Sec. 16-243p. Recovery of costs, investments and lost revenues by an electric distribution company.
Sec. 16-243ff. On-bill reconciling mechanism for new electric plant additions.
Sec. 16-244z. Renewable energy tariffs.
Sec. 16-244bb. Sustainable materials management account.
Sec. 16-245a. Renewable portfolio standards.
Sec. 16-245mm. Special capital reserve funds.
Sec. 16-243p. Recovery of costs, investments and lost revenues by an electric distribution company. (a) An electric distribution company may recover its costs and investments that have been prudently incurred as well as its revenues lost resulting from the provisions of sections 16-1, 16-19ff, 16-50k, 16-50x, 16-243h to 16-243q, inclusive, 16-244c, 16-244u, 16-244x, 16-245d, 16-245m, 16-245n, 16-245z, 16-262i, 16a-40l and 16a-40m and section 21 of public act 05-1 of the June special session*. The Public Utilities Regulatory Authority shall, after a hearing held pursuant to the provisions of chapter 54, determine the appropriate mechanism to obtain such recovery in a timely manner which mechanism may be one or more of the following: (1) Approval of rates as provided in sections 16-19 and 16-19e; (2) the energy adjustment clause as provided in section 16-19b; or (3) the federally mandated congestion charges, as defined in section 16-1.
(b) For any rate proceeding initiated on or after January 1, 2024, no electric distribution company, gas company, pipeline company or water company with more than seventy-five thousand customers shall recover through rates its direct or indirect costs associated with its attendance in, participation in, preparation for, or appeal of such rate proceeding. Such costs shall include, but need not be limited to, attorneys' fees, fees to engage expert witnesses or consultants, the portion of employee salaries associated with such attendance, participation, preparation or appeal of a rate proceeding and related costs identified by the authority.
(c) Electric distribution companies shall be authorized to earn an incentive, as provided in section 16-19kk, for costs prudently incurred by such companies pursuant to this section.
(June Sp. Sess. P.A. 05-1, S. 15; P.A. 11-80, S. 1; P.A. 13-5, S. 35; 13-298, S. 66; P.A. 14-94, S. 31; 14-134, S. 121; P.A. 16-116, S. 1; Sept. Sp. Sess. P.A. 20-5, S. 8; P.A. 23-102, S. 2; 23-204, S. 115.)
*Note: Section 21 of public act 05-1 of the June special session is special in nature and therefore has not been codified but remains in full force and effect according to its terms.
History: June Sp. Sess. P.A. 05-1 effective July 21, 2005; pursuant to P.A. 11-80, “Department of Public Utility Control” was changed editorially by the Revisors to “Public Utilities Regulatory Authority” in Subsec. (a), effective July 1, 2011; P.A. 13-5 amended Subsec. (a) to make technical changes, effective May 8, 2013; P.A. 13-298 amended Subsec. (a) to add provision re recovery of revenues lost and make a technical change, to replace reference to Sec. 16-243i with reference to Sec. 16-243h, to add reference to Sec. 16-244u and to delete provision re recovery of earnings by electric distribution company earning return on equity below return authorized by the authority for 6 consecutive months, effective July 8, 2013; P.A. 14-94 amended Subsec. (a) by adding reference to Secs. 16a-40l and 16a-40m re revenues lost, effective June 6, 2014; P.A. 14-134 amended Subsec. (a) by deleting reference to Sec. 16-244e, effective June 6, 2014; P.A. 16-116 amended Subsec. (a) by adding reference to Sec. 16-244x, effective May 31, 2016; Sept. Sp. Sess. P.A. 20-5 added new Subsec. (b) preventing electric distribution companies from recovering costs associated with rate-making hearings and redesignated existing Subsec. (b) as Subsec. (c), effective November 1, 2020; P.A. 23-102 amended Subsec. (b) by replacing “No electric distribution company shall recover its” with “No public service company with more than seventy-five thousand customers shall recover through rates its direct or indirect”, and revising description of costs to include rate proceeding preparation and appeal costs, effective June 29, 2023; P.A. 23-204 amended Subsec. (b) by replacing reference to public service companies with reference to electric distribution, gas, pipeline and water companies, replacing “any” with “such” and deleting “conducted before the authority”, effective June 12, 2023.
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Sec. 16-243y. Microgrid and resilience grant and loan pilot program to support distributed energy generation for critical facilities. (a) As used in this section:
(1) “Regional councils of governments” means a regional council of governments organized under the provisions of sections 4-124i to 4-124p, inclusive;
(2) “Critical facility” means any hospital, police station, fire station, water treatment plant, sewage treatment plant, public shelter, correctional facility or production and transmission facility of a television or radio station, whether broadcast, cable or satellite, licensed by the Federal Communications Commission, any commercial area of a municipality, a municipal center, as identified by the chief elected official of any municipality, or any other facility or area identified by the Department of Energy and Environmental Protection as critical;
(3) “Distributed energy generation” means the generation of electricity from a unit with a rating of not more than sixty-five megawatts on the premises of a retail end user within the transmission and distribution system;
(4) “Electric distribution company” and “participating municipal electric utility” have the same meanings as provided in section 16-1;
(5) “Microgrid” means a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid and that connects and disconnects from such grid to enable it to operate in both grid-connected or island mode;
(6) “Resilience” means the ability to prepare for and adapt to changing conditions and withstand and recover rapidly from deliberate attacks, accidents or naturally occurring threats or incidents, including, but not limited to, threats or incidents associated with the impacts of climate change; and
(7) “Vulnerable communities” means populations that may be disproportionately impacted by the effects of climate change, including, but not limited to, low and moderate income communities, environmental justice communities pursuant to section 22a-20a, communities eligible for community reinvestment pursuant to section 36a-30 and the Community Reinvestment Act of 1977, 12 USC 2901 et seq., as amended from time to time, populations with increased risk and limited means to adapt to the effects of climate change, or as further defined by the Department of Energy and Environmental Protection in consultation with community representatives.
(b) The Department of Energy and Environmental Protection shall establish a microgrid and resilience grant and loan pilot program to support local distributed energy generation for critical facilities or resilience projects. The department shall develop and issue a request for proposals from eligible recipients that shall include, but need not be limited to, any local or regional governmental entity, municipal corporation, regional council of governments, public authority, state and federally recognized tribe, electric distribution company, participating municipal electric utility, energy improvement district and nonprofit, academic and private entity seeking to develop microgrid distributed energy generation, or to repurpose existing distributed energy generation for use with microgrids, to support critical facilities or to develop resilience projects. Any such eligible recipient may collaborate with any other such eligible recipient in submitting such proposal. The department may use any bond funds authorized in support of microgrids or resilience to: (1) Provide grants or loans to eligible recipients, and (2) hire a technical consultant to support the implementation of this section.
(c) The department may award grants or loans under the microgrid and resilience grant and loan pilot program to any number of eligible recipients. The department shall prioritize proposals that benefit vulnerable communities. Such grants and loans may provide: (1) Assistance with community planning that includes, but is not limited to, microgrid or resilience project feasibility, including benefit-cost analyses, (2) assistance to recipients for the cost of design, engineering services and interconnection infrastructure for any such microgrid or resilience project, (3) matching funds or low interest loans for an energy storage system or systems, as defined in section 16-1, or distributed energy generation projects first placed in service on or after July 1, 2016, provided such generation is derived from a Class I renewable energy source, as defined in section 16-1, or a Class III energy source, as defined in section 16-1, for any such microgrid or resilience project, and (4) nonfederal cost share for grant or loan applications for projects or programs that include microgrids or resilience. The department may establish any financing mechanism to provide or leverage additional funding to support the development of interconnection infrastructure, distributed energy generation, microgrids and resilience projects.
(d) Not later than January first, annually, for a period of five years after receiving a grant or loan under the microgrid and resilience grant and loan pilot program, the recipient of such grant or loan shall submit a report to the Public Utilities Regulatory Authority, the Office of Consumer Counsel and the Department of Energy and Environmental Protection and, in accordance with section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to appropriations and energy. Such report shall include information concerning the status of such recipient's microgrid or resilience project.
(P.A. 12-148, S. 7; P.A. 13-239, S. 62; 13-298, S. 34; P.A. 16-196, S. 1; Sept. Sp. Sess. P.A. 20-5, S. 15; P.A. 23-157, S. 1.)
History: P.A. 12-148 effective June 15, 2012; P.A. 13-239 amended Subsec. (c) to delete provision re $15,000,000 limit on total amount awarded under program, effective July 1, 2013; P.A. 13-298 amended Subsec. (a)(2) to redefine “critical facility” to include a production and transmission facility of a television or radio station, effective July 8, 2013; P.A. 16-196 amended Subsec. (c) to replace “grants and loans shall only be used to provide” with “grants and loans may provide”, designate existing provision re assistance for microgrid as Subdiv. (1), add provision re matching funds or low interest loans as Subdiv. (2), add “interconnection infrastructure,” in provision re department to establish financing mechanism and delete “that is not limited to the cost of interconnection infrastructure”, effective July 1, 2016; Sept. Sp. Sess. P.A. 20-5 amended Subsec. (a) by defining “resilience” and “vulnerable communities”, amended Subsec. (b) by replacing “microgrid grant and loan pilot program” with “microgrid and resilience grant and loan pilot program”, adding reference to resilience projects, adding reference to nonprofit and academic entities and development of resilience projects re requests for proposals and adding provision re hiring of technical consultant, amended Subsec. (c) by replacing “microgrid grant and loan pilot program” with “microgrid and resilience grant and loan pilot program”, adding provision that department prioritize proposals that benefit vulnerable communities, adding reference to community planning in Subdiv. (1), designating existing provisions of Subdiv. (1) as new Subdiv. (2), redesignating existing Subdiv. (2) as Subdiv. (3), adding Subdiv. (4) re nonfederal cost share and adding references to resilience projects throughout, amended Subsec. (d) by replacing “microgrid grant and loan pilot program” with “microgrid and resilience grant and loan pilot program” and adding reference to resilience project, deleted former Subsec. (e) re report, and redesignated Subsec. (f) as Subsec. (e), effective October 2, 2020; P.A. 23-157 amended Subsec. (a)(1) by deleting definition of “municipality” and adding definition of “regional councils of governments”, amended Subsec. (b) by replacing reference to municipalities with reference to eligible recipients that shall include any local or regional governmental entity, municipal corporation, regional council of government, public authority or state and federally recognized tribe, and adding provision re using bond funds to provide grants or loans to eligible recipients, amended Subsec. (c) by replacing “shall” with “may”, adding “eligible” re recipients, and deleting provision re evenly distributing loans and grants between small, medium and large municipalities, deleted Subsec. (e) re a study of electric services, and made technical changes, effective July 1, 2023.
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Sec. 16-243ff. On-bill reconciling mechanism for new electric plant additions. In any proceeding to amend rates under section 16-19 for customers of an electric distribution company that has a service area of eighteen or more cities and towns, that is initiated on or after July 1, 2023, or in a pending proceeding to amend rates under section 16-19 for customers of an electric distribution company that has a service area of eighteen or more cities and towns, for which a final decision has not been issued prior to July 1, 2023, the Public Utilities Regulatory Authority shall not reauthorize the on-bill reconciling mechanism for new electric plant additions that was first authorized in 2018.
(P.A. 23-102, S. 5.)
History: P.A. 23-102 effective June 29, 2023.
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Sec. 16-243gg. Costs associated with trade associations, lobbying, legislative action, advertising, marketing and board of director's or officers; travel, lodging or food and business expenses. Recovery of costs by an electric distribution, gas, pipeline or water company prohibited. (a) No electric distribution company, gas company, pipeline company or water company, as such terms are defined in section 16-1, shall recover through rates any direct or indirect cost associated with membership, dues, sponsorships or contributions to a business or industry trade association, group or related entity incorporated under Section 501 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time.
(b) No electric distribution company, gas company, pipeline company or water company, as such terms are defined in section 16-1, shall recover through rates any direct or indirect cost associated with lobbying or legislative action, as such terms are defined in section 1-91.
(c) No electric distribution company, gas company, pipeline company or water company, as such terms are defined in section 16-1, shall recover through rates any direct or indirect cost associated with advertising, marketing, communications that seek to influence public opinion or any other related costs identified by the authority, unless such marketing, advertising, communications or related costs are specifically approved or ordered by the authority or the Department of Energy and Environmental Protection.
(d) No electric distribution company, gas company, pipeline company or water company, as such terms are defined in section 16-1, shall recover through rates any direct or indirect cost associated with (1) travel, lodging or food and beverage expenses for such company's board of directors and officers or the board of directors and officers of such company's parent company; (2) entertainment or gifts; (3) any owned, leased or chartered aircraft for such company's board of directors and officers or the board of directors and officers of such company's parent company; or (4) investor relations.
(e) On or before January 15, 2024, and annually thereafter, each electric distribution company, gas company, pipeline company or water company, as such terms are defined in section 16-1, with more than seventy-five thousand customers shall report to the authority an itemized list of costs associated with the activities described in this section and subsection (b) of section 16-243p in a form prescribed by the authority. Such report shall include, but need not be limited to: (1) Any costs spent by the parent company or affiliates of the public service company directly billed or allocated to the public service company; (2) a list of the title, job description and salary of any employees of the public service company who performed work associated with the activities described in this section or in subsection (b) of section 16-243p and the hours attributed to such work; (3) a list of the title, job description and salary of any employees of the parent company or affiliate who performed work associated with the activities described in this section or in subsection (b) of section 16-243p and the hours attributed to such work that were directly billed or allocated to the public service company; (4) an itemized list of costs that the public service company made to all third-party vendors for any expenses associated with the activities described in this section or in subsection (b) of section 16-243p including unredacted billing amounts, billing dates, payees and explanation of the expenditure in detail sufficient to describe the purpose of the cost; and (5) any other itemized information deemed relevant by the authority. No electric distribution company, gas company, pipeline company or water company, as such terms are defined in section 16-1, shall recover through rates any costs associated with the preparation of such report.
(P.A. 23-102, S. 3; 23-204, S. 116.)
History: P.A. 23-102 effective June 29, 2023; P.A. 23-204 amended Subsecs. (a) to (e) by replacing references to public service companies with references to electric distribution, gas, pipeline and water companies, effective June 12, 2023.
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Sec. 16-244c. Standard service. Alternative standard service. Supplier of last resort. Back-up generation service. Participating electric suppliers. (a)(1) On and after January 1, 2007, each electric distribution company shall provide electric generation services through standard service to any customer who (A) does not arrange for or is not receiving electric generation services from an electric supplier, and (B) does not use a demand meter or has a maximum demand of less than five hundred kilowatts.
(2) Not later than October 1, 2006, and periodically as required by subdivision (3) of this subsection, but not more often than every calendar quarter, the Public Utilities Regulatory Authority shall establish the standard service price for such customers pursuant to subdivision (3) of this subsection. Each electric distribution company shall recover the actual net costs of procuring and providing electric generation services pursuant to this subsection, provided such company mitigates the costs it incurs for the procurement of electric generation services for customers who are no longer receiving service pursuant to this subsection.
(3) An electric distribution company providing electric generation services pursuant to this subsection shall cooperate with the procurement manager of the Public Utilities Regulatory Authority and comply with the procurement plan for electric generation services contracts. Such plan shall require that the portfolio of service contracts be procured in such manner and duration as the authority determines to be most likely to produce just, reasonable and reasonably stable retail rates while reflecting underlying wholesale market prices over time. The portfolio of contracts shall be assembled in such manner as to invite competition; guard against favoritism, improvidence, extravagance, fraud and corruption; and secure a reliable electricity supply while avoiding unusual, anomalous or excessive pricing. An affiliate of an electric distribution company may bid for an electric generation services contract, provided such electric distribution company and affiliate are in compliance with the code of conduct established in section 16-244h.
(4) The procurement manager of the Public Utilities Regulatory Authority may retain the services of entities as it sees fit to assist with the procurement of electric generation services for standard service. Costs associated with the retention of such third-party entity shall be included in the cost of standard service.
(5) For standard service contracts procured prior to the authority's approval of the Procurement Plan, each bidder for a standard service contract shall submit its bid to the electric distribution company and the third-party entity who shall jointly review the bids and submit an overview of all bids together with a joint recommendation to the authority as to the preferred bidders. The authority may, within ten business days of submission of the overview, reject the recommendation regarding preferred bidders. In the event that the authority rejects the preferred bids, the electric distribution company and the third-party entity shall rebid the service pursuant to this subdivision. The authority shall review each bid in an uncontested proceeding that shall include a public hearing and in which any interested person, including, but not limited to, the Consumer Counsel, the Commissioner of Energy and Environmental Protection or the Attorney General, may participate.
(b) (1) Notwithstanding the provisions of this section regarding the procurement of electric generation services under standard service, section 16-244h or 16-245o, the Department of Energy and Environmental Protection may, from time to time, direct an electric distribution company to offer, through an electric supplier or electric suppliers, one or more alternative standard service options. Such alternative options shall include, but not be limited to, an option that consists of the provision of electric generation services that exceed the renewable portfolio standards established in section 16-245a and may include an option that utilizes strategies or technologies that reduce the overall consumption of electricity of the customer.
(2) (A) The authority shall develop such alternative option or options in a contested case conducted in accordance with the provisions of chapter 54. The authority shall determine the terms and conditions of such alternative option or options, including, but not limited to, (i) the minimum contract terms, including pricing, length and termination of the contract, and (ii) the minimum percentage of electricity derived from Class I or Class II renewable energy sources, if applicable. The electric distribution company shall, under the supervision of the authority, subsequently conduct a bidding process in order to solicit electric suppliers to provide such alternative option or options.
(B) The authority may reject some or all of the bids received pursuant to the bidding process.
(3) The authority may require an electric supplier to provide forms of assurance to satisfy the authority that the contracts resulting from the bidding process will be fulfilled.
(4) An electric supplier who fails to fulfill its contractual obligations resulting from this subdivision shall be subject to civil penalties, in accordance with the provisions of section 16-41, or the suspension or revocation of such supplier's license or a prohibition on the acceptance of new customers, following a hearing that is conducted as a contested case, in accordance with the provisions of chapter 54.
(c) (1) On and after January 1, 2007, an electric distribution company shall serve customers that are not eligible to receive standard service pursuant to subsection (a) of this section as the supplier of last resort. This subsection shall not apply to customers purchasing power under contracts entered into pursuant to section 16-19hh.
(2) An electric distribution company shall procure electricity at least every calendar quarter to provide electric generation services to customers pursuant to this subsection. The Public Utilities Regulatory Authority shall determine a price for such customers that reflects the full cost of providing the electricity on a monthly basis. Each electric distribution company shall recover the actual net costs of procuring and providing electric generation services pursuant to this subsection, provided such company mitigates the costs it incurs for the procurement of electric generation services for customers that are no longer receiving service pursuant to this subsection.
(d) On and after January 1, 2000, and until such time the regional independent system operator implements procedures for the provision of back-up power to the satisfaction of the Public Utilities Regulatory Authority, each electric distribution company shall provide electric generation services to any customer who has entered into a service contract with an electric supplier that fails to provide electric generation services for reasons other than the customer's failure to pay for such services. Between January 1, 2000, and December 31, 2006, an electric distribution company may procure electric generation services through a competitive bidding process or through any of its generation entities or affiliates. On and after January 1, 2007, such company shall procure electric generation services through a competitive bidding process pursuant to a plan submitted by the electric distribution company and approved by the authority. Such company may procure electric generation services through any of its generation entities or affiliates, provided such entity or affiliate is the lowest qualified bidder and provided further any such entity or affiliate is licensed pursuant to section 16-245.
(e) An electric distribution company is not required to be licensed pursuant to section 16-245 to provide standard service pursuant to subsection (a) of this section, supplier of last resort service pursuant to subsection (c) of this section or back-up electric generation service pursuant to subsection (d) of this section.
(f) The electric distribution company shall be entitled to recover reasonable costs incurred as a result of providing standard service pursuant to subsection (a) of this section or back-up electric generation service pursuant to subsection (d) of this section.
