursuant to this chapter, which fund shall be a separate and dedicated fund to be held and administered by such cooperative. The fund may receive an amount required by law to be deposited into the fund and may receive any federal or other funds as may become available for conservation and load management and renewable resources. Each municipal electric utility created pursuant to chapter 101 or by special act that is a member or participant in such a municipal electric energy cooperative shall accrue and deposit such amounts as specified in subsection (a) of this section into such fund. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fiscal year next succeeding. Disbursements from the fund shall be made pursuant to the comprehensive electric conservation and load management plan prepared by the cooperative in accordance with subsection (c) of this section.
(c) Such cooperative shall, annually, adopt a comprehensive plan for the expenditure of such funds by the cooperative on behalf of such municipal electric utilities for the purpose of carrying out electric conservation, investments in renewable energy sources, energy efficiency and electric load management programs funded by the charge accrued pursuant to subsection (a) of this section. The cooperative shall expend or cause to be expended the amounts held in such fund in conformity with the adopted plan. The plan may direct the expenditure of funds on facilities or measures located in any one or more of the service areas of the municipal electric utilities who are members or participants in such cooperative and may provide for the establishment of goals and standards for measuring the cost effectiveness of expenditures made from such fund, for the minimization of federally mandated congestion charges and for achieving appropriate geographic coverage and scope in each such service area. Such plan shall be consistent with the comprehensive plan of the Energy Conservation Management Board established under section [16-245m] 3 of this act. Such cooperative, annually, shall submit its plan to such board for review and provide documentation and information for the consolidated report prepared by the Energy Conservation Management Board pursuant to section 22 of this act.
Sec. 24. Section 16-32f of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
(a) On or before October first of each even-numbered year, a gas company, as defined in section 16-1, shall furnish a report to the Department of Public Utility Control containing a five-year forecast of loads and resources. The report shall describe the facilities and supply sources that, in the judgment of such gas company, will be required to meet gas demands during the forecast period. The report shall be made available to the public and shall be furnished to the Energy Conservation Management Board, the chief executive officer of each municipality in the service area of such gas company, the regional planning agency which encompasses each such municipality, the Attorney General, the president pro tempore of the Senate, the speaker of the House of Representatives, the joint standing [committee] committees of the General Assembly having cognizance of matters relating to [public utilities] energy, the environment and commerce, any other member of the General Assembly making a request to the department for the report and such other state and municipal entities as the department may designate by regulation. The report shall include: (1) A tabulation of estimated peak loads and resources for each year; (2) data on gas use and peak loads for the five preceding calendar years; (3) a list of present and projected gas supply sources; (4) specific measures to control load growth and promote conservation; and (5) such other information as the department may require by regulation. A full description of the methodology used to arrive at the forecast of loads and resources shall also be furnished to the department. The department shall hold a public hearing on such reports upon the request of any person. On or before August first of each odd-numbered year, the department may request a gas company to furnish to the department an updated report. A gas company shall furnish any such updated report not later than sixty days following the request of the department.
(b) [Not later than October 1, 2005, and annually thereafter] On or before October first of each year, a gas company, as defined in section 16-1, shall submit to the Energy Conservation Management Board and the Department of Public Utility Control a gas conservation plan, in accordance with the provisions of [this section, to implement cost-effective energy conservation programs and market transformation initiatives. All supply and conservation and load management options shall be evaluated and selected within an integrated supply and demand planning framework. Such plan shall be funded during each state fiscal year by the revenue from the tax imposed by section 12-264 on the gross receipts of sales of all public services companies that is in excess of the revenue estimate for said tax that is approved by the General Assembly in the appropriations act for such fiscal year, provided the amount of such excess revenue that shall be allocated to fund such plan in any state fiscal year shall not exceed ten million dollars. Before the accounts for the General Fund have been closed for each fiscal year, such excess revenue shall be deposited by the Comptroller in an account held by the Energy Conservation Management Board, established pursuant to section 16-245m. Services provided under the plan shall be available to all gas company customers. Each gas company shall apply to the Energy Conservation Management Board for reimbursement for expenditures pursuant to the plan. The department shall, in an uncontested proceeding during which the department may hold a public hearing, approve, modify or reject the plan] section 21 of this act.
