SB 385 — AN ACT CONCERNING ENERGY PROCUREMENTS, CERTAIN ENERGY SOURCES AND PROGRAMS OF THE PUBLIC UTILITIES REGULATORY AUTHORITY.

The net costs of any such agreement, including costs incurred by the electric distribution company under the agreement and sSB385 / File No.

351 6 sSB385 File No.

351 reasonable costs incurred by the electric distribution company in connection with the agreement, 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 long-term contracts entered into pursuant to this subsection shall be credited to customers through the same nonbypassable fully reconciling rate component for all customers of the contracting electric distribution company.

(h) (1) Notwithstanding the provisions of subsections (a) to (g), inclusive, ofthis section,subsection(a)of section16-244candsection16- 244m, an electric distribution company may request the procurement manager of the Public Utilities Regulatory Authority to authorize such company to use any portion of the energy, capacity or other energy products, or any combination thereof, that such company purchases from an eligible nuclear power generating facility pursuant to an agreement entered into pursuant to subsection (e) of this section, for the purpose of providing electric generation services for standard service.

Not later than fifteen days after receiving such request, the procurement manager shall, in consultation with the Office of Consumer Counsel, deny or approve such request.

The procurement manager may approve such a request only if the procurement manager concludes that such request is in the best interest of standard service customers.

(2)For any request that theprocurement manager approves pursuant to this subsection, the procurement manager shall establish:

(A) The time periodduring which such company shall use such energy, capacity or other energy products to provide electric generation services for standard service;

(B) the quantity of energy, capacity or other energy products that such company shall use to provide electric generation services for standard service;

and (C) the price that standard service customers shall pay for such energy, capacity and other energy products, provided the procurement manager may not establish a price that is higher than the applicable price specified in the agreement that such company entered into pursuant to subsection (e) of this section.

sSB385 / File No.

351 7 sSB385 File No.

351 (3) If the procurement manager approves such request and authorizes such company to use such portion of the energy, capacity or other energy products to provide electric generation services for standard service, the cost of such portion of energy, capacity or other energy products shall be paid solely by standard service customers, in accordance with the quantity and price established by the procurement manager pursuant to subdivision (2) of this subsection.

(4) No person owning and operating a nuclear power generating facility inthestate shallpay any administrative costsassociatedwiththe procurement manager's actions pursuant to this subsection.

(5) Nothing in this subsection or subsection (g) of this section shall be construed to amend or alter the terms or conditions of any agreement that an electric distribution company entered into pursuant to subsection (e) of this section.

SubsectionSection (c) of section 16a-3n of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(c)(a) (1) The commissionerCommissioner mayof directEnergy and Environmental Protection, in consultation with the electricprocurement distributionmanager companiesidentified toin entersubsection into(l) powerof purchasesection agreements16-2, forthe energy,Office capacity,of anyConsumer transmissionCounsel associatedand the Attorney General, may, in coordination with suchother states in the control area of the regional independent system operator, as defined in section 16-1, in coordination with states in a neighboring control area or on behalf of Connecticut alone, solicit proposals, in one solicitation or multiple solicitations, from providers of energy derived from offshore wind facilities that are Class I renewable energy sourcessources, as defined in section 16-116-1, and environmentalany attributes,associated ortransmission, anyprovided combinationthe thereof,commissioner forshall periodsinitiate ofa [notsolicitation morenot later than twenty]fourteen updays toafter thirtythe yearseffective ondate behalf of allthis customerssection for projects that have a total nameplate capacity rating of theup state'sto electrictwo distributionthousand companies.megawatts in the aggregate.

Any such solicitation or solicitations issued pursuant to this section on and after January 1, 2020, shall be for quantities of energy and within the timing and schedule determined by the commissioner, and may be informed by the Integrated Resources Plan prepared on or before January 1, 2020, pursuant to subsections (b) and (j) of section 16a-3a, provided such schedule shall provide for the solicitation of resources with a nameplate capacity rating of two thousand megawatts in the aggregate by Public Act No.

24-38 6 of 19 Substitute Senate Bill No.

