Connecticut 2025 Regular Session Status: Enacted

SB 4 — AN ACT CONCERNING ENERGY AFFORDABILITY, ACCESS AND ACCOUNTABILITY.

Last action — SIGNED BY GOVERNOR

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This bill has been enacted into law. Introduced January 08, 2025. Enacted.

Signed by Governor Ned Lamont (Democratic) on July 01, 2025.

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General Assembly Substitute Bill No.
Substitute Senate Bill No.
4 January Session, 2025 AN ACT CONCERNING ENERGY AFFORDABILITY, ACCESS AND ACCOUNTABILITY.
4 Public Act No.
25-173 AN ACT CONCERNING ENERGY AFFORDABILITY, ACCESS AND ACCOUNTABILITY.
Section 22a-136 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2025):
(Effective July 1, 2025) (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate one hundred twenty-five million dollars for each of the fiscal years ending June 30, 2026, and June 30, 2027.
(a) As used in this section:
(b) The proceeds of thesale of such bonds, to the extent of theamount stated in subsection (a) of this section, shall be used by the Office of Policy and Management for the purpose of reducing the annual costs of hardshipprotectionmeasuresandotherhardshipprotectionswithinthe systems benefits charge, as defined in section 16-245l of the general statutes, to the average annual cost of such measures and protections in the five years from 2016 to 2020, inclusive, preceding the COVID-19 pandemic.
(1) "Advanced nuclear reactor" has the same meaning as provided in 42 USC 16271, as amended from time to time, and (2) "high level nuclear waste" means those aqueous wastes resulting from the operation of the first cycle of the solvent extraction system or equivalent and the concentrated wastes of the subsequent extraction cycles or equivalent in a facility for reprocessing irradiated reactor fuel and includes spent fuel assemblies prior to fuel reprocessing.
(c)Allprovisionsofsection3-20ofthegeneralstatutes,ortheexercise of any right or power granted thereby, that are not inconsistent with the provisions of this section are hereby adopted and shall apply to all Substitute Senate Bill No.
(b) No construction shall commence on a [fifth] new nuclear power facility [until the] in the state unless:
4 bonds authorized by the State Bond Commission pursuant to this section.
(1) The Commissioner of Energy and Environmental Protection finds that the United States Government, through its authorized agency, has identified and approved a demonstrable technology or means for the disposal of high level nuclear waste;
Temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with section 3-20 of the general statutes and from time to time renewed.
[.
Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds.
The provisions of this section shall not apply to construction at any nuclear power generating facility LCO 1 of 28 Substitute Bill No.
None of such bonds shall be authorized except upon a finding by the State Bond Commission that therehasbeenfiledwithitarequestforsuchauthorizationthatissigned by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require.
4 operating in the state as of October 1, 2022.
Such bonds issued pursuant to this section shall begeneralobligationsofthestateandthefullfaithandcredit ofthestate of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.
As used in this section, "high level nuclear waste" means those aqueous wastes resulting from the operation of the first cycle of the solvent extraction system or equivalent and the concentrated wastes of the subsequent extraction cycles or equivalent in a facility for reprocessing irradiated reactor fuel and shall include spent fuel assemblies prior to fuel reprocessing.] (2) The nuclear power facility is proposed to be sited at a nuclear power generating facility operating in the state as of October 1, 2022;
or (3) The construction is for an advanced nuclear reactor facility and (A) such facility is sited in a municipality that has consented to such facility'sdevelopment through the affirmative vote of such municipality's legislative body or a referendum held in such municipality, and(B)any additionalmunicipality withintheemergency planning zone, as determined by the Nuclear Regulatory Commission, of the proposed facility consents to such facility's development through the affirmative vote of such municipality's legislative body or a referendum held in such municipality.
(c) The entity proposing such new nuclear power facility, including advancednuclearreactors,shallobtainallpermits,licenses,permissions or approvals governing the construction, operation and funding of decommissioning of such nuclear power facility as required by:
(1) Any applicable federal statutes, including, but not limited to, the Atomic Energy Act of 1954, the Energy Reorganization Act of 1974, the Low- Level Radioactive Waste Policy Amendments Act of 1985 and the Energy Policy Act of 1992, as amended from time to time;
(2) any regulations promulgated or enforced by the United States Nuclear Regulatory Commission, including, but not limited to, those codified at Title X, Parts 20, 30, 40, 50, 52, 53, 70 and 72 of the Code of Federal Regulations, as amended from time to time;
and (3) any other federal or state statute, rule or regulation governing the permitting, licensing, construction, operation or decommissioning of such facility.
(NEW) (Effective July 1, 2025) (a) As used in this section, (1) LCO 2 of 28 Substitute Bill No.
(Effective July 1, 2025) (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate thirty million dollars for the fiscal year ending June 30, 2026, and twenty million dollars for the fiscal year ending June 30, 2027.
4 "eligible recipient" means (A) a regional governmental entity, municipality, regionalcouncil of governments, public authority, state or federally recognized tribe or municipal electric utility or cooperative with a demonstrated interest in hosting advanced nuclear reactors or offshore wind energy facilities, as determined by the Commissioner of Energy and Environmental Protection, (B) a private entity partnering or interested in partnering with said entities for the development of advanced nuclear reactors or offshore wind energy facilities, or (C) an institution of higher education in the state;
(b) The proceeds of thesale of such bonds, to the extent of theamount stated in subsection (a) of this section, shall be used by the Office of Policy and Management for the purpose of funding any electric vehicle charging program implemented pursuant to section 16-244dd of the general statutes, as amended by this act.
and (2) "advanced nuclear reactor"hasthesamemeaningasprovidedin42USC16271,asamended from time to time.
Public Act No.
(b) The Commissioner of Energy and Environmental Protection shall establish a competitive advanced nuclear reactor and offshore wind energy site readiness funding program.
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The commissioner may provide funding through the program in the form of grants or loans to eligible recipients in support of:
4 (c)Allprovisionsofsection3-20ofthegeneralstatutes,ortheexercise of any right or power granted thereby, that are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section.
(1) Environmental and technical studies required for early site permitting for advanced nuclear reactors or offshore wind energy facilities;
Temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with section 3-20 of the general statutes and from time to time renewed.
(2) Local and regional infrastructure assessments to support the development of advanced nuclear reactors or offshore wind energy facilities;
Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds.
(3) Community engagement and planning initiatives related to hosting advanced nuclear reactors or offshore wind energy facilities;
None of such bonds shall be authorized except upon a finding by the State Bond Commission that therehasbeenfiledwithitarequestforsuchauthorizationthatissigned by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require.
and (4) Other necessary expenses identified by the commissioner to advance site readiness for advanced nuclear reactors or offshore wind energy facilities.
Such bonds issued pursuant to this section shall begeneralobligationsofthestateandthefullfaithandcredit ofthestate of Connecticut are pledged for the payment of the principal of and interest on such bonds as the same become due, and accordingly and as part of the contract of the state with the holders of such bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.
(c) The commissioner may use bond funds authorized in support of the program or federal funds allocated to the state in support of the program established under this section.
In the case of federal funds LCO 3 of 28 Substitute Bill No.
4 allocated for such purposes, the commissioner may revise its advanced nuclear reactor and offshore wind and energy site readiness grant program criteria to be consistent with the requirements of the federal funding program criteria.
The commissioner may use said funds to hire a technical consultant to support the implementation of this section.
(NEW) (Effective July 1, 2025) (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power from time to time to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate five million dollars.
Section 16-244dd of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2025):
(b) The proceeds of the sale of such bonds shall be used by the Department of Energy and Environmental Protection for the purpose of funding grants or loans through the advanced nuclear reactor and offshore wind energy facility site readiness funding program established pursuant to section 2 of this act.
(a) Notwithstanding the provisions of this title and title 16a, the Public Utilities Regulatory Authority may select the Connecticut Green Bank, the Department of Energy and Environmental Protection, the electric distribution companies, as defined in section 16-1, as amended by this act, a third party that the authority deems appropriate or any combinationthereoftoimplement thenon-residentialrenewableenergy Public Act No.
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4 program established pursuant to section 16-244z, as amended by this act, the residential renewable energy program established pursuant to said section, the shared clean energy facility program established pursuant to said section, the light-duty electric vehicle charging program established by the authority in a proceeding or amedium-duty to heavy-duty electric vehicle charging program established by the authority in a proceeding.
(b) On and after January 1, 2026,theauthority shall limit the expenses for electric vehicle charging stations, as defined in section 16-19f, as amended by this act, and customer wiring upgrades of any light-duty electric vehicle charging program established by the authority in a proceeding to twenty million dollars per year and further limit any expenses for electric vehicle charging stations and customer wiring upgrades incentivized as part of any residential single-family customer program to residents who make less than or equal to three hundred per cent of the federal poverty level or reside in any concentrated poverty census tract, as defined in section 32-7x.
Subsection (a) of section 16a-102 of the general statutes is repealed andthefollowing issubstituted inlieuthereof(EffectiveOctober 1, 2025):
(Effective from passage) (a) Not later than July 1, 2025, the Public Utilities Regulatory Authority shall open an uncontested proceeding, or amend the notice of proceeding in an active proceeding, to evaluate the duration of winter shutoff moratoria and the criteria and standards related to appropriate protections from service termination or disconnection for medically protected customers of a regulated gas company or electric distribution company, as defined in section 16-1 of the general statutes, as amended by this act.
(a) The Commissioner of Energy and Environmental Protection shall coordinate all atomic development activities in the state.
Such evaluation shall include, but need not be limited to:
Said commissioner or [his] the commissioner's designee shall (1) advise the Governor with respect to atomic industrial development within the state;
(1) Reviewing the definitions of a serious illness or life-threatening medical condition, including evaluating, in consultation with the Probate Court Administrator, whether and how mental health conditions should be included in such definitions, and recommending revisions in consideration of ratepayer costs and laws and regulations adopted in other similar jurisdictions;
(2) act as coordinator of the development and regulatory activities of the state relating to the industrial and commercial uses of atomic energy;
(2) Public Act No.
(3) act as the Governor's designee in matters relating to atomic energy, including participation in the activities of any committee formed by the New England states to represent their interests in such matters and also cooperation with other statesand with the government of the United States;
25-173 4 of 140 Substitute Senate Bill No.
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(4) coordinate the studies, recommendations and proposals of the several departments and agencies of the state required by section 16a-103 with each other and also with the programs and activities of the development commission;
4 recommending revisions to the current protections for customers with a serious illness or life-threatening medical condition that reflect limitations on the duration of termination or disconnection protection;
and (5) act as a point of LCO 4 of 28 Substitute Bill No.
(3) reviewing protections for customers with a serious illness or life- threatening medical condition, and evaluating standards for conditioning protections to such customers on their ability to pay;
4 contact for public and private stakeholders to assist in compliance with federal, state and local requirements relevant to atomic development, including, but not limited to, siting considerations and permitting requirements.
(4) evaluating additionalnotice requirements prior to shutoff for customers with a serious illness and life-threatening medical condition;
The commissioner shall consult with and review regulations and procedures of the agencies of the state with respect to the regulation of sources of radiation to assure consistency and to prevent unnecessary duplication, inconsistencies or gaps in regulatory requirements.
(5) evaluating the current procedures and practices and the relevant processes for verification of hardship status and medical protections;
(6) evaluating the impact of limitations on medically protected customer service terminations and disconnections on all other ratepayers;
(7) evaluating the requirement for a medical protection customer to enroll in a payment plan;
and (8) evaluating standards to ensure that electric or gas companies have in good faith attempted to secure payment from medically protected customers by reasonable means other than termination, and that adequate notice is provided to the customer prior to any termination.
(b) Not later than March 16, 2026, the chairperson of the Public Utilities Regulatory Authority shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to energy and technology, summarizing the results of such proceeding and providing recommendations regarding service termination policies and procedures evaluated in such proceeding.
Section 16a-3j of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2025):
Section 16-262d of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2025):
(a) In order to secure cost-effective resources to provide more reliable electric or gas service for the benefit of the state's electric ratepayers and to meet the state's energy and environmental goals and policies established in the Integrated Resources Plan, pursuant to section 16a-3a, andtheComprehensiveEnergyStrategy,pursuanttosection16a-3d,the Commissioner of Energy and Environmental Protection, in consultation with the procurement manager identified in subsection (l) of section 16- 2, the Office of Consumer Counsel and the Attorney General, may, in coordination with other states in the control area of the regional independent system operator, as defined in section 16-1, or on behalf of [Connecticut] the state alone, issue multiple solicitations for long-term contracts from providers of resources described in subsections (b), (c) and (d) of this section.
(a) No electric distribution, gas, telephone or water company, no electric supplier and no municipal utility furnishing electric, gas or water service may terminate such service to a residential dwelling on account of nonpayment of a delinquent account unless such company, Public Act No.
(b) In any solicitation for resources to reduce electric or gas demand and improve resiliency and electric or gas grid reliability in the state, issued pursuant to this subsection, the commissioner shall seek proposals for (1) passive demand response measures, including, but not limited to, energy efficiency, load management, and the state's conservation and load management programs, pursuant to section 16- 245m;
25-173 5 of 140 Substitute Senate Bill No.