[(c) (1) The Energy Conservation Management Board shall advise and assist each such gas company in the development and implementation of the plan submitted under subsection (b) of this section. Each program contained in the plan shall be reviewed by each such gas company and shall be either accepted, modified or rejected by the Energy Conservation Management Board before submission of the plan to the department for approval. The Energy Conservation Management Board shall, as part of its review, examine opportunities to offer joint programs providing similar efficiency measures that save more than one fuel resource or to otherwise coordinate programs targeted at saving more than one fuel resource. Any costs for joint programs shall be allocated equitably among the conservation programs.
(2) Programs included in the plan shall be screened through cost-effectiveness testing that compares the value and payback period of program benefits to program costs to ensure that the programs are designed to obtain gas savings whose value is greater than the costs of the program. Program cost-effectiveness shall be reviewed annually by the department, or otherwise as is practicable. If the department determines that a program fails the cost-effectiveness test as part of the review process, the program shall either be modified to meet the test or be terminated. On or before January 1, 2007, and annually thereafter, the board shall provide a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment, that documents expenditures and funding for such programs and evaluates the cost-effectiveness of such programs conducted in the preceding year, including any increased cost-effectiveness owing to offering programs that save more than one fuel resource.
(3) Programs included in the plan may include, but are not limited to: (A) Conservation and load management programs, including programs that benefit low-income individuals; (B) research, development and commercialization of products or processes that are more energy-efficient than those generally available; (C) development of markets for such products and processes; (D) support for energy use assessment, engineering studies and services related to new construction or major building renovations; (E) the design, manufacture, commercialization and purchase of energy-efficient appliances, air conditioning and heating devices; (F) program planning and evaluation; (G) joint fuel conservation initiatives and programs targeted at saving more than one fuel resource; and (H) public education regarding conservation. Such support may be by direct funding, manufacturers' rebates, sale price and loan subsidies, leases and promotional and educational activities. The plan shall also provide for expenditures by the Energy Conservation Management Board for the retention of expert consultants and reasonable administrative costs, provided such consultants shall not be employed by, or have any contractual relationship with, a gas company. Such costs shall not exceed five per cent of the total cost of the plan.]
(c) Annually, each gas company shall provide documentation and information for the consolidated report provided by the Energy Conservation Management Board pursuant to section 22 of this act.
Sec. 25. Section 16-245m of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
(a) [(1)] On and after January 1, 2000, the Department of Public Utility Control shall assess or cause to be assessed a charge of three mills per kilowatt hour of electricity sold to each end use customer of an electric distribution company to be used to implement the program as provided in this section for conservation and load management programs but not for the amortization of costs incurred prior to July 1, 1997, for such conservation and load management programs.
[(2) Notwithstanding the provisions of this section, receipts from such charge shall be disbursed to the resources of the General Fund during the period from July 1, 2003, to June 30, 2005, unless the department shall, on or before October 30, 2003, issue a financing order for each affected electric distribution company in accordance with sections 16-245e to 16-245k, inclusive, to sustain funding of conservation and load management programs by substituting an equivalent amount, as determined by the department in such financing order, of proceeds of rate reduction bonds for disbursement to the resources of the General Fund during the period from July 1, 2003, to June 30, 2005. The department may authorize in such financing order the issuance of rate reduction bonds that substitute for disbursement to the General Fund for receipts of both the charge under this subsection and under subsection (b) of section 16-245n and also may, in its discretion, authorize the issuance of rate reduction bonds under this subsection and subsection (b) of section 16-245n that relate to more than one electric distribution company. The department shall, in such financing order or other appropriate order, offset any increase in the competitive transition assessment necessary to pay principal, premium, if any, interest and expenses of the issuance of such rate reduction bonds by making an equivalent reduction to the charge imposed under this subsection, provided any failure to offset all or any portion of such increase in the competitive transition assessment shall not affect the need to implement the full amount of such increase as required by this subsection and by sections 16-245e to 16-245k, inclusive. Such financing order shall also provide if the rate reduction bonds are not issued, any unrecovered funds expended and committed by the electric distribution companies for conservation and load management programs, provided such expenditures were approved by the department after August 20, 2003, and prior to the date of determination that the rate reduction bonds cannot be issued, shall be recovered by the companies from their respective competitive transition assessment or systems benefits charge but such expenditures shall not exceed four million dollars per month. All receipts from the remaining charge imposed under this subsection, after reduction of such charge to offset the increase in the competitive transition assessment as provided in this subsection, shall be disbursed to the Energy Conservation and Load Management Fund commencing as of July 1, 2003. Any increase in the competitive transition assessment or decrease in the conservation and load management component of an electric distribution company's rates resulting from the issuance of or obligations under rate reduction bonds shall be included as rate adjustments on customer bills.]