385 December 31, 2030.

(2) In developing any solicitations pursuant to this section, the commissioner shall include requirements for contract commitments in selected bids that (A) require payment of not less than the prevailing wage, as described in section 31-53, for laborers, workmen and mechanics performing construction activities within the United States with respect to the project, and (B) require selected bidders to engage in a good faith negotiation of a project labor agreement.

Any solicitation issued pursuant to this section shall specify the minimum terms that such project labor agreements shall address.

(3) In any solicitation initiated pursuant to this section on or after July 1, 2024, the Commissioner of Energy and Environmental Protection shall include requirements for contract commitments in selected bids that require bidders selected pursuant to subsection (b) of this section, including any providers of associated transmission, when employing or contracting with fishermen for support services such as scouting for fishing gear or serving as a safety vessel in a construction zone, for any project selected by the state or in proportion to the state share of any project selected by multiple states or other entities, to use best efforts to award such contracts or employment to state commercial fishing licensees, all other factors being equal.

Such requirements shall include:

(A) The maintenance of records that document the use of such best efforts and the filing of a monthly report with the Department of Economic and Community Development that describes such best efforts, on a form prescribed by said department;

and (B) a provision that any fishermen that such providers employ or contract with to provide support services shall:

(i) Meet training and certification standards described in the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, as amended from time to time;

and (ii) prior to providing any such support services, undergo inspection in accordance with the International Marine Public Act No.

24-38 7 of 19 Substitute Senate Bill No.

385 Contractors Association's marine inspection for small workboats inspection document.

The Coast Guard or any inspector accredited throughtheaccreditedvesselinspectorprogramoperatedbytheMarine Surveying Academy of the International Institute of Marine Surveying may conduct such an inspection.

[(3)] (4) (A) In responding to any solicitations issued pursuant to this section,a bidder shallincludeanenvironmentalandfisheriesmitigation plan for the construction and operation of such offshore wind facilities, provided such plan shall include, but not be limited to, an explicit description of the best management practices the bidder will employ that are informed by the latest science at the time the proposal is made that will avoid, minimize and mitigate any impacts to wildlife, natural resources, ecosystems and traditional or existing water-dependent uses, including, but not limited to, commercial fishing.

(B) In responding to any solicitations issued pursuant to this section, a bidder may include such bidder's plans for the use of skilled labor, including, but not limited to, for any construction and manufacturing components of the proposal including any outreach, hiring and referral systems, or any combination thereof, that are affiliated with an apprenticeship training program registered with the Labor Department pursuant to section 31-22r.

(C) In responding to any solicitations issued pursuant to this section in calendar year 2019, each bidder shall submit at least one proposal for resources eligible pursuant to this section with a nameplate capacity rating of four hundred megawatts.

The commissioner may not consider or select any proposals from a bidder that does not submit at least one proposal for resources with a nameplate capacity of four hundred megawatts for any solicitation issued pursuant to this section in calendar year 2019.

[(4)] (5) For each solicitation issued pursuant to this section, the Public Act No.

24-38 8 of 19 Substitute Senate Bill No.

385 commissioner shall establish a commission on environmental standards to provide input on best practices for avoiding, minimizing and mitigating any impacts to wildlife, natural resources, ecosystems and traditional or existing water-dependent uses, including, but not limited to, commercial fishing, during the construction and operation of facilities eligible pursuant to this section.

(b) In making any selection of such proposals, the commissioner shall consider factors, including, but not limited to, (1) whether the proposal is in the best interest of ratepayers, including, but not limited to, the delivered price of such sources, (2) whether the proposal promotes electric distribution system reliability, including during winter peak demand, (3) any positive impacts on the state's economic development, (4) whether the proposal is consistent with the requirements to reduce greenhouse gas emissions in accordance with section 22a-200a, (5) whether the proposal is consistent with the policy goals outlined in the Comprehensive Energy Strategy adopted pursuant to section 16a-3d and the Integrated Resources Plan adopted pursuant to section 16a-3a, (6) whether the proposal is consistent with the goals and policies set forth in sections 22a-92 and 25-157t, and (7) whether the proposal uses practices to avoid, minimize and mitigate impacts to wildlife, natural resources, ecosystems and traditional or existing water-dependent uses, including, but not limited to, commercial fishing.

In considering whether a proposal has any positive impacts on the state's economic development, the commissioner shall consult with the Commissioner of Economic and Community Development.