[, that are capable, either singly or through aggregation, of reducing electric demand by one megawatt or more;] and (2) Class I renewable energy sources and Class III sources, as defined in section 16- 1, provided any such project proposal is for a facility that has a LCO 5 of 28 Substitute Bill No.
4 electric supplier or municipal utility first gives notice of such delinquency and impending termination by first class mail addressed to the customer to which such service is billed, [at least] not less than thirteen calendar days prior to the proposed termination, except that if an electric distribution or gas company, electric supplier or municipal utility furnishing electric or gas service has issued a notice under this subsection but has not terminated service prior to issuing a new bill to the customer, such company, electric supplier or municipal utility may terminate such service only after mailing the customer an additional notice of the impending termination, addressed to the customer to which such service is billed either (1) by first class mail at least thirteen calendar days prior to the proposed termination, or (2) by certified mail, [at least] not less than seven calendar days prior to the proposed termination.
4 nameplate capacity rating of more than two megawatts and less than twenty megawatts.
In the event that multiple dates of proposed termination are provided to a customer, no such company, electric supplier or municipal utility shall terminate service [prior to] before the latest of suchdates.
The commissioner may also seek proposals for energy storage systems, as defined in section 16-1, that are capable of storing up to twenty megawatts of energy.
For purposesofthissubsection,thethirteen-day periodsand seven-day period shall commence on the date such notice is mailed.
Proposals pursuant to this subsection shall not have a contract term exceeding twenty years.
If such company, electric supplier or municipal utility does not terminate service within one hundred twenty days after mailing the initial notice oftermination,suchcompany,electricsupplierormunicipalutilityshall give thecustomer a new notice [at least] not less than thirteen daysprior to termination.
Each electric distribution company, as defined in section 16-1, and gas company, as defined in section 16-1, shall, in consultation with the Energy Conservation Management Board established pursuant to section 16-245m, assess whether the submission of a proposal for passive and active demand response measures is feasible pursuant to any solicitation issued pursuant to subdivision (1) of this subsection, providedsuchproposalonly includeselectric or gasdemandreductions that are in addition to existing and projected demand reductions obtained through the conservation and load management programs.
Every termination notice issued by a public service company, electric supplier or municipal utility shall contain or be accompanied by an explanation of the rights of the customer provided in subsection (c) of this section.
(c) In any solicitation issued pursuant to this subsection, the commissioner shall seek proposals from (1) Class I renewable energy sources, as defined in section 16-1, having a nameplate capacity rating of twenty megawatts or more, and any associated transmission;
(b) No such company, electric supplier or municipal utility shall effect termination of service for nonpayment during such time as any resident of a dwelling to which such service is furnished is seriously ill, if the fact of such serious illness is certified to such company, electric supplier or municipal utility by a registered physician, a physician assistant or an advanced practice registered nurse within such period of Public Act No.
and (2) verifiable large-scale hydropower, as defined in section 16-1, and any associated transmission.
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The commissioner may also seek proposals for energy storage systems, as defined in section 16-1, having a nameplate capacity rating of twenty megawatts or more.
4 time after the mailing of a termination notice pursuant to subsection (a) of this section as the Public Utilities Regulatory Authority may by regulation establish, provided the customer agrees to amortize the unpaid balance of his account over a reasonable period of time and keeps current his account for utility service as charges accrue in each subsequent billing period.
Proposals under this subsection shall not have a contract term exceeding twenty years.
(c)No such company, electricsupplier or municipalutility shalleffect termination of service to a residential dwelling for nonpayment during the pendency of any complaint, investigation, hearing or appeal, initiated by a customer within such period of time after the mailing of a terminationnotice pursuant to subsection(a) ofthissectionasthePublic Utilities Regulatory Authority may by regulation establish;
In soliciting Class I renewable energy sources, and any associated transmission,pursuanttothissubsection,thecommissionermay,forthe purpose of balancing such Class I energy deliveries and improving the economic viability of such proposals, also seek proposals for electricity and capacity from Class II renewable energy sources, as defined in section 16-1, and existing hydropower resources other than those described under section 16-1, provided such resources are interconnected to such associated transmission and are located in the control area of the regional independent system operator or imported into the control area of the regional independent system operator from resources located in an adjacent regional independent system operator's LCO 6 of 28 Substitute Bill No.
provided, any telephone company during the pendency of any complaint, investigation, hearing or appeal may terminate telephone service if the amount of charges accruing and outstanding subsequent to the initiation of any complaint, investigation, hearing or appeal exceeds on a monthly basis the average monthly bill for the previous three months or if the customer fails to keep current [his] such telephone account for all undisputed charges or fails to comply with any amortization agreement as hereafter provided.
4 control area.
(d) Any customer who has initiated a complaint or investigation under subsection (c) of this section shall be given an opportunity for review of such complaint or investigation by a review officer of the company, electric supplier or municipal utility other than a member of such company's, electric supplier's or municipal utility's credit authority, provided the Public Utilities Regulatory Authority may waive this requirement for any company, electric supplier or municipal utility employing fewer than twenty-five full-time employees, which review shall include consideration of whether the customer should be permitted to amortize the unpaid balance of his account over a reasonable period of time.
(d)Inanysolicitationfornaturalgasresourcesissuedpursuanttothis subsection, the commissioner shall seek proposals for (1) interstate natural gas transportation capacity, (2) liquefied natural gas, (3) liquefied natural gas storage, and (4) natural gas storage, or a combination of any such resources, provided such proposals provide incremental capacity, gas, or storage that has a firm delivery capability to transport natural gas to natural gas-fired generating facilities located in the control area of the regional independent system operator.
No termination shall be effected for any Public Act No.
Proposalsunder thissubsectionshallnot have acontracttermexceeding a period of twenty years.
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(e) The Commissioner of Energy and Environmental Protection, in consultation with the procurement manager identified in subsection (l) of section 16-2, the Office of Consumer Counsel and the Attorney General, shall evaluate project proposals received under any solicitation issued pursuant to subsection (b), (c) or (d) of this section, based on factors including, but not limited to, (1) improvements to the reliability of the electric system, including during winter peak demand;
4 customer complying with any such amortization agreement, provided such customer also keeps current [his] such account for utility service as charges accrue in each subsequent billing period.
(2) whether the benefits of the proposal outweigh the costs to ratepayers;
(e)Any customer whosecomplaint orrequestfor aninvestigationhas resulted ina determinationby acompany,electricsupplier or municipal utility which is adverse to [him] such customer may appeal such determination to the Public Utilities Regulatory Authority or a hearing officer appointed by the authority.
(3) fuel diversity;
(f) If, following the receipt of a termination notice or the entering into of an amortization agreement, the customer makes a payment or payments amounting to twenty per cent of the balance due, the public service company or electric supplier shall not terminate service without giving notice to the customer, in accordance with the provisions of this section, of the conditions the customer must meet to avoid termination, but such subsequent notice shall not entitle such customer to further investigation, review or appeal by the company, electric supplier, municipal utility or authority.
(4) the extent to which the proposal contributes to meeting the requirements to reduce greenhouse gas emissions and improve air quality in accordance with sections 16-245a, 22a-174 [,] and 22a-200a;
(g) No electric distribution, gas or water company, gas registrant or municipal utility furnishing electric, gas or water service shall submit to a credit rating agency, as defined in section 36a-695, any information about a residential customer's nonpayment for electric, gas or water service unless the customer is more than one hundred twenty days delinquent in paying for such service.
(5) whether the proposal is in the best interest of ratepayers;
In no event shall such a company, gas registrant or municipal utility submit to a credit rating agency any information about a residential customer's nonpayment for such service if the customer has initiated a complaint, investigation, hearing or appeal with regard to such service under subsection (c) of this section that is pending before the authority.
and (6) whether the proposal is aligned with the policy goals outlined in the Integrated Resources Plan, pursuant to section 16a-3a, and the Comprehensive Energy Strategy, pursuant to section 16a-3d, including, but not limited to, environmental impacts.
If such a company, gas registrant or municipal utility intends to submit to a credit rating agency information about a customer's nonpayment for service, it shall, at least thirty days before submitting such information, send the customer by Public Act No.
In conducting such evaluation, the commissioner may also consider the extent to which project proposals provide economic benefits for the state.
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In evaluating project proposals received under any solicitation issued pursuant to subsection (b), (c) or (d) of this section, the commissioner shall compare thecostsandbenefitsofsuchproposalsrelative to theexpectedor actual costs and benefits of other resources eligible to respond to the other procurements authorized pursuant to this section.
4 first class mail notification that includes the statement, "AS AUTHORIZED BY LAW, FOR RESIDENTIAL ACCOUNTS, WE SUPPLY PAYMENT INFORMATION TO CREDIT RATING AGENCIES.
LCO 7 of 28 Substitute Bill No.
IF YOUR ACCOUNT IS MORE THAN ONE HUNDRED TWENTY DAYS DELINQUENT, THE DELINQUENCY REPORT COULD HARM YOUR CREDIT RATING".
4 (f) The commissioner may hire consultants with expertise in quantitative modeling of electric and gas markets, and physical gas and electric system modeling, as applicable, to assist in implementing this section, including, but not limited to, the evaluation of proposals submitted pursuant to this section.
(h) No telephone company or certified telecommunications provider shall submit to a credit rating agency, as defined in section 36a-695, any informationabout aresidentialcustomer'snonpayment fortelephoneor telecommunicationsservice,unlessthecustomer ismorethansixtydays delinquent in paying for such service.
All reasonable costs, not exceeding one million five hundred thousand dollars, associated with the commissioner's solicitation and review of proposals pursuant to this section shall be recoverable through the nonbypassable federally mandated congestion charge, as defined in subsection (a) of section 16- 1.
In no event shall a telephone company or certified telecommunications provider submit to a credit rating agency any information about a residential customer's nonpayment for such service if the customer has initiated a complaint, investigation, hearing or appeal with regard to such service under subsection (c) of this section that is pending before the authority.
Such costs shall be recoverable even if the commissioner does not select any proposals pursuant to solicitations issued pursuant to this section.
If a telephone company or certified telecommunications provider intends to submit to a credit rating agency information about a customer's nonpayment for service, it shall, at least thirty days before submitting such information, send the customer, by first class mail, notification that includes the statement, "AS AUTHORIZED BY LAW, FOR RESIDENTIAL ACCOUNTS, WE SUPPLY PAYMENT INFORMATION TO CREDIT RATING OR DEBT COLLECTION AGENCIES.
(g) If the commissioner finds proposals received pursuant to this section to be in the best interest of [electric] ratepayers, in accordance with the provisions of subsection (e) of this section, the commissioner may select any such proposal or proposals, provided the total capacity of the resources selected under all solicitations issued pursuant to this section in the aggregate do not exceed three hundred seventy-five million cubic feet per day of natural gas capacity, or the equivalent megawatts of electricity, electric demand reduction or combination thereof.
IF YOUR ACCOUNT IS MORE THAN SIXTY DAYS DELINQUENT,THEDELINQUENCYREPORTCOULDHARMYOUR CREDIT RATING".
Any proposals selected pursuant to subsections (b) and (c) of this section shall not, in the aggregate, exceed ten per cent of the load distributed by the state's electric distribution companies or ten per cent of the load distributed by the state's gas companies.
The commissioner may, on behalf of all customers of electric distribution companies, direct the electric distribution companies to enter into long-term contracts for active or passive demand response measures that result in electric savings, electricity time-of-use shifts, electricity, electric capacity, environmental attributes, energy storage, interstate natural gas transportation capacity, liquefied natural gas, liquefied natural gas storage [,] and natural gas storage, or any combination thereof, from proposals submitted pursuant to this section, provided the benefits of such contracts to customers of electric distribution companies outweigh the costs to such companies' customers.
The commissioner may, on LCO 8 of 28 Substitute Bill No.
4 behalf of the customers of gas companies, direct the gas companies to enter into long-term contracts for active or passive demand response measures that result in gas savings or time-of-use shifts from proposals submitted pursuant to this section, provided the benefits of such contracts to customers of gas companies outweigh the costs to such companies' customers.
(h) Any agreement entered into pursuant to this section shall be subject to review and approval by the Public Utilities Regulatory Authority.
The electric distribution company or gas company shall file an application for the approval of any such agreement with the authority.
The authority shall approve such agreement if it is cost effective and in the best interest of electric or gas ratepayers.
The authority shall issue a decision not later than ninety days after such filing.
If the authority does not issue a decision within ninety days after such filing, the agreement shall be deemed approved.
When an electric distribution company or gas company both apply for recovery of net costs of the same such agreement, the authority shall determine which net costs are attributable to each company.
The net costs of any such agreement, including costs incurred by the electric distribution company or gas 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 fully reconciling component of electric rates or gas rates for all customers of the electric distribution company or gas company.
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.
For any contract for interstate natural gas transportation capacity, liquefied natural gas, liquefied natural gas storage or natural gas storage entered into pursuant to this section, the electric distribution company may contract with a gas supply manager to sell such interstate natural gas transportation capacity, liquefied natural gas, liquefied natural gas storage or natural gas storage, or a combination thereof, into the LCO 9 of 28 Substitute Bill No.
4 wholesale markets at the best available price in a manner that meets all applicable requirements pursuant to all applicable regulations of the Federal Energy Regulatory Commission.
(i) Certificates issued by the New England Power Pool Generation Information System for any Class I renewable energy source or Class III source procured by an electric distribution company pursuant to this section may be:
(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, so long as the revenues from such sale are credited to electric distribution company customers as described in this subsection;
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 the option that is in the best interest of such company's ratepayers.
Section 16a-3m of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2025):
Section 2 of public act 24-31 is repealed and the following is substituted in lieu thereof(Effective from passage):
(a) For the purposes of this section:
The chairperson of the Public Utilities Regulatory Authority shall conduct a study regarding the renewable energy tariff programs established pursuant to section 16-244z of the general statutes, as Public Act No.
(1) "Best interest of ratepayers" means the benefits of a contract or proposal outweigh the costs to electric ratepayers, based on whether the delivered pricesofsourcesincludedin such contract or proposalareless than the forecasted price of energy and capacity, as determined by the commissioner or the commissioner's designee, and based on a consideration of the following factors, as determined by the commissioner or the commissioner's designee:
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(A) Impacts on electric system operations and reliability;
4 amended by [this act] public act 24-31 and this act.
(B) the extent to which such contract or proposal will contribute to (i) the local sourcing requirement set by the regional independent system operator, as defined in section 16-1, and (ii) meeting the requirements to reduce greenhouse gas emissions and improve air quality in accordance with sections 16-245a, 22a-174 and 22a-200a;
Such study shall include, but not be limited to, an examination of (1) whether to extend such programs beyond the procurement years authorized in said section;
(C) fuel diversity;
(2) potential processes that can be adopted to avoid stranded projects;
and (D) whether the proposal is aligned with the policy goals outlined in the Integrated Resources Plan LCO 10 of 28 Substitute Bill No.
and (3) potential successor programs.
4 developed pursuant to section 16a-3a and the Comprehensive Energy Strategy developed pursuant to section 16a-3d, including, but not limited to, environmental impacts;
An examination conducted pursuant to subdivisions (2) and (3) of this section shall include, but not be limited to:
and (2) "Eligible nuclear power generating facility" means a nuclear power generating facility that is located in the control area of the regional independent system operator, as defined in section 16-1, and is licensed to operate through January 1, 2030, or later.
(A) An examination of potentialprograms that do not incorporate any megawatt cap;
(b) The Commissioner of Energy and Environmental Protection and the Public Utilities Regulatory Authority shall (1) conduct an appraisal regarding nuclear power generating facilities in accordance with subsection (c) of this section, and (2) determine whether a solicitation process for nuclear power generating facilities shall be conducted pursuant to subsection (d) of this section.
(B) consideration of different possible criteria and procedures for choosing projects, such as choosing projects by lottery or on a first-come, first-served basis;
On or before February 1, 2018, the commissioner and the authority shall report, in accordance with section 11-4a, the results of the appraisal and the selection conducted pursuant to subsection (d) of this section to the General Assembly.
[and] (C) an identification of alternative bidding frameworks, such as awarding solicitations based on what projects can be deployed soonest;
If the General Assembly does not reject such results by a simple majority vote in each house on or before March 1, 2018, such results shall be deemed approved.
(D) a framework to encourage the aggregation of distributed energy resources that can respond and provide grid and retail market services;
(c) The appraisal conducted pursuant to subdivision (1) of subsection (b) of this section shall assess:
(E) an evaluation of how nonparticipating electric customers may be impacted by renewable energy tariff programs, and strategies for minimizing any unintended duplication of incentives or subsidies between participating and nonparticipating electric customers, including a fair and complete evaluation of costs and benefits of the renewable energy tariff programs and methods to maximize benefits to nonparticipating customers, such as reducing electric system distributioncongestion;
(1) The current economic condition of nuclear generating facilities located in the control area of the regional independent system operator, as defined in section 16-1;
and(F)considerationofdifferent compensation structures to encourage deployment in areas of grid underutilization.
(2) the projected economic condition of nuclear power generating facilities located in the control area of the regional independent system operator, as defined in section 16-1;
Not later than [January 15] March 1, 2026, the chairperson shall submit, inaccordancewiththeprovisionsofsection11-4aofthegeneralstatutes, the results of such study, including any recommendations, to the joint standing committee of the General Assembly having cognizance of matters relating to energy and technology.
(3) the impact on the following considerations if such nuclear power generating facilities retire before July 1, 2027:
(A) Electric markets, fuel diversity, energy security and grid reliability, (B) the state's greenhouse gas emissions mandated levels established pursuant to section 22a-200a, and (C) the state, regional and local economy.
(d) After completing the appraisal, if the results of such appraisal LCO 11 of 28 Substitute Bill No.
4 demonstrate that action is necessary, the commissioner shall act and may issue one or more solicitations, in consultation with the procurement manager identified in subsection (l) of section 16-2 and the Office of Consumer Counsel established in section 16-2a, for zero- carbon electricity generating resources, including, but not limited to, eligible nuclear power generating facilities, hydropower, Class I renewable energysources,asdefinedinsection16-1,andenergystorage systems, provided (1) the total annual energy output of any proposals selected, in the aggregate, shall be not more than twelve million megawatt hours of electricity, (2) any agreement entered into pursuant to this subdivision with an eligible nuclear power generating facility or hydropower shall be for a period of not less than three years and not more thantenyears, and(3)any agreement enteredinto pursuant tothis subdivision with Class I renewable energy sources, as defined in section 16-1, and energy storage systems shall be for a period of not more than twenty years.
On or before May 1, 2018, if the results of such appraisal demonstrate that one or more solicitations pursuant to this subsection are necessary, the commissioner shall initiate such solicitation process pursuant to this subsection, in accordance with subsection (e) of this section, provided any changes made, contracts entered into or agreements entered into are in the best interest of ratepayers.
(e) (1) Any solicitation issued pursuant to subsection (d) of this section for zero-carbon electricity generating resources, including, but not limited to, eligible nuclear power generating facilities, hydropower, Class I renewable energy sources, as defined in section 16-1, and energy storage systems, shall be for resources delivered into the control area of the regional independent system operator, as defined in section 16-1, and any agreement entered into pursuant to subdivision (2) of this subsection shall be in the best interest of ratepayers.
If the commissioner finds proposals received pursuant to such solicitations to be in the best interest of ratepayers, the commissioner may select any such proposal or proposals, provided (A) the total annual energy output of any proposals selected, in the aggregate, shall be not more than twelve million megawatt hours of electricity, (B) any agreement entered into LCO 12 of 28 Substitute Bill No.
4 pursuant to this subdivision with an eligible nuclear power generating facility or hydropower shall be for a period of not less than three years and not more than ten years, and (C) any agreement entered into pursuant to this subdivision with Class I renewable energy sources, as defined in section 16-1, and energy storage systems shall be for a period of not more than twenty years.
(2) If the commissioner has made the determination and finding pursuant to subdivision (1) of this subsection, the commissioner shall, on behalf of all customers of electric distribution companies, direct the electric distribution companies to enter into agreements for energy, capacity and any environmental attributes, or any combination thereof, from proposals submitted pursuant to this subdivision.
(3) Any agreement entered into pursuant to subdivision (2) of this subsection shall be subject to review and approval by thePublic Utilities Regulatory Authority.
The electric distribution company shall file an application for the approval of any such agreement with the authority.
The authority's review shall commence upon the filing of the signed power purchase agreement with the authority.
The authority shall approve agreements that it determines (A) provide for the delivery of adequate and reliable products and services, for which there is a clear public need, at a just and reasonable price, (B) are prudent and cost effective,and(C)thattherespondenttothesolicitationhasthetechnical, financial and managerial capabilities to perform pursuant to such agreement.
For any eligible nuclear power generating facility selected in any solicitation described in subsection (g) of this section, the authority shall require any such agreement to be conditioned upon the approval of such a power purchase agreement or other agreement for energy, capacity and any environmental attributes, or any combination thereof, withsuch eligiblenuclear power generating facility,inat least two other states, by the applicable officials of such states or by electric utilities or other entities designated by the applicable officials of such states.
The authority shall issue a decision not later than one hundred eighty days after such filing.
If the authority does not issue a decision within one hundred eighty days after such filing, the agreement shall be deemed LCO 13 of 28 Substitute Bill No.
4 approved.
The net costsofany suchagreement, 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, but excluding costs associated with the provision of standard service pursuant to subsection (h) of 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 purchasedinaccordancewithlong-termcontractsenteredintopursuant to this subsection, except any such net revenues associated with the provision of standard service pursuant to subsection (h) of this section, shall be credited to customers through the same nonbypassable fully reconciling rate component for all customers of the contracting electric distribution company.
(f) Each person owning and operating a nuclear power generating facility in the state shall pay a pro rata share of all reasonable costs associated with the department's appraisal pursuant to subsection (c) of this section, determination pursuant to subsection (d) of this section, and actions taken pursuant to subsection (e) of this section in an amount not to exceed one million dollars.
(g) Any solicitation issued pursuant to this section on or after July 1, 2024, for eligible nuclear power generating facilities shall be conducted in coordination with two or more other states in the control area of the regional independent system operator, as defined in section 16-1.
The commissioner may not direct any electric distribution company to enter into an agreement with an eligible nuclear power generating facility pursuant to this section unless the applicable officials of at least two such states select a proposal for energy, capacity and any environmental attributes, or any combination thereof, from an eligible nuclear power generating facility in response to such coordinated solicitation.
The commissioner may revise the appraisal conducted pursuant to subsections (b) and (c) of this section in a manner determined by the commissioner and in furtherance of any such solicitation, at the commissioner's discretion.
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4 (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, approve or deny 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 approvespursuant 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.
(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 LCO 15 of 28 Substitute Bill No.
4 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.
(NEW) (Effective from passage) (a) For the purposes of this section:
(NEW) (Effective July 1, 2025) Any low-income rates implemented by the Public Utilities Regulatory Authority pursuant to section 16-19 of the general statutes, as amended by this act, 16-19e, 16- 19oo or 16-19zz of the general statutes in any rate case or other Public Act No.
(1) "Utility-scale renewable thermal energy network" means distribution infrastructure (A) established for the purpose of providing thermal energy for space heating and cooling, domestic hot water production, refrigeration, thermal energy storage or commercial and industrial processes requiring heating or cooling, and (B) implemented through interconnections between one or more renewable thermal energy resources, which may be owned by multiple parties, and between these resources and heat pumps in multiple buildings owned by multiple parties;
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and (2) "Renewable thermal energy" means (A) ambient heating or cooling provided, absorbed or stored by geothermal well boreholes or other noncombusting, non-fossil-fuel-consuming, nonnuclear thermal resources, or (B) thermal energy otherwise lost to the atmosphere or other environmental compartment as waste heat.
4 proceeding initiated onor after October 1,2025,or inapending rate case for whicha finaldecisionhasnot beenissued prior to November 1,2025, shall include, but not be limited to, the following cost-containment measures to protect ratepayers:
(b) Notwithstanding the provisions of title 16 of the general statutes, not later than twelve months after the effective date of this section, the Public Utilities Regulatory Authority shall initiate a proceeding to establish a program for development of utility-scale renewable thermal energy networks by gas companies, as defined in section 16-1 of the general statutes.
(1) A monthly kilowatt hour usage cap applied to the low-income rate for customers of an electric distribution company, a monthly centum cubic feet usage cap applied to the low- income rate for customers of a gas company and a gallon usage cap applied to the low-income rate for customers of a water company;
In establishing said program, the authority shall develop parameters for such networks, procedures for filing proposals for such networks and a standardized data collection system enabling the authority and the public to track the status and performance of utility-scale renewable thermal energy networks developed pursuant to LCO 16 of 28 Substitute Bill No.
(2) a budgetary target-triggering review by the authority if an electric distribution company, gas company or water company's total cost to fund the low-income rate exceeds a certain percentage of the electric distribution company, gas company or water company's annual billed total revenues;
4 this section.
and (3) a recertification process to confirm income eligibility for the program and appropriate tier placement at least once every twelve months of program enrollment.
(c) The authority shall structure the utility-scale renewable thermal energy network program in the best interest of ratepayers of public service companies, as defined in section 16-1 of the general statutes.
For purposes of this section, a determination of the best interest of ratepayers shall be based on an analysis of the reasonableness of the size, scope, scale and character of the project and related budget and the costs and benefits of the project, including, but not limited to:
(1) Avoided long-term energy and infrastructure investments in extending or maintaining gas infrastructure;
(2) the anticipated contribution of such projects to alleviation of seasonal strains on the state's natural gas supply and electric distribution system;
(3) consumer protections and benefits for end users of the project;
(4) adherence to best practices emerging from thermal energy network programs and project designs developed in other states or elsewhere in the state;
(5) potential for accrual of capital and operational cost savings via interconnection with other existing or future thermal energy networks;
(6) improvements in air quality in the buildings and neighborhoodserved by the project;
and (7) reductions in greenhouse gas emissions that contribute to achieving the emissions reductions set forth in section 22a-200a of the general statutes.
The authority may approve a utility-scale renewable thermal energy network proposal that meets the parameters established under the program.