(g) The Public Utilities Regulatory Authority shall establish, by regulations adopted pursuant to chapter 54, procedures for when and how a customer is notified that his electric supplier has defaulted and of the need for the customer to choose a new electric supplier within a reasonable period of time or to return to standard service.
(h) (1) Notwithstanding the provisions of subsection (b) of this section regarding an alternative standard service option, an electric distribution company providing standard service, supplier of last resort service or back-up electric generation service in accordance with this section shall contract with its wholesale suppliers to comply with the renewable portfolio standards. The Public Utilities Regulatory Authority shall annually conduct an uncontested proceeding in order to determine whether the electric distribution company's wholesale suppliers met the renewable portfolio standards during the preceding year. On or before December 31, 2013, the authority shall issue a decision on any such proceeding for calendar years up to and including 2012, for which a decision has not already been issued. Not later than December 31, 2014, and annually thereafter, the authority shall, following such proceeding, issue a decision as to whether the electric distribution company's wholesale suppliers met the renewable portfolio standards during the preceding year. An electric distribution company shall include a provision in its contract with each wholesale supplier that requires the wholesale supplier to pay the electric distribution company an amount of: (A) For calendar years up to and including calendar year 2017, five and one-half cents per kilowatt hour if the wholesale supplier fails to comply with the renewable portfolio standards during the subject annual period, (B) for calendar years commencing on January 1, 2018, up to and including the calendar year commencing on January 1, 2020, five and one-half cents per kilowatt hour if the wholesale supplier fails to comply with the renewable portfolio standards during the subject annual period for Class I renewable energy sources, and two and one-half cents per kilowatt hour if the wholesale supplier fails to comply with the renewable portfolio standards during the subject annual period for Class II renewable energy sources, (C) for calendar years commencing on and after January 1, 2021, four cents per kilowatt hour if the wholesale supplier fails to comply with the renewable portfolio standards during the subject annual period for Class I renewable energy sources, and two and one-half cents per kilowatt hour if the wholesale supplier fails to comply with the renewable portfolio standards during the subject annual period for Class II renewable energy sources, and (D) for calendar years commencing on and after January 1, 2024, three cents per kilowatt hour if the wholesale supplier fails to comply with the renewable portfolio standards during the subject annual period for Class II renewable energy sources. The electric distribution company shall promptly transfer any payment received from the wholesale supplier for the failure to meet the renewable portfolio standards to the Clean Energy Fund for the development of Class I renewable energy sources, provided, on and after June 5, 2013, any such payment shall be refunded to ratepayers by using such payment to offset the costs to all customers of electric distribution companies of the costs of contracts and tariffs entered into pursuant to sections 16-244r, 16-244t and 16-244z, except that, on or after January 1, 2023, any such payment that is attributable to a failure to comply with the Class II renewable portfolio standards shall be deposited in the sustainable materials management account established pursuant to section 16-244bb. Any excess amount remaining from such payment shall be applied to reduce the costs of contracts entered into pursuant to subdivision (2) of this subsection, and if any excess amount remains, such amount shall be applied to reduce costs collected through nonbypassable, federally mandated congestion charges, as defined in section 16-1.
(i) (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.
(2) In the manner determined by the authority, 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 authority. 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 authority 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 authority 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 return to standard service or may choose another participating electric supplier at any time, including during the qualifying electric offer, without the imposition of any additional charges. 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.
(6) An electric distribution company shall transfer a residential customer to the standard service rate not later than seventy-two hours after receipt of a request from a residential customer eligible for standard service, provided such customer shall remain on the standard service rate for at least the remainder of that billing cycle. An electric distribution company shall transfer a residential customer to the electric generation service rate of an electric supplier not later than forty-five days after the electric distribution company receives from the electric supplier a successful enrollment of such residential customer.
(7) Notwithstanding any other provision of the general statutes, nothing shall prohibit a residential customer who moves from one dwelling to another dwelling within the state from immediately receiving electric generation service from an electric supplier, provided such customer was receiving such service from an electric supplier immediately prior to such move.
(j) Each electric distribution company shall offer to bill customers on behalf of participating electric suppliers and to pay such suppliers in a timely manner the amounts due such suppliers from customers for generation services, less a percentage of such amounts that reflects uncollectible bills and overdue payments as approved by the Public Utilities Regulatory Authority.
(k) On or before July 1, 2007, the Public Utilities Regulatory Authority shall initiate a proceeding to examine whether electric supplier bills rendered pursuant to section 16-245d and any regulations adopted thereunder sufficiently enable customers to compare pricing policies and charges among electric suppliers.
(l) The authority shall conduct a proceeding to determine the cost of billing, collection and other services provided by the electric distribution companies or the department solely for the benefit of participating electric suppliers and aggregators. The department shall order an equitable allocation of such costs among electric suppliers and aggregators. As part of this same proceeding, the department shall also determine the costs that the electric distribution companies incur solely for the benefit of standard service and last resort service customers. After such determination, the department shall allocate and provide for the equitable recovery of such costs from standard service or last resort service customers.
(m) Nothing in the provisions of this section shall preclude an electric distribution company from entering into standard service supply contracts or standard service supply components with electric generating facilities.
(P.A. 98-28, S. 20, 117; P.A. 03-135, S. 4; 03-221, S. 3, 4; P.A. 04-236, S. 9; 04-247, S. 2; June Sp. Sess. P.A. 05-1, S. 25, 26, 33; P.A. 06-196, S. 233; P.A. 07-242, S. 49, 92, 124; P.A. 11-80, S. 1, 91; June 12 Sp. Sess. P.A. 12-2, S. 171; P.A. 13-5, S. 9; 13-6, S. 1; 13-119, S. 7–9; 13-298, S. 13; 13-303, S. 10; P.A. 14-75, S. 3; 14-94, S. 25, 29; 14-134, S. 11; P.A. 17-144, S. 4; P.A. 18-50, S. 3; P.A. 22-118, S. 164; P.A. 23-170, S. 19.)
History: P.A. 98-28 effective July 1, 1998; P.A. 03-135 made technical changes, deleted provision in Subsec. (a) re extension of the standard offer by the General Assembly, deleted former Subsec. (b) re service to customers on and after January 1, 2004, who do not or are unable to arrange for services, added new Subsec. (b) re transitional standard offer, added new Subsec. (c) re standard service, added new Subsec. (d) re alternative transitional standard offer and standard service, added new Subsec. (e) re supplier of last resort, redesignated existing Subsec. (c) as Subsec. (f) and amended said Subsec. to change “2003” to “2006” and “2004” to “2007” and to add “pursuant to a plan submitted by the electric distribution company and approved by the department”, redesignated existing Subsec. (d) as Subsec. (g) and amended said Subsec. to add reference to transitional standard offer service, standard service, and supplier of last resort service and to delete reference to January 1, 2004, redesignated existing Subsec. (e) as Subsec. (h) and amended said Subsec. to delete reference to default service and back-up electrical generation services, to add reference to transitional standard offer service, standard service and back-up electric generation service and to change “2004” to “2007”, redesignated existing Subsec. (f) as Subsec. (i) and amended said Subsec. to delete provision re standards or procedures for procuring power and competitive bidding, and added new Subsec. (j) re compliance with renewable portfolio standards and purchase of long-term power purchase contracts from Class I renewable energy source projects, effective July 1, 2003; P.A. 03-221 amended Subsec. (h) to make a technical change and amended Subsec. (j)(1) to revise provisions re contracting with suppliers to comply with the renewable portfolio standards, responsibility for payment for failure to meet such standards, and treatment of such payment, effective July 1, 2003; P.A. 04-236 amended Subsec. (b)(2)(E) to make a technical change, effective June 8, 2004; P.A. 04-247 amended Subsec. (j)(2) to add “for its approval”, to add requirement for projects to be not less than one megawatt in size, and to add requirement for a preference for projects that provide financial benefit to ratepayers or enhance reliability of the electric transmission system; June Sp. Sess. P.A. 05-1 amended Subsec. (b)(1) to designate existing language as Subpara. (A) and to add new Subpara. (B) to require the department to conduct a proceeding re receipt of information to select electric generating services, and amended Subsec. (b)(2)(D) to allow the transitional standard offer to be adjusted to provide for the cost of long-term power purchase contracts from certain Class I projects, effective July 1, 2005, and amended Subsec. (j)(2) to change filing deadline from July 1, 2007, to July 1, 2008, to add a new pricing option, to require projects to be located in this state, to provide air emission and tax credits for certain fuel cell projects, to replace language re inclusion of costs of the contracts in the generation service charge with language re the transitional standard offer and standard service, and to make technical changes; P.A. 06-196 made technical changes in Subsec. (j)(2), effective June 7, 2006; P.A. 07-242 amended Subsec. (e)(1) to delete limitation on any customer receiving electric generation services from electric supplier being eligible to receive supplier of last resort service without a one-year commitment and amended Subsec. (e)(2) to require electric distribution companies to procure electricity “at least every calendar quarter”, effective July 1, 2007, amended Subsec. (j)(2) to change total megawatts of contracts to not less than 125 megawatts on and after October 1, 2007, and until September 30, 2008, and to not less than 150 megawatts on and after October 1, 2008, and add provision re study, effective June 4, 2007, and added Subsecs. (k) to (n) re participating electric suppliers, effective July 1, 2007; P.A. 11-80 changed “Department of Public Utility Control” to “Public Utilities Regulatory Authority” in Subsecs. (a)(1), (b)(1)(A) and (2)(A), (c)(2), (e)(2), (f), (j)(1), and (2) and (m), changed “Department of Public Utility Control” to “Department of Energy and Environmental Protection” in Subsecs. (a)(2), (d)(1), (i) and (l), changed “department” to “authority” in Subsecs. (b), (c), (d), (f), (j) and (k), changed “Renewable Energy Investment Fund” to “Clean Energy Fund” and “Renewable Energy Investments Advisory Council” to “Clean Energy Finance and Investment Authority” in Subsec. (j), amended Subsec. (c)(3) to delete provisions re mitigating variation of price, procurement plan criteria and timing of bid submittal and to add provisions re companies cooperating with procurement manager and complying with procurement plan and re bid by affiliate, amended Subsec. (c)(4) to allow Public Utilities Regulatory Authority's procurement manager to retain “entities as it sees fit to assist” re procurement of standard service electric generation services, amended Subsec. (c)(5) to add provisions re contracts procured prior to approval of plan developed pursuant to Sec. 16-244m and re department review of each bid, amended Subsec. (j)(2) to add “preference for projects located in Connecticut”, prohibit issuance of order that results in extension of in-service date or contractual arrangement re Project 100 or Project 150 and change “2007” to “2011”, added new Subsec. (n) re proceeding re billing cost, collection and services by electric distribution companies or department for participating electric suppliers and aggregators, and redesignated existing Subsec. (n) as Subsec. (o), effective July 1, 2011; June 12 Sp. Sess. P.A. 12-2 amended Subsec. (j)(2) to add provision re extension of latest in-service date for projects located in certain distressed municipalities and make a technical change, effective June 15, 2012; P.A. 13-5 deleted former Subsecs. (a) and (b) re standard offer and transitional standard offer, redesignated existing Subsecs. (c) to (o) as Subsecs. (a) to (m), and made technical and conforming changes, effective May 8, 2013; P.A. 13-6 amended Subsec. (j)(2) to add provision re extension of latest in-service date for projects having a capacity of less than 5 megawatts and to make technical changes, effective May 8, 2013; P.A. 13-119 amended Subsecs. (a)(3), (g) and (j) to replace “Department of Energy and Environmental Protection” with “Public Utilities Regulatory Authority” and further amended Subsec. (g) to add provision re return to standard service, effective June 18, 2013; P.A. 13-298 amended Subsec. (c)(5) to replace “department” with “authority”, add provision re participation by any interested person, including Commissioner of Energy and Environmental Protection, and make a technical change, effective July 8, 2013; P.A. 13-303 amended Subsec. (j)(1) to replace provision re contested case with provision re uncontested proceeding and to add provisions re issuing decisions on proceedings and refunding payments to ratepayers, effective June 5, 2013; P.A. 14-75 amended Subsec. (i) by adding Subdivs. (6) and (7) re transferring residential customer to standard service or electric generation service rate and re immediate receipt of electric generation service when moving, effective June 3, 2014; P.A. 14-94 amended Subsec. (h)(2) by changing in-service date extension from 24 months to 36 months for any project having a capacity less than 5 megawatts provided the project commences construction by April 30, 2015, and the authority has previously approved the contract, and by substituting “Connecticut Green Bank” for “Clean Energy Finance and Investment Authority”, effective June 6, 2014; P.A. 14-134 amended Subsec. (e) by deleting provision re standard offer electric generation services, effective June 6, 2014; P.A. 17-144 amended Subdiv. (h)(1) to designate provision re amount if wholesale supplier fails to comply with renewable portfolio standards as Subpara. (A) and amended same to add “For calendar years up to and including calendar year 2017,” and add Subpara. (B) re amount for calendar years commencing on and after January 1, 2018, and made a technical change, effective June 27, 2017; P.A. 18-50 amended Subsec. (h)(1) by replacing “commencing on and after January 1, 2018” with “commencing on January 1, 2018, up to and including the calendar year commencing on January 1, 2020” in Subpara. (B), adding Subpara. (C) re amount if wholesale supplier fails to comply with renewable portfolio standards for calendar years commencing on and after January 1, 2021, adding reference to tariffs re refund to offset costs, adding reference to Sec. 16-244z, and making conforming changes, and further amended Subsec. (h) by adding Subdiv. (3) re power purchase contract between electric distribution company and certain biomass facilities, effective May 24, 2018; P.A. 22-118 amended Subsec. (h)(1) by adding exception re the deposit of payments on and after January 1, 2023; P.A. 23-170 amended Subsec. (h)(1) to add Subpara. (D) re payment of 3 cents per kilowatt hour if wholesale supplier fails to comply with portfolio standards for Class II renewable energy sources, effective January 1, 2024.
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Sec. 16-244z. Renewable energy tariffs. (a)(1)(A) On or before September 1, 2018, the Public Utilities Regulatory Authority shall initiate a proceeding to establish a procurement plan for each electric distribution company pursuant to this subsection and may give a preference to technologies manufactured, researched or developed in the state, provided such procurement plan is consistent with and contributes to the requirements to reduce greenhouse gas emissions in accordance with section 22a-200a. Each electric distribution company shall develop such procurement plan in consultation with the Department of Energy and Environmental Protection and shall submit such procurement plan to the authority not later than sixty days after the authority initiates the proceeding pursuant to this subdivision, provided the department shall submit the program requirements pursuant to subparagraph (C) of this subdivision on or before July 1, 2019. The authority may require such electric distribution companies to conduct separate solicitations pursuant to subdivision (4) of this subsection for the resources in subparagraphs (A), (B) and (C) of said subdivision, including separate solicitations based upon the size of such resources to allow for a diversity of selected projects.
(B) On or before September 1, 2018, the authority shall initiate a proceeding to establish tariffs that provide for twenty-year terms of service described in subdivision (3) of this subsection for each electric distribution company pursuant to subparagraphs (A) and (B) of subdivision (2) of this subsection. In such proceeding, the authority shall establish the period of time that will be used for calculating the net amount of energy produced by a facility and not consumed, provided the authority shall assess whether to incorporate time-of-use rates or other dynamic pricing and such period of time shall be either (i) in real time, (ii) in one day, (iii) in any fraction of a day not to exceed one day, or (iv) in any period of time greater than one day up to and including one month. In such proceeding, the authority shall consider the findings of the study of the value of distributed energy resources conducted pursuant to section 16a-3o. The rate for such tariffs shall be established by the solicitation pursuant to subdivision (2) of this subsection.
(C) On or before September 1, 2018, the Department of Energy and Environmental Protection shall (i) initiate a proceeding to develop program requirements and tariff proposals for shared clean energy facilities eligible pursuant to subparagraph (C) of subdivision (2) of this subsection, including, but not limited to, the requirements in subdivision (6) of this subsection, and (ii) establish either or both of the following tariff proposals: (I) A tariff proposal that includes a price cap on a cents-per-kilowatt-hour basis for any procurement for such resources based on the procurement results of any other procurement issued pursuant to this subsection, and (II) a tariff proposal that includes a tariff rate for customers eligible under subparagraph (C) of subdivision (2) of this subsection based on energy policy goals identified by the department in the Comprehensive Energy Strategy pursuant to section 16a-3d. On or before July 1, 2019, the department shall submit any such program requirements and tariff proposals to the authority for review and approval. On or before January 1, 2020, the authority shall approve or modify such program requirements and tariff proposals submitted by the department. If the authority approves two tariff proposals pursuant to this subparagraph, the authority shall determine how much of the total compensation authorized for customers eligible under this subparagraph pursuant to subparagraph (A) of subdivision (1) of subsection (c) of this section shall be available under each tariff.
(2) Not less than once per year, each electric distribution company shall jointly or individually solicit and file with the Public Utilities Regulatory Authority for its approval one or more projects selected resulting from any procurement issued pursuant to subdivision (1) of this subsection that are consistent with the tariffs approved by the authority pursuant to subparagraphs (B) and (C) of subdivision (1) of this subsection and that are applicable to (A) customers that own or develop new generation projects on a customer's own premises that are less than five megawatts in size, serve the distribution system of an electric distribution company, are constructed after the solicitation conducted pursuant to subdivision (4) of this subsection to which the customer is responding, and use a Class I renewable energy source that either (i) uses anaerobic digestion, or (ii) has emissions of no more than 0.07 pounds per megawatt-hour of nitrogen oxides, 0.10 pounds per megawatt-hour of carbon monoxide, 0.02 pounds per megawatt-hour of volatile organic compounds and one grain per one hundred standard cubic feet, (B) customers that own or develop new generation projects on a customer's own premises that are less than five megawatts in size, serve the distribution system of an electric distribution company, are constructed after the solicitation conducted pursuant to subdivision (4) of this subsection to which the customer is responding, and use a Class I renewable energy source that emits no pollutants, and (C) customers that own or develop new generation projects that are a shared clean energy facility, consistent with the program requirements developed pursuant to subparagraph (C) of subdivision (1) of this subsection. For purposes of this section, “shared clean energy facility” means a Class I renewable energy source, as defined in section 16-1, that (i) is served by an electric distribution company, as defined in section 16-1, (ii) has a nameplate capacity rating of five megawatts or less, and (iii) has at least two subscribers. Any project that is eligible pursuant to subparagraph (C) of this subdivision shall not be eligible pursuant to subparagraph (A) or (B) of this subdivision.
(3) A customer that is eligible pursuant to subparagraph (A) or (B) of subdivision (2) of this subsection may elect in any such solicitation to utilize either (A) a tariff for the purchase of all energy and renewable energy certificates on a cents-per-kilowatt-hour basis, or (B) a tariff for the purchase of any energy produced by a facility and not consumed in the period of time established by the authority pursuant to subparagraph (B) of subdivision (1) of this subsection and all renewable energy certificates generated by such facility on a cents-per-kilowatt-hour basis, subject to any tariff terms, conditions or other stipulations of the authority, including, but not limited to, stipulations regarding the capacity rights of a given facility.
(4) Each electric distribution company shall jointly or individually conduct an annual solicitation or solicitations, as determined by the authority, for the purchase of energy and renewable energy certificates produced by eligible generation projects under this subsection over the duration of each applicable tariff. Generation projects eligible pursuant to subparagraphs (A) and (B) of subdivision (2) of this subsection shall be sized so as not to exceed the load at the customer's individual electric meter or a set of electric meters, when such meters are combined for billing purposes, as determined by the authority, unless such customer is a state, municipal or agricultural customer, then such generation project shall be sized so as not to exceed the load at such customer's individual electric meter or a set of electric meters at the same customer premises, when such meters are combined for billing purposes, and the load of up to five state, municipal or agricultural beneficial accounts, as defined in section 16-244u, identified by such state, municipal or agricultural customer, and such state, municipal or agricultural customer may include the load of up to five additional nonstate or municipal beneficial accounts, as defined in section 16-244u, when sizing such generation project, provided such accounts are critical facilities, as defined in subdivision (2) of subsection (a) of section 16-243y, and are connected to a microgrid.