The commissioner may select proposals from such resources that have a total nameplate capacity rating of not more than two thousand megawatts in the aggregate.

(c) The commissioner may direct the electric distribution companies to enter into power purchase agreements for energy, capacity, any transmission associated with such energy derived from offshore wind facilities that are Class I renewable energy sources as defined in section Public Act No.

24-38 9 of 19 Substitute Senate Bill No.

385 16-1 and environmental attributes, or any combination thereof, for periods of not more than twenty years on behalf of all customers of the state's electric distribution companies, except the commissioner may direct such companies to enter into such agreements for periods greater than twenty years and not more than thirty years if the commissioner conducts the solicitation pursuant to subsection (a) of this section in coordination with one or more states and, in response to such coordinated solicitation, the applicable officials of any such state select a proposalfor energy, capacity andany environmentalattributes,or any combination thereof, from such facilities for a period that is greater than twenty years and not more than thirty years.

Certificates issued by the New England Power Pool Generation Information System for any Class I renewable energy sources procured by an electric distribution company pursuant to thissectionmay be:(1) SoldintotheNewEngland Power Pool Generation Information System renewable energy credit market to be used by any electric supplier or electric distribution company to meet the requirements of section 16-245a, provided the revenues from such sale are credited to electric distribution company customers as described in this section;

or (2) 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 theoptionthat isinthebest interest ofsuchcompany'sratepayers.

(d) Any agreement entered into pursuant to this section shall be subject to review and approval by the Public Utilities Regulatory Authority, which review shall be completed not later than (1) ninety days after the date on which such agreement is filed with the authority for any solicitation issued pursuant to this section in calendar year 2019, and (2) one hundred twenty days for any solicitation issued pursuant to this section on and after January 1, 2020.

The authority shall approve agreements that it determines (A) provide for the delivery of adequate andreliable productsandservices,for whichthere isaclear publicneed, at a just and reasonable price, (B) are prudent and cost effective, and (C) Public Act No.

24-38 10 of 19 Substitute Senate Bill No.

385 are between an electric distribution company and a respondent to the solicitation that has the technical, financial and managerial capabilities to perform pursuant to such agreement.

The net costs of any such agreement, including costs incurred by the electric distribution companies under the agreement and reasonable costs incurred by the electric distribution companies in connection with the agreement, shall be recovered through a fully reconciling component of electric rates for all customers of electric distribution companies.

Any net revenues from the sale of products purchased in accordance with long-term contracts entered into pursuant to this section shall be credited to customers through the same fully reconciling rate component for all customers of the contracting electric distribution company.

The commissioner may hire consultants with expertise in quantitative modeling of electric and gas markets to assist in implementing this section, including, but not limited to, the evaluation of proposals submitted pursuant to this section.

All reasonable costs associated with the commissioner's solicitation and review of proposals pursuant to this section shall be recoverable through the same fully reconciling rate component for all customers of the electric distribution companies.

Sec.

3.

Subsection (a) of section 16-243q of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2024):

(a) (1) On and after January 1, 2007, each electric distribution company providing standard service pursuant to section 16-244c and each electric supplier, as defined in section 16-1, shall demonstrate to the satisfaction of the Public Utilities Regulatory Authority that not less than one per cent of the total output of such supplier or such standard service of an electric distribution company shall be obtained from Class III sources.

(2) On and after January 1, 2008, not less than two per cent of the total output of any such supplier or such standard service of an electric Public Act No.

24-38 11 of 19 Substitute Senate Bill No.

385 distribution company shall, on demonstration satisfactory to the Public Utilities Regulatory Authority, be obtained from Class III sources.

On or after January 1, 2009, not less than three per cent of the total output of any such supplier or such standard service of an electric distribution company shall, on demonstration satisfactory to the Public Utilities Regulatory Authority, be obtained from Class III sources.

(3)Onandafter January 1,2010,not lessthan four per cent ofthetotal output of any such supplier or such standard service of an electric distribution company shall, on demonstration satisfactory to the Public Utilities Regulatory Authority, be obtained from Class III sources.