(d) The authority shall create a pilot component of the utility-scale renewable thermal energy network program that requires each gas company to file with the authority, for the authority's review and approval, proposals for not less than one and not more than two pilot projects for the development of utility-scale renewable thermal energy networks that meet the program parameters established in subsection (c) of this section.
The authority shall review a proposal for a pilot project based on the program parameters and on the basis of the project's ability to provide insights into the potential for scaling up future deployment of thermal energy networks in Connecticut, for improving the performance of these networks and for bringing down LCO 17 of 28 Substitute Bill No.
4 the cost of broader deployment of these networks.
(e) The authority shall require projects submitted to the utility-scale renewable thermal energy network program for approval to include a proposed rate structure for thermalenergy servicessupplied to network end users and consumer-protection plans for end users.
The authority may approve the proposed rate structure if the projected heating and cooling costs for end users is not greater than the heating and cooling costs the end users would be projected to incur if had they not participated.
(f) The authority shallapprove therecovery ofprudent costsincurred by a gas company for the development and construction of projects approved pursuant to the utility-scale renewable thermal energy program through a nonbypassable and fully reconciling component of gas rates for all customers of the gas company.
(g) A gas company may meet its obligation under subsection (b) of section 16-20 of the general statutes through a project approved by the authority pursuant to this section.
(h) The authority shall ensure the transparency and validity of the outcomes of the projects developed pursuant to this section through third-party evaluation of the data the authority collects through its standardized data collection requirement.
(i) Nothing in this section shall prohibit a municipality from developing, owning or maintaining a utility-scale renewable thermal energy network.
(j) As part of the utility-scale renewable thermal energy network program, the authority shall establish a working group to study thermal energy networks comprising representatives of the staffs of the authority, the Department of Energy and Environmental Protection, the Connecticut Green Bank, the gas and electric companies and nongovernmental environmental organizations.
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4 (k) As part of the utility-scale renewable thermal energy network program, the authority shall, through the working group established under subsection (j) of this section, undertake a study or studies assessing the potential breadth of deployment of thermal energy networksinthestate.
Suchstudy shalladdressfactorsincluding,but not limited to:
(1) Technical feasibility;
(2) economic feasibility, taking into account the potential for (A) reduction in energy costs of the customer that is the off-taker of the system;
(B) reduction in network capital costs as the scale of deployments increases;
(C) reduction in capital and operating costs as thermal energy networks are interconnected;
(D) avoided cost of expanding and maintaining portions of the gas- distribution system;
(E) minimization of the cost of expanding the electricity distribution system to facilitate increasing electrification of thermal loads;
(F) reduction in per-kilowatt-hour cost of supplying electricity as more electricity is sold;
(G) state and federal financial incentives available;
(H) employing and advancing the skills of gas- utility workers;
(I) providing the gas utility companies a business model not dependent on continued use of combustion of fossil fuels;
and (J) improvement of air quality;
(3) deployment strategies to maximize the scope, minimize the cost and equitably allocate the cost of thermal energy networks, including systematic identification of significant sources of waste heat across the state;
(4) considerations regarding deployment in (A) low and moderate income communities, (B) environmentaljustice communities,(C) newresidentialandcommercial construction versus retrofitting existing residential and commercial buildings, (D) urban versus rural communities, (E) areas with existing gas service versus areas without, and (F) ownership and business models;
and (5) appropriate parameters for broader deployment in the near and medium term, including site selection, network design, interactions with, and impacts on, the gas and electricity distribution systems, ratepayer protections, billing models, consumer protections, data collection, community engagement and deployment in low and moderate income communities and environmental justice communities.
Section 16-32e of the general statutes is repealed and the LCO 19 of 28 Substitute Bill No.
(NEW) (Effective from passage) Not later than November 15, 2029, the chairperson of the Public Utilities Regulatory Authority shall submit a report, inaccordance withthe provisionsofsection11-4aof the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to energy and technology regarding the implementation of low-income rates pursuant to sections 16-19 of the general statutes, as amended by this act, 16-19e, 16-19oo and 16-19zz of the general statutes, during the period from January 1, 2024, to December 31, 2028, inclusive.
4 following is substituted in lieu thereof (Effective October 1, 2025):
The report shall include, but need not be limited to, a review of the low-income rate program, including the effectiveness of the cost-containment measures, the effectiveness of the low-income rate in reducing uncollectibles and the effectiveness of the low-income rate in encouraging bill payment.
(a) As used in this section, "emergency" means any (1) hurricane, tornado, storm, flood, high water, wind-driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, drought or fire explosion, or (2) attack or series of attacks by an enemy of the United States causing, or which may cause, substantial damage or injury to civilian property or persons in the United States in any manner by sabotage or by the use of bombs, shellfire or atomic, radiological, chemical, bacteriological or biological means or other weapons or processes.
Sec.
(b) Not later than July 1, 2012, and every two years thereafter, each public service company, as defined in section 16-1, each telecommunications company, as defined in section 16-1, that installs, maintains, operates or controls poles, wires, conduits or other fixtures under or over any public highway for the provision of telecommunications service authorized by section 16-247c, each voice overInternet protocolservice provider,asdefinedinsection28-30b,and each municipal utility furnishing electric, gas or water service shall file with the Public Utilities Regulatory Authority, the Department of Emergency Services and Public Protection and each municipality located within the service area of the public service company, telecommunications company, voice over Internet protocol service provider or municipal utility an updated plan for restoring service which is interrupted as a result of an emergency, except no such plan shall be required of a public service company or municipal utility that submits a water supply plan pursuant to section 25-32d.
9.
Section 16-244z of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2025):
(a) (1) (A) On or before September 1, 2018, the Public Utilities Public Act No.
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4 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 planisconsistent withand contributesto therequirements 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)ofthissubsection.In suchproceeding,theauthorityshall 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 Public Act No.
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4 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)] (B) 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 issuedpursuant tothissubsection,and(II)atariffproposalthatincludes a tariff rate for customers eligible under subparagraph [(C)] (B) of subdivision(2)ofthissubsectionbasedonenergypolicygoalsidentified 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 Public Act No.
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4 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)] (B) customersthatownordevelopnewgenerationprojectsthatareashared 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) after January 1, 2026, emits no pollutants, (ii) is served by an electric distribution company, [as defined in section 16-1,(ii)] (iii) has a nameplate capacity rating of five megawatts or less, and [(iii)] (iv) has at least two subscribers.
Any project that is eligible pursuant to subparagraph [(C)] (B) 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 Public Act No.
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4 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] subparagraph (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 suchgenerationproject shallbe sizedso asnot to exceed theloadat 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 Public Act No.
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4 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 theelectricdistributioncompaniesforatermnottoexceedtwentyyears, 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)residentialcustomerswho candemonstrate, 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 Public Act No.
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4 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 requirementsofanyfederalactsprovidingrenewableenergyincentives;
Public Act No.
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4 (C) "Low-income service organization" means a for-profit or nonprofitorganizationthatprovidesserviceorassistancetolow-income individuals;
and (D) "Moderate-income customer" means an in-state retail end user of anelectricdistributioncompany whoseincome isbetweensixtyper 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 ofaligning suchdefinition withtherequirementsofany 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 authorityshallissuea finaldecisioninsuchproceeding onor 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 Public Act No.
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4 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.
For rates offered pursuant to subparagraph (A) or (B) of subdivision (2) of this subsection, on and after January 1, 2026, the authority shall establish a nonbypassable charge as part of the netting tariff offering at a rate equal to at least three and one-quarter cents and shall adjust the compensation offered pursuant to the buy-all tariff such that the rates offered pursuant to both tariff offerings are substantially similar.
(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 emits no pollutants and that is located on a customer's own premises and has a nameplate capacity rating of twenty-five kilowatts or lessfora termnottoexceed twentyyears:(A)A tarifffor thepurchase 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, Public Act No.
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4 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) Except as provided in subparagraph (B) of this subdivision, for procurement and tariff years commencing on and after January 1, 2025, [the total megawatts available to customers eligible under subparagraph(A)ofsubdivision(2)of subsection(a)ofthis sectionshall not exceed ten megawatts per year,] the total megawatts available to customers eligible under subparagraph [(B)] (A) of subdivision (2) of subsection (a) of this section shall not exceed one hundred megawatts Public Act No.
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4 per year and the total megawatts available to customers eligible under subparagraph [(C)] (B) 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) For procurement and tariff years commencing on and after January 1, 2025, the authority may exceed the limits on total available megawatts described in subparagraph (A) of this subdivision for any procurement and tariff program authorized pursuant to subsection (a) of this section in any such year, if, during the period commencing on January first and ending on the date that the last project is selected pursuant to the usual procurement process for such program, as determined by the authority, the aggregate dollar amount of procurements of energy and renewable energy credits over the tariff term for all selected projects does not exceed the aggregate dollar amount of procurements of energy and renewable energy credits over the tariff term for all projects selected in such program during the calendar year 2024.
The authority shall determine the manner of exceeding such limits.
(C) (i) The electric distribution companies shall continue to offer any tariffs developed pursuant to subparagraph (B) of subdivision (1) of subsection (a) of this section for six years, inclusive of previous years of such procurement and tariff program.
The sixth and final year of such procurement and tariff program shall be the calendar year 2027.
(ii) The electric distribution companies shall continue to offer any tariffs developed pursuant to subparagraph (C) of subdivision (1) of Public Act No.
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4 subsection (a) of this section for eight years, inclusive of previous years of such procurement and tariff program.
The eighth and final year of such procurement and tariff program shall be the calendar year 2027.
(D) 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.
(E) 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)otherenergypolicybenefitsidentifiedintheComprehensiveEnergy Strategy prepared pursuant to section 16a-3d.
(d) In accordance with subsection [(h)] (g) of section 16-245a, as amended by this act, the authority shall [determine which of the followingtwooptionsisinthebestinterestofratepayersandshalldirect Public Act No.
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4 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 renewableenergy certificatesinto theNewEngland 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] follow the procedures established pursuant to subsection (g) of section 16-245a, as amended by this act, for certificates issued by the New England Power Pool Generation Information System for any Class I renewable energy sourcepurchased by anelectricdistributioncompany pursuant to this section.
(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 Public Act No.
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4 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.
(h) Notwithstanding any provision of this section, the authority shall incorporate the program established pursuant to section 16-244ee into the programs authorized pursuant to this section.
Sec.
10.
Section 16-245e of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2025):
(a) As used in this section, sections 16-245f to 16-245k, inclusive, as amended by this act, and section 16-245m, as amended by this act:
(1) "Rate reduction bonds" means bonds, notes, certificates of participation or beneficial interest, or other [evidences] evidence of indebtedness or ownership, issued pursuant to an executed indenture or other agreement of a financing entity, in accordance with this section and sections 16-245f to 16-245k, inclusive, as amended by this act, the proceeds of which are used, directly or indirectly, to provide, recover, finance, or refinance stranded costs, financed utility services or economic recovery transfer, or to sustain funding of conservation and load management and renewable energy investment programs by substituting for disbursements to the General Fund from the Conservation and Load Management Plan established by section 16- 245m, as amended by this act, and from the Clean Energy Fund established by section 16-245n, and which, directly or indirectly, are secured by, evidence ownership interests in, or are payable from, transition property;
(2) "Competitive transition assessment" means those nonbypassable Public Act No.
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4 rates and other charges, that are authorized by the authority (A) in a financing order in respect to the economic recovery transfer, or in a financing order, to sustain funding of conservation and load management and renewable energy investment programs by substituting disbursements to the General Fund from proceeds of rate reduction bonds for such disbursements from the Conservation and Load Management Plan established by section 16-245m, as amended by thisact, andfromtheCleanEnergy Fundestablishedby section16-245n, or to recover those stranded costs or financed utility services that are eligibletobefundedwiththeproceedsofrate reductionbondspursuant to section 16-245f, as amended by this act, and the costs of providing, recovering, financing, or refinancing the economic recovery transfer or such substitution of disbursements to the General Fund or such stranded costs or financed utility services through a plan approved by the authority in the financing order, including the costs of issuing, servicing, and retiring rate reduction bonds, (B) to recover those stranded costs or financed utility services determined under this section but not eligible to be funded with the proceeds of rate reduction bonds pursuant to section 16-245f, as amended by this act, or (C) to recover costs determined under subdivision (1) of subsection (e) of section 16- 244g.