(b) The electric distribution company shall establish an Energy Conservation and Load Management Fund which shall be held separate and apart from all other funds or accounts. The fund may receive any amount required by law to be deposited into the fund and may receive any federal or other funds as may become available for conservation and load management and renewable resources. Receipts from the charge imposed under subsection (a) of this section shall be deposited into the fund. Any balance remaining in the fund at the end of any fiscal year shall be carried forward in the fiscal year next succeeding. Disbursements from the fund or its subaccount by electric distribution companies to carry out the plan developed under [subsection (d) of this] section 3 of this act shall be authorized by the Department of Public Utility Control upon its approval of such plan.
[(c) The Department of Public Utility Control shall appoint and convene an Energy Conservation Management Board which shall include representatives of: (1) An environmental group knowledgeable in energy conservation program collaboratives; (2) the Office of Consumer Counsel; (3) the Attorney General; (4) the Department of Environmental Protection; (5) the electric distribution companies in whose territories the activities take place for such programs; (6) a state-wide manufacturing association; (7) a chamber of commerce; (8) a state-wide business association; (9) a state-wide retail organization; (10) a representative of a municipal electric energy cooperative created pursuant to chapter 101a; (11) two representatives selected by the gas companies in this state; and (12) residential customers. Such members shall serve for a period of five years and may be reappointed. Representatives of the gas companies shall not vote on matters unrelated to gas conservation. Representatives of the electric distribution companies and the municipal electric energy cooperative shall not vote on matters unrelated to electricity conservation.]
(c) On or before October first of each year, each electric distribution company shall submit to the Energy Conservation Management Board and the Division of Electricity Policy and Procurement a conservation plan in accordance with the provisions of section 21 of this act.
[(d) (1) The Energy Conservation Management Board shall advise and assist the electric distribution companies in the development and implementation of a comprehensive plan, which plan shall be approved by the Department of Public Utility Control, to implement cost-effective energy conservation programs and market transformation initiatives. Each program contained in the plan shall be reviewed by the electric distribution company and either accepted or rejected by the Energy Conservation Management Board prior to submission to the department for approval. The Energy Conservation Management Board shall, as part of its review, examine opportunities to offer joint programs providing similar efficiency measures that save more than one fuel resource or otherwise to coordinate programs targeted at saving more than one fuel resource. Any costs for joint programs shall be allocated equitably among the conservation programs. The Energy Conservation Management Board shall give preference to projects that maximize the reduction of federally mandated congestion charges. The Department of Public Utility Control shall, in an uncontested proceeding during which the department may hold a public hearing, approve, modify or reject the comprehensive plan prepared pursuant to this subsection.
(2) There shall be a joint committee of the Energy Conservation Management Board and the Renewable Energy Investments Board. The board and the advisory committee shall each appoint members to such joint committee. The joint committee shall examine opportunities to coordinate the programs and activities funded by the Renewable Energy Investment Fund pursuant to section 16-245n with the programs and activities contained in the plan developed under this subsection to reduce the long-term cost, environmental impacts and security risks of energy in the state. Such joint committee shall hold its first meeting on or before August 1, 2005.
(3) Programs included in the plan developed under subdivision (1) of this subsection shall be screened through cost-effectiveness testing which compares the value and payback period of program benefits to program costs to ensure that programs are designed to obtain energy savings and system benefits, including mitigation of federally mandated congestion charges, whose value is greater than the costs of the programs. Cost-effectiveness testing shall utilize available information obtained from real-time monitoring systems to ensure accurate validation and verification of energy use. Such testing shall include an analysis of the effects of investments on increasing the state's load factor. Program cost-effectiveness shall be reviewed annually, or otherwise as is practicable. If a program is determined to fail the cost-effectiveness test as part of the review process, it shall either be modified to meet the test or shall be terminated. On or before March 1, 2005, and on or before March first annually thereafter, the board shall provide a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment (A) that documents expenditures and fund balances and evaluates the cost-effectiveness of such programs conducted in the preceding year, and (B) that documents the extent to and manner in which the programs of such board collaborated and cooperated with programs, established under section 7-233y, of municipal electric energy cooperatives. To maximize the reduction of federally mandated congestion charges, programs in the plan may allow for disproportionate allocations between the amount of contributions to the Energy Conservation and Load Management Funds by a certain rate class and the programs that benefit such a rate class. Before conducting such evaluation, the board shall consult with the Renewable Energy Investments Board. The report shall include a description of the activities undertaken during the reporting period jointly or in collaboration with the Renewable Energy Investment Fund established pursuant to subsection (c) of section 16-245n.