(5) The maximum selected purchase price of energy and renewable energy certificates on a cents-per-kilowatt-hour basis in any given solicitation shall not exceed such maximum selected purchase price for the same resources in the prior year's solicitation, unless the authority makes a determination that there are changed circumstances in any given year. For the first year solicitation issued pursuant to this subsection, the authority shall establish a cap for the selected purchase price for energy and renewable energy certificates on a cents-per-kilowatt-hour basis for any resources authorized under this subsection.
(6) The program requirements for shared clean energy facilities developed pursuant to subparagraph (C) of subdivision (1) of this subsection shall include, but not be limited to, the following:
(A) The department shall allow cost-effective projects of various nameplate capacities that may allow for the construction of multiple projects in the service area of each electric distribution company that operates within the state.
(B) The department shall determine the billing credit for any subscriber of a shared clean energy facility that may be issued through the electric distribution companies' monthly billing systems, and establish consumer protections for subscribers and potential subscribers of such a facility, including, but not limited to, disclosures to be made when selling or reselling a subscription.
(C) Such program shall utilize one or more tariff mechanisms with the electric distribution companies for a term not to exceed twenty years, subject to approval by the Public Utilities Regulatory Authority, to pay for the purchase of any energy products and renewable energy certificates produced by any eligible shared clean energy facility, or to deliver any billing credit of any such facility.
(D) The department shall limit subscribers to (i) low-income customers, (ii) moderate-income customers, (iii) small business customers, (iv) state or municipal customers, (v) commercial customers, and (vi) residential customers who can demonstrate, pursuant to criteria determined by the department in the program requirements recommended by the department and approved by the authority, that they are unable to utilize the tariffs offered pursuant to subsection (b) of this section.
(E) The department shall require that (i) not less than twenty per cent of the total capacity of each shared clean energy facility is sold, given or provided to low-income customers, and (ii) not less than sixty per cent of the total capacity of each shared clean energy facility is sold, given or provided to low-income customers, moderate-income customers or low-income service organizations. The authority may modify such shared clean energy facility capacity requirements for the limited purpose of aligning the allocation of shared clean energy facility capacity with the requirements of any federal acts providing renewable energy incentives.
(F) The department may allow preferences to projects that serve low-income customers and shared clean energy facilities that benefit customers who reside in environmental justice communities.
(G) The department may create incentives or other financing mechanisms to encourage participation by low-income customers.
(H) The department may require that not more than forty per cent of the total capacity of each shared clean energy facility is sold to commercial customers.
(7) For purposes of this subsection:
(A) “Environmental justice community” has the same meaning as provided in subsection (a) of section 22a-20a;
(B) “Low-income customer” means an in-state retail end user of an electric distribution company (i) whose income does not exceed sixty per cent of the state median income, adjusted for family size, or (ii) that is an affordable housing facility. The authority may modify such definition for the limited purpose of aligning such definition with the requirements of any federal acts providing renewable energy incentives;
(C) “Low-income service organization” means a for-profit or nonprofit organization that provides service or assistance to low-income individuals;
(D) “Moderate-income customer” means an in-state retail end user of an electric distribution company whose income is between sixty per cent and one hundred per cent of the state median income, adjusted for family size. The authority may modify such definition for the limited purpose of aligning such definition with the requirements of any federal acts providing renewable energy incentives.
(b) (1) On or before July 1, 2020, the authority shall initiate a proceeding to establish (A) tariffs for each electric distribution company pursuant to subdivision (2) of this subsection, (B) a rate for such tariffs, which may be based upon the results of one or more competitive solicitations issued pursuant to subsection (a) of this section, or on the average cost of installing the generation project and a reasonable rate of return that is just, reasonable and adequate, as determined by the authority, and shall be guided by the Comprehensive Energy Strategy prepared pursuant to section 16a-3d, and (C) the period of time that will be used for calculating the net amount of energy produced by a facility and not consumed, provided the authority shall assess whether to incorporate time-of-use rates or other dynamic pricing and such period of time shall be either (i) in real time, (ii) in one day, (iii) in any fraction of a day not to exceed one day, or (iv) in any period of time greater than one day up to and including one month. In such proceeding, the authority shall consider the findings of the study of the value of distributed energy resources conducted pursuant to section 16a-3o. The authority shall issue a final decision in such proceeding on or before July 1, 2021. The authority may modify such rate for new customers under this subsection based on changed circumstances and may establish an interim tariff rate prior to the expiration of the residential solar investment program pursuant to subsection (b) of section 16-245ff as an alternative to such program, provided any residential customer utilizing a tariff pursuant to this subsection at such customer's electric meter shall not be eligible for any incentives offered pursuant to section 16-245ff at the same such electric meter and any residential customer utilizing any incentives offered pursuant to section 16-245ff at such customer's electric meter shall not be eligible for a tariff pursuant to this subsection at the same such electric meter.
(2) On and after January 1, 2022, each electric distribution company shall offer the following options to residential customers for the purchase of products generated from a Class I renewable energy source that is located on a customer's own premises and has a nameplate capacity rating of twenty-five kilowatts or less for a term not to exceed twenty years: (A) A tariff for the purchase of all energy and renewable energy certificates on a cents-per-kilowatt-hour basis; and (B) a tariff for the purchase of any energy produced and not consumed in the period of time established by the authority pursuant to subparagraph (C) of subdivision (1) of this subsection and all renewable energy certificates generated by such facility on a cents-per-kilowatt-hour basis, subject to any tariff terms, conditions or other stipulations of the authority, including, but not limited to, stipulations regarding the capacity rights of a given facility. A residential customer shall select either option authorized pursuant to subparagraph (A) or (B) of this subdivision, consistent with the requirements of this section. Such generation projects shall be sized so as not to exceed the load at the customer's individual electric meter or, in the case of a multifamily dwelling that qualifies under this subsection, the load of the premises, from the electric distribution company providing service to such customer, pursuant to any rules established by the authority and as determined by such electric distribution company. For purposes of this section, “residential customer” means a customer of a single-family dwelling, a multifamily dwelling consisting of two to four units, or a multifamily dwelling consisting of five or more units, provided in the case of a multifamily dwelling consisting of five or more units, (i) not less than sixty per cent of the units of the multifamily dwelling are occupied by persons and families with income that is not more than sixty per cent of the area median income for the municipality in which it is located, as determined by the United States Department of Housing and Urban Development, or (ii) such multifamily dwelling is determined to be affordable housing by the Public Utilities Regulatory Authority in consultation with the Department of Energy and Environmental Protection, Department of Housing, Connecticut Green Bank, Connecticut Housing Finance Authority and United States Department of Housing and Urban Development. In the case of a multifamily dwelling consisting of five or more units, a generation project shall only qualify under this subsection if: (I) Each of the dwelling units receives an appropriate share of the benefits from the generation project, and (II) no greater than an appropriate share of the benefits from the generation project is used to offset common area usage. The Public Utilities Regulatory Authority shall initiate an uncontested proceeding to implement the distribution of the benefits from the generation project pursuant to this section.
(c) (1) (A) The aggregate total megawatts available to all customers utilizing a procurement and tariff offered by electric distribution companies pursuant to subsection (a) of this section shall be up to eighty-five megawatts in year one and increase by up to an additional one hundred sixty megawatts per year on and after January 1, 2023, provided the total megawatts available to customers eligible under subparagraph (A) of subdivision (2) of subsection (a) of this section shall not exceed ten megawatts per year, the total megawatts available to customers eligible under subparagraph (B) of subdivision (2) of subsection (a) of this section shall not exceed one hundred megawatts per year and the total megawatts available to customers eligible under subparagraph (C) of subdivision (2) of subsection (a) of this section shall not exceed fifty megawatts per year. The authority shall monitor the competitiveness of any procurements authorized pursuant to subsection (a) of this section and may adjust the annual purchase amount established in this subsection or other procurement parameters to maintain competitiveness. Any megawatts not allocated in any given year shall roll into the next year's available megawatts. The obligation to purchase energy and renewable energy certificates shall be apportioned as determined by the authority.
(B) The electric distribution companies shall offer any tariffs developed pursuant to subsection (b) of this section for six years. At the end of the tariff term pursuant to subparagraph (B) of subdivision (2) of subsection (b) of this section, residential customers that elected the option pursuant to said subparagraph shall be credited all cents-per-kilowatt-hour charges pursuant to the tariff rate for such customer for energy produced by the Class I renewable energy source against any energy that is consumed in real time by such residential customer.
(C) The authority shall establish tariffs for the purchase of energy on a cents-per-kilowatt-hour basis at the expiration of any tariff terms authorized pursuant to this section.
(2) The department, in consultation with the authority, shall assess the tariff offerings pursuant to this section and determine if such offerings are competitive compared to the cost of the technologies and shall report, in accordance with section 11-4a, the results of such determination to the General Assembly not later than January 15, 2027.
(3) For any tariff established pursuant to this section, the authority shall examine how to incorporate the following energy system benefits into the rate established for any such tariff: (A) Energy storage systems that provide electric distribution benefits, (B) location of a facility on the distribution system, (C) time-of-use rates or other dynamic pricing, and (D) other energy policy benefits identified in the Comprehensive Energy Strategy prepared pursuant to section 16a-3d.
(d) In accordance with subsection (h) of section 16-245a, the authority shall determine which of the following two options is in the best interest of ratepayers and shall direct each electric distribution company to either (1) retire the renewable energy certificates it purchases pursuant to subsections (a) and (b) of this section on behalf of all ratepayers to satisfy the obligations of all electric suppliers and electric distribution companies providing standard service or supplier of last resort service pursuant to section 16-245a, or (2) sell such renewable energy certificates into the New England Power Pool Generation information system renewable energy credit market. The authority shall establish procedures for the retirement of such renewable energy certificates. Any net revenues from the sale of products purchased in accordance with this section shall be credited to customers through a nonbypassable fully reconciling component of electric rates for all customers of the electric distribution company.
(e) The costs prudently and reasonably incurred by an electric distribution company pursuant to this section shall be recovered on a timely basis through a nonbypassable fully reconciling component of electric rates for all customers of the electric distribution company. Any net revenues from the sale of products purchased in accordance with any tariff offered pursuant to this section shall be credited to customers through the same fully reconciling rate component for all customers of such electric distribution company.
(f) Notwithstanding the size-to-load provisions of subdivision (4) of subsection (a) of this section, the entire rooftop space of a customer's own premises developed pursuant to subparagraph (B) of subdivision (1) of subsection (a) of this section and owned by a commercial or industrial customer may be used for purposes of electricity generation and participation in the solicitation conducted by each electric distribution company pursuant to subdivision (4) of subsection (a) of this section.
(g) State, municipal and agricultural customers shall be exempt from the requirement that generation projects owned or developed pursuant to subparagraph (A) or (B) of subdivision (2) of subsection (a) of this section be located on a customer's own premises.
(P.A. 18-50, S. 7; P.A. 19-35, S. 3; P.A. 21-48, S. 2; P.A. 22-14, S. 1–4; P.A. 23-102, S. 25.)
History: P.A. 18-50 effective May 24, 2018; P.A. 19-35 amended Subsec. (a) by adding clause (iv) re period of time greater than one day up to and including one month and adding provision re authority to consider findings of the study of the value of distributed energy resources in Subdiv. (1)(B) and replacing “July 1, 2020” with “July 1, 2022” in Subdiv. (2), amended Subsec. (b) by replacing “September 1, 2019” with “July 1, 2020” adding clause (iv) re period of time greater than one day up to and including one month and adding provisions re authority to consider findings of the study of the value of distributed energy resources and issuance of final decision in Subdiv. (1), and replacing provision re expiration of residential solar investment program with “On and after January 1, 2022”, in Subdiv. (2), effective June 28, 2019; P.A. 21-48 amended Subsec. (b)(2) by adding provision re sizing of generation projects for qualifying multifamily dwelling, redefining “residential customer” and adding provision re initiation of uncontested proceeding to implement distribution of benefits from generation project pursuant to this section, effective June 16, 2021; P.A. 22-14 amended Subsec. (a)(2) by increasing the allowed size of projects on customer's own premises from less than 2 to less than 5 megawatts in Subparas. (A) and (B), deleting in Subpara. (C) “as defined in section 16-244x, and subscriptions, as defined in such section, associated with such facility,” and defining “shared clean energy facility”, amended Subsec. (a)(6)(E) by increasing the capacity designated for low-income customers from at least 10 per cent to at least 20 per cent and increasing the capacity designated for low-income customers, moderate-income customers, or low-income service organizations from at least 10 per cent to at least 60 per cent, amended Subsec (a)(7) by redefining “low-income customer” in Subpara. (B) and redefining “moderate-income customer” in Subpara. (D), amended Subsec. (c)(1)(A) by increasing the aggregate total megawatts to 160 megawatts per year, increasing the total for customers under Sec. 16-244z(a)(2)(B) to 100 megawatts per year, increasing the total for customers under Sec. 16-244z(a)(2)(C) to 50 megawatts per year and deleting “not” before “roll”, and added new Subsec. (f) re rooftop spaces of a customer's own premises; P.A. 23-102 substantially revised Subsec. (a) re project solicitations, project sizing based on electric meters' load, tariffs used and shared clean energy facilities and redefined “moderate-income customer” therein, amended Subsec. (b)(2) by adding provision re tariff terms and conditions and adding “pursuant to any rules established by the authority and”, amended Subsec. (c)(1) by replacing “in each of the years two through six of such a tariff” with “on and after January 1, 2023” and deleting provision re apportioning obligation to purchase energy and certificates based on companies' loads, amended Subsec. (c)(2) by extending report deadline to January 15, 2027, amended Subsec. (e) by adding “prudently and reasonably” re costs incurred, and added Subsec. (g) re exemption for state, municipal and agricultural customers, and made technical and conforming changes.
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Sec. 16-244bb. Sustainable materials management account. (a) There is established an account to be known as the sustainable materials management account which shall be a separate, nonlapsing account within the General Fund. The account shall contain moneys collected by the alternative compliance payment for Class II renewable portfolio standards pursuant to subsection (h) of section 16-244c and subsection (k) of section 16-245 and moneys deposited pursuant to subsection (f) of section 22a-232. The Commissioner of Energy and Environmental Protection shall expend moneys from the account for the purposes of the program established under this section, provided the commissioner may also pledge such moneys for revenue bonds the proceeds of which shall be used to support waste infrastructure projects described in this section.
(b) On and after January 1, 2023, the Commissioner of Energy and Environmental Protection shall establish and administer a sustainable materials management program to support solid waste reduction in the state through the provision of funding from the sustainable materials management account for purposes, including, but not limited to, grants, revolving loans, technical assistance, consulting services and waste characterization studies, to support programs and projects implemented by entities, including, but not limited to, municipalities, nonprofits and regional waste authorities. Funding from such program may be used to support the development of infrastructure necessary for the management of solid waste materials at upgraded, expanded or proposed facilities selected pursuant to section 22a-268h. Such programs and projects shall promote affordable, sustainable and self-sufficient management of waste within the state by reducing solid waste generation or diverting solid waste from disposal, consistent with the state-wide solid waste management plan established pursuant to section 22a-228.
(c) Not later than January 1, 2024, and annually thereafter, the Department of Energy and Environmental Protection shall submit 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 the environment and energy and technology detailing the expenditures of any funds disbursed from the sustainable materials management account established in subsection (a) of this section and the outcomes associated with such expenditures.
(P.A. 22-118, S. 167; P.A. 23-170, S. 16.)
History: P.A. 23-170 amended Subsec. (a) to add reference to moneys deposited pursuant to Subsec. (f) of Sec. 22a-232 and to add reference to pledging of moneys for revenue bonds and amended Subsec. (b) to add reference to the use of funding from such program for solid waste management infrastructure, effective June 29, 2023.
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Sec. 16-245a. Renewable portfolio standards. (a) Subject to any modifications required by the Public Utilities Regulatory Authority for retiring renewable energy certificates on behalf of all electric ratepayers pursuant to subsection (h) of this section and sections 16a-3f, 16a-3g, 16a-3h, 16a-3i, 16a-3j, 16a-3m and 16a-3n, an electric supplier and an electric distribution company providing standard service or supplier of last resort service, pursuant to section 16-244c, shall demonstrate:
(1) On and after January 1, 2006, that not less than two per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(2) On and after January 1, 2007, not less than three and one-half per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(3) On and after January 1, 2008, not less than five per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(4) On and after January 1, 2009, not less than six per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(5) On and after January 1, 2010, not less than seven per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(6) On and after January 1, 2011, not less than eight per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(7) On and after January 1, 2012, not less than nine per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(8) On and after January 1, 2013, not less than ten per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(9) On and after January 1, 2014, not less than eleven per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(10) On and after January 1, 2015, not less than twelve and one-half per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(11) On and after January 1, 2016, not less than fourteen per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(12) On and after January 1, 2017, not less than fifteen and one-half per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional three per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(13) On and after January 1, 2018, not less than seventeen per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(14) On and after January 1, 2019, not less than nineteen and one-half per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(15) On and after January 1, 2020, not less than twenty-one per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class I or Class II renewable energy sources, except that for any electric supplier that has entered into or renewed a retail electric supply contract on or before May 24, 2018, on and after January 1, 2020, not less than twenty per cent of the total output or services of any such electric supplier shall be generated from Class I renewable energy sources;
(16) On and after January 1, 2021, not less than twenty-two and one-half per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(17) On and after January 1, 2022, not less than twenty-four per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class I or Class II renewable energy sources;
(18) On and after January 1, 2023, not less than twenty-six per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class II renewable energy sources;
(19) On and after January 1, 2024, not less than twenty-eight per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class II renewable energy sources;
(20) On and after January 1, 2025, not less than thirty per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class II renewable energy sources;
(21) On and after January 1, 2026, not less than thirty-two per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class II renewable energy sources;
(22) On and after January 1, 2027, not less than thirty-four per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class II renewable energy sources;
(23) On and after January 1, 2028, not less than thirty-six per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class II renewable energy sources;
(24) On and after January 1, 2029, not less than thirty-eight per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class II renewable energy sources;
(25) On and after January 1, 2030, not less than forty per cent of the total output or services of any such supplier or distribution company shall be generated from Class I renewable energy sources and an additional four per cent of the total output or services shall be from Class II renewable energy sources.
(b) (1) An electric supplier or electric distribution company may satisfy the requirements of this section (A) by purchasing certificates issued by the New England Power Pool Generation Information System, provided the certificates are for (i) energy produced by a generating unit using Class I or Class II renewable energy sources and the generating unit is located in the jurisdiction of the regional independent system operator, or (ii) energy imported into the control area of the regional independent system operator pursuant to New England Power Pool Generation Information System Rule 2.7(c), as in effect on January 1, 2006; (B) for those renewable energy certificates under contract to serve end use customers in the state on or before October 1, 2006, by participating in a renewable energy trading program within said jurisdictions as approved by the Public Utilities Regulatory Authority; or (C) by purchasing eligible renewable electricity and associated attributes from residential customers who are net producers. (2) Not more than two and one-half per cent of the total output or services of an electric supplier or electric distribution company shall be generated from Class I renewable energy sources eligible as described in subparagraph (A)(x)(II) of subdivision (20) of subsection (a) of section 16-1.
(c) Any supplier who provides electric generation services solely from a Class II renewable energy source shall not be required to comply with the provisions of this section.
(d) An electric supplier or an electric distribution company shall base its demonstration of generation sources, as required under subsection (a) of this section on historical data, which may consist of data filed with the regional independent system operator.
(e) The authority shall adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of this section.