If requested by the electric distribution company, the authority shall include in the competitive transition assessment nonbypassable rates and other charges to recover federal and state taxes whose recovery period is modified by the transactions contemplated in this section and sections 16-245f to 16-245k, inclusive, as amended by this act;
(3) "Customer" means any individual, business, firm, corporation, association, tax-exempt organization, joint stock association, trust, partnership, limited liability company, the United States or its agencies, this state, any political subdivision thereof or state agency that purchases electric generation or distribution services as a retail end user in the state from any electric supplier or electric distribution company;
Public Act No.
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4 (4) "Finance authority" means the state, acting through the office of the State Treasurer;
(5) "Authority" means the Public Utilities Regulatory Authority;
[(5)] (6) "Net proceeds" means the book income from the sale or divestiture of assets, consisting of sales price less reasonable expenses of sale, related income and other;
[(6)] (7) "Stranded costs" means that portion of generation assets, generation-related regulatory assets or long-term contract costs determined by the authority in accordance with the provisions of subsections (e), (f), (g) and (h) of this section;
[(7)] (8) "Generation assets" means the total construction and other capital asset costs of generation facilities approved for inclusion in rates before July 1, 1997, but does not include any costs relating to the decommissioning of any such facility or any costs which the authority found during a proceeding initiated before July 1, 1998, were incurred because of imprudent management;
[(8)] (9) "Generation-related regulatory assets" means generation- related costs authorized or mandated before July 1, 1998, by the Public Utilities Regulatory Authority, approved for inclusion in the rates, and include, but are not limited to, costs incurred for deferred taxes, conservation programs, environmental protection programs, public policy costs and research and development costs, net of any applicable credits payable to customers, but does not include any costs which the authority found during a proceeding initiated before July 1, 1998, were incurred because of imprudent management;
[(9)] (10) "Long-term contract costs" mean the above-market portion of the costs of contractual obligations approved for inclusion in the rates that were entered into before January 1, 2000, arising from independent power producer contracts required by law or purchased power Public Act No.
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4 contracts approved by the Federal Energy Regulatory Commission;
[(10)] (11) "Financing entity" means the finance authority or any special purpose trust or other entity that is authorized by the finance authority, or, in the case of rate reduction bonds to recover financed utility services, authorized by the Public Utilities Regulatory Authority pursuant to a financing order, to issue rate reduction bonds or acquire transitionproperty pursuant to suchtermsandconditionsasthefinance authority, or said authority, if applicable, may specify, or both;
[(11)] (12) "Financing order" means an order of the authority adopted in accordance with this section and sections 16-245f to 16-245k, inclusive, as amended by this act;
[(12)] (13) "Transition property" means the irrevocable property right created pursuant to this section and sections 16-245f to 16-245k, inclusive, as amended by this act, in respect to the economic recovery transfer or in respect of disbursements to the General Fund to sustain funding of conservation and load management and renewable energy investment programs or those stranded costs or financed utility services that are eligible to be funded with the proceeds of rate reduction bonds pursuant to section 16-245f, as amended by this act, including, without limitation, the right, title, and interest of an electric distribution company or its transferee or the financing entity (A) in and to the rates and charges established pursuant to a financing order, as adjusted from time to time in accordance with subdivision (2) of subsection (b) of section 16-245i, as amended by this act, and the financing order, (B) to be paid the amount that is determined in a financing order to be the amount that the electric distribution company or its transferee or the financing entity islawfully entitledto receivepursuant to theprovisions of this section and sections 16-245f to 16-245k, inclusive, as amended by this act, and the proceeds thereof, and in and to all revenues, collections, claims, payments, money, or proceeds of or arising from the rates and charges or constituting the competitive transition assessment that is the Public Act No.
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4 subject of a financing order including those nonbypassable rates and other charges referred to in subdivision (2) of this subsection, and (C) in and to all rights to obtain adjustments to the rates and charges pursuant to the terms of subdivision (2) of subsection (b) of section 16-245i, as amendedbythisact,andthefinancingorder."Transitionproperty"shall constitute a current and irrevocable property right notwithstanding the fact that the value of the property right will depend on consumers using electricity or, in those instances where consumers are customers of a particular electric distribution company, the electric distribution company performing certain services;
[(13)] (14) "State rate reduction bonds" means the rate reduction bonds issued on June 23, 2004, by the state to sustain funding of conservation and load management and renewable energy investment programs by substituting for disbursements to the General Fund from the Conservation and Load Management Plan, established by section 16-245m, as amended by this act, and from the Clean Energy Fund, established by section 16-245n.
The state rate reduction bonds for the purposes of section 4-30a shall be deemed to be outstanding indebtedness of the state;
[(14)] (15) "Operating expenses" means, with respect to state rate reduction bonds or economic recovery revenue bonds, (A) all expenses, costsandliabilitiesofthestate or thetrustee incurredinconnection with the administration or payment of the state rate reduction bonds or economic recovery revenue bonds, or in discharge of its obligations and duties under the state rate reduction bonds or economic recovery revenue bonds, or bond documents, expenses and other costs and expenses arising in connection with the state rate reduction bonds or economic recovery revenue bonds, or pursuant to the financing order providing for the issuance of such bonds including any arbitrage rebate and penalties payable under the code in connection with such bonds, and (B) all fees and expenses payable or disbursable to the servicers or Public Act No.
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4 others under the bond documents;
[(15)] (16) "Bond documents" means, with respect to state rate reduction bonds or economic recovery revenue bonds, the following documents:
The servicing agreements, the tax compliance agreement and certificate, and the continuing disclosure agreement and indenture entered into in connection with the state rate reduction bonds or the economic recovery revenue bonds;
[(16)] (17) "Indenture" means the indenture executed in connection with the state rate reduction bonds or the economic recovery revenue bonds, or, with respect to state rate reduction bonds, the RRB Indenture, dated as of June 23, 2004, by and between the state and the trustee, as amended from time to time;
[(17)] (18) "Trustee" means, with respect to state rate reduction bonds, the trustee appointed under the indenture;
[(18)] (19) "Economic recovery transfer" means the disbursement to the General Fund of nine hundred fifty-six million dollars from proceeds of the issuance of the economic recovery revenue bonds;
[and] [(19)] (20) "Economic recovery revenue bonds" means rate reduction bonds issued to fund the economic recovery transfer, the costs of issuance, credit enhancements, operating expenses and such other costs as the finance authority deems necessary or advisable, and which shall be payable from competitive transition assessment charges that replace the competitive transition assessment charges funding stranded costs;
(21) "Financed utility services" means costs determined by the Public Utilities Regulatory Authority consistent with the principles set forth in sections 16-11, 16-19, as amended by this act, and 16-19e that (A) have been prudently and efficiently incurred between the period of January 1, 2018, to January 1, 2025, by an electric distribution company to prepare for and restore power to customers following storms, (B) have Public Act No.
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4 been or are reasonably expected to be prudently and efficiently incurred after January 1, 2025, by an electric distribution company for any accelerated initial procurement, installation and operational deployment of advanced metering infrastructure, including capital expenses and one-time non-capital operating expenses to implement and promote customer adoption of advanced metering infrastructure, including information and education for customers or licenses, fees, training and other necessary costs, to replace existing traditional noninterval metering infrastructure utilized by customers of such company, including any reasonable fees, expenses and transaction costs incurred in connection with the issuance, servicing, retirement or refinancing of rate reduction bonds, (C) the unrecovered balance of legacy infrastructure, including stranded costs, being replaced in connection with the deployment of advanced metering infrastructure, and (D) any reasonable fees, expenses and transaction costs incurred in connectionwiththeissuance, servicing,retirement orrefinancing ofrate reduction bonds issued to finance such costs;
and (22) "Advanced metering infrastructure" means an integrated system of metering equipment, two-way communications networks and information management systems, including billing and customer information systems, used by an electric distribution company to collect and transmit interval or real-time data concerning a customer's energy consumption.
(b) The authority shall, in accordance with the provisions of this section, identify and calculate, upon application by an electric distribution company, those stranded costs or financed utility services that may be collected through the competitive transition assessment which shall be calculated and collected in accordance with the provisions of section 16-245g, as amended by this act.
No electric distribution company shall be eligible to claim stranded costs unless a public auction has been held to divest itself of all nonnuclear generation Public Act No.
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4 assets or the electric distribution company has sold its nonnuclear generation assets in accordance with section 16-43.
(c) (1) Notwithstanding subdivision (1) of subsection (e) of section 16- 244g, any electric distribution company seeking to claim stranded costs shall, in accordance with this subsection, mitigate such costs to the fullest extent possible.
Prior to the approval by the authority of any stranded costs, the electric distribution company shall show to the satisfaction of the authority that the electric distribution company has taken all reasonable steps to mitigate to the maximum extent possible the total amount of stranded costs that it seeks to claim and to minimize the cost to be recovered from customers.
Mitigation shall include:
(A) Except to the extent provided in collective bargaining agreements or agreements to purchase generation assets entered into prior to July 1, 1998, the obtaining of written commitments from purchasers of generation facilities divested pursuant to section 16-244g, that the purchasers will offer employment to persons who were employed in nonmanagerial positions by a divested generation facility at any time duringthethree-monthperiodpriortothedivestiture,atlevelsofwages and overall compensation not lower than the employees' lowest level during the six-month period prior to the date the contract to divest the asset was entered into;
(B) good faith efforts to negotiate the buyout, buydown or renegotiation of independent power producer contracts and purchased power contracts approved by the Federal Energy Regulatory Commission, provided the fixed present value of any contract to which a political subdivision of the state is a party shall be calculated using the political subdivision's tax-exempt borrowing rate as the discount rate;
and (C) the reasonable costs of the consultants appointed to conduct the auctions of generation assets pursuant to section 16-244g.
Mitigation may include, but is not limited to, reallocation of depreciation reserves to existing generation assets to the extent consistent with generally accepted accounting principles;
reduction of book assets by application of net proceeds of any sale of Public Act No.
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4 existing assets;
maximization of market revenues from existing generation assets;
efforts to maximize current and future operating efficiency, including appropriate and timely maintenance, trouble shooting, aggressive identification and correction of potential problem areas;
voluntary write-offs of above-market generation assets;
the decision to retire uneconomical generation assets and efforts to divest generating sitesat market pricesreflective ofbest use of sites.Mitigation shall not include any expenditures to restart a nuclear generation asset that was not operating for reasons other than scheduled maintenance or refueling at the time such expenditure was made.
Any mitigation efforts and associated costs shall be subject to approval by the authority.
(2) The authority shall allow the cost of such mitigation efforts to be included in the calculation of stranded costs to the extent that such mitigation costs are reasonable relative to the amount of the reduction in stranded costs resulting from the mitigation.
(d) An electric distribution company shall submit to the authority an application for recovery of that portion of generation-related regulatory assets, long-term contract costs, generation assets and mitigation costs which are determined by the authority in accordance with subsections (c), (e), (f) and (g) of this section and subdivision (1) of subsection (e) of section16-244g.
The applicationshallinclude adescriptionofmitigation efforts and a request for recovery through the competitive transition assessment and may include a request for a financing order.
The authorityshallholdahearingforeachelectricdistributioncompanyand issue a finding of the calculation of stranded costs in a time frame that allows for collection of the competitive transition assessment to begin on January 1, 2000.
Any hearing shall be conducted as a contested case in accordance with chapter 54.
(e) The authority shall calculate the stranded costs for generation- related regulatory assets to be their book value as of January 1, 2000.
In calculating the value of generation-related regulatory assets that are Public Act No.
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4 being provided in a lump sum as the result of a funding with the proceeds of rate reduction bonds, the authority shall adjust the value of each such asset to reflect the time value of such lump sum, if any.
(f) (1) The authority shall calculate the stranded costs for long-term contract costs that have been reduced to a fixed present value through the buyout, buydown, or renegotiation of independent power producer contracts and purchased power contracts approved by the Federal Energy Regulatory Commission as such present value.
In making such calculation, the authority shall net purchased power contracts approved by the Federal Energy Regulatory Commission that are below market value against any such contracts that are above-market value.
(2) The authority shall calculate the stranded costs for any portion of a long-term contract cost that has not been reduced to a fixed present value by comparing the contract price to the market price at least annually.
In making such calculation, the authority shall net purchased power contracts approved by the Federal Energy Regulatory Commissionthatarebelowmarketvalueagainstanysuchcontractsthat are above-market value.
The costs described in this subdivision shall be included in the competitive transition assessment pursuant to section 16-245g,asamendedbythisact,but shallnot beincludedinanyfunding with the proceeds of rate reduction bonds.
(g) The authority shall calculate the stranded cost for each generation asset to be the difference between its book value and the market value of a prudently and efficiently managed nonnuclear generating facility of comparable size, age and technical characteristics in a competitive market.