(4) On and after January 1, 2022, until December 31, [2024] 2029, not less than five per cent of the total output of any such supplier or such standard service of an electric distribution company shall, on demonstration satisfactory to the Public Utilities Regulatory Authority, be obtained from Class III sources, except that with respect to any retail electric supply contract that was entered into or renewed on or after January 1, 2023, but prior to July 1, 2024, not less than four per cent of the total output of any such supplier with respect to such contract shall be obtained from Class III sources.

Such exception shall be in effect on and after July 1, 2024, until January 1, 2026, or the date that any such contract is renewed, whichever is earlier.

(5) Electric power obtained from customer-side distributed resources that does not meet air and water quality standards of the Department of Energy and Environmental Protection is not eligible for purposes of meeting the percentage standards in this section.

Sec.

4.

(NEW) (Effective July 1, 2024) (a) On or after July 1, 2024, the Commissioner of Energy and Environmental Protection, in consultation with the procurement manager identified in subsection (l) of section 16- of the general statutes, the Office of Consumer Counsel and the Attorney General, may solicit proposals, in one solicitation or multiple Public Act No.

24-38 12 of 19 Substitute Senate Bill No.

385 solicitations, from providers of instantaneous run-of-the-river hydropower that is interconnected with the electric distribution system.

In making any selection of such proposals, the commissioner shall consider factors, including, but not limited to:

(1) Whether the proposal is in the interest of ratepayers, including, but not limited to, the delivered price of any electricity, capacity or environmental attributes that are procured pursuant to such solicitation;

(2) the emissions profile of such provider's facilities that generate such hydropower;

(3) any investments that such provider has made or is anticipated to make in improving such facility's emissions profile or environmental performance, such as investments related to water quality, water flow or fish passage;

(4) any positive impacts on the state's economic development;

(5) whether the proposal is consistent with the policy goalsoutlined intheComprehensive EnergyStrategy adoptedpursuant to section 16a-3d of the general statutes;

and (6) whether the proposal functions as a load-reducing resource or promotes electric distribution system reliability and other electric distribution system benefits, including, but not limited to, microgrids.

The commissioner shall not allow any such proposal to be based on a new dam or a dam identified by the commissioner as a candidate for removal.

Any such proposal shall meet applicable state and federal requirements, including state dam safety requirements and applicable site-specific standards for water quality and fish passage.

(b) Not later than December 31, 2025, the commissioner may select proposals from such providers of instantaneous run-of-the-river hydropower.

Facilities generating such hydropower shall have a total nameplate capacity rating of not more than twenty megawatts in the aggregate.

The commissioner may direct the electric distribution companies to enter into power purchase agreements for energy, capacity and environmental attributes, or any combination thereof, for periods of not more than twenty years on behalf of all customers of the state's electric distribution companies.

Any certificates issued by the Public Act No.

24-38 13 of 19 Substitute Senate Bill No.

385 New England Power Pool Generation Information System for any Class I renewable energy sources procured under this section may be:

(1) Sold in the New England Power Pool Generation Information System renewable energy credit market to be used by any electric supplier or electric distribution company to meet the requirements of section 16- 245a of the general statutes, provided the revenues from such sale are credited to all customers of the contracting electric distribution company;

or (2) retained by the electric distribution company to meet the requirements of section 16-245a of the general statutes.

In considering whether to sell or retain such certificates, the company shall select theoptionthat isinthebest interest ofsuchcompany'sratepayers.

Any such agreement shall be subject to review and approval by the Public Utilities Regulatory Authority, which review shall be completed not later than one hundred eighty days after the date on which such agreement is filed with the authority.

The net costs of any such agreement, including costs incurred by the electric distribution companies under the agreement and reasonable costs incurred by the electric distribution companies in connection with the agreement, shall be recovered through a fully reconciling component of electric rates for all customers of electric distribution companies.

All reasonable costs incurred by the Department of Energy and Environmental Protection associated with the commissioner's solicitation and review of proposals pursuant to thissection shallbe recoverablethroughthenonbypassable, federally mandated congestion charges, as defined in section 16-1 of the general statutes.

Sec.

5.