(f) Notwithstanding the provisions of this section and section 16-244c, for periods beginning on and after January 1, 2008, each electric distribution company may procure renewable energy certificates from Class I, Class II and Class III renewable energy sources through long-term contracting mechanisms. The electric distribution companies may enter into long-term contracts for not more than fifteen years to procure such renewable energy certificates. The electric distribution companies shall use any renewable energy certificates obtained pursuant to this section to meet their standard service and supplier of last resort renewable portfolio standard requirements.
(g) On or before January 1, 2014, the Commissioner of Energy and Environmental Protection shall, in developing or modifying an Integrated Resources Plan in accordance with sections 16a-3a and 16a-3e, establish a schedule to commence on January 1, 2015, for assigning a gradually reduced renewable energy credit value to all biomass or landfill methane gas facilities that qualify as a Class I renewable energy source pursuant to section 16-1, provided this subsection shall not apply to anaerobic digestion or other biogas facilities, and further provided any reduced renewable energy credit value established pursuant to this section shall not apply to any biomass or landfill methane gas facility that has entered into a power purchase agreement (1) with an electric supplier or electric distribution company in the state of Connecticut on or before June 5, 2013, or (2) executed in accordance with section 16a-3f or 16a-3h. The Commissioner of Energy and Environmental Protection may review the schedule established pursuant to this subsection in preparation of each subsequent Integrated Resources Plan developed pursuant to section 16a-3a and make any necessary changes thereto to ensure that the rate of reductions in renewable energy credit value for biomass or landfill methane gas facilities is appropriate given the availability of other Class I renewable energy sources.
(h) The authority shall establish procedures for the disposition of renewable energy certificates purchased pursuant to section 16-244z, which may include procedures for selling renewable energy certificates consistent with section 16-244z or, if renewable energy certificates procured pursuant to section 16-244z are retired and never used for compliance in any other jurisdiction, reductions to the percentage of the total output or services of an electric supplier or an electric distribution company generated from Class I renewable energy sources required pursuant to subsection (a) of this section. Any such reduction shall be based on the energy production that the authority forecasts will be procured pursuant to subsections (a) and (b) of section 16-244z. The authority shall determine any such reduction of an annual renewable portfolio standard not later than one year prior to the effective date of such annual renewable portfolio standard. An electric distribution company shall not be responsible for any administrative or other costs or expenses associated with any difference between the number of renewable energy certificates planned to be retired pursuant to the authority's reduction and the actual number of renewable energy certificates retired.
(P.A. 98-28, S. 25, 117; P.A. 03-135, S. 7; June Sp. Sess. P.A. 05-1, S. 34; P.A. 06-74, S. 3; P.A. 07-242, S. 40, 71; P.A. 11-80, S. 1; P.A. 13-303, S. 5; P.A. 14-134, S. 13; P.A. 17-144, S. 3; 17-186, S. 1; P.A. 18-50, S. 1, 2, 28; P.A. 19-71, S. 4; P.A. 22-118, S. 163; P.A. 23-204, S. 186.)
History: P.A. 98-28 effective July 1, 1998; P.A. 03-135 amended Subsec. (a) to delete provisions applicable before July 1, 2003, designate remaining provisions as Subdiv. (1), add provisions re applicability of section to electric suppliers and electric distribution companies providing transitional standard offer, standard service, and supplier of last resort service, adjust the percentage of Class I and Class II renewable energy source requirements and the dates for meeting such requirements, delete provision re participation in a renewable energy trading program approved by the state, reposition provision re generation solely from Class II renewable energy source as new Subdiv. (3) and add new Subdiv. (2) re qualifying jurisdictions, amended Subsec. (b) to add a reference to an electric supplier and an electric distribution company and to make conforming changes, added new Subsec. (c) re make up of any deficiency and credit for the current year where credit was received in a preceding year, redesignated former Subsec. (c) as Subsec. (d) and amended said Subsec. to change “may” to “shall” and to make technical changes, effective January 1, 2004; June Sp. Sess. P.A. 05-1 amended Subsec. (a)(2) to add “on and after January 1, 2010”, effective July 1, 2006; P.A. 06-74 amended Subsec. (a) to make technical changes, redesignated existing Subsec. (a)(2) as new Subsec. (b), amended Subsec. (b) to replace language re certain qualifying jurisdictions with language in Subdiv. (1) re certificates issued by the New England Power Pool Generation Information System and in Subdiv. (2) re renewable energy certificates under contract on or before October 1, 2006, and to make technical changes, redesignated existing Subsec. (a)(3) as new Subsec. (c), and redesignated existing Subsecs. (b) to (d), inclusive, as new Subsecs. (d) to (f), inclusive; P.A. 07-242 amended Subsec. (a) to add Subdiv. designators (1) to (5) for existing renewable energy portfolio standard requirements through on and after January 1, 2010, and add Subdivs. (6) to (15) re standards through on and after January 1, 2020, and added Subsec. (b)(3) re purchasing renewable energy from residential net producers, and, effective June 4, 2007, added Subsec. (g) re long-term contracts; pursuant to P.A. 11-80, “Department of Public Utility Control” and “department” were changed editorially by the Revisors to “Public Utilities Regulatory Authority” and “authority”, respectively, effective July 1, 2011; P.A. 13-303 added Subsec. (h) re schedule for assigning gradually reduced renewable energy credit value to certain biomass and landfill methane gas facilities, effective June 5, 2013; P.A. 14-134 amended Subsec. (g) by deleting Subdiv. (1) designator and deleting former Subdiv. (2) re initiation of contested case proceeding to examine use of long-term contracts to procure certificates, effective June 6, 2014; P.A. 17-144 amended Subsec. (a) by replacing “four” with “three” re per cent of total output or services in Subdivs. (13), (14) and (15), effective June 27, 2017; P.A. 17-186 deleted former Subsec. (e) re supplier or electric distribution company making up deficiency within renewable energy portfolio, and redesignating existing Subsecs. (f) to (h) as Subsecs. (e) to (g), effective July 1, 2017; P.A. 18-50 amended Subsec. (a) by adding provision re demonstration subject to modifications required by authority for retiring renewable energy certificates, replacing “twenty per cent” with “twenty-one per cent” and adding exception in Subdiv. (15) re electric suppliers that entered into or renewed retail electric supply contracts on or before May 24, 2018, and adding Subdivs. (16) to (25) re standards each year on and after January 1, 2021 to on and after January 1, 2030, respectively, effective May 24, 2018, amended Subsec. (b) by designating existing provision re electric supplier or electric distribution company satisfying requirements of section as new Subdiv. (1), and amending same by redesignating existing Subdivs. (1) and (2) as new Subparas. (A) and (B), redesignating existing Subparas. (A) and (B) as clauses (i) and (ii), redesignating existing Subdiv. (3) as Subpara. (C), and adding new Subdiv. (2) re not more than 1 per cent of total output or services to be generated from Class I renewable energy sources, effective October 1, 2018, and added Subsec. (h) re establishment of procedures for disposition of renewable energy certificates, effective May 24, 2018; P.A. 19-71 amended Subsec. (a) by adding reference to Sec. 16a-3n and making conforming changes, effective June 7, 2019; P.A. 22-118 amended Subsec. (a) by deleting “Class I or” in provisions re additional 4 per cent output or services from renewable energy sources in Subdivs. (18) to (25); P.A. 23-204 amended Subsec. (b)(1) by increasing percentage re total output from certain Class I renewable energy sources from 1 per cent to 2.5 per cent.
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Sec. 16-245d. Billing of electric service. Standard format. Contents. Bill inserts and mailings. Electronic bill payment confirmation. (a)(1) The Public Utilities Regulatory Authority shall, by regulations adopted pursuant to chapter 54, develop a standard billing format that enables customers to compare pricing policies and charges among electric suppliers. The authority shall alter or repeal any relevant regulation in conjunction with the implementation of a redesigned standard billing format described in subdivisions (2) and (3) of this subsection. The authority shall adopt regulations, in accordance with the provisions of chapter 54, to provide that an electric supplier shall provide direct billing and collection services for electric generation services and related federally mandated congestion charges that such suppliers provide to their customers or may choose to obtain such billing and collection service through an electric distribution company and pay its pro rata share in accordance with the provisions of subsection (f) of section 16-244c. Any customer of an electric supplier, which is choosing to provide direct billing, who paid for the cost of billing and other services to an electric distribution company shall receive a credit on their monthly bill.
(2) On or before July 1, 2014, the authority shall initiate a docket to redesign (A) the standard billing format for residential customers implemented pursuant to subdivision (1) of this subsection to better enable such residential customers to compare pricing policies and charges among electric suppliers, and (B) the account summary page of a residential customer located on the electric distribution company's Internet web site. The authority shall issue a final decision on such docket not later than six months after its initiation. Such final decision shall include the placement of the following items on the first page of each bill for each residential customer receiving electric generation service from an electric supplier: (i) The electric generation service rate; (ii) the term and expiration date of such rate; (iii) any change to such rate effective for the next billing cycle; (iv) the cancellation fee, if applicable, provided there is such a change; (v) notification that such rate is variable, if applicable; (vi) the standard service rate; (vii) the term and expiration date of the standard service rate; (viii) the dollar amount that would have been billed for the electric generation services component had the customer been receiving standard service; and (ix) an electronic link or Internet web site address to the rate board Internet web site described in section 16-244d and the toll-free telephone number and other information necessary to enable the customer to obtain standard service. Such final decision shall also include the feasibility of (I) an electric distribution company transferring a residential customer receiving electric generation service from an electric supplier to a different electric supplier in a timely manner and ensuring that the electric distribution company and the relevant electric suppliers provide timely information to each other to facilitate such transfer, and (II) allowing residential customers to choose how to receive information related to bill notices, including United States mail, electronic mail, text message, an application on a cellular telephone or a third-party notification service approved by the authority. On or before July 1, 2020, and every five years thereafter, the authority shall reopen such docket to ensure the standard billing format and Internet web site for a customer's account summary remains a useful tool for customers to compare pricing policies and charges among electric suppliers.
(3) Not later than August 1, 2023, each electric distribution company shall use a total of four categories as part of the standard billing format for all residential customers, one of which shall relate to charges for generation of electricity, one of which shall relate to charges for local distribution of electricity, one of which shall relate to charges for transmission of electricity, and one of which shall relate to system benefits and the subset of federally mandated congesting charges approved by the authority pursuant to any provision of the general statutes, public act or special act. The authority shall require that each electric distribution company's standard billing format for residential customers identify each charge and the corresponding category in accordance with the authority's determinations. The authority, in a docket reopened pursuant to subdivision (2) of this subsection, may modify the categories described in this subdivision if the authority finds that such modification improves customer understanding of the components of the electric bill or customer understanding of what costs are causing increases to the total amount of a customer's bill.
(4) An electric supplier that chooses to provide billing and collection services shall, in accordance with the billing format developed by the authority, include the following information in each customer's bill: (A) The total amount owed by the customer, which shall be itemized to show (i) the electric generation services component and any additional charges imposed by the electric supplier, and (ii) federally mandated congestion charges applicable to the generation services; (B) any unpaid amounts from previous bills, which shall be listed separately from current charges; (C) the rate and usage for the current month and each of the previous twelve months in bar graph form or other visual format; (D) the payment due date; (E) the interest rate applicable to any unpaid amount; (F) the toll-free telephone number of the Public Utilities Regulatory Authority for questions or complaints; and (G) the toll-free telephone number and address of the electric supplier. On or before October 1, 2013, the authority shall conduct a review of the costs and benefits of suppliers billing for all components of electric service, and report, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to energy regarding the results of such review. Any such report may be submitted electronically.
(5) An electric distribution company shall, in accordance with the billing format developed by the authority, include the following information in each customer's bill: (A) The total amount owed by the customer, which shall be itemized using the categories described in subdivision (3) of this subsection; (B) any unpaid amounts from previous bills which shall be listed separately from current charges; (C) except for customers subject to a demand charge, the rate and usage for the current month and each of the previous twelve months in the form of a bar graph or other visual form; (D) the payment due date; (E) the interest rate applicable to any unpaid amount; (F) the toll-free telephone number of the electric distribution company to report power losses; (G) the toll-free telephone number of the Public Utilities Regulatory Authority for questions or complaints; and (H) if a customer has a demand of five hundred kilowatts or less during the preceding twelve months, a statement about the availability of information concerning electric suppliers pursuant to section 16-245p.
(6) The chairperson of the Public Utilities Regulatory Authority shall conduct a study that analyzes the components of the delivery portion of the electric bill for customers of each electric distribution company. Such study shall consider what additional informational items should be available to customers on a state-run Internet web site, on an Internet web site of an electric distribution company or at other locations that aim to increase transparency concerning the costs and benefits of programs funded through certain charges on a customer's electric bill. Such study may include recommendations for a detailed plan aimed at educating customers regarding how to access programs funded through such charges. Not later than January 15, 2025, the chairperson shall submit a report to the joint standing committee of the General Assembly having cognizance of matters relating to energy, in accordance with the provisions of section 11-4a, that contains the chairperson's analysis and recommendations.
(b) An electric distribution company that provides billing services for an electric supplier shall be entitled to recover from the electric supplier all reasonable transaction costs to provide such billing services as well as a reasonable rate of return, in accordance with the principles in subsection (a) of section 16-19e.
(c) From June 3, 2014, and until one year after June 3, 2014, inclusive, each electric distribution company shall, on a quarterly basis, include the following items in a bill insert to each residential customer who obtains standard service or electric generation service from an electric supplier: (1) The standard service rate; (2) the term and expiration date of such rate; (3) any change to the standard service rate not later than forty-five days before the standard service rate is effective; and (4) before any reference to the term “standard service”, the name of the electric distribution company.
(d) From June 3, 2014, and until one year after June 3, 2014, inclusive, each electric supplier shall, on a quarterly basis, include the following items in a mailing to each residential customer receiving electric generation service from such supplier: (1) The electric generation service rate; (2) the term and expiration date of such rate; (3) any change to such rate effective for the next billing cycle; (4) the cancellation fee, if applicable, provided there is such a change; (5) notification that such rate is variable, if applicable; (6) the standard service rate; (7) the term and expiration date of the standard service rate; and (8) the dollar amount that would have been billed for the electric generation services component had the customer been receiving standard service.
(e) On and after July 1, 2015, if a residential customer is enrolled in automatic electronic bill payments and does not receive a bill through United States mail, an electric distribution company shall send such customer a link to such customer's bill in electronic mail with confirmation of bill payment.
(P.A. 98-28, S. 21, 117; P.A. 03-135, S. 22; P.A. 04-86, S. 2; 04-257, S. 30; P.A. 05-210, S. 31; June Sp. Sess. P.A. 05-1, S. 7; P.A. 06-196, S. 235; P.A. 11-80, S. 114; P.A. 13-5, S. 43; 13-119, S. 10; P.A. 14-75, S. 1; 14-94, S. 58, 59; P.A. 23-102, S. 14; 23-204, S. 117.)
History: P.A. 98-28 effective July 1, 1998; P.A. 03-135 amended Subsec. (a) to make technical changes and, in Subdiv. (1), to add new Subpara. (D) re federally mandated congestion costs and to redesignate existing Subpara. (D) as new Subpara. (E), effective June 26, 2003; P.A. 04-86 amended Subsec. (a) to require department to adopt regulations re direct billing and collection services by electric supplier and to make conforming changes, and amended Subsec. (b) to add “that provides billing services for an electric supplier” and to make a technical change; P.A. 04-257 made a technical change in Subsec. (a)(1)(D), effective June 14, 2004; P.A. 05-210 amended Subsec. (a)(1) to make a technical change in Subpara. (B), add new Subpara. (C) re the transmission rate, and redesignate existing Subparas. (C) to (E), inclusive, as Subparas. (D) to (F), inclusive, effective July 6, 2005; June Sp. Sess. P.A. 05-1 amended Subsec. (a) to change deadline for adoption of regulations from January 1, 2005, to January 1, 2006, to change threshold by deleting customers that “use a demand meter” and by changing maximum demand from not less than five hundred kilowatts to not less than one hundred kilowatts, and to make technical changes, effective July 21, 2005; P.A. 06-196 made a technical change in Subsec. (a)(1)(B), effective June 7, 2006; P.A. 11-80 amended Subsec. (a) to replace “Department of Public Utility Control” with “Department of Energy and Environmental Protection”, to replace former deadline date for adopting regulations with provision applying existing regulations until July 1, 2012, to add provisions re suppliers to provide billing or pay pro rata share of expense if electric distribution companies provide billing on and after July 1, 2012, to add Subdiv. (1) re electric suppliers that choose to provide billing, to redesignate provisions re what electric distribution company must include on its bills as Subdiv. (2) and amend same to make technical changes, require itemization of electric generation services component only if customer obtains standard service or last resort service from the electric distribution company, delete provision re toll-free number and address of supplier, and apply provision re statement about availability of information to customers with a demand of 500 kilowatts or less in past 12 months, and amended Subsec. (b) to add “until October 1, 2011”, effective July 1, 2011 (Revisor's note: In Subsec. (a)(2)(G), a reference to “Department of Public Utility Control” was changed editorially by the Revisors to “Public Utilities Regulatory Authority” to conform with changes made by P.A. 11-80); P.A. 13-5 amended Subsec. (a) to make a technical change, effective May 8, 2013; P.A. 13-119 amended Subsec. (a) to replace “Department of Energy and Environmental Protection” and “department” with “Public Utilities Regulatory Authority” and “authority”, respectively, and, in Subdiv. (1), to replace “February 1, 2012” with “October 1, 2013” and to add provision re electronic submission of report, effective June 18, 2013; P.A. 14-75 amended Subsec. (a) by designating existing provisions re standard billing format regulations as new Subdiv. (1) and amending same to add provision re alteration or repeal of regulation in conjunction with redesigned format and to delete provision re direct billing and collection services provided until July 1, 2012, by adding new Subdiv. (2) re redesign of the standard billing format and account summary page for residential customers, and by redesignating existing Subdivs. (1) and (2) as Subdivs. (3) and (4), amended Subsec. (b) by deleting provision re guidelines for determining billing relationship until October 1, 2011, added Subsec. (c) re bill inserts, added Subsec. (d) re mailings and added Subsec. (e) re confirmation of electronic bill payment, effective June 3, 2014; P.A. 14-94 amended Subsec. (a)(2) by replacing provision re bill from electric distribution company with provision re bill for residential customer receiving electric generation service from electric supplier and amended Subsec. (c) by replacing “electric generation service rate” with “standard service rate” in Subdiv. (1) and replacing “after the standard rate is approved by the authority” with “before the standard service rate is effective” in Subdiv. (3), effective June 6, 2014; P.A. 23-102 added in Subsec. (a) new Subdiv. (3) re categories in electric distribution company standard billing format, redesigned existing Subdivs. (3) and (4) as Subdivs. (4) and (5), amended Subdiv. (5) by deleting reference to itemized charges and adding reference to categories, and made technical and conforming changes, effective July 1, 2023; P.A. 23-204 amended Subsec. (a) by adding Subdiv. (6) re a study of components of delivery portion of electric bill, effective July 1, 2023.
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Sec. 16-245n. Connecticut Green Bank. Charge assessed against electric customers. Clean Energy Fund. Environmental Infrastructure Fund. (a) For purposes of this section:
(1) “Carbon offsets” means any activity that compensates for the emission of carbon dioxide or other greenhouse gases by providing for an emission reduction elsewhere;
(2) “Clean 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 Energy and 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, 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, or nuclear fission, financing of energy efficiency projects, projects that seek to deploy electric, electric hybrid, natural gas or alternative fuel vehicles and associated infrastructure, any related storage, distribution, manufacturing technologies or facilities and any Class I renewable energy source, as defined in section 16-1;
(3) “Ecosystem services” means benefits obtained from ecosystems, including, but not limited to, (A) provisioning services such as food and water, (B) regulating services such as regulation of floods, drought, land degradation and disease, and (C) supporting services such as soil formation and nutrient cycling; and
(4) “Environmental infrastructure” means structures, facilities, systems, services and improvement projects related to (A) water, (B) waste and recycling, (C) climate adaptation and resiliency, (D) agriculture, (E) land conservation, (F) parks and recreation, and (G) environmental markets, including, but not limited to, carbon offsets and ecosystem services.