In determining the market value ofany such asset, the authority may consider (A) the dollars per kilowatt received from the sale of similar generation facilities, if any, (B) income capitalization based on the operating history and capacity of the facility, the market rates for power, and any existing long-term contracts for the sale of power or capacity, (C) independent market appraisals, or (D) other relevant Public Act No.
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4 factors.
The authority shall calculate the stranded costs for generation assets at least every three years.
The costs described in this subsection shall be included in the competitive transition assessment pursuant to section 16-245g, as amended by this act, but shall not be included in any funding with the proceeds of rate reduction bonds.
(h) (1) On or before January 1, 2004, an electric distribution company may submit to the authority an application for recovery of that portion of nuclear generation assets which is determined by the authority in accordance with this subsection, which application shall include a request for recovery through the competitive transition assessment.
The authorityshallholdahearingforeachelectricdistributioncompanyand issue a finding of the calculation of such nuclear generation assets in accordance with the provisions of this subsection.
Any hearing shall be conducted as a contested case proceeding in accordance with chapter 54.
The costs described in this subsection shall be included in the competitive transition assessment pursuant to section 16-245g, as amended by this act, but shall not be included in any funding with proceeds of rate reduction bonds.
(2) The authority shall calculate the stranded costs for each nuclear generation asset that was divested at a price less than book value as described in subdivision (5) of subsection (c) of section 16-244g as the difference between the book value of this asset and the final bid price of the asset.
The authority's calculation of stranded costs pursuant to this subdivision shall be final and shall not be subject to further adjustment by the authority.
(3) The authority shall calculate the stranded costs for each nondivested nuclear generation asset described in subdivision (1) of subsection (d) of section 16-244g to be the difference between its book value and the market value of a prudently and efficiently managed nuclear generating facility of comparable size, age and technical characteristics in a competitive market.In determining the market value Public Act No.
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4 ofanysuchasset,theauthoritymayconsider(A)thedollarsperkilowatt received from the sale of similar generation facilities, if any, (B) income capitalization based on the operating history and capacity of the facility, the market rates for power, and any existing long-term contracts for the sale of power or capacity, (C) the provision for decommissioning and related costs to be paid from the systems benefits charge provided in section 16-245l, (D) independent market appraisals, or (E) other relevant factors.
At least every four years after the date when the authority issues an initial finding of the calculation of the stranded costs for such nondivested nuclear generation assets as provided in this subdivision until the earlier of (i) the expiration of the collection of the competitive transition assessment, or (ii) the date when such an asset is divested, the authority shall hold a hearing and issue a finding to adjust the stranded cost calculation of each such asset and to adjust the competitive transition assessment accordingly to true up the stranded cost recovery for the difference between the market value projected in such initial finding and the actual market value of a prudently and efficiently managed nuclear generating facility of comparable size, age and technical characteristics during the time period between the initial finding and the adjustment date, provided the second and subsequent adjustments shall reflect the difference during the time period since the most recent true-up.
The authority shall calculate the value of each such asset in accordance with the methodology provided in this subdivision.
Any hearing shall be conducted as a contested case in accordance with chapter 54.
(4) After the authority has calculated the total value of stranded costs for all nuclear generation assets, the authority shall (A) reduce such amount by the net proceeds that are above book value realized by an electric distribution company from the sale of nonnuclear generation assets, (B) reduce such valuation to reflect the total net proceeds that are above book value realized by an electric distribution company from the sale of any nuclear generation assets pursuant to subsection (c) of Public Act No.
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4 section 16-244g, and (C) reduce such amount by the net proceeds that are above book value received by an electric distribution company for the sale or lease of any real property after July 1, 1998.
(i) If any net proceeds described in subdivision (4) of subsection (h) of this section remain after the reduction in the calculation of nuclear generation assets pursuant to said subdivision (4) or are realized after said reduction is calculated, the additional amount of such net proceeds shall be netted against long-term contract costs described in subdivision (2) of subsection (f) of this section, and the competitive transition assessment shall be adjusted accordingly.
(j) No electric distribution company shall be eligible to claim any stranded costs for a nuclear generation asset or for any generation- related regulatory asset related to such generation asset, if the generation asset is not operating as a result of an order issued by the United States Nuclear Regulatory Commission that applies specifically to such asset.
Any such asset that is not eligible to be claimed as a stranded cost shall be eligible after it is permitted to and has resumed operation and is selling power.
(k) If an electric distribution company elected to transfer any of its nuclear generation assets and related operations and functions to a separate corporate affiliate or to a division that is functionally separate from the electric distribution company pursuant to section 16-244g and subsequently sold any such assets in an arm's length transaction to an unrelated entity prior to January 1, 2012, the net proceeds realized from such sale that exceed book value for such assets shall be netted against the total amount of stranded costs, and the competitive transition assessment shall be adjusted accordingly and, if appropriate, other reimbursement shall be ordered by the authority.
(l) Upon receipt of a petition from an electric distribution company, or upon its own motion, the authority may determine, at its sole Public Act No.
25-173 36 of 140 Substitute Senate Bill No.
4 discretion,thattheissuance ofratereductionbondsisinthebest interest of ratepayers.
Upon the issuance of a financing order by the authority that specifies the appropriate amount, timing and terms of such rate reduction bond issuance, the financing entity shall issue such rate reduction bonds in accordance with the financing order, provided the aggregate principal amount of such bonds shall not exceed two billion two hundred million dollars.
Subject to the reconciliation process set forth in this subsection, the costs of any rate reduction bonds, including all principal, interest, premium, costs and arrearages on such bonds, shall be recovered through the competitive transition assessment pursuant to section 16-245g, as amended by this act.
Upon the issuance of any rate reduction bonds as ordered by the authority to recover any financed utility services, the authority shall periodically adjust the competitive transition assessment in accordance with section 16-245j, as amended by this act, to allow the recovery of the cost of such bonds, including through a reconciliation of the actual revenues from the competitive transition assessment to the actual cost of such bonds.
If the proceeds used to purchase transition property with respect to rate reduction bonds issued for the deployment of advanced metering infrastructure is subsequently determined by the authority pursuant to the standards set forth in sections 16-11, 16-19, as amended by this act, or 16-19e to exceed the amount prudently and efficiently incurred for the deployment of advanced metering infrastructure, the total cost of such bonds resulting from the excess shall be returned to ratepayers, with interest, in a manner determined by the authority, including by decreasing another nonbypassable rate charged by such electric distribution company to proportionately account for such decrease, or through the revenue decoupling mechanism line item, provided the competitive transition assessment shall not be decreased in connection with such reconciliation.
(m) Notwithstanding any provision of the general statutes, the net benefits of accumulated deferred income taxes relating to amounts that Public Act No.
25-173 37 of 140 Substitute Senate Bill No.
4 will be recovered through the issuance of rate reduction bonds for financed utility services shall be credited to retail customers of electric distribution companies by reducing the amount of such rate reduction bonds that would otherwise be issued by the net present value of the related tax cash flows, using a discount rate equal to the expected interest rate on such rate reduction bonds.
Sec.
11.
Subsection (a) of section 16-245f of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2025):
(a) (1) An electric distribution company shall submit to the authority an application for a financing order with respect to any proposal to sustain funding of conservation and load management and renewable energy investment programs by substituting disbursements to the General Fund from proceeds of rate reduction bonds for such disbursements from the Conservation and Load Management Plan established by section 16-245m, as amended by this act, and from the Clean Energy Fund established by section 16-245n, and may submit to the authority an application for a financing order with respect to the following stranded costs:
[(1)] (A) The cost of mitigation efforts, as calculated pursuant to subsection (c) of section 16-245e, as amended by this act;
[(2)] (B) generation-related regulatory assets, as calculated pursuant to subsection (e) of section 16-245e, as amended by this act;
and [(3)] (C) those long-term contract costs that have been reduced to a fixed present value through the buyout, buydown, or renegotiation of such contracts, as calculated pursuant to subsection (f) of section 16- 245e, as amended by this act.
No stranded costs shall be funded with the proceeds of rate reduction bonds unless [(A)] (i) the electric distribution company proves to the satisfaction of the authority that the savings attributable to such funding will be directly passed on to customers throughlower rates, and [(B)](ii)theauthoritydeterminessuch funding will not result in giving the electric distribution company or any Public Act No.
25-173 38 of 140 Substitute Senate Bill No.
4 generation entities or affiliates an unfair competitive advantage.
(2) An electric distribution company may submit to the authority a petition for a financing order with respect to financed utility services that have been determined by the authority in a separate proceeding to be appropriate for cost recovery pursuant to the standards set forth in section16-19, asamendedby thisact,or 16-19e.
The authority shallissue its response to such petition not more than one hundred twenty days after its receipt of a petition for a financing order pursuant to this subdivision.
(3) The authority shall hold a hearing for each such electric distribution company to determine the amount of disbursements to the General Fund from proceeds of rate reduction bonds that may be substituted for such disbursements from the Conservation and Load Management Plan established by section 16-245m, as amended by this act,andfromtheCleanEnergyFundestablishedbysection16-245n,and thereby constitute transition property and the portion of stranded costs or financed utility services that may be included in such funding and thereby constitute transition property.
Any hearing shall be conducted as a contested case in accordance with chapter 54, except that any hearing with respect to a financing order or other order to sustain funding for conservation and load management and renewable energy investment programs by substituting the disbursement to the General FundfromtheConservationandLoadManagement Planestablished by section 16-245m, as amended by this act, and from the Clean Energy Investment Fundestablished by section16-245n,shall not be acontested case, as defined in section 4-166.
The authority shall not include any rate reduction bonds as debt of an electric distribution company in determining the capital structure of the company in a rate-making proceeding, for calculating the company's return on equity or in any manner that would impact the electric distribution company for rate- making purposes, and shall not approve such rate reduction bonds that Public Act No.
25-173 39 of 140 Substitute Senate Bill No.
4 include covenants that have provisions prohibiting any change to their appointment of an administrator of the Conservation and Load Management Plan.
Sec.
12.
Section 16-245g of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2025):
(a) The Public Utilities Regulatory Authority shall assess and beginning January 1, 2000, or a later date determined by the authority in a finance order with respect to any subsequent issuance of rate reduction bonds, impose the competitive transition assessment which shall be imposed on all customers of each electric distribution company to provide funds for the purposes described in subsection (d) of this section.
The authority shall hold a hearing that shall be conducted as a contested case in accordance with chapter 54, except as otherwise provided in section 16-245f, as amended by this act, to determine the amount of the competitive transition assessment.
(b) The authority shall consider the effect on all customer rates and other factorsrelevant to reducing ratesindetermining theamount ofthe competitive transition assessment and the manner in which and the period over which it shall be imposed in any decision of the authority to set or adjust the competitive transition assessment.
(c) The competitive transition assessment shall be determined by the authority in a general and equitable manner and, in accordance with the provisions of subsection (b) of section 16-245f, shall be imposed on all customers at a rate that is applied equally to all customers of the same class in accordance with methods of allocation in effect on July 1, 1998, or a later date determined by the authority in a finance order with respect to any subsequent issuance of rate reduction bonds, provided the competitive transition assessment shall not be imposed on customers receiving services under a special contract which is in effect on July 1, 1998, or a later date determined by the authority in a finance Public Act No.
25-173 40 of 140 Substitute Senate Bill No.
4 order with respect to any subsequent issuance of rate reduction bonds, until such special contract expires.
The competitive transition assessment shall be imposed beginning on January 1, 2000, or a later date determined by the authority in a finance order with respect to any subsequent issuance of rate reduction bonds, on all customers receiving services under a special contract [which] that is entered into or renewed after July 1, 1998, or a later date determined by the authority in a finance order with respect to any subsequent issuance of rate reduction bonds.
The competitive transition assessment shall have a generally applicable manner of determination that may be measured on the basis of percentages of total costs of retail sales of electric generation services.
Subject to the provisions of subsection (b) of section 16-245f, the competitive transition assessment shall be payable by customers on an equal basis on the same payment terms and shall be eligible or subject to prepayment on an equal basis.
Any exemption of the competitive transition assessment by customers under a special contract shall not result in an increase in rates to any customer.
(d) The authority shall establish, fix and revise the competitive transition assessment in an amount sufficient at all times to:
(1) Pay the principal of and the interest and any credit enhancement or premium on rate reduction bonds as the same shall become due and payable;
(2) to pay all reasonable and necessary expenses relating to the financing;
and (3) to pay an electric distribution company stranded costs or financed utility services that are not funded with the proceeds of rate reduction bonds and interim capital costs determined under subdivision (1) of subsection (e) of section 16-244g.
(e) The competitive transition assessment shall be charged to customers until the rate reduction bonds are paid in full, including all principal, interest, premium, costs and arrearages on such bonds, by the financing entity and stranded costs and financed utility services not funded with the proceeds of rate reduction bonds are fully recoveredby Public Act No.