(NEW) (Effective from passage) Not later than January 1, 2025, eachgascompany,asdefinedinsection16-1ofthegeneralstatutes,shall institute a program to provide a rebate to any customers of such company that use natural gas for a shared clean energy facility, as defined in subdivision (2) of subsection (a) of section 16-244z of the general statutes, that was selected in a solicitation pursuant to said subsection on or before December 31, 2023.

The amount of such rebate Public Act No.

24-38 14 of 19 Substitute Senate Bill No.

385 shall equal the retail delivery charge that such company charges such customer for transporting natural gas to such shared clean energy facility.

Such company may recover the costs of providing such rebates through such company's decoupling mechanism pursuant to section 16- 19tt of the general statutes.

The authority may adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement the provisions of this section.

Sec.

6.

(NEW) (Effective from passage) (a) For the purposes of this section:

(1) "Existing biomass power purchase agreement" means a power purchase agreement that:

(A) (i) was entered into by a biomass facility that is a Class I renewable energy source with an electric distribution company in the state on or before June 5, 2013, or (ii) was executed in accordance with a solicitation pursuant to section 16a-3f of the general statutes or 16a-3h of the general statutes;

and (B) was in effect as of January 1, 2024.

(2) "Eligible biomass facility" means a biomass facility that is a Class Irenewableenergysourceandthathasenteredintooneormoreexisting biomass power purchase agreements.

(3) "Additional biomass power purchase agreement" means a biomass power purchase agreement that is entered into by an eligible biomass facility and an electric distribution company pursuant to subdivision (b) of this section, for the fraction of energy, capacity and environmental attributes of an eligible biomass facility that was contracted for under an existing biomass power purchase agreement between such biomass facility and such electric distribution company.

(4) "Class I renewable energy source", "electricdistribution company" and "electric supplier" have the same meanings as provided in section 16-1 of the general statutes.

Public Act No.

24-38 15 of 19 Substitute Senate Bill No.

385 (b) The Commissioner of Energy and Environmental Protection may direct any electric distribution company to enter into one or more additional biomass power purchase agreements with any eligible biomass facility.

Any such additional power purchase agreement shall be for a period of ten years.

(1) Sold into the New England Power Pool Generation Information System renewable energy credit market to be used by any electric supplier or electric distribution company to meet the requirements of section 16-245a,16-245a of the general statutes, provided the revenues from such sale are credited to electricall distribution company customers asof describedthe incontracting thiselectric section;distribution company;

or (2) retained by thesuch electric distribution company to meet the requirements sSB385of /section File16-245a No.of the general statutes.

351 8 sSB385 File No.

351 of section 16-245a.

This(c) actAny additional biomass power purchase agreement entered into pursuant to subsection (b) of this section shall takebe effectsubject asto followsreview and shallapproval amendby the followingPublic sections:Utilities Regulatory Authority.

SectionSuch 1electric fromdistribution passagecompany 16a-3mshall Sec.file an application for the approval of any such additional biomass power purchase agreement with the authority.

2The fromauthority passageshall 16a-3n(c)issue Statementa ofdecision Legislativenot Commissioners:later than one hundred eighty days after any such filing.

InIf Sectionthe 1(h)(5),authority "section"does wasnot changedissue toa "subsectiondecision orwithin subsectionone (g)hundred ofeighty thisdays section"after forsuch consistencyfiling, withsuch standardadditional draftingbiomass conventions.power purchase agreement shall be deemed approved.

ET(d) JointThe Favorablenet Subst.costs of any such agreement, including costs incurred by the electric distribution companies under the agreement and reasonable costs incurred by any electric distribution company in connection with the agreement, shall be recovered through a fully reconciling component of electric rates for all customers of such electric distribution Public Act No.

sSB38524-38 /16 Fileof 19 Substitute Senate Bill No.

351385 9company. sSB385 File No.

351Sec. The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In7. general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever(Effective applicable,from agencypassage) data(a) There is consultedestablished asa parttask offorce theto analysis,examine howeverand finalmake productsrecommendations doconcerning notpolicy, necessarilyregulations reflectand anlegislation assessmentto fromimprove anydisclosure specificrequirements department.and consumer protection for consumers who purchase, lease or enter into power purchase agreements for solar photovoltaic systems.

OFASuch Fiscalstudy Noteshall Stateinclude Impact:an examination of whether special protections are necessary for consumers who are low-income or senior citizens.