(b) On and after July 1, 2004, the Public Utilities Regulatory Authority 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 Clean Energy Fund established under subsection (c) of this section.
(c) (1) There is hereby created a Clean Energy Fund which shall be within the Connecticut Green Bank. The fund may receive any amount required by law to be deposited into the fund and may receive any federal funds as may become available to the state for clean energy investments. Upon authorization of the Connecticut Green Bank established pursuant to subsection (d) of this section, any amount in said fund may be used for expenditures that promote investment in clean energy in accordance with a comprehensive plan developed by it to foster the growth, development and commercialization of clean energy sources, related enterprises and stimulate demand for clean energy and deployment of clean energy sources that serve end use customers in this state and for the further purpose of supporting operational demonstration projects for advanced technologies that reduce energy use from traditional sources. Such expenditures may include, but not be limited to, providing low-cost financing and credit enhancement mechanisms for clean energy projects and technologies, reimbursement of the operating expenses, including administrative expenses incurred by the Connecticut Green Bank and capital costs incurred by the Connecticut Green Bank in connection with the operation of the fund, the implementation of the plan developed pursuant to subsection (d) of this section or the other permitted activities of the Connecticut Green Bank, 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 clean energy technologies, and actions which expand the expertise of individuals, businesses and lending institutions with regard to clean energy technologies.
(2) (A) There is hereby created an Environmental Infrastructure Fund which shall be within the Connecticut Green Bank. The fund may receive any amount required by law to be deposited into the fund and may receive any federal funds as may become available to the state for environmental infrastructure investments, except that the fund shall not receive: (i) Ratepayer or Regional Greenhouse Gas Initiative funds, (ii) funds that have been deposited in, or are required to be deposited in, an account of the Clean Water Fund pursuant to sections 22a-475 to 22a-483f, inclusive, or (iii) funds collected from a water company, as defined in section 25-32a.
(B) Upon authorization of the Connecticut Green Bank established pursuant to subsection (d) of this section, any amount in said fund may be used for expenditures that promote investment in environmental infrastructure in accordance with a comprehensive plan developed by it to foster the growth, development, commercialization and, where applicable, preservation of environmental infrastructure and related enterprises, except any project or purpose eligible for funding pursuant to sections 22a-475 to 22a-483f, inclusive. Such expenditures may include, but not be limited to, providing low-cost financing and credit enhancement mechanisms for projects and technologies, reimbursement of the operating expenses, including administrative expenses incurred by the Connecticut Green Bank, and capital costs incurred by the Connecticut Green Bank in connection with the operation of the fund, the implementation of the plan developed pursuant to subsection (d) of this section or the other permitted activities of the Connecticut Green Bank, 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 environmental infrastructure and actions which expand the expertise of individuals, businesses and lending institutions with regard to environmental infrastructure.
(d) (1) (A) The Connecticut Green Bank is hereby established and created as a body politic and corporate, constituting a public instrumentality and political subdivision of the state of Connecticut established and created for the performance of an essential public and governmental function. The Connecticut Green Bank shall not be construed to be a department, institution or agency of the state.
(B) The Connecticut Green Bank shall (i) develop separate programs to finance and otherwise support clean energy and environmental infrastructure investment in residential, municipal, small business and larger commercial projects and such others as the Connecticut Green Bank may determine; (ii) support financing or other expenditures that promote investment in clean energy sources and environmental infrastructure in accordance with a comprehensive plan developed by it to foster the growth, development and commercialization of clean energy sources, environmental infrastructure and related enterprises; and (iii) stimulate demand for clean energy and the deployment of clean energy sources within the state that serve end use customers in the state.
(C) The Clean Energy Finance and Investment Authority shall constitute a successor agency to Connecticut Innovations, Incorporated, for the purposes of administering the Clean Energy Fund in accordance with section 4-38d. The Connecticut Green Bank shall constitute a successor agency to the Clean Energy Finance and Investment Authority for purposes of administering the Clean Energy Fund in accordance with section 4-38d. The Connecticut Green Bank shall have all the privileges, immunities, tax exemptions and other exemptions of Connecticut Innovations, Incorporated, with respect to said fund. The Connecticut Green Bank shall administer the Environmental Infrastructure Fund. The Connecticut Green Bank shall be subject to suit and liability solely from the assets, revenues and resources of said bank and without recourse to the general funds, revenues, resources or other assets of Connecticut Innovations, Incorporated. The Connecticut Green Bank may provide financial assistance in the form of grants, loans, loan guarantees or debt and equity investments, as approved in accordance with written procedures adopted pursuant to section 1-121. The Connecticut Green Bank may assume or take title to any real property, convey or dispose of its assets and pledge its revenues to secure any borrowing, convey or dispose of its assets and pledge its revenues to secure any borrowing, for the purpose of developing, acquiring, constructing, refinancing, rehabilitating or improving its assets or supporting its programs, provided each such borrowing or mortgage, unless otherwise provided by the board or said bank, shall be a special obligation of said bank, which obligation may be in the form of bonds, bond anticipation notes or other obligations which evidence an indebtedness to the extent permitted under this chapter to fund, refinance and refund the same and provide for the rights of holders thereof, and to secure the same by pledge of revenues, notes and mortgages of others, and which shall be payable solely from the assets, revenues and other resources of said bank and such bonds may be secured by a special capital reserve fund contributed to by the state, provided that any bond secured by such special capital reserve fund shall have a maturity not exceeding twenty-five years. The Connecticut Green Bank shall have the purposes as provided by resolution of said bank's board of directors, which purposes shall be consistent with this section. No further action is required for the establishment of the Connecticut Green Bank, except the adoption of a resolution for said bank.
(D) In addition to, and not in limitation of, any other power of the Connecticut Green Bank set forth in this section or any other provision of the general statutes, said bank shall have and may exercise the following powers in furtherance of or in carrying out its purposes:
(i) To have perpetual succession as a body corporate and to adopt bylaws, policies and procedures for the regulation of its affairs and the conduct of its business;
(ii) To make and enter into all contracts and agreements that are necessary or incidental to the conduct of its business;
(iii) To invest in, acquire, lease, purchase, own, manage, hold, sell and dispose of real or personal property or any interest therein;
(iv) To borrow money or guarantee a return to investors or lenders;
(v) To hold patents, copyrights, trademarks, marketing rights, licenses or other rights in intellectual property;
(vi) To employ such assistants, agents and employees as may be necessary or desirable, who shall be exempt from the classified service and shall not be employees, as defined in subsection (b) of section 5-270; establish all necessary or appropriate personnel practices and policies, including those relating to hiring, promotion, compensation and retirement, and said bank shall not be an employer, as defined in subsection (a) of section 5-270; and engage consultants, attorneys, financial advisers, appraisers and other professional advisers as may be necessary or desirable;
(vii) To invest any funds not needed for immediate use or disbursement pursuant to investment policies adopted by said bank's board of directors;
(viii) To procure insurance against any loss or liability with respect to its property or business of such types, in such amounts and from such insurers as it deems desirable;
(ix) To enter into joint ventures and invest in, and participate with any person, including, without limitation, government entities and private corporations, in the formation, ownership, management and operation of business entities, including stock and nonstock corporations, limited liability companies and general or limited partnerships, formed to advance the purposes of said bank, provided members of the board of directors or officers or employees of said bank may serve as directors, members or officers of any such business entity, and such service shall be deemed to be in the discharge of the duties or within the scope of the employment of any such director, officer or employee, as the case may be, so long as such director, officer or employee does not receive any compensation or financial benefit as a result of serving in such role;
(x) To enter into a memorandum of understanding or other arrangements with Connecticut Innovations, Incorporated, with respect to the provision or sharing of space, office systems or staff administrative support, on such terms as may be agreed to between said bank and Connecticut Innovations, Incorporated; and
(xi) To do all other acts and things necessary or convenient to carry out the purposes of said bank.
(E) (i) The Connecticut Green Bank may form one or more subsidiaries to carry out the purposes of said bank, as described in subparagraph (B) of subdivision (1) of this subsection, and may transfer to any such subsidiary any moneys and real or personal property of any kind or nature. Any subsidiary may be organized as a stock or nonstock corporation or a limited liability company. Each such subsidiary shall have and may exercise such powers of said bank, as set forth in the resolution of the board of directors of said bank prescribing the purposes for which such subsidiary is formed, and such other powers provided to it by law.
(ii) No such subsidiary of said bank shall be deemed a quasi-public agency for purposes of chapter 12. No such subsidiary of said bank shall have all the privileges, immunities, tax exemptions and other exemptions of said bank, unless such subsidiary is a single member limited liability company that is disregarded as an entity separate from its owner. In no event shall any such subsidiary have the power to hire or otherwise retain employees. The governing documents of any such subsidiary shall provide for the dissolution of such subsidiary upon the completion of the purpose for which such subsidiary was formed. Each such subsidiary may sue and shall be subject to suit, provided its liability shall be limited solely to the assets, revenues and resources of the subsidiary and without recourse to the general funds, revenues, resources or any other assets of said bank. Each such subsidiary is authorized to assume or take title to property subject to any existing lien, encumbrance or mortgage and to mortgage, convey or dispose of its assets and pledge its revenues to secure any borrowing, provided each such borrowing or mortgage shall be a special obligation of the subsidiary, which obligation may be in the form of bonds, bond anticipation notes and other obligations, to fund and refund the same and provide for the rights of the holders thereof, and to secure the same by a pledge of revenues, notes and other assets and which shall be payable solely from the revenues, assets and other resources of the subsidiary. The Connecticut Green Bank may assign to a subsidiary any rights, moneys or other assets it has under any governmental program. No subsidiary of said bank shall borrow without the approval of the board of directors of said bank.
(iii) Each such subsidiary shall act through its board of directors or managing members, at least one-half of which shall be members of the board of directors of said bank or their designees or officers or employees of said bank.
(iv) The provisions of section 1-125 and this subsection shall apply to any officer, director, designee or employee appointed as a member, director or officer of any such subsidiary. Any such person so appointed shall not be personally liable for the debts, obligations or liabilities of any such subsidiary as provided in section 1-125. The subsidiary shall, and said bank may, save harmless and indemnify such officer, director, designee or employee as provided by section 1-125.
(v) The Connecticut Green Bank, or such subsidiary, may take such actions as are necessary to comply with the provisions of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, to qualify and maintain any such subsidiary as a corporation exempt from taxation under said code.
(vi) The Connecticut Green Bank may make loans to each such subsidiary from its assets and the proceeds of its bonds, notes and other obligations, provided the source and security for the repayment of such loans is derived from the assets, revenues and resources of the subsidiary.
(2) (A) The Connecticut Green Bank may seek to qualify as a Community Development Financial Institution under Section 4702 of the United States Code. If approved as a Community Development Financial Institution, said bank would be treated as a qualified community development entity for purposes of Section 45D and Section 1400N(m) of the Internal Revenue Code.
(B) Before making any loan, loan guarantee, or such other form of financing support or risk management for a clean energy or environmental infrastructure project, the Connecticut Green Bank shall develop standards to govern the administration of said bank through rules, policies and procedures that specify borrower eligibility, terms and conditions of support, and other relevant criteria, standards or procedures.
(C) Funding sources specifically authorized include, but are not limited to:
(i) Funds repurposed from existing programs providing financing support for clean energy projects, provided any transfer of funds from such existing programs shall be subject to approval by the General Assembly and shall be used for expenses of financing, grants and loans;
(ii) Any federal funds that can be used for the purposes specified in subsection (c) of this section, provided such funds are not required to be deposited in the accounts of the Clean Water Fund pursuant to sections 22a-475 to 22a-483f, inclusive;
(iii) Charitable gifts, grants, contributions as well as loans from individuals, corporations, university endowments and philanthropic foundations;
(iv) Earnings and interest derived from financing support activities for clean energy and environmental infrastructure projects backed by the Connecticut Green Bank;
(v) If and to the extent that the Connecticut Green Bank qualifies as a Community Development Financial Institution under Section 4702 of the United States Code, funding from the Community Development Financial Institution Fund administered by the United States Department of Treasury, as well as loans from and investments by depository institutions seeking to comply with their obligations under the United States Community Reinvestment Act of 1977; and
(vi) The Connecticut Green Bank may enter into contracts with private sources to raise capital. The average rate of return on such debt or equity shall be set by the board of directors of said bank.
(D) The Connecticut Green Bank may provide financing support under this subsection if said bank determines that the amount to be financed by said bank and other nonequity financing sources do not exceed one hundred per cent of the cost to develop and deploy a clean energy project or an environmental infrastructure project.
(E) The Connecticut Green Bank may assess reasonable fees on its financing activities to cover its reasonable costs and expenses, as determined by the board.
(F) The Connecticut Green Bank shall make information regarding the rates, terms and conditions for all of its financing support transactions available to the public for inspection, including formal annual reviews by both a private auditor conducted pursuant to subdivision (2) of subsection (f) of this section and the Comptroller, and providing details to the public on the Internet, provided public disclosure shall be restricted for patentable ideas, trade secrets, proprietary or confidential commercial or financial information, disclosure of which may cause commercial harm to a nongovernmental recipient of such financing support and for other information exempt from public records disclosure pursuant to section 1-210.
(G) The Connecticut Green Bank shall not apply, directly or through a subsidiary, to be eligible for grants under (i) the Clean Water Act, 33 USC 1251 et seq., as amended from time to time, without the approval of the State Treasurer and the Commissioner of Energy and Environmental Protection, or (ii) the Safe Drinking Water Act, 42 USC 300f et seq., as amended from time to time, without the approval of the State Treasurer and the Commissioner of Public Health.
(3) No director, officer, employee or agent of the Connecticut Green Bank, while acting within the scope of his or her authority, shall be subject to any personal liability resulting from exercising or carrying out any of the Connecticut Green Bank's purposes or powers.
(e) (1) The powers of the Connecticut Green Bank shall be vested in and exercised by a board of directors, which shall consist of twelve voting members and one nonvoting member each with knowledge and expertise in matters related to the purpose and activities of said bank appointed as follows: The Treasurer or the Treasurer's designee, the Commissioner of Energy and Environmental Protection or the commissioner's designee, the Commissioner of Economic and Community Development or the commissioner's designee, and the Secretary of the Office of Policy and Management or the secretary's designee, each serving ex officio, one member who shall represent a residential or low-income group appointed by the speaker of the House of Representatives for a term of four years, one member who shall have experience in investment fund management appointed by the minority leader of the House of Representatives for a term of three years, one member who shall represent an environmental organization appointed by the president pro tempore of the Senate for a term of four years, and one member who shall have experience in the finance or deployment of renewable energy appointed by the minority leader of the Senate for a term of four years. Thereafter, such members of the General Assembly shall appoint members of the board to succeed such appointees whose terms expire and each member so appointed shall hold office for a period of four years from the first day of July in the year of his or her appointment. The Governor shall appoint four members to the board as follows: Two for two years who shall have experience in the finance of renewable energy; one for four years who shall be a representative of a labor organization; and one for four years who shall have experience in research and development or manufacturing of clean energy. Thereafter, the Governor shall appoint members of the board to succeed such appointees whose terms expire and each member so appointed shall hold office for a period of four years from the first day of July in the year of his or her appointment. The president of the Connecticut Green Bank shall be elected by the members of the board. The president of the Connecticut Green Bank shall serve on the board in an ex-officio, nonvoting capacity. The Governor shall appoint the chairperson of the board. The board shall elect from its members a vice chairperson and such other officers as it deems necessary 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.
(2) The members of the board of directors of the Connecticut Green Bank shall adopt written procedures, in accordance with the provisions of section 1-121, for: (A) Adopting an annual budget and plan of operations, including a requirement of board approval before the budget or plan may take effect; (B) hiring, dismissing, promoting and compensating employees of said bank, including an affirmative action policy and a requirement of board approval before a position may be created or a vacancy filled; (C) acquiring real and personal property and personal services, including a requirement of board approval for any nonbudgeted expenditure in excess of five thousand dollars; (D) contracting for financial, legal, bond underwriting and other professional services, including a requirement that said bank solicit proposals at least once every three years for each such service that it uses; (E) issuing and retiring bonds, bond anticipation notes and other obligations of said bank; (F) awarding loans, grants and other financial assistance, including eligibility criteria, the application process and the role played by said bank's staff and board of directors; and (G) the use of surplus funds to the extent authorized under this section or other provisions of the general statutes.
(3) No member of the board of directors of the Connecticut Green Bank shall be a trustee, director, partner or officer of any person, firm or corporation, or have a financial interest in a person, firm or corporation that participates in or otherwise receives support from programs developed, administered or otherwise supported by the Connecticut Green Bank. The holding of any such position as a trustee, director, partner or officer, or any financial interest by a member of the board of directors of the Connecticut Green Bank shall be deemed a conflict of interest, provided it shall not constitute a conflict of interest for a member of the board of directors of the Connecticut Green Bank to serve as a director, member or officer of a joint venture entered into by the Connecticut Green Bank pursuant to subsection (d) of this section.
(f) (1) The board shall issue annually a report to the Department of Energy and Environmental Protection reviewing the activities of the Connecticut Green Bank 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, the environment, banking and commerce. The report shall include a description of the programs and activities undertaken during the reporting period jointly or in collaboration with the Conservation and Load Management Plan established pursuant to section 16-245m.
(2) The Clean Energy Fund and the Environmental Infrastructure Fund shall be audited annually. Such audits shall be conducted with generally accepted auditing standards by independent certified public accountants certified by the State Board of Accountancy. Such accountants may be the accountants for the Connecticut Green Bank.
(3) Any entity that receives financing for a clean energy or environmental infrastructure project from the Clean Energy Fund or the Environmental Infrastructure Fund shall provide the board an annual statement, certified as correct by the chief financial officer of the recipient of such financing, setting forth all sources and uses of funds in such detail as may be required by the bank for such project. The Connecticut Green Bank shall maintain any such audits for not less than five years. Residential projects for buildings with one to four dwelling units are exempt from this and any other annual auditing requirements, except that residential projects may be required to grant their utility companies' permission to release their usage data to the Connecticut Green Bank.
(g) There shall be a joint committee of the Energy Conservation Management Board and the Connecticut Green Bank board of directors, as provided in subdivision (2) of subsection (d) of section 16-245m.
(h) (1) The state of Connecticut does hereby pledge to and agree with any person with whom the Connecticut Green Bank may enter into contracts pursuant to the provisions of this section that the state will not limit or alter the rights hereby vested in said bank until such contracts and the obligations thereunder are fully met and performed on the part of said bank, provided nothing herein contained shall preclude such limitation or alteration if adequate provision shall be made by law for the protection of such persons entering into contracts with said bank. The pledge provided by this subsection shall be interpreted and applied broadly to effectuate and maintain the bank's financial capacity to perform its essential public and governmental function.
(2) The contracts and obligations thereunder of said bank shall be obligatory upon the bank, and the bank may appropriate in each year during the term of such contracts an amount of money that, together with other funds of the bank available for such purposes, shall be sufficient to pay such contracts and obligations or meet any contractual covenants or warranties.
(i) The powers enumerated in this section shall be interpreted broadly to effectuate the purposes established in this section and shall not be construed as a limitation of powers.
(j) To the extent that the provisions of this section are inconsistent with the provisions of any general statute or special act or parts thereof, the provisions of this section shall be deemed controlling.
(P.A. 98-28, S. 44, 117; P.A. 03-135, S. 10, 11; June 30 Sp. Sess. P.A. 03-6, S. 50; June Sp. Sess. P.A. 05-1, S. 6; P.A. 07-152, S. 1; 07-242, S. 15, 120; P.A. 11-51, S. 134; 11-80, S. 1, 99; June 12 Sp. Sess. P.A. 12-2, S. 158; P.A. 14-94, S. 29; 14-134, S. 15; P.A. 16-212, S. 1–3; P.A. 18-50, S. 10, 22; P.A. 21-115, S. 19–21; P.A. 22-58, S. 34; P.A. 23-170, S. 20.)