25-173 41 of 140 Substitute Senate Bill No.
4 the electric distribution company.
Amounts collected from a customer shall be allocated on a pro rata basis among (1) rates and charges described in subparagraph (A) of subdivision (2) of subsection (a) of section 16-245e, as amended by this act, (2) rates and charges described in subparagraph (B) of subdivision (2) of subsection (a) of section 16- 245e, as amended by this act, and (3) other charges.
To the extent that the authority, when issuing a financing order, determines that special treatment on customers' bills is necessary or desirable to distinguish rates and charges described in subparagraph (A) of subdivision (2) of subsection (a) of section 16-245e, as amended by this act, from rates and charges described in subparagraph (B) of subdivision (2) of subsection (a) of section 16-245e, as amended by this act, in order to facilitate the successful issuance and sale of rate reduction bonds, it may so provide as part of such financing order.
Sec.
13.
Subsection (a) of section 16-245h of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2025):
(a) The competitive transition assessment described in subparagraph (A) of subdivision (2) of subsection (a) of section 16-245e, as amended by this act, shall constitute transition property when, and to the extent that, a financing order authorizing such portion of the competitive transition assessment has become effective in accordance with sections 16-245e to 16-245k, inclusive, as amended by this act, and the transition property shall thereafter continuously exist as property for all purposes with all of the rights and privileges of sections 16-245e to 16-245k, inclusive, as amended by this act, for the period and to the extent providedinthefinancing order,but inany event untiltherate reduction bonds are paid in full, including all principal, interest, premium, costs, and arrearages on such bonds.
Prior to its sale or other transfer by the electric distribution company pursuant to sections 16-245e to 16-245k, inclusive, as amended by this act, transition property, other than Public Act No.
25-173 42 of 140 Substitute Senate Bill No.
4 transition property in respect of the economic recovery transfer or in respect to disbursements to the General Fund to sustain funding of conservation and load management and renewable energy investment programs, shall be a vested contract right of the electric distribution company, notwithstanding any contrary treatment thereof for accounting, tax, or other purpose.
Transition property in respect of disbursements to the General Fund to sustain funding of conservation and load management and renewable energy investment programs shall immediately upon its creation vest solely in the financing entity.
Transition property in respect to the economic recovery transfer shall immediately upon its creation vest solely in the financing entity.
Notwithstanding the authority's calculation of costs that may be collected pursuant to subsection (b) of section 16-245e, as amended by this act, or the adjustment of rates pursuant to subsection (f) of section 16-245e, as amended by this act, transition property in respect to financed utility services shall immediately upon its creation vest solely in the applicable electric distribution company.
The electric distribution company shall not include transition property in its calculation of any rate base and shall have no right, title or interest in transition property in respect to the economic recovery transfer or in respect of disbursements to the General Fund to sustain funding of conservation andloadmanagementandrenewableenergyinvestment programs,and in respect of such transition property shall be only a collection agent on behalf of the financing entity.
Sec.
14.
Section 16-245i of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2025):
(a) The authority may issue financing orders in accordance with sections 16-245e to 16-245k, inclusive, as amended by this act, to fund the economic recovery transfer, to sustain funding of conservation and load management and renewable energy investment programs by substituting disbursements to the General Fund from proceeds of rate Public Act No.
25-173 43 of 140 Substitute Senate Bill No.
4 reduction bonds for such disbursements in furtherance of the Conservation and Load Management Plan established by section 16- 245m, as amended by this act, and from the Clean Energy Fund established by section 16-245n, and to facilitate the provision, recovery, financing, or refinancing of stranded costs and financed utility services.
Except for a financing order inrespect to theeconomicrecoveryrevenue bonds, a financing order may be adopted [only] upon the application of an electric distribution company or upon the authority's own motion, pursuant to section 16-245f, as amended by this act, and shall become effective in accordance with its terms only after the electric distribution company files with the authority the electric distribution company's written consent to all terms and conditions of the financing order.
Any financing order in respect to the economic recovery revenue bonds shall be effective on issuance.
(b)(1)Notwithstanding any generalor speciallaw,rule, or regulation to the contrary, except as otherwise provided in this subsection with respect to transition property that has been made the basis for the issuance of rate reduction bonds, the financing orders and the competitive transition assessment shall be irrevocable and the authority shall not have authority either by rescinding, altering, or amending the financing order or otherwise, to revalue or revise for rate-making purposes the stranded costs and financed utility services, or the costs of providing, recovering, financing, or refinancing the stranded costs and financed utility services, the amount of the economic recovery transfer or the amount of disbursements to the General Fund from proceeds of rate reduction bonds substituted for such disbursements in furtherance of the Conservation and Load Management Plan established by section 16-245m, as amended by this act, and from the Clean Energy Fund establishedbysection16-245n,determinethatthecompetitivetransition assessment is unjust or unreasonable, or in any way reduce or impair thevalue oftransitionproperty either directly or indirectly bytaking the competitive transition assessment into account when setting other rates Public Act No.
25-173 44 of 140 Substitute Senate Bill No.
4 for the electric distribution company;
nor shall the amount of revenues arising with respect thereto be subject to reduction, impairment, postponement, or termination.
(2) Notwithstanding any other provision of this section, the authority shall approve the adjustments to the competitive transition assessment as may be necessary to ensure timely recovery of all stranded costs and financed utility services that are the subject of the pertinent financing order, and the costs of capital associated with the provision, recovery, financing [,] or refinancing thereof, including the costs of issuing, servicing [,] and retiring the rate reduction bonds issued to recover stranded costs and financed utility services contemplated by the financing order and to ensure timely recovery of the costs of issuing, servicing [,] and retiring the rate reduction bonds issued to sustain funding of conservation and load management and renewable energy investment programs contemplated by the financing order, and to ensure timely recovery of the costs of issuing, servicing and retiring the economicrecovery revenue bonds issuedto fundtheeconomicrecovery transfer contemplated by the financing order.
(3) Notwithstanding any general or special law, rule, or regulation to the contrary, any requirement under sections 16-245e to 16-245k, inclusive, as amended by this act, or a financing order that the authority take action with respect to the subject matter of a financing order shall be binding upon the authority, as it may be constituted from time to time, and any successor agency exercising functions similar to the authority and the authority shall have no authority to rescind, alter, or amend that requirement in a financing order.
Section 16-43 shall not apply to any sale, assignment, or other transfer of or grant of a security interest in any transition property or the issuance of rate reduction bonds under sections 16-245e to 16-245k, inclusive, as amended by this act.
(c) The authority shall provide in any financing order for a procedure Public Act No.
25-173 45 of 140 Substitute Senate Bill No.
4 for the timely approval by the authority of periodic adjustments to the competitive transition assessment that is the subject of the pertinent financing order, as required by subdivision (2) of subsection (b) of this section.
The procedure shall require the authority to determine whether the adjustments are required on [each anniversary of the issuance of the financing order] an annual basis, and at the additional intervals as may be provided for in the financing order, and for the adjustments, if required, to be approved within ninety days of [each anniversary of the issuance of the financing order, or of each additional interval] the filing of each adjustment or within such shorter period as may be provided for in the financing order.
Sec.
15.
Subsections (b) and (c) of section 16-245j of the general statutes are repealed and the following is substituted in lieu thereof (Effective July 1, 2025):
(b) Except as otherwise provided in this subsection, the state of Connecticut does hereby pledge and agree with the owners of transition property and holders of rate reduction bonds that neither the state nor any agency of the state shall [neither] limit, [nor] alter, amend, reduce or impair the competitive transition assessment, transition property, financing orders, and all rights thereunder until the obligations, together with the interest thereon, are fully met and discharged, provided nothing contained in this subsection shall preclude the limitation or alteration if and when adequate provision shall be made by law for the protection of the owners and holders.
The finance authority as agent for the state is authorized to include this pledge and undertaking for the state in these obligations.
(c) (1) Financing ordersand rate reduction bonds shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof, other than the financing entity, shall not constitute a pledge of the full faith and credit of the state or any of its political subdivisions, other than the financing entity, but shall be payable solely from the Public Act No.
25-173 46 of 140 Substitute Senate Bill No.
4 funds provided under sections 16-245e to 16-245k, inclusive, as amendedbythisact,andshallnotconstituteanindebtednessofthestate within the meaning of any constitutional or statutory debt limitation or restriction and, accordingly, shall not be subject to any statutory limitation on the indebtedness of the state and shall not be included in computing the aggregate indebtedness of the state in respect to and to the extent of any such limitation.
This subsection shall in no way preclude bond guarantees or enhancements pursuant to sections 16- 245e to 16-245k, inclusive, as amended by this act.
All rate reduction bonds shall contain on the face thereof a statement to the following effect:
"Neither the full faith and credit nor the taxing power of the State of Connecticut is pledged to the payment of the principal of, or interest on, this bond." (2) The issuance of rate reduction bonds under sections 16-245e to 16- 245k, inclusive, as amended by this act, shall not directly, indirectly, or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation therefor or to make any appropriation for their payment.
(3) The exercise of the powers granted by sections 16-245e to 16-245k, inclusive, as amended by this act, shall be in all respects for the benefit of the people of this state, for the increase of their commerce, welfare, and prosperity, and as the exercise of such powers shall constitute the performance of an essential public function, neither the finance authority, any electric distribution company, any affiliate of any electric distribution company, any financing entity, or any collection or other agent of any of the foregoing shall be required to pay any taxes or assessments upon or in respect of any revenues or property received, acquired, transferred, or used by the finance authority, any electric distribution company, any affiliate of any electric distribution company, any financing entity, or any collection or other agent of any of the foregoing under the provisions of sections 16-245e to 16-245k, inclusive, Public Act No.
25-173 47 of 140 Substitute Senate Bill No.
4 as amended by this act, or upon or in respect of the income therefrom, and any rate reduction bonds shall be treated as issued by or on behalf of a public instrumentality created under the laws of the state for purposes of chapter 229.
(4) (A) The proceeds of any rate reduction bonds, other than economic recovery revenue bonds, shall be used for the purposes approved by the authority in the financing order, including, but not limited to, disbursements to the General Fund in substitution for such disbursements in furtherance of the Conservation and Load Management Plan established by section 16-245m, as amended by this act, and from the Clean Energy Fund established by section 16-245n, the costs of refinancing or retiring of debt of the electric distribution company, and associated federal and state tax liabilities;
provided such proceeds shall not be applied to purchase generation assets or to purchase or redeem stock or to pay dividends to parent company shareholders or to pay operating expenses other than taxes resulting from the receipt of such proceeds.
(B) The proceeds of any economic recovery revenue bonds shall be used for the purposes approved by the authority in the financing order, including, but not limited to, funding the economic recovery transfer, provided such proceeds shall not be applied to purchase generation assets or to purchase or redeem stock or to pay dividends to shareholders or operating expenses other than taxes resulting from the receipt of such proceeds.
(5) Rate reduction bonds are made and declared (A) securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, state banks and trust companies, national banking associations, savings banks, savings and loan associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them, and (B) securities which Public Act No.
25-173 48 of 140 Substitute Senate Bill No.
4 may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state foranypurposeforwhichthedepositofbondsorobligationsofthestate is now or may be authorized.
(6) Rate reduction bonds, other than economic recovery revenue bonds, shall mature at such time or times approved by the authority in thefinancing order.[;
providedthat suchmaturity shallnotbelater than December 31, 2011.] Economic recovery revenue bonds shall mature at such time or times approved by the authority in the financing order, provided such maturity shall not be later than eight years after the date of issuance, provided such maturity may be extended for economic reasons, upon the advice of the financing entity.
(7) Rate reduction bonds issued and at any time outstanding may, if and to the extent permitted under the indenture or other agreement pursuant to which they are issued, be refunded by other rate reduction bonds.
Sec.
16.
Subsection (l) of section 16-245k of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2025):
(l) [The authority of the Public Utilities Regulatory Authority to issue financing orders pursuant to sections 16-245e to 16-245k, inclusive, shall expire on December 31, 2008, with respect to bonds other than economic recovery revenue bonds.] The authority of the Public Utilities Regulatory Authority to issue financing orders pursuant to sections 16- 245e to 16-245k, inclusive, as amended by this act, with respect to economic recovery revenue bonds shall expire on December 31, 2012.
The expiration of such authority shall have no effect upon any other financing orders adopted by the Public Utilities Regulatory Authority pursuant to sections 16-245e to 16-245k, inclusive, as amended by this act, or upon any financing orders adopted by the Public Utilities Public Act No.
25-173 49 of 140 Substitute Senate Bill No.
4 Regulatory Authority pursuant to sections 16-245e to 16-245k, inclusive, as amended by this act, with respect to economic recovery bonds prior to December 31, 2012, or any transition property arising [therefrom] from any such financing orders, or upon the charges authorized to be levied thereunder, or the rights, interests, and obligations of the electric distribution company or a financing entity or holders of rate reduction bonds pursuant to [the] any such financing order, or the authority of the Public Utilities Regulatory Authority to monitor, supervise, or take further action with respect to [the] any such financing order in accordance with the terms of sections 16-245e to 16-245k, inclusive, as amended by this act, and of [the] any such financing order.
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Action History