(4) Programs included in the plan developed under subdivision (1) of this subsection may include, but not be limited to: (A) Conservation and load management programs, including programs that benefit low-income individuals; (B) research, development and commercialization of products or processes which are more energy-efficient than those generally available; (C) development of markets for such products and processes; (D) support for energy use assessment, real-time monitoring systems, engineering studies and services related to new construction or major building renovation; (E) the design, manufacture, commercialization and purchase of energy-efficient appliances and heating, air conditioning and lighting devices; (F) program planning and evaluation; (G) indoor air quality programs relating to energy conservation; (H) joint fuel conservation initiatives programs targeted at reducing consumption of more than one fuel resource; (I) public education regarding conservation; and (J) the demand-side technology programs recommended by the procurement plan approved by the Department of Public Utility Control pursuant to section 16a-3a. Such support may be by direct funding, manufacturers' rebates, sale price and loan subsidies, leases and promotional and educational activities. The plan shall also provide for expenditures by the Energy Conservation Management Board for the retention of expert consultants and reasonable administrative costs provided such consultants shall not be employed by, or have any contractual relationship with, an electric distribution company. Such costs shall not exceed five per cent of the total revenue collected from the assessment.]
(d) Each electric distribution company shall annually provide documentation and information for the consolidated report provided by the Energy Conservation Management Board pursuant to section 22 of this act.
(e) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section, the Department of Public Utility Control shall authorize the disbursement of a total of one million dollars in each month, commencing with July, 2003, and ending with July, 2005, from the Energy Conservation and Load Management Funds established pursuant to said subsections. The amount disbursed from each Energy Conservation and Load Management Fund shall be proportionately based on the receipts received by each fund. Such disbursements shall be deposited in the General Fund.
(f) No later than December 31, 2006, and no later than December thirty-first every five years thereafter, the Energy Conservation Management Board shall, after consulting with the Renewable Energy Investments Board, conduct an evaluation of the performance of the programs and activities of the fund and submit a report, in accordance with the provisions of section 11-4a, of the evaluation to the joint standing committee of the General Assembly having cognizance of matters relating to energy.
(g) Repealed by P.A. 06-186, S. 91, effective July 1, 2006.
Sec. 26. Section 16-245n of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
(a) For purposes of this section, "renewable energy" means solar photovoltaic energy, solar thermal, geothermal energy, wind, ocean thermal energy, wave or tidal energy, fuel cells, landfill gas, hydropower that meets the low-impact standards of the Low-Impact Hydropower Institute, hydrogen production and hydrogen conversion technologies, low emission advanced biomass conversion technologies, alternative fuels, used for electricity generation including ethanol, biodiesel or other fuel produced in Connecticut and derived from agricultural produce, food waste or waste vegetable oil, provided the Commissioner of Environmental Protection determines that such fuels provide net reductions in greenhouse gas emissions and fossil fuel consumption, usable electricity from combined heat and power systems with waste heat recovery systems, thermal storage systems and other energy resources and emerging technologies which have significant potential for commercialization and which do not involve the combustion of coal, petroleum or petroleum products, municipal solid waste or nuclear fission.