History: P.A. 98-28 effective July 1, 1998; P.A. 03-135 added “hydrogen production and hydrogen conversion technologies” in Subsec. (a) and added “the Department of Public Utility Control and the Office of Consumer Counsel” in Subsec. (d), effective July 1, 2003; June 30 Sp. Sess. P.A. 03-6 amended Subsec. (b) to provide for a plan to avoid disbursements from the Renewable Energy Investment Fund to the General Fund in the implementation of the budget for the biennium ending June 30, 2005, effective August 20, 2003; June Sp. Sess. P.A. 05-1 amended Subsec. (a) to add provision re certain usable energy and thermal storage systems, amended Subsec. (b) to make technical changes and to change assessment on and after July 1, 2004, from one mill to not less than one mill, amended Subsec. (d) to require preference for projects that maximize reduction of federally mandated congestion charges, to require consistency with the comprehensive energy plan, to require report to describe collaboration with the Energy Conservation and Load Management Funds, and to make technical changes, and added Subsec. (e) establishing a joint committee of the Energy Conservation Management Board and the Renewable Energy Investments Advisory Committee and Subsec. (f) re evaluation of the programs, effective July 21, 2005; P.A. 07-152 amended Subsec. (c) to put fund within Connecticut Innovations, Incorporated, for administrative purposes only and to make reimbursement for services provided by administrator a permissible expenditure, amended Subsec. (d) to change advisory committee to board, to move board appointees to new Subsec. (e) and to list requirements for the comprehensive plan, added Subsecs. (e) and (f) re appointments and reporting, redesignated existing Subsecs. (e) and (f) as Subsecs. (g) and (h) and made conforming changes therein; P.A. 07-242 added photovoltaic energy, solar thermal, geothermal energy, hydropower that meets low-impact standards of Low-Impact Hydropower Institute, and certain alternative fuels in Subsec. (a), amended Subsec. (c) to add certain operational demonstration projects to list of permissible fund expenditures, and deleted provision re comprehensive energy plan approved pursuant to Sec. 16a-7a in Subsec. (d), effective June 4, 2007; P.A. 11-80 amended Subsec. (a) to change defined term from “renewable energy” to “clean energy”, to change “Commissioner of Environmental Protection” to “Commissioner of Energy and Environmental Protection” and to add provisions re financing of energy efficiency projects and projects that seek to deploy electric, electric hybrid, natural gas or alternative fuel vehicles and associated infrastructure and related storage, distribution or manufacturing, amended Subsec. (b) to replace “Department of Public Utility Control” with “Public Utilities Regulatory Authority” and to replace “Renewable Energy Investment Fund” with “Clean Energy Fund”, amended Subsec. (c) to replace “Renewable Energy Investment Fund” with “Clean Energy Fund”, to place fund within Clean Energy Finance and Investment Authority, rather than Connecticut Innovations, Incorporated for administrative purposes, to change “renewable energy” to “clean energy”, to add provision re providing low-cost financing and credit enhancement, to delete provision re reimbursement of fund administrator and management fee and to add provision re reimbursement of operating expenses, amended Subsec. (d) to replace former provisions re Renewable Energy Investments Board with provisions establishing Clean Energy Finance and Investment Authority, amended Subsec. (e) to replace former provisions re Renewable Energy Investments Board with provisions re board of directors of Clean Energy Finance and Investment Authority, amended Subsec. (f) by designating existing provisions as Subdiv. (1) and amending same to require report to be issued to Department of Energy and Environmental Protection, rather than Department of Public Utility Control, and to replace “Renewable Energy Investment Fund” with “Clean Energy Finance and Investment Authority”, by adding Subdiv. (2) re annual audits and by adding Subdiv. (3) re annual statement and exemption, amended Subsec. (g) to change “Renewable Energy Investments Board” to “Clean Energy Finance and Investment Authority board of directors” and deleted former Subsec. (h) re performance evaluation, effective July 1, 2011; pursuant to P.A. 11-80, “department” was changed editorially by the Revisors to “authority” in Subsec. (b), effective July 1, 2011; June 12 Sp. Sess. P.A. 12-2 amended Subsec. (a) to redefine “clean energy” to include any Class I renewable energy source, amended Subsec. (d)(1) to insert new Subpara. designators (A), (B) and (C), replace provision re Clean Energy Finance and Investment Authority deemed to be a quasi-public agency with provision re establishment of authority as a public instrumentality and political subdivision, add provision allowing authority to provide financial assistance in the form of grants, loans, loan guarantees or debt and equity investments, and authorize authority to secure bonds by a special capital reserve fund, amended Subsec. (e) to add provision re election of president of authority, and made technical and conforming changes, effective June 15, 2012; P.A. 14-94 created the Connecticut Green Bank as successor agency to the Clean Energy Finance and Investment Authority and made conforming changes, effective June 6, 2014; P.A. 14-134 amended Subsec. (b) by deleting provisions re disbursement to General Fund, issuance of rate reduction bonds, recovery of expenditures, disbursement to Clean Energy Fund and rate adjustments, effective June 6, 2014; P.A. 16-212 amended Subsec. (d)(1) by deleting provision re Green Bank being within Connecticut Innovations, Incorporated, for administrative purposes in Subpara. (A), adding Subpara. (D) re Green Bank powers, and adding Subpara. (E) re Green Bank subsidiaries, amended Subsec. (e) by designating existing provisions as Subdiv. (1) and amending same to delete reference to member of board of Connecticut Innovations, Incorporated, adding Subdiv. (2) re adoption of written procedures, and adding Subdiv. (3) re Green Bank board members' conflict of interest, deleted former Subsec. (h) re terms, added new Subsec. (h) re contracts, and added Subsecs. (i) and (j) re interpretation of Green Bank powers and inconsistencies with other provisions, effective June 10, 2016; P.A. 18-50 amended Subsec. (f)(1) by changing “Energy Conservation and Load Management Funds” to “Conservation and Load Management Plan”, effective January 1, 2020, and amended Subsec. (h) to designate existing provisions re state's pledge as Subdiv. (1) and amend same to add provision re pledge to be interpreted and applied broadly, and add Subdiv. (2) re contracts and obligations of bank, effective May 24, 2018; P.A. 21-115 amended Subsec. (a) by redesignating definition of “clean energy” as Subdiv. (2) and adding definitions of “carbon offsets”, “ecosystem services” and “environmental infrastructure” as Subdivs. (1), (3) and (4), respectively, amended Subsec. (c) by designating existing provisions as Subdiv. (1) and amending same to delete reference to Connecticut Innovations, Incorporated, and adding Subdiv. (2) re Environmental Infrastructure Fund, amended Subsec. (d) by adding references to environmental infrastructure in Subdiv. (1)(B), adding provisions re Connecticut Green Bank to administer Environmental Infrastructure Fund and maturity date of 25 years for bond secured by special capital reserve fund in Subdiv. (1)(C), adding provision re single member limited liability company that is disregarded as entity separate from its owner and making a technical change in Subdiv. (1)(E)(ii), adding reference to environmental infrastructure in Subdiv. (2)(B), adding provision re federal funds not being required to be deposited in Clean Water Fund and reference to environmental infrastructure in Subdiv. (2)(C), changing provision re nonequity financing sources from not exceeding 80 per cent to not exceeding 100 per cent and changing “up to one hundred per cent of the cost of financing an energy efficiency project” to “an environmental infrastructure project” in Subdiv. (2)(D), and adding Subdiv. (2)(G) re limitation of Green Bank when applying for grants under Clean Water Act or Safe Drinking Water Act, amended Subsec. (e)(1) by changing board of directors from 11 voting members to 12 voting members and from 2 nonvoting members to 1 nonvoting member, adding Secretary of Office of Policy and Management or secretary's designee and establishing 4-year term for member appointed by Governor who has experience in research and development or manufacturing of clean energy, amended Subsec. (f) by adding “, the environment, banking” in Subdiv. (1), adding reference to Environmental Infrastructure Fund in Subdiv. (2), and adding reference to environmental infrastructure and changing “fund” to “Clean Energy Fund or the Environmental Infrastructure Fund” in Subdiv. (3), effective July 1, 2021; P.A. 22-58 amended Subsec. (c)(2)(A) by replacing “22a-438f” with “22a-483f”, effective May 23, 2022; P.A. 23-170 amended Subsec. (a)(2) to redefine “clean energy”, effective June 29, 2023.
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Sec. 16-245o. Use of customer information. Promotional inserts in electric bills prohibited. Standard form re contract terms and conditions. Procedures for entering, renewing and terminating service contracts. Rate increase disclosures. Marketing and advertising disclosures. Penalties. Solicitation standards. Electric suppliers' enrollment of customers who are hardship cases. Generation services rates. Report. (a) To protect a customer's right to privacy from unwanted solicitation, each electric distribution company shall distribute to each customer a form approved by the Public Utilities Regulatory Authority which the customer shall submit to the customer's electric distribution company in a timely manner if the customer does not want the customer's name, address, telephone number and rate class to be released to electric suppliers. Each electric distribution company shall make available to all electric suppliers customer names, addresses, telephone numbers, if known, and rate class, unless the electric distribution company has received a form from a customer requesting that such information not be released. Additional information about a customer for marketing purposes shall not be released to any electric supplier unless a customer consents to a release by one of the following: (1) An independent third-party telephone verification; (2) receipt of a written confirmation received in the mail from the customer after the customer has received an information package confirming any telephone agreement; (3) the customer signs a document fully explaining the nature and effect of the release; or (4) the customer's consent is obtained through electronic means, including, but not limited to, a computer transaction.
(b) All electric suppliers shall have equal access to customer information required to be disclosed under subsection (a) of this section. No electric supplier shall have preferential access to historical distribution company customer usage data.
(c) No electric distribution company shall include in any bill or bill insert anything that directly or indirectly promotes a generation entity or affiliate of the electric distribution company. No electric supplier shall include a bill insert in an electric bill of an electric distribution company.
(d) All marketing information provided pursuant to the provisions of this section shall be formatted electronically by the electric distribution company in a form that is readily usable by standard commercial software packages. Updated lists shall be made available within a reasonable time, as determined by the authority, following a request by an electric supplier. Each electric supplier seeking the information shall pay a fee to the electric distribution company which reflects the incremental costs of formatting, sorting and distributing this information, together with related software changes. Customers shall be entitled to any available individual information about their loads or usage at no cost.
(e) On or before January 1, 2015, the Public Utilities Regulatory Authority shall initiate a contested proceeding to develop a standard summary form of the material terms and conditions of the contract for electric generation services signed by a residential customer. Such form shall include, but not be limited to, the following: (1) A description of the rate the customer will be paying; (2) whether such rate is a fixed or variable rate; (3) the term and expiration date of such rate; (4) whether the contract will automatically renew; (5) a notice describing the customer's right to cancel the service, as provided in this section; (6) information on air emissions and resource mix of generation facilities operated by and under long-term contract to the electric supplier; (7) the trade name of the electric supplier; (8) the toll-free telephone number for customer service of the electric supplier; (9) the Internet web site of the electric supplier; and (10) the toll-free telephone number for customer complaints of the authority.
(f) (1) Until the standard summary form described in subsection (e) of this section is developed, each electric supplier shall, prior to the initiation of electric generation services, provide the potential residential customer with a written notice describing the rates, information on air emissions and resource mix of generation facilities operated by and under long-term contract to the supplier, terms and conditions of the service, and a notice describing the customer's right to cancel the service, as provided in this section. After development of such standard summary form, each electric supplier shall, prior to initiation of electric generation services, provide the potential residential customer with a completed standard summary form. Each electric supplier shall, prior to the initiation of electric generation services, provide the potential commercial or industrial customer with a written notice describing the rates, information on air emissions and resource mix of generation facilities operated by and under long-term contract to the supplier, terms and conditions of the service, and a notice describing the customer's right to cancel the service, as provided in this section.
(2) No electric supplier shall provide electric generation services unless the customer has signed a service contract or consents to such services by one of the following: (A) An independent third-party telephone verification; (B) receipt of a written confirmation received in the mail from the customer after the customer has received an information package confirming any telephone agreement; (C) the customer signs a contract that conforms with the provisions of this section; or (D) the customer's consent is obtained through electronic means, including, but not limited to, a computer transaction. Each electric supplier shall provide each customer with a demand of less than one hundred kilowatts, a written contract that conforms with the provisions of this section and maintain records of such signed service contract or consent to service for a period of not less than two years from the date of expiration of such contract, which records shall be provided to the authority or the customer upon request. Each contract for electric generation services shall contain all material terms of the agreement, a clear and conspicuous statement explaining the rates that such customer will be paying, including the circumstances under which the rates may change, a statement that provides specific directions to the customer as to how to compare the price term in the contract to the customer's existing electric generation service charge on the electric bill and how long those rates are guaranteed. Such contract shall also include a clear and conspicuous statement providing the customer's right to cancel such contract not later than three days after signature or receipt in accordance with the provisions of this subsection, describing under what circumstances, if any, the supplier may terminate the contract and describing any penalty for early termination of such contract. Each contract shall be signed by the customer, or otherwise agreed to in accordance with the provisions of this subsection. A customer who has a maximum demand of five hundred kilowatts or less shall, until midnight of the third business day after the latter of the day on which the customer enters into a service agreement or the day on which the customer receives the written contract from the electric supplier as provided in this section, have the right to cancel a contract for electric generation services entered into with an electric supplier.
(g) (1) Between thirty and sixty days, inclusive, prior to the expiration of a fixed price term for a residential customer, an electric supplier shall provide a written notice of the contract expiration to such customer. Any new contract shall contain a cover page highlighting each change from the prior contract, in a format prescribed by the Public Utilities Regulatory Authority. Such residential customer shall select the method of written notice at the time the contract is signed or verified through third-party verification as described in subdivision (2) of subsection (f) of this section. Such selection shall include the option for written notice through United States mail, electronic mail, text message, an application on a cellular telephone or a third-party notification service approved by the authority. Such customer shall have the option to change the method of notification at any time during the contract.
(2) No electric supplier shall charge a residential customer month-to-month variable rates for electric generation services following the expiration of a contract entered into after June 3, 2014, without providing written notification to such residential customer forty-five days prior to the commencement of such month-to-month variable rates. Such notice shall include the highest and lowest electric generation service rate charged by such supplier as part of a variable rate offer in each of the preceding twelve months to any customer eligible for standard service. The residential customer shall select the method of written notification at the time the contract is signed or verified through third-party verification as described in subdivision (2) of subsection (f) of this section. Such selection shall include the option for written notice through United States mail, electronic mail, text messages, an application on a cellular telephone or a third-party notification service approved by the authority. Such customer shall have the option to change the method of notification at any time during the contract.
(3) No electric supplier shall charge an electric generation service rate to a residential customer that is twenty-five per cent more than the original contract price, or more than the first price term offered in the contract, without notifying such customer of the rate change thirty days before it takes effect. Any notification described in this subdivision shall be provided pursuant to the method agreed to by the customer in the contract and may include written notice through United States mail, electronic mail, text message, an application on a cellular telephone, or third-party notification service approved by the authority. The electric supplier shall maintain documentation of the original method of communication of the notice.
(4) On and after October 1, 2015, no electric supplier shall (A) enter into a contract to charge a residential customer a variable rate for electric generation services; or (B) automatically renew or cause to be automatically renewed a contract with a residential customer and, pursuant to such contract, charge such customer a variable rate for electric generation services. Notwithstanding any provision of title 16, on and after July 1, 2022, no electric supplier shall charge a residential customer a variable rate for electric generation services. On and after July 1, 2022, any contract between an electric supplier and a residential customer that provides for the use of such variable rates shall be deemed null and void.
(h) (1) Any third-party who contracts with or is otherwise compensated by an electric supplier to sell electric generation services, or contracts with or is compensated by a third-party marketer of the electric supplier to sell electric generation services for the electric supplier, shall be a legal agent of the electric supplier. No third-party may sell electric generation services on behalf of an electric supplier unless such third party has received appropriate training directly from such electric supplier.
(2) All sales and solicitations of electric generation services by an electric supplier, aggregator or agent of an electric supplier or aggregator to a customer with a maximum demand of one hundred kilowatts or less conducted and consummated entirely by mail, door-to-door sale, telephone or other electronic means, during a scheduled appointment at the premises of a customer or at a fair, trade or business show, convention or exposition in addition to complying with the provisions of subsection (e) of this section shall:
(A) For any sale or solicitation, including from any person representing such electric supplier, aggregator or agent of an electric supplier or aggregator (i) identify the person and the electric generation services company or companies the person represents; (ii) provide a statement that the person does not represent an electric distribution company; (iii) explain the purpose of the solicitation; and (iv) explain all rates, fees, variable charges and terms and conditions for the services provided; and
(B) For door-to-door sales to customers with a maximum demand of one hundred kilowatts, which shall include the sale of electric generation services in which the electric supplier, aggregator or agent of an electric supplier or aggregator solicits the sale and receives the customer's agreement or offer to purchase at a place other than the seller's place of business, be conducted (i) in accordance with any municipal and local ordinances regarding door-to-door solicitations, (ii) between the hours of ten o'clock a.m. and six o'clock p.m. unless the customer schedules an earlier or later appointment, and (iii) with both English and Spanish written materials available. Any representative of an electric supplier, aggregator or agent of an electric supplier or aggregator shall prominently display or wear a photo identification badge stating the name of such person's employer or the electric supplier the person represents and shall not wear apparel, carry equipment or distribute materials that includes the logo or emblem of an electric distribution company or contains any language suggesting a relationship that does not exist with an electric distribution company, government agency or other supplier.
(3) No electric supplier, aggregator or agent of an electric supplier or aggregator shall (A) advertise or disclose the price of electricity to mislead a reasonable person into believing that the electric generation services portion of the bill will be the total bill amount for the delivery of electricity to the customer's location, or (B) make any statement, oral or written, suggesting a prospective customer is required to choose a supplier. When advertising or disclosing the price for electricity, the electric supplier, aggregator or agent of an electric supplier or aggregator shall (i) disclose the electric distribution company's current charges, including the competitive transition assessment and the systems benefits charge, for that customer class, and (ii) indicate, using at least a ten-point font size, in a conspicuous part of any advertisement or disclosure that includes an advertised price, (I) the expiration of such advertised price, and (II) any fixed or recurring charge, including, but not limited to, any minimum monthly charge.
(4) No entity, including an aggregator or agent of an electric supplier or aggregator, who sells or offers for sale any electric generation services for or on behalf of an electric supplier, shall engage in any deceptive acts or practices in the marketing, sale or solicitation of electric generation services.
(5) Each electric supplier shall disclose to the Public Utilities Regulatory Authority in a standardized format (A) the amount of additional renewable energy credits, if any, such supplier will purchase other than required credits, (B) where such additional credits are being sourced from, and (C) the types of renewable energy sources that will be purchased. Each electric supplier shall only advertise renewable energy credits pursuant to the methodology approved by the authority and shall report to the authority the renewable energy sources of such credits and any changes to the types of renewable energy sources offered.
(6) Any electric supplier offering any services or products that contain renewable energy attributes other than the minimum renewable energy credits used for compliance with the renewable portfolio standards pursuant to section 16-245a shall disclose in each customer contract and marketing materials for each such service or product the renewable energy content of the product or service offering and shall make available, on the electric supplier's Internet web site, information sufficient to substantiate the marketing claims about such content.
(7) (A) No contract for electric generation services by an electric supplier shall require a residential customer to pay any fee for termination or early cancellation of a contract. It shall not be considered a termination or early cancellation of a contract if a residential customer moves from one dwelling within the state and remains with the same electric supplier.
(B) If a residential customer does not have a contract for electric generation services with an electric supplier and is receiving a month-to-month variable rate from such supplier, there shall be no fee for termination or early cancellation.