  1. SIGNED BY GOVERNOR

  2. TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR

  3. TRANSMITTED TO SECRETARY OF THE STATE

  4. PUBLIC ACT 25-173

  5. IN CONCURRENCE

  6. HOUSE PASSED, SEN. AMEND. SCH. A

  7. HOUSE ADOPTED SEN. AMEND. SCH. A

  8. HOUSE CALENDAR NUMBER 679

  9. FAV. RPT., TABLED FOR HOUSE CALENDAR

  10. TRANSMITTED PURSUANT TO JOINT RULE 17

  11. SEN. PASSED, SEN. AMEND. SCH. A

  12. SEN. REJ. SEN. AMEND. SCH. B

  13. SEN. ADOPTED SEN. AMEND. SCH. A

  14. FAV. RPT., TAB. FOR CAL., SEN.

  15. NO NEW FILE BY COMM. ON Appropriations

  16. RPTD. OUT OF LCO

  17. FILED WITH LCO

  18. Joint Favorable

  19. RULES SUSPENDED/IMMEDIATE TRANSMITTAL

  20. REF. BY SEN. TO COMM. ON Appropriations

  21. FAV. RPT., TAB. FOR CAL., SEN.

  22. NO NEW FILE BY COMM. ON Finance, Revenue and Bonding

  23. RPTD. OUT OF LCO

  24. FILED WITH LCO

  25. Joint Favorable

  26. IMMEDIATE TRANSMITTAL TO COMMITTEE

  27. REF. BY SEN. TO COMM. ON Finance, Revenue and Bonding

  28. FILE NO. 325

  29. SENATE CALENDAR NUMBER 199

  30. FAV. RPT., TAB. FOR CAL., SEN.

  31. RPTD. OUT OF LCO

  32. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 03/31/25

  33. FILED WITH LCO

  34. Joint Favorable Substitute

  35. PUBLIC HEARING 0306

  36. REF. TO JOINT COMM. ON Energy and Technology

  37. DRAFTED BY COMMITTEE

  38. Vote to Draft

  39. REF. TO JOINT COMM. ON Energy and Technology

Sponsorship breakdown

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0 sponsors · 0 co-sponsors · 187 not signed on · 4 voted No

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Not signed on (187)

187 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

House Roll Call Vote

Passed 144 Yea · 3 Nay · 4 Other
Party YeaNayPresentNot Voting
Democratic 94101
Republican 44203
Unaffiliated 6000
Total 144304
% of votes cast 95%2%0%3%
How each member voted (151)
Member Party Vote
Ryan — Yea
Collins Main — Yea
Mccarthy Vahey — Yea
Morrin Bello — Yea
Sanchez, J. — Yea
Sanchez, R. — Yea
Aimee Berger-Girvalo Democratic Yea
Alphonse Paolillo Democratic Yea
Andre F. Baker Democratic Yea
Anne M. Hughes Democratic Yea
Anthony L. Nolan Democratic Yea
Antonio Felipe Democratic Yea
Aundre Bumgardner Democratic Yea
Bob Godfrey Democratic Yea
Bobby G. Gibson Democratic Yea
Brandon Chafee Democratic Not Voting
Christopher Poulos Democratic Yea
Christopher Rosario Democratic Yea
Corey P. Paris Democratic Yea
Daniel Gaiewski Democratic Yea
David DeFronzo Democratic Yea
Derell Wilson Democratic Yea
Dominique Johnson Democratic Yea
Eleni Kavros DeGraw Democratic Yea
Farley Santos Democratic Yea
Frank Smith Democratic Yea
Fred Gee Democratic Yea
Gary A. Turco Democratic Yea
Geoff Luxenberg Democratic Yea
Geraldo C. Reyes Democratic Yea
Gregory Haddad Democratic Yea
Hector Arzeno Democratic Yea
Henry J. Genga Democratic Yea
Hilda E. Santiago Democratic Yea
Hubert D. Delany Democratic Yea
Jaime S. Foster Democratic Yea
James Sanchez Democratic Yea
Jane M. Garibay Democratic Yea
Jason Doucette Democratic Yea
Jason Rojas Democratic Yea
Jennifer Leeper Democratic Yea
Jill Barry Democratic Yea
Jillian Gilchrest Democratic Yea
John Santanella Democratic Yea
John-Michael Parker Democratic Yea
Jonathan Fazzino Democratic Yea
Jonathan Jacobson Democratic Yea
Jonathan Steinberg Democratic Yea
Joseph P. Gresko Democratic Yea
Josh Elliott Democratic Yea