(b) On and after July 1, 2004, the Department of Public Utility Control shall assess or cause to be assessed a charge of not less than one mill per kilowatt hour charged to each end use customer of electric services in this state which shall be deposited into the Renewable Energy Investment Fund established under subsection (c) of this section. Notwithstanding the provisions of this section, receipts from such charges shall be disbursed to the resources of the General Fund during the period from July 1, 2003, to June 30, 2005, unless the department shall, on or before October 30, 2003, issue a financing order for each affected distribution company in accordance with sections 16-245e to 16-245k, inclusive, to sustain funding of renewable energy investment programs by substituting an equivalent amount, as determined by the department in such financing order, of proceeds of rate reduction bonds for disbursement to the resources of the General Fund during the period from July 1, 2003, to June 30, 2005. The department may authorize in such financing order the issuance of rate reduction bonds that substitute for disbursement to the General Fund for receipts of both charges under this subsection and subsection (a) of section 16-245m, as amended by this act, and also may in its discretion authorize the issuance of rate reduction bonds under this subsection and subsection (a) of section 16-245m, as amended by this act, that relate to more than one electric distribution company. The department shall, in such financing order or other appropriate order, offset any increase in the competitive transition assessment necessary to pay principal, premium, if any, interest and expenses of the issuance of such rate reduction bonds by making an equivalent reduction to the charges imposed under this subsection, provided any failure to offset all or any portion of such increase in the competitive transition assessment shall not affect the need to implement the full amount of such increase as required by this subsection and sections 16-245e to 16-245k, inclusive. Such financing order shall also provide if the rate reduction bonds are not issued, any unrecovered funds expended and committed by the electric distribution companies for renewable resource investment through deposits into the Renewable Energy Investment Fund, provided such expenditures were approved by the department following August 20, 2003, and prior to the date of determination that the rate reduction bonds cannot be issued, shall be recovered by the companies from their respective competitive transition assessment or systems benefits charge except that such expenditures shall not exceed one million dollars per month. All receipts from the remaining charges imposed under this subsection, after reduction of such charges to offset the increase in the competitive transition assessment as provided in this subsection, shall be disbursed to the Renewable Energy Investment Fund commencing as of July 1, 2003. Any increase in the competitive transition assessment or decrease in the renewable energy investment component of an electric distribution company's rates resulting from the issuance of or obligations under rate reduction bonds shall be included as rate adjustments on customer bills.
(c) There is hereby created a Renewable Energy Investment Fund which shall be within Connecticut Innovations, Incorporated for administrative purposes only. The fund may receive any amount required by law to be deposited into the fund and may receive any federal or other funds as may become available to the state for renewable energy investments. Upon authorization of the Renewable Energy Investments Board established pursuant to subsection (d) of this section, Connecticut Innovations, Incorporated, may use any amount in said fund for expenditures that (1) promote investment in renewable energy sources in accordance with a comprehensive plan developed by it to foster the growth, development and commercialization of renewable energy sources [,] and related enterprises, [and] (2) stimulate demand for renewable energy and deployment of renewable energy sources that serve end use customers in this state, [and for the further purpose of supporting] (3) support operational demonstration projects for advanced technologies that reduce energy use from traditional sources, and (4) ensure available conservation and renewable resources programs are integrated, to the extent practicable, to simplify consumer access to integrated services of all available resources, minimize expenses in the administration of each program and reduce environmental impacts and security risks of energy in the state. Such expenditures may include, but not be limited to, reimbursement for services provided by the administrator of the fund including a management fee, disbursements from the fund to develop and carry out the plan developed pursuant to subsection (d) of this section, grants, direct or equity investments, contracts or other actions which support research, development, manufacture, commercialization, deployment and installation of renewable energy technologies, and actions which expand the expertise of individuals, businesses and lending institutions with regard to renewable energy technologies.
(d) There is hereby created a Renewable Energy Investments Board to act on matters related to the Renewable Energy Investment Fund, including, but not limited to, development of a comprehensive plan and expenditure of funds. The Renewable Energy Investments Board shall, in such plan, give preference to projects that maximize the reduction of federally mandated congestion charges. The Renewable Energy Investments Board shall make a draft of the comprehensive plan available for public comment for not less than thirty days. The board shall conduct three public hearings in three different regions of the state on the draft comprehensive plan and shall include a summarization of all public comments received at said public hearings in the final comprehensive plan approved by the board. The board shall provide a copy of the comprehensive plan, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy, the environment and commerce and to the Energy Conservation Management Board. The Department of Public Utility Control shall, in an uncontested proceeding, during which the department may hold a public hearing, approve, modify or reject the comprehensive plan prepared pursuant to this subsection.