(8) An electric supplier shall not make a material change in the terms or duration of any contract for the provision of electric generation services by an electric supplier without the express consent of the customer. Nothing in this subdivision shall restrict an electric supplier from renewing a contract by clearly informing the customer, in writing, not less than thirty days or more than sixty days before the renewal date, of the renewal terms, including a summary of any new or altered terms, and of the option not to accept the renewal offer, provided no fee pursuant to subdivision (7) of this subsection shall be charged.
(9) Each electric supplier shall file annually with the authority a list of any aggregator or agent working on behalf of such supplier.
(10) Each electric supplier shall develop and implement standards and qualifications for employees and third-party agents who are engaged in the sale or solicitation of electric generation services by such supplier.
(i) Each electric supplier, aggregator or agent of an electric supplier or aggregator shall comply with the provisions of the telemarketing regulations adopted pursuant to 15 USC 6102.
(j) Any violation of this section shall be deemed an unfair or deceptive trade practice under subsection (a) of section 42-110b. Any contract for electric generation services that the authority finds to be the product of unfair or deceptive marketing practices or in material violation of the provisions of this section shall be void and unenforceable. Any waiver of the provisions of this section by a customer of electric generation services shall be deemed void and unenforceable by the electric supplier.
(k) Any violation or failure to comply with any provision of this section shall be subject to (1) civil penalties by the authority in accordance with section 16-41, (2) the suspension or revocation of an electric supplier or aggregator's license, or (3) a prohibition on accepting new customers following a hearing that is conducted as a contested case in accordance with chapter 54.
(l) (1) The authority may adopt regulations, in accordance with the provisions of chapter 54, to include, but not be limited to, abusive switching practices, solicitations and renewals by electric suppliers, provided the authority shall alter or repeal any relevant regulations in conjunction with the development and implementation of the standards and practices described in subdivision (2) of this subsection.
(2) On or before July 1, 2014, the authority shall initiate a contested proceeding to develop and implement, or cause to be implemented, standards relating to abusive switching practices, solicitations and renewals by electric suppliers, the hiring and training of sales representatives, door-to-door sales and telemarketing practices by electric suppliers. Such docket shall examine a disclosure statement for all electric suppliers to use on all promotional materials directed to residential customers that will direct consumers where they can find the highest and lowest electric generation service rate charged by such supplier as part of a variable rate offer in each of the preceding twelve months to any customer eligible for standard service. The authority shall issue a final decision on such docket not later than six months after its initiation.
(m) On and after January 1, 2024, customers of electric distribution companies who (1) are hardship cases for purposes of subdivision (3) of subsection (b) of section 16-262c, (2) have arrearages deducted from such customers' bills by the electric distribution company pursuant to subdivision (4) of subsection (b) of section 16-262c, (3) receive other financial assistance from an electric distribution company, or (4) are otherwise protected by law from shutoff of electricity services may enroll with an electric supplier, provided all customer contracts with electric suppliers, for rates effective on and after January 1, 2024, shall be at or below the standard service rate for the duration of the contracts. Any billing system costs incurred by an electric distribution company to comply with this section shall be recoverable from all licensed electric suppliers. The authority may initiate a docket to order all customer contracts with electric suppliers, entered into on and after a determined date, to comply with appropriate limitations the authority deems necessary. If the authority issues such an order, it shall reopen such docket not less than every two years.
(n) As used in this section, “residential customer” means a customer who contracts with an electric supplier for generation services at residential premises for domestic purposes only.
(o) On or before October 1, 2015, the Public Utilities Regulatory Authority shall initiate a proceeding to develop recommendations and guidance regarding (1) what type of generation services rate structure is best suited for residential customers who allow a fixed contract with an electric supplier to expire and begin paying a month-to-month rate for generation services from such supplier; and (2) what change to the generation services rate and to the terms and conditions of such service that customers may experience after the expiration of a fixed contract when such customers begin paying a month-to-month rate. The authority shall report, in accordance with the provisions of section 11-4a, the findings of such proceeding to the joint standing committee of the General Assembly having cognizance of matters relating to energy, on or before January 1, 2016.
(P.A. 98-28, S. 26, 117; P.A. 03-135, S. 12, 13; P.A. 11-80, S. 113; P.A. 13-5, S. 17; 13-119, S. 11; P.A. 14-75, S. 4; 14-94, S. 61, 62; 14-134, S. 91; P.A. 15-90, S. 1, 2; June Sp. Sess. P.A. 15-5, S. 108; P.A. 17-64, S. 2, 3; P.A. 21-117, S. 1–5; P.A. 23-102, S. 31.)
History: P.A. 98-28 effective July 1, 1998; P.A. 03-135 amended Subsec. (a) to make technical changes, including technical changes for purposes of gender neutrality, and to replace provisions re signed release made available to department with Subdivs. (1) to (4), inclusive, re means of consenting to a release and amended Subsec. (e) to replace provision re consent to services pursuant to Sec. 16-245s with Subdivs. (1) to (4), inclusive, re means of consenting to services and to add “who has a maximum demand of five hundred kilowatts or less”, effective July 1, 2003; P.A. 11-80 amended Subsec. (a) to replace “Department of Public Utility Control” with “Department of Energy and Environmental Protection”, amended Subsec. (e) to delete provision re customer to sign document fully explaining nature and effect of initiation of service and add provision re customer to sign contract that conforms with section in Subdiv. (3), and to add requirements for contracts and that customers with maximum demand of 500 kilowatts or less have the right to cancel on day they receive the contract in addition to the third business day after entering agreement, replaced former Subsec. (f) re advertising prices with new Subsec. (f) re sales of electric generation services, amended Subsec. (g) to include aggregator or agent of electric supplier or aggregator, amended Subsec. (h) to add provisions re void contracts and waivers resulting from unfair or deceptive marketing practices, and added Subsec. (i) re penalties and Subsec. (j) re regulations, effective July 1, 2011; P.A. 13-5 amended Subsec. (i) to replace “department” with “authority”, effective May 8, 2013; P.A. 13-119 amended Subsec. (a) to replace “Department of Energy and Environmental Protection” with “Public Utilities Regulatory Authority”, amended Subsecs. (d) and (e) to replace “department” with “authority”, added new Subsec. (f) re notice of price change 30 to 60 days prior to expiration of fixed price term, redesignated existing Subsecs. (f) to (j) as Subsecs. (g) to (k), amended redesignated Subsec. (g) to designate existing provision in Subdiv. (3) re disclosure of electric distribution company's current charges as Subpara. (A), to add Subpara. (B) re font size of expiration of advertised price, to add “if any” and replace “beyond” with “other than” in Subdiv. (5)(A), to add reference to Sec. 16-243q and to replace “whenever the mix of such sources changes” with “any changes to the types of renewable energy sources offered” in Subdiv. (5), to add new Subdiv. (6) re disclosure of renewable energy content of product or service and to redesignate existing Subdivs. (6) to (8) as Subdivs. (7) to (9), and amended redesignated Subsecs. (j) and (k) to replace “department” with “authority”; P.A. 14-75 added new Subsec. (e) re summary form of contract terms and conditions for electric generation services, redesignated existing Subsecs. (e) to (k) as Subsecs. (f) to (l), amended redesignated Subsec. (f) to require summary form to be distributed on and after January 1, 2015, add provision re prior written notice to commercial or industrial customers and add Subdiv. (1) and (2) designators, amended redesignated Subsec. (g) to designate existing provisions as Subdiv. (1) and amend same to allow customers to select method of written notice, and add Subdivs. (2) and (3) re advance notice to residential customers prior to commencement of variable rates and prohibition on suppliers increasing residential customer rates more than 25 per cent of original contract price without prior disclosure, amended redesignated Subsec. (h) to add prohibitions on wearing certain apparel, carrying certain equipment or distributing certain materials, or making statements suggesting a prospective customer is required to choose a supplier, to require disclosure of any fixed or recurring charge when advertising or disclosing price for electricity, to change maximum fee for termination or early cancellation from $100 or twice the estimated bill for energy services for an average month, whichever is less, to $50 and add exceptions to imposition of such fee, to add inclusion in renewal offer of summary of new or altered terms, and to add Subdiv. (10) re development and implementation of sale or solicitation standards and qualifications by each electric supplier for its employees and agents, amended redesignated Subsec. (l) to require authority to develop and implement standards relating to abusive switching practices, solicitations and renewals, added Subsec. (m) re authority review of feasibility, costs and benefits of placing certain electric supplier customers on standard service, and made technical changes, effective June 3, 2014; P.A. 14-94 amended Subsec. (f)(1) by changing operative date from January 1, 2015, to date that the standard summary form is developed and making conforming changes, and amended Subsec. (g)(3) by adding provisions requiring electric suppliers to notify customers of any increase to the electric generation service rate of 25 per cent or more at least 15 days before such increase takes effect and making conforming changes, effective June 6, 2014; P.A. 14-134 amended Subsecs. (a), (c) and (d) by deleting references to electric company and making technical changes, effective June 6, 2014; P.A. 15-90 added Subsec. (g)(4) to prohibit variable rate contracts, added Subsec. (n) to define “residential customer” and added Subsec. (o) to require authority to develop recommendations re generation services rate, effective June 22, 2015; June Sp. Sess. P.A. 15-5 amended Subsec. (o)(2) by replacing provision re just and reasonable rate increase with provision re change to generation services rate and to service terms and conditions and by making technical changes, effective June 30, 2015; P.A. 17-64 amended Subsec. (h) by replacing “purchased beyond those required pursuant to sections 16-245a and 16-243q” with “pursuant to the methodology approved by the authority” in Subdiv. (5), and replacing “not later than seven business days after receiving the first billing statement for the renewed contract” with “within the first two billing cycles of the renewed contract” in Subdiv. (8); P.A. 21-117 amended Subsec. (g) by replacing provision re written notice of change to customer's electric generation price with provision re written notice of expiration date and inclusion of cover page highlighting each change from prior contract in Subdiv. (1), substantially revised Subdiv. (3) re prohibition on charging, without notification, electric generation service rate that is more than certain amounts, and adding provision prohibiting variable rate charges for electric generation services in Subdiv. (4), amended Subsec. (h) by replacing references to third-party agents with references to third-party, adding third-party who contracts with or is compensated by third-party marketer of electric supplier as legal agent of such electric supplier and deleting provision re third-party agent who is employee or independent contractor or electric supplier in Subdiv. (1), deleting authorization to charge termination or early cancellation fee of up to $50 and proviso re estimate of customer's average monthly bill in Subdiv. (7), and deleting proviso re customer terminating or cancelling renewal within first 2 billing cycles in Subdiv. (8), and amended Subsec. (m) by adding provision re Public Utilities Regulatory Authority initiating docket to review limiting ability of certain customers to contract with electric suppliers and authorizing authority to order contracts at or below standard service rate or order contracts to comply with certain limitations, effective July 1, 2021; P.A. 23-102 substantially amended Subsec. (m) by removing reference to placing customers who are hardship cases on standard service and by adding provisions re enrollment of electric distribution company customers who are hardship cases with an electric supplier on and after January 1, 2024, supplier rates' being at or below the standard service rate, and billing system costs incurred by electric distribution companies, effective June 29, 2023.
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Sec. 16-245mm. Special capital reserve funds. (a) For purposes of this section, “required minimum capital reserve” means the maximum amount permitted to be deposited in a special capital reserve fund by the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, to permit the interest on such bonds to be excluded from gross income for federal tax purposes and secured by such special capital reserve fund.
(b) In connection with the issuance of bonds or to refund bonds previously issued by the Connecticut Green Bank, or in connection with the issuance of bonds to effect a refinancing or other restructuring with respect to one or more projects, said bank may create and establish one or more reserve funds to be known as special capital reserve funds, and may pay into such special capital reserve funds (1) any moneys appropriated and made available by the state for the purposes of such special capital reserve funds, (2) any proceeds of the sale of notes or bonds, to the extent provided in the resolution of said bank authorizing the issuance thereof, and (3) any other moneys which may be made available to said bank for the purpose of such special capital reserve funds from any other source or sources.
(c) The moneys held in or credited to any special capital reserve fund established under this section, except as hereinafter provided, shall be used for (1) the payment of the principal of and interest, when due, whether at maturity or by mandatory sinking fund installments, on bonds of the Connecticut Green Bank secured by such special capital reserve fund as such payments become due, or (2) the purchase of such bonds of said bank and the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity, including in any such case by way of reimbursement of a provider of bond insurance or of a credit or liquidity facility that has paid such redemption premiums. Notwithstanding the provisions of subdivisions (1) and (2) of this subsection, said bank may provide that moneys in any such special capital reserve fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of such moneys to less than the maximum amount of principal and interest becoming due by reasons of maturity or a required sinking fund installment in the then current or any succeeding calendar year on the bonds of said bank then outstanding, or less than the required minimum capital reserve, except for the purpose of paying such principal of, redemption premium and interest on such bonds of said bank secured by such special capital reserve becoming due and for the payment of which other moneys of said bank are not available. Said bank may provide that it shall not issue bonds secured by a special capital reserve fund at any time if the required minimum capital reserve on the bonds outstanding and the bonds then to be issued and secured by the same special capital reserve fund at the time of issuance exceeds the moneys in the special capital reserve fund, unless said bank, at the time of the issuance of such bonds, deposits in such special capital reserve fund from the proceeds of the bonds so to be issued, or from other sources, an amount which, together with the amount then in such special capital reserve fund, will be not less than the required minimum capital reserve.
(d) Prior to December first, annually, the Connecticut Green Bank shall deposit into any special capital reserve fund, the balance of which has fallen below the required minimum capital reserve of such fund, the full amount required to meet the minimum capital reserve of such fund, as available to said bank from any resources of said bank not otherwise pledged or dedicated to another purpose. On or before December first, annually, but after said bank has made such required deposit, there is deemed to be appropriated from the General Fund such sums, if any, as shall be certified by the chairperson or vice-chairperson of the Connecticut Green Bank to the Secretary of the Office of Policy and Management, the State Treasurer and the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding and energy, as necessary to restore each such special capital reserve fund to the amount equal to the required minimum capital reserve of such fund, and such amounts shall be allotted and paid to said bank. For the purpose of evaluation of any such special capital reserve fund, obligations acquired as an investment for any such special capital reserve fund shall be valued at market. Nothing contained in this section shall preclude said bank from establishing and creating other debt service reserve funds in connection with the issuance of bonds or notes of said bank which are not special capital reserve funds. Subject to any agreement or agreements with holders of outstanding notes and bonds of said bank, any amount or amounts allotted and paid to said bank pursuant to this subsection shall be repaid to the state from moneys of said bank at such time as such moneys are not required for any other of said bank's corporate purposes, and in any event shall be repaid to the state on the date one year after all bonds and notes of said bank theretofore issued on the date or dates such amount or amounts are allotted and paid to said bank or thereafter issued, together with interest on such bonds and notes, with interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceeding by or on behalf of the holders thereof, are fully met and discharged.
(e) No bonds secured by a special capital reserve fund shall be issued to pay project costs unless the Connecticut Green Bank is of the opinion and determines that the revenues from the project shall be sufficient to (1) pay the principal of and interest on the bonds issued to finance the project, (2) establish, increase and maintain any reserves deemed by said bank to be advisable to secure the payment of the principal of and interest on such bonds, (3) pay the cost of maintaining the project in good repair and keeping it properly insured, and (4) pay such other costs of the project as may be required.
(f) Notwithstanding the provisions of this section, no bonds secured by a special capital reserve fund shall be issued by the Connecticut Green Bank until and unless such issuance has been approved by the Secretary of the Office of Policy and Management or his or her deputy. Any such approval by the secretary pursuant to this subsection shall be in addition to (1) the otherwise required opinion of sufficiency by said bank set forth in subsection (e) of this section, and (2) the approval of the State Treasurer or the Deputy State Treasurer and the documentation by said bank otherwise required under subsection (a) of section 1-124. Such approval may provide for the waiver or modification of such other requirements of this section as the secretary determines to be necessary or appropriate in order to effectuate such issuance, subject to all applicable tax covenants of said bank and the state.
(g) Notwithstanding any other provision contained in this section, the aggregate amount of bonds secured by such special capital reserve fund authorized to be created and established by this section shall not exceed five hundred million dollars.
(June 12 Sp. Sess. P.A. 12-2, S. 161; P.A. 14-94, S. 29; June Sp. Sess. P.A. 15-1, S. 228; P.A. 21-115, S. 22; P.A. 23-170, S. 22.)
History: June 12 Sp. Sess. P.A. 12-2 effective July 1, 2012; pursuant to P.A. 14-94, “Clean Energy Finance and Investment Authority” and “authority” were changed editorially by the Revisors to “Connecticut Green Bank” and “bank”, respectively, effective June 6, 2014; June Sp. Sess. P.A. 15-1 increased aggregate authorization from $50,000,000 to $100,000,000, effective July 1, 2015; P.A. 21-115 amended Subsec. (g) to increase aggregate authorization from $100,000,000 to $250,000,000, effective July 1, 2021; P.A. 23-170 amended Subsec. (g) to change reference from $250,000,000 to $500,000,000, effective June 29, 2023.
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Sec. 16-258e. Electric distribution company procurement of electricity and renewable energy credits from a combined heat and power system. (a) In furtherance of the Comprehensive Energy Strategy established pursuant to section 16a-3d relating to the evaluation of district heating and thermal loops in high-density areas, on or before January 1, 2018, an electric distribution company serving customers located in a distressed municipality, as defined in section 32-9p, that has a population in excess of one hundred twenty-seven thousand, shall conduct a procurement for electricity and renewable energy credits from a combined heat and power system located in such municipality that (1) has a nameplate capacity of not more than ten megawatts, (2) is in a configuration that is compatible for use with a district heating system, as defined in section 16-258, (3) is owned by a thermal energy transportation company, and (4) may include fuel cells. Such combined heat and power system shall be (A) procured by a thermal energy transportation company through a competitive bidding process, (B) in a configuration compatible for use with a district heating system, and (C) installed at a location that will maximize the efficient use of the thermal energy from the combined heat and power system by a thermal energy transportation company. The thermal energy produced by such combined heat and power system shall be subject to firm customer commitments to subscribe to thermal energy services from such thermal energy transportation company, as demonstrated by such thermal energy transportation company, for the term of the power purchase agreement entered into pursuant to this section. After reviewing any proposals submitted in response to such procurement, the electric distribution company may enter into a power purchase agreement with a thermal energy distribution company for the purchase of electricity and renewable energy credits for a period of not more than twenty years.
(b) No later than fifteen days after an electric distribution company enters into a power purchase agreement pursuant to subsection (a) of this section, the electric distribution company shall submit such agreement to the Public Utilities Regulatory Authority for review and approval. The authority shall evaluate such agreement and may approve such agreement if the authority finds that the agreement (1) complies with the requirements of this section, and (2) serves the long-term interests of ratepayers. The authority shall not approve any agreement supported in any form of cross subsidization by entities affiliated with the electric distribution company. A combined heat and power system acquired and built pursuant to a power purchase agreement entered into pursuant to this section shall not exceed a total nameplate capacity rating of ten megawatts in the aggregate. The electric distribution company may not, under any circumstances, recover more than the full costs of the agreement approved by the authority. The net costs of any such agreement, including costs incurred by the electric distribution company under the agreement and reasonable costs incurred by the electric distribution company in connection with the agreement, shall be recovered on a timely basis through a reconciling component of electric rates as determined by the authority that is nonbypassable when switching electric suppliers. Any net revenues from the sale of products purchased in accordance with any agreement entered into pursuant to this section shall be credited to customers through the same reconciling component of electric rates that is utilized to recover the costs of such agreement. Certificates issued by the New England Power Pool Generation Information System for any Class I or Class III source procured by an electric distribution company pursuant to this section may be (A) sold into the New England Power Pool Generation Information System renewable energy credit market to be used by an electric supplier or electric distribution company to meet the requirements of section 16-245a, so long as the revenues from such sale are credited to electric distribution company customers as described in this subsection, or (B) retained by the electric distribution company to meet the requirements of section 16-245a. In considering whether to sell or retain such certificates, the company shall select the option that is in the best interest of such company's ratepayers, consistent with the procurement plan approved pursuant to sections 16-244c and 16-244m.