None(b) MunicipalThe Impact:task force shall consist of the following members:

None(1) ExplanationThe ThisCommissioner billof makesEnergy several changes regarding energy procurements and resultsEnvironmental inProtection, noor direct fiscal impact to the state.commissioner's designee;

Ratepayer(2) ImpactThe Statementchairperson :of the Public Utilities Regulatory Authority, or the chairperson's designee;

This(3) billThe allowsConsumer theCounsel, Departmentor of Energy and Environmental Protection (DEEP) to issue a coordinated solicitation for zero-carbon electricity generating resources from an eligible nuclear power generating facility andresultsinan indeterminate impact on ratepayers, depending on market fluctuations and the lengthConsumer ofCounsel's thedesignee; agreed upon procurement .

2(4)The TheCommissioner OutofConsumer YearsProtection,orthecommissioner's Statedesignee; Impact:

None(5) MunicipalThe Impact:president of the Connecticut Green Bank, or the president's designee;

None(6) TheTwo stateappointed andby municipalitiesthe areGovernor, ratepayers,who andshall they may be impactedmembers byof policyan changesassociation that affectrepresents electricretailers rates.of solar photovoltaic systems in the state or retailers of solar photovoltaic systems in the state;

2The(7) billTwo allowsappointed DEEPby tothe selectspeaker proposalsof foundthe toHouse beof Representatives, one of whom shall have experience representing senior citizens in ratepayers’matters bestrelated interest.to consumer protection or utilities;

A(8) proposalTwo isappointed inby the ratepayers'president bestpro interesttempore if its benefits outweigh its costs to electric ratepayers, based on whether the delivered price of sources included is less than the forecastedSenate, priceone of energywhom andshall capacity,have asexperience determinedrepresenting byconsumer thegroups, DEEPespecially commissionerPublic orAct herNo. designee.

See24-38 the17 Billof Analysis19 forSubstitute moreSenate details.Bill No.

sSB385385 /in Fileunderserved No.communities;

351(9) 10One sSB385appointed Fileby No.the majority leader of the House of Representatives;

351(10) OLROne Billappointed Analysisby sSBthe 385majority ANleader ACTof CONCERNINGthe ENERGYSenate; PROCUREMENTS.

SUMMARY(11) ThisTwo billappointed authorizesby the Departmentminority leader of Energythe andHouse Environmentalof ProtectionRepresentatives; (DEEP) commissioner to issue a coordinated solicitation for zero-carbon electricity generating resources from an eligible nuclear power generating facility.

Sheand must(12) coordinateTwo withappointed by the applicableminority officialsleader inof at least two New England states to conduct the solicitation.Senate.

The(c) billAll prohibitsinitial theappointments DEEPto commissioner from directing the electrictask distributioncompaniesforce (EDCs,i.e.,EversourceandUnitedIlluminating)shall tobe entermade intonot agreementslater underthanthirty selecteddaysafter proposalstheeffective unlessdate officialsofthis representingsection.Any atvacancy leastshall twobe otherfilled Newby England states select a proposal in response to the solicitation.appointing authority.

(d) The billspeaker allowsof the DEEPHouse commissionerof toRepresentatives and the president pro tempore of the Senate shall select proposalsthe shechairperson determinesof tothe betask inforce ratepayers’from bestamong interest.the members of the task force.

ForSuch selectedchairperson proposals,shall schedule the DEEPfirst commissionermeeting mustof direct the EDCstask toforce, enterwhich intoshall agreementsbe forheld upnot tolater ten-yearthan terms,sixty startingdays onafter the effective date theof company’sthis agreementsection. under the previous zero-carbon procurement ends (see BACKGROUND).

Agreements(e) mustThe beadministrative instaff ratepayers’of bestthe interestjoint andstanding arecommittee subjectof to the PublicGeneral UtilitiesAssembly Regulatoryhaving Authority’scognizance (PURA)of reviewmatters relating to energy and approval.technology shall serve as administrative staff of the task force.