(e) The Renewable Energy Investments Board shall include not more than [fifteen] sixteen individuals with knowledge and experience in matters related to the purpose and activities of the Renewable Energy Investment Fund. The board shall consist of the following members: (1) One person with expertise regarding renewable energy resources appointed by the speaker of the House of Representatives; (2) one person representing a state or regional organization primarily concerned with environmental protection appointed by the president pro tempore of the Senate; (3) one person with experience in business or commercial investments appointed by the majority leader of the House of Representatives; (4) one person representing a state or regional organization primarily concerned with environmental protection appointed by the majority leader of the Senate; (5) one person with experience in business or commercial investments appointed by the minority leader of the House of Representatives; (6) the Commissioner of Emergency Management and Homeland Security or the commissioner's designee; (7) one person with expertise regarding renewable energy resources appointed by the Governor; (8) two persons with experience in business or commercial investments appointed by the board of directors of Connecticut Innovations, Incorporated; (9) a representative of a state-wide business association, manufacturing association or chamber of commerce appointed by the minority leader of the Senate; (10) the Consumer Counsel; (11) the Secretary of the Office of Policy and Management or the secretary's designee; (12) the Commissioner of Environmental Protection or the commissioner's designee; (13) a representative of organized labor appointed by the Governor; [and] (14) a representative of residential customers or low-income customers appointed by the Governor; and (15) a representative of the Energy Conservation Management Board selected by said board. On a biennial basis, the board shall elect a chairperson and vice-chairperson from among its members and shall adopt such bylaws and procedures it deems necessary to carry out its functions. The board may establish committees and subcommittees as necessary to conduct its business.
(f) The board shall [issue annually a report to the Department of Public Utility Control reviewing the activities of the Renewable Energy Investment Fund in detail and shall provide a copy of such report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy and commerce and the Office of Consumer Counsel. The report shall include a description of the programs and activities undertaken during the reporting period jointly or in collaboration with the Energy Conservation and Load Management Funds established pursuant to section 16-245m] annually provide documentation and information for the consolidated report provided by the Energy Conservation Management Board pursuant to section 22 of this act.
[(g) There shall be a joint committee of the Energy Conservation Management Board and the Renewable Energy Investments Board, as provided in subdivision (2) of subsection (d) of section 16-245m.]
[(h)] (g) No later than December 31, 2006, and no later than December thirty-first every five years thereafter, the board shall, after consulting with the Energy Conservation Management Board, conduct an evaluation of the performance of the programs and activities of the fund and submit a report, in accordance with the provisions of section 11-4a, of the evaluation to the joint standing committees of the General Assembly having cognizance of matters relating to energy and commerce.
Sec. 27. Subsection (k) of section 16-244c of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(k) (1) As used in this section:
(A) "Participating electric supplier" means an electric supplier that is licensed by the department to provide electric service, pursuant to this subsection, to residential or small commercial customers.
(B) "Residential customer" means a customer who is eligible for standard service and who takes electric distribution-related service from an electric distribution company pursuant to a residential tariff.
(C) "Small commercial customer" means a customer who is eligible for standard service and who takes electric distribution-related service from an electric distribution company pursuant to a small commercial tariff.
(D) "Qualifying electric offer" means an offer to provide full requirements commodity electric service and all other generation-related service to a residential or small commercial customer at a fixed price per kilowatt hour for a term of no less than [one year] six months.
(2) In the manner determined by the department, residential or small commercial service customers (A) initiating new utility service, (B) reinitiating service following a change of residence or business location, (C) making an inquiry regarding their utility rates, or (D) seeking information regarding energy efficiency shall be offered the option to learn about their ability to enroll with a participating electric supplier. Customers expressing an interest to learn about their electric supply options shall be informed of the qualifying electric offers then available from participating electric suppliers. The electric distribution companies shall describe then available qualifying electric offers through a method reviewed and approved by the department. The information conveyed to customers expressing an interest to learn about their electric supply options shall include, at a minimum, the price and term of the available electric supply option. Customers expressing an interest in a particular qualifying electric offer shall be immediately transferred to a call center operated by that participating electric supplier.
(3) Not later than September 1, 2007, the department shall establish terms and conditions under which a participating electric supplier can be included in the referral program described in subdivision (2) of this subsection. Such terms shall include, but not be limited to, requiring participating electrical suppliers to offer time-of-use and real-time use rates to residential customers.