(c) Any thermal energy distribution company that has entered into a power purchase agreement approved by the Public Utilities Regulatory Authority pursuant to this section may elect to extend the timeframes established in such agreement for the completion of significant milestones, as specified in such agreement, in the development of a combined heat and power system pursuant to such agreement. Such company may elect to extend all such timeframes for milestones that such company has not already completed by not more than two six-month periods. Any such extension shall be in addition to extensions specified in such agreement. For each six-month extension that such company elects to use pursuant to this subsection, such company shall post additional security as specified in such agreement.
(June Sp. Sess. P.A. 17-2, S. 264; P.A. 23-102, S. 26.)
History: June Sp. Sess. P.A. 17-2 effective October 31, 2017; P.A. 23-102 added Subsec. (c) re extending timeframes for completion of significant milestones, effective June 29, 2023.
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Sec. 16-262c. Termination of utility service for nonpayment, when prohibited. Amortization agreements. Deduction of arrearages from gas or electric residential customer accounts. Hardship cases. Notice. Regulations. Annual reports. Funds distributed to organizations or individuals providing legal services re utility bill or arrearage payment programs. Privacy of individual customer utility usage and billing information. (a) Notwithstanding any other provision of the general statutes no electric distribution, gas, telephone or water company, no electric supplier or certified telecommunications provider, and no municipal utility furnishing electric, gas, telephone or water service shall cause cessation of any such service by reason of delinquency in payment for such service (1) on any Friday, Saturday, Sunday, legal holiday or day before any legal holiday, provided such a company, electric supplier, certified telecommunications provider or municipal utility may cause cessation of such service to a nonresidential account on a Friday which is not a legal holiday or the day before a legal holiday when the business offices of the company, electric supplier, certified telecommunications provider or municipal utility are open to the public the succeeding Saturday, (2) at any time during which the business offices of said company, electric supplier, certified telecommunications provider or municipal utility are not open to the public, or (3) within one hour before the closing of the business offices of said company, electric supplier or municipal utility.
(b) (1) From November first to May first, inclusive, no electric distribution company, as defined in section 16-1, no electric supplier and no municipal utility furnishing electricity shall terminate, deny or refuse to reinstate residential electric service in hardship cases where the customer lacks the financial resources to pay his or her entire account. From November first to May first, inclusive, no gas company and no municipal utility furnishing gas shall terminate, deny or refuse to reinstate residential gas service in hardship cases where the customer uses such gas for heat and lacks the financial resources to pay his or her entire account, except a gas company that, between May second and October thirty-first, terminated gas service to a residential customer who uses gas for heat and who, during the previous period of November first to May first, had gas service maintained because of hardship status, may refuse to reinstate the gas service from November first to May first, inclusive, only if the customer has failed to pay, since the preceding November first, the lesser of: (A) Twenty per cent of the outstanding principal balance owed the gas company as of the date of termination, (B) one hundred dollars, or (C) the minimum payments due under the customer's amortization agreement. Notwithstanding any provision of the general statutes, no electric distribution or gas company, no electric supplier and no municipal utility furnishing electricity or gas shall terminate, deny or refuse to reinstate residential electric or gas service where the customer lacks the financial resources to pay his or her entire account and if the termination, denial of or failure to reinstate such service would create a life-threatening situation for such customer or a member of such customer's household. No electric distribution or gas company, no electric supplier and no municipal utility furnishing electricity or gas shall terminate, deny or refuse to reinstate residential electric or gas service where the customer is a hardship case and lacks the financial resources to pay his or her entire account and a child not more than twenty-four months old resides in the customer's household and such child has been admitted to the hospital and received discharge papers on which the attending physician, physician assistant or an advanced practice registered nurse has indicated such service is a necessity for the health and well-being of such child.
(2) During any period in which a residential customer is subject to termination, an electric distribution or gas company, an electric supplier or a municipal utility furnishing electricity or gas shall provide such residential customer whose account is delinquent an opportunity to enter into a reasonable amortization agreement with such company, electric supplier or utility to pay such delinquent account and to avoid termination of service. Such amortization agreement shall allow such customer adequate opportunity to apply for and receive the benefits of any available energy assistance program. An amortization agreement shall be subject to amendment on customer request if there is a change in the customer's financial circumstances.
(3) As used in this section, (A) “household income” means the combined income over a twelve-month period of the customer and all adults, except children of the customer, who are and have been members of the household for six months or more, and (B) “hardship case” includes, but is not limited to: (i) A customer receiving local, state or federal public assistance; (ii) a customer whose sole source of financial support is Social Security, United States Department of Veterans Affairs or unemployment compensation benefits; (iii) a customer who is head of the household and is unemployed, and the household income is less than three hundred per cent of the poverty level determined by the federal government; (iv) a customer who is seriously ill or who has a household member who is seriously ill; (v) a customer whose income falls below one hundred twenty-five per cent of the poverty level determined by the federal government; and (vi) a customer whose circumstances threaten a deprivation of food and the necessities of life for himself or dependent children if payment of a delinquent bill is required.
(4) (A) Each gas company and electric distribution company shall deduct an arrearage from the account of a residential customer of such company if the customer (i) meets the income eligibility requirements of the Connecticut energy assistance program or state appropriated fuel assistance program; (ii) authorizes the gas or electric distribution company to send a copy of the customer's monthly bill directly to any energy assistance agency for payment; (iii) enters into and complies with an amortization agreement, which agreement is consistent with decisions and policies of the Public Utilities Regulatory Authority; and (iv) is eligible for financial hardship programs with the gas or electric distribution company. The amount of an arrearage deducted under this subparagraph shall be equal to the customer's monthly payment pursuant to an amortization agreement under this subdivision, provided the customer meets the requirements of subparagraphs (A)(i) to (A)(iv), inclusive, of this subdivision for the month immediately preceding such payment.
(B) Each gas company and electric distribution company shall deduct an arrearage from the account of a residential customer who meets the requirements of subparagraphs (A)(i) to (A)(iv), inclusive, of this subdivision in an amount equal to any payment such customer receives from the Connecticut energy assistance program, state appropriated fuel assistance program or other energy assistance sources. Such deduction shall be in addition to any amount deducted pursuant to subparagraph (A) of this subdivision.
(C) Notwithstanding the provisions of subdivision (7) of this subsection, any amortization agreement under this subdivision shall distribute customer payments over a period of twelve months, from November first to October thirty-first, and shall create a monthly payment that is affordable to the customer in accordance with the decisions and policies of the authority.
(D) In no event shall the deduction of any amounts pursuant to this subdivision result in a credit balance to the customer's account. No customer shall be denied the benefits of this subdivision due to an error by the gas or electric distribution company. If the customer fails to comply with the terms of the amortization agreement, any decision of the authority rendered in lieu of such agreement or the requirements of subparagraphs (A)(i) to (A)(iv), inclusive, of this subdivision, the company may terminate service to the customer, pursuant to all applicable regulations, provided such termination shall not occur between November first and May first.
(E) Each gas and electric distribution company shall submit to the Public Utilities Regulatory Authority annually, on or before June first, an implementation plan that shall include information concerning amortization agreements, counseling, reinstatement of eligibility, rate impacts and any other information deemed relevant by the authority. The Public Utilities Regulatory Authority may approve or modify such plan not later than one hundred twenty-seven days after receipt of the plan. If the authority does not take any action on such plan by such date, the plan shall automatically take effect at the end of such one-hundred-twenty-seven-day period, provided the authority may extend such period for an additional thirty days by notifying the company before the end of such one-hundred-twenty-seven-day period. The authority may deny all or part of the recovery of costs incurred pursuant to this subsection if it determines that the company seeking recovery has been imprudent, inefficient or acting in violation of statutes or regulations regarding amortization agreements.
(5) (A) All electric distribution and gas companies, electric suppliers and municipal utilities furnishing electricity or gas shall collaborate in developing, subject to approval by the Public Utilities Regulatory Authority, standard provisions for the notice of delinquency and impending termination under subsection (a) of section 16-262d. Each such company and utility shall place on the front of such notice a provision that the company, electric supplier or utility shall not effect termination of service to a residential dwelling for nonpayment of disputed bills during the pendency of any complaint. In addition, the notice shall state that the customer is required to pay current and undisputed bill amounts during the pendency of the complaint. (B) At the beginning of any discussion with a customer concerning a reasonable amortization agreement, any such company or utility shall inform the customer (i) of the availability of a process for resolving disputes over what constitutes a reasonable amortization agreement, (ii) that the company, electric supplier or utility will refer such a dispute to one of its review officers as the first step in attempting to resolve the dispute, and (iii) that the company, electric supplier or utility shall not effect termination of service to a residential dwelling for nonpayment of a delinquent account during the pendency of any complaint, investigation, hearing or appeal initiated by the customer, unless the customer fails to pay undisputed bills, or undisputed portions of bills, for service received during such period. (C) Each such company, electric supplier and utility shall inform and counsel all customers who are hardship cases as to the availability of all public and private energy conservation programs, including programs sponsored or subsidized by such companies and utilities, eligibility criteria, where to apply, and the circumstances under which such programs are available without cost.
(6) The Public Utilities Regulatory Authority shall adopt regulations in accordance with the provisions of chapter 54 to carry out the provisions of this subsection. Such regulations shall include, but not be limited to, criteria for determining hardship cases and for reasonable amortization agreements, including appeal of such agreements, for categories of customers. Such regulations may include the establishment of a reasonable rate of interest that a company may charge on the unpaid balance of a customer's delinquent bill and a description of the relationship and responsibilities of electric suppliers to customers.
(7) The Public Utilities Regulatory Authority may find that a reasonable amortization agreement, other than a reasonable amortization agreement under subdivision (4) of this subsection, is a period of not more than thirty-six months, unless the authority determines that a longer period is warranted. Not later than October 1, 2024, the authority shall amend any regulations adopted pursuant to subdivision (6) of this subsection to carry out the provisions of this subsection.
(8) The chairperson of the Public Utilities Regulatory Authority may distribute not more than one million dollars in total each year to organizations or individuals providing legal services with the express purpose of attaining participation in public service company programs designed to assist customers with utility bill or arrearage payments, including negotiating a reasonable amortization agreement pursuant to this subsection. Any funds distributed pursuant to this subdivision shall be paid by all public service companies, in proportion to such companies' annual load and the amount of services provided to end use customers or revenue, as determined by the authority.
(c) Each electric distribution and gas company, electric supplier and municipal utility shall, not later than December first, annually, submit a report to the authority and the General Assembly indicating (1) the number of customers in each of the following categories and the total delinquent balances for such customers as of the preceding May first: (A) Customers who are hardship cases and (i) who made arrangements for reasonable amortization agreements, (ii) who did not make such arrangements, and (B) customers who are nonhardship cases and who made arrangements for reasonable amortization, (2) (A) the number of heating customers receiving energy assistance during the preceding heating season and the total amount of such assistance, and (B) the total balance of the accounts of such customers after all energy assistance is applied to the accounts, (3) the number of hardship cases reinstated between November first of the preceding year and May first of the same year, the number of hardship cases terminated between May first of the same year and November first and the number of hardship cases reinstated during each month from May to November, inclusive, of the same year, (4) the number of reasonable amortization agreements executed and the number breached during the same year by (A) hardship cases, and (B) nonhardship cases, and (5) the number of accounts of (A) hardship cases, and (B) nonhardship cases for which part or all of the outstanding balance is written off as uncollectible during the preceding year and the total amount of such uncollectibles.
(d) Nothing in this section shall (1) prohibit a public service company, electric supplier or municipal utility from terminating residential utility service upon request of the customer or in accordance with section 16-262d upon default by the customer on an amortization agreement or collecting delinquent accounts through legal processes, including the processes authorized by section 16-262f, or (2) relieve such company, electric supplier or municipal utility of its responsibilities set forth in sections 16-262d and 16-262e to occupants of residential dwellings or, with respect to a public service company or electric supplier, the responsibilities set forth in section 19a-109.
(e) No provision of the Freedom of Information Act, as defined in section 1-200, shall be construed to require or permit a municipal utility furnishing electric, gas or water service, a municipality furnishing water or sewer service, a district established by special act or pursuant to chapter 105 and furnishing water or sewer service or a regional authority established by special act to furnish water or sewer service to disclose records under the Freedom of Information Act, as defined in section 1-200, which identify or could lead to identification of the utility usage or billing information of individual customers, to the extent such disclosure would constitute an invasion of privacy. Nothing in this section prohibits the disclosure of delinquencies or enforcement actions.
(f) If an electric supplier suffers a loss of revenue by operation of this section, the supplier may make a claim for such revenue to the authority. The electric distribution company shall reimburse the electric supplier for such losses found to be reasonable by the authority at the lower of (1) the price of the contract between the supplier and the customer, or (2) the electric distribution company's price to customers for default service, as determined by the authority. The electric distribution company may recover such reimbursement, along with transaction costs, through the systems benefits charge.
(1969, P.A. 194, S. 1; P.A. 75-625, S. 2, 8; P.A. 79-362, S. 1, 2; P.A. 83-505, S. 1, 3; P.A. 90-338; P.A. 91-150, S. 1, 2; P.A. 95-39, S. 1, 3; 95-274, S. 2; P.A. 96-46, S. 3; 96-204; P.A. 97-9, S. 1, 2; 97-20, S. 1, 2; 97-47, S. 32; P.A. 98-28, S. 38, 117; P.A. 99-222, S. 14, 19; P.A. 03-47, S. 1; P.A. 07-242, S. 67; P.A. 11-80, S. 1, 120; P.A. 12-197, S. 31; P.A. 13-276, S. 41; P.A. 14-134, S. 100; P.A. 18-72, S. 27; P.A. 21-196, S. 16; P.A. 23-102, S. 30.)
History: P.A. 75-625 included telephone companies and service and municipal utilities providing gas, electric, telephone or water service in provisions and added “notwithstanding” phrase; P.A. 79-362 prohibited cessation of services to any customer because of delinquent payment “within one hour before the closing” of business office and added Subsecs. (b) and (c); P.A. 83-505 renumbered Subsec. (b)(4) as Subdiv. (5) and inserted new Subdiv. (4) setting forth requirements re notice to customers of termination and reasonable amortization agreement procedures and energy conservation programs and relettered Subsec. (c) as Subsec. (d) and inserted new Subsec. (c) requiring companies and utilities to submit annual report consisting of data re delinquencies and terminations; P.A. 90-338 added Subsec. (e) re nondisclosure of certain customer information; P.A. 91-150 inserted new Subsec. (b)(4) to (6) establishing procedures which allow a gas company to deduct moneys from a customer's bill upon compliance with certain conditions and authorizing gas companies to include such moneys deducted as an operating expense, requiring each gas company to annually submit a report to the department concerning the procedures and authorizing the department to expand the procedures to apply to all hardship customers, renumbering as necessary; P.A. 95-39 amended Subsec. (a) by dividing Subsec. into Subdivs. and adding proviso in Subdiv. (1) re nonresidential accounts, effective July 1, 1995; P.A. 95-274 amended Subsec. (b)(1) by adding provision re life-threatening termination or refusal to reinstate and Subdiv. (b)(3) by adding definition of “household income”, changing lettering and numbering and in new (iii) adding provision re federal poverty level; P.A. 96-46 amended Subsec. (b)(5) to make the approval or modification of plans by the department discretionary rather than mandatory and to add provision re effect of plan if department takes no action on it; P.A. 96-204 amended Subsec. (b)(1) to add exception allowing gas companies to refuse to reinstate service in certain circumstances and made technical changes to Subsec. (b)(2); P.A. 97-9 amended Subsec. (a)(1) to delete termination date of July 1, 1997, effective July 1, 1997; P.A. 97-20 amended Subsec. (b)(1) to substitute “the preceding November first” for “April fifteenth”, effective July 1, 1997; P.A. 97-47 substituted “the Freedom of Information Act, as defined in Sec. 1-18a” for “chapter 3”; P.A. 98-28 added provisions re electric suppliers and electric distribution companies, made technical changes and added new Subsec. (f) re electric supplier losses, effective July 1, 1998; P.A. 99-222 amended Subsec. (a) by adding “certified telecommunications provider” and making a technical change, effective June 29, 1999; P.A. 03-47 amended Subsec. (b)(4) and (5) to include electric distribution companies and make conforming changes; P.A. 07-242 changed “April fifteenth” to “May first” and made conforming and technical changes in Subsecs. (b) and (c); P.A. 11-80 amended Subsec. (b)(1) by changing “terminate or refuse to reinstate” to “terminate, deny or refuse to reinstate” and by prohibiting termination, denial or refusal for households where customer is a hardship case and a child not more than 24 months old resides in the household and such child has discharge papers from the hospital that indicate that service is a health necessity, effective July 1, 2011; pursuant to P.A. 11-80, “Department of Public Utility Control” and “department” were changed editorially by the Revisors to “Public Utilities Regulatory Authority” and “authority”, respectively, effective July 1, 2011; P.A. 12-197 amended Subsec. (b)(1) by adding provision allowing an advanced practice registered nurse to indicate on hospital discharge papers that service is a necessity; P.A. 13-276 amended Subsec. (e) by adding provision re nothing in section prohibits disclosure of delinquencies or enforcement actions; P.A. 14-134 deleted references to electric company, effective June 6, 2014; P.A. 18-72 amended Subsec. (b)(3)(B)(ii) to replace “Veterans' Administration” with “United States Department of Veterans Affairs”; P.A. 21-196 amended Subsec. (b)(1) by adding reference to physician assistant; P.A. 23-102 amended Subsec. (b) by redesignating existing Subdiv. (4) as Subdiv. (4)(A) and (4)(D) and making substantial revisions therein, adding new Subdiv. (4)(B) and (4)(C) re deducting arrearages in amounts equal to energy assistance payments and the applicable amortization agreement time period, respectively, redesignating former Subdiv. (5) as Subdiv. (4)(E) and making substantial revisions therein, deleting former Subdiv. (6) re expanding certain provisions to all hardship customers, redesignating existing Subdivs. (7) and (8) as Subdivs. (5) and (6), adding new Subdiv. (7) re the period of a reasonable amortization agreement other than a reasonable amortization agreement under Subdiv. (4), adding new Subdiv. (8) re distributing funds re legal services, and making technical changes, effective June 29, 2023.
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Sec. 16-262aa. Termination of gas or electric service at certain rented or leased properties. Notice to owners. (a) Each gas company and electric distribution company, as such terms are defined in section 16-1, shall, upon request of a person who certifies that such person is the owner of a property that is used exclusively for nonresidential purposes and contains not more than twelve thousand square feet of total floor area that is rented or leased, to which the company provides service that is billed to a person other than such requestor, agree to:
(1) Notify such requestor by United States mail not less than seventy-two hours prior to terminating service to such property; and
(2) Reinstate gas or electric service, as applicable, by reverting such service to such requestor's name, if, at a later date, such requestor requests such reinstatement. Such requestor shall be responsible for maintaining such requestor's account as current on and after any such reinstatement.
(b) Any request made pursuant to subsection (a) of this section shall be in writing in a form prescribed by the Public Utilities Regulatory Authority. The authority shall prescribe such form and the implementation date for such form after evaluating evidence from electric distribution companies, gas companies and other interested parties in an uncontested proceeding. Such request shall include: (1) A certification that the requestor is the owner of the property that is the subject of the request; and (2) the mailing address of the requestor that shall be used by such gas or electric distribution company, as applicable, to mail notice in accordance with subdivision (1) of subsection (a) of this section. The requestor shall be responsible for notifying such gas or electric distribution company of any change to such requestor's mailing address or of the sale of such property in a timely manner.
(c) No gas company or electric distribution company may disclose to the requestor the reason the company terminates service to such property.
(d) Nothing in this section shall be construed to require such requestor to pay an account balance or arrearage of any customer who was billed for service at such property before such service was terminated.
(P.A. 23-199, S. 1.)
History: P.A. 23-199 effective January 1, 2024.
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