Under(f) theNot bill,later anthan agreement’sJanuary net1, costs2025, mustthe betask recoveredforce throughshall submit a componentreport ofon electricits ratesfindings forand allrecommendations EDCto customersthe andjoint anystanding netcommittees revenuesof fromthe sellingGeneral productsAssembly purchasedhaving undercognizance anof agreementmatters mustrelating beto creditedenergy toand customerstechnology throughand general law, in accordance with the sameprovisions rateof component.section 11-4a of the general statutes.

The billtask alsoforce authorizesshall theterminate EDCson tothe requestdate that PURA’sit procurementsubmits managersuch authorizereport them to use energy or relatedJanuary products1, purchased2025, underwhichever theis previouslater. zero-carbon procurement to provide sSB385 / File No.

351Sec. 11 sSB385 File No.

3518. standard service (see below).

If(NEW) the(Effective procurementJuly manager1, approves2024) Notwithstanding the request,provisions heof musttitles set16 certainand terms16a forof thatthe use,general includingstatutes, onthePublic timeUtilities period,Regulatory quantity,Public andAct price.No.

The24-38 bill18 requires standard service customers to pay the cost of any19 portionSubstitute ofSenate energyBill orNo. related products approved for this purpose.

It385 prohibitsAuthority nuclearmay generatingselect the Connecticut Green Bank, the Department of Energy and Environmental Protection, the electric distribution companies, as defined in section 16-1 of the general statutes, a third party that the authority deems appropriate or any combination thereof to implement the non-residential renewable energy program established pursuant to section 16-244z of the general statutes, the residential renewable energy program established pursuant to said section, the shared clean energy facility ownersprogram established pursuant to said section, the light-duty electric vehicle charging program established by the authority in a proceeding or operatorsa frommedium-duty payingto heavy-duty electric vehicle charging program established by the procurementauthority manager’sin administrativea costs.proceeding.

ItApproved alsoMay specifies21, that2024 neitherPublic theAct provisionNo. on procurement nor the authorization for a coordinated solicitation amend or alter agreements under the previous zero-carbon solicitation.

Lastly,24-38 the19 billof expands19 the maximum term, from 20 to 30 years, for power purchase agreements (PPAs) under a separate authorization for solicitations for Class I offshore wind facilities.

EFFECTIVE DATE:

Upon passage COORDINATED SOLICITATION FOR NUCLEAR Solicitation Process The bill allows the DEEP commissioner, in consultation with PURA’s procurement manager, to issue a coordinated solicitation for zero- carbon electricity generating resources from an eligible nuclear power generating facility (i.e., a nuclear facility located in New England and licensed to operate through at least January 1, 2030).

She must conduct the solicitation in coordination with applicable officials representing at least two New England states.

The bill requires the coordinated solicitation to be for resources delivered into the independent system operator (ISO)-New England control area (generally, New England).

Proposal Selection and EDC Agreements The bill allows the DEEP commissioner to select proposals she finds to be in ratepayers’ best interest.

A proposal is in the ratepayers’ best interest if its benefits outweigh its costs to electric ratepayers, based on whether the delivered price of sources included is less than the forecasted price of energy and capacity, as determined by the DEEP commissioner or her designee.

sSB385 / File No.

351 12 sSB385 File No.

351 The determination must also be based on the following factors:

1.

impacts on electric system operations and reliability;

2.

the extent to which the proposal or contract contributes to (a) ISO-New England’s local sourcing requirement, (b) the state’s greenhouse gas emissions requirements, and (c) the state’s air quality improvement requirements;

3.

fuel diversity;

and 4.

whether the proposal and its environmental impacts align with the state’sIntegratedResources Plan and Comprehensive Energy Strategy.

For selected proposals, the bill requires the DEEP commissioner to direct the EDCs to enter into agreements for any combination of energy, capacity, and environmental attributes.

An agreement must also be in ratepayers’ best interests and for a term of up to 10 years, starting on the date the company’s agreement under the previous zero-carbon procurement ends.

The bill prohibits the DEEP commissioner from directing EDCs to enter into any agreement under this solicitation unless applicable officials representing at least two states also select a proposal for any combination of energy, capacity, or environmental attributes from an eligible nuclear power generating facility in response to the coordinated solicitation.

PURA Review and Cost Recovery The bill requires an EDC to apply to PURA for approval of any agreement resulting from the coordinated solicitation.