(4) Each calendar quarter, participating electric suppliers shall be allowed to list qualifying offers to provide electric generation service to residential and small commercial customers with each customer's utility bill. The department shall determine the manner such information is presented in customers' utility bills.
(5) Any customer that receives electric generation service from a participating electric supplier may not return to standard service or [may] choose another participating electric supplier [at any time, including during the qualifying electric offer] for a period of one year, without the imposition of any additional charges, unless such supplier no longer provides electric generation service. Any customer that is receiving electric generation service from an electric distribution company pursuant to standard service can switch to another participating electric supplier at any time without the imposition of additional charges.
Sec. 28. Subdivision (10) of subsection (c) of section 7-148 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
(10) (A) Make all lawful regulations and ordinances in furtherance of any general powers as enumerated in this section, and prescribe penalties for the violation of the same not to exceed two hundred fifty dollars, unless otherwise specifically provided by the general statutes. Such regulations and ordinances may be enforced by citations issued by designated municipal officers or employees, provided the regulations and ordinances have been designated specifically by the municipality for enforcement by citation in the same manner in which they were adopted and the designated municipal officers or employees issue a written warning providing notice of the specific violation before issuing the citation;
(B) Adopt a code of ethical conduct;
(C) Establish and maintain free legal aid bureaus;
(D) Perform data processing and related administrative computer services for a fee for another municipality;
(E) Adopt the model ordinance concerning a municipal freedom of information advisory board created under subsection (f) of section 1-205 and establish a municipal freedom of information advisory board as provided by said ordinance and said section;
(F) Enter into energy efficiency performance contracts.
Sec. 29. Subsection (d) of section 16a-41a of the 2010 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(d) If funding allows, the Commissioner of Social Services, in consultation with the Secretary of the Office of Policy and Management, shall require that, each community action agency administering a fuel assistance program [begin accepting] accept applications [for the program not later than September first of each] year round.
Sec. 30. (NEW) (Effective July 1, 2010) Notwithstanding any other provision of the general statutes, an electric distribution company may construct, purchase, own or operate a generation facility for Class I or Class II renewable energy sources, as defined in section 16-1 of the general statutes and as determined by the Department of Public Utility Control. An electric distribution company constructing or purchasing such generation facility shall recover the costs of such investment and operation, including a return on investment, in a nonbypassable charge as determined by the department in an annual proceeding held pursuant to sections 16-19, 16-19b and 16-19e of the general statutes, as amended by this act.
Sec. 31. Section 16a-3a of the 2010 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2010):
(a) The [electric distribution companies] Division of Electricity Policy and Procurement, in consultation with the Connecticut Energy Advisory Board, established pursuant to section 16a-3, shall review the state's energy and capacity resource assessment and develop a comprehensive plan for the most cost-effective procurement of energy resources, including, but not limited to, conventional and renewable generating facilities, energy efficiency, load management, demand response, combined heat and power facilities, distributed generation and other emerging energy technologies to meet the projected requirements of their customers in a manner that minimizes the cost of such resources to customers over time and maximizes consumer benefits consistent with the state's environmental goals and standards.
(b) On or before January 1, 2008, and biennially thereafter, the [companies] Division of Electricity Policy and Procurement shall submit to the Connecticut Energy Advisory Board an assessment of (1) the energy and capacity requirements of customers for the next three, five and ten years, (2) the manner of how best to eliminate growth in electric demand, (3) how best to level electric demand in the state by reducing peak demand and shifting demand to off-peak periods, (4) the impact of current and projected environmental standards, including, but not limited to, those related to greenhouse gas emissions and the federal Clean Air Act goals and how different resources could help achieve those standards and goals, (5) energy security and economic risks associated with potential energy resources, and (6) the estimated lifetime cost and availability of potential energy resources.
(c) Resource needs shall first be met through all available energy efficiency and demand reduction resources that are cost-effective, reliable and feasible. The projected customer cost impact of any demand-side resources considered pursuant to this subsection shall be reviewed on an equitable bases with nondemand-side resources. The procurement plan shall specify (1) the total amount of energy and capacity resources needed to meet the requirements of all customers, (2) the extent to which demand-side measures, including efficiency, conservation, demand response and load management can cost-effectively meet these needs, (3) needs for generating capacity and transmission and distribution improvements, (4) how the development of such resources will reduce and stabilize the costs of electricity to consumers, and (5) the manner in which each of the proposed resources should be procured, including the optimal contract periods for various resources.