PURA must start its review when the EDC files a signed agreement.

PURA must approve an agreement if it determines that the agreement is prudent and cost effective and delivers adequate and reliable products and services, for which there is a clear public need, at a just and reasonable price.

The bill prohibits PURA from approving any agreement unless at sSB385 / File No.

351 13 sSB385 File No.

351 least two other states, or electric utilities or other entities designated by at least two other states’ applicable officials, enter into PPAs or other agreements for any combination of energy,capacity, and environmental attributes with an eligible nuclear power generating facility.

The bill requires PURA to issue its decision within 180 days after the EDC files the agreement.

If PURA does not issue a decision within this timeframe, the agreement is deemed approved.

Under the bill, the net costs of any agreement, including the EDC’s costs under the agreement and its reasonable costs connected to the agreement, must be recovered on a timely basis through a nonbypassable, fully reconciling component of electric rates for all EDC customers.

Any of the EDC’s net revenues from selling products purchased under an agreement must be credited to its customers through the same rate component.

STANDARD SERVICE Standard service is the energy supply sold to electric customers who do not choose to buy electricity through a third-party energy supplier.

The EDCs buy electricity and other products to serve these customers through a process overseen by PURA’s procurement manager, the Office of Consumer Counsel (OCC), and other parties (CGS § 16-244m).

The bill allows EDCs to request that PURA’s procurement manager authorize the company to use any portion or combination of the energy, capacity, and other energy products the company purchases under an agreement approved under the previous zero-carbon procurement.

The bill allows the procurement manager to approve the request if he finds it is in the best interest of standard service customers.

The procurementmanager,inconsultationwithOCC,mustapproveordeny the request within 15 days of receiving it.

The bill requires the procurement manager to set the following parameters for any agreement he approves:

sSB385 / File No.

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the quantity of energy, capacity, or other energy products that the company must use for standard service;

2.

the time period during which they must use the energy, capacity, or other energy products;

and 3.

the price standard service customers must pay for the energy, capacity, or other energy products.

The bill requires the standard service customers to pay the cost of any portion of energy, capacity, or other energy products approved for this purpose at the price and quantity set by the procurement manager.

It prohibits standard service customers from paying more for this energy, capacity, and other products than the applicable price specified in the agreement that the company entered into under the previous zero- carbon procurement.

The bill also excludes costs associated with standard service from being recovered from all electric ratepayers.

OFFSHORE WIND CONTRACTS Existing law authorizes DEEP to solicit proposals for a total of up to 2,000 megawatts from offshore wind providers and transmission providers (for transmission associated with offshore wind projects) by December 31, 2030.

For selected projects, the DEEP commissioner may direct the EDCs to enter into PPAs for energy, capacity, and associated transmission, subject to PURA’s review and approval.

Under current law, these agreements are for periods up to 20 years.

The bill expands the periods for these agreements by allowing them to be for up to 30 years.

BACKGROUND Previous Zero Carbon Procurement (PA 17-3, June Special Session (JSS)) Among other things, PA 17-3, JSS, authorized DEEP and PURA to conduct a solicitation and procurement for bids from zero-carbon generation facilities.

DEEP selected a bid for 9 million megawatt-hours from the Millstone Power Station, owned by Dominion Energy, and, after a renegotiation, PURA approved PPAs between the EDCs and sSB385 / File No.

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Under the agreements, the EDCs must purchase 50% of Millstone’s output over 10 years (2019 to 2029).

A bid from Seabrook Station in New Hampshire was also selected, resulting in an 8-year contract (2022-2030).

Related Bills SB 383, favorably reported by the Energy and Technology Committee, requires bidders selected in DEEP’s offshore wind solicitation to make payments into amitigation fund to mitigate adverse consequences to wildlife, fisheries, and any other aspects of the fishing industry that result from the bidder’s activities connected with offshore wind facility development and operation.

sSB 382, favorably reported by the Energy and Technology Committee, extends the maximum term, from 20 to 30 years, for agreements under a separate authorization for solicitations for offshore wind facilities for up to 3% of the state’s load.

COMMITTEE ACTION Energy and Technology Committee Joint Favorable Substitute Yea 14 Nay 6 (03/21/2024) sSB385 / File No.

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