(d) The procurement plan shall consider: (1) Approaches to maximizing the impact of demand-side measures; (2) the extent to which generation needs can be met by renewable and combined heat and power facilities; (3) the optimization of the use of generation sites and generation portfolio existing within the state; (4) fuel types, diversity, availability, firmness of supply and security and environmental impacts thereof, including impacts on meeting the state's greenhouse gas emission goals; (5) reliability, peak load and energy forecasts, system contingencies and existing resource availabilities; (6) import limitations and the appropriate reliance on such imports; and (7) the impact of the procurement plan on the costs of electric customers.
(e) The board, in consultation with the regional independent system operator, shall review and approve or review, modify and approve the proposed procurement plan as submitted not later than one hundred twenty days after receipt. For calendar years 2009 and thereafter, the board shall conduct such review not later than sixty days after receipt. For the purpose of reviewing the plan, the Commissioners of Transportation and Agriculture and the chairperson of the Public Utilities Control Authority, or their respective designees, shall not participate as members of the board. The electric distribution companies shall provide any additional information requested by the board that is relevant to the consideration of the procurement plan. In the course of conducting such review, the board shall conduct a public hearing, may retain the services of a third-party entity with experience in the area of energy procurement and may consult with the regional independent system operator. The board shall submit the reviewed procurement plan, together with a statement of any unresolved issues, to the Department of Public Utility Control. The department shall consider the procurement plan in an uncontested proceeding and shall conduct a hearing and provide an opportunity for interested parties to submit comments regarding the procurement plan. Not later than one hundred twenty days after submission of the procurement plan, the department shall approve, or modify and approve, the procurement plan.
(f) On or before September 30, 2009, and every two years thereafter, the Department of Public Utility Control shall report to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the environment regarding goals established and progress toward implementation of the procurement plan established pursuant to this section, as well as any recommendations for the process.
(g) All [electric distribution companies'] Division of Electricity Policy and Procurement's costs associated with the development of the resource assessment and the development of the procurement plan shall be recoverable through the systems benefits charge.
Sec. 32. Subsections (e) and (f) of section 16-245m of the general statutes are repealed. (Effective July 1, 2010)
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
from passage |
New section |
Sec. 2 |
from passage |
16-19hh |
Sec. 3 |
October 1, 2010 |
New section |
Sec. 4 |
October 1, 2010 |
16a-3b |
Sec. 5 |
October 1, 2010 |
16a-3c |
Sec. 6 |
October 1, 2010 |
New section |
Sec. 7 |
October 1, 2010 |
New section |
Sec. 8 |
October 1, 2010 |
New section |
Sec. 9 |
October 1, 2010 |
16-4 |
Sec. 10 |
October 1, 2010 |
16a-3 |
Sec. 11 |
October 1, 2010 |
4-65a(a) |
Sec. 12 |
October 1, 2010 |
4a-57(e)(2) |
Sec. 13 |
October 1, 2010 |
16-19e(c) |
Sec. 14 |
October 1, 2010 |
16a-48(d) |
Sec. 15 |
October 1, 2010 |
16-246e |
Sec. 16 |
from passage |
16-2 |
Sec. 17 |
October 1, 2010 |
16-245l |
Sec. 18 |
October 1, 2010 |
New section |
Sec. 19 |
July 1, 2010 |
New section |
Sec. 20 |
July 1, 2010 |
New section |
Sec. 21 |
July 1, 2010 |
New section |
Sec. 22 |
July 1, 2010 |
New section |
Sec. 23 |
July 1, 2010 |
7-233y |
Sec. 24 |
July 1, 2010 |
16-32f |
Sec. 25 |
July 1, 2010 |
16-245m |
Sec. 26 |
July 1, 2010 |
16-245n |
Sec. 27 |
from passage |
16-244c(k) |
Sec. 28 |
July 1, 2010 |
7-148(c)(10) |
Sec. 29 |
from passage |
16a-41a(d) |
Sec. 30 |
July 1, 2010 |
New section |
Sec. 31 |
July 1, 2010 |
16a-3a |
Sec. 32 |
July 1, 2010 |
Repealer section |
ET |
Joint Favorable Subst. |
|
APP |
Joint Favorable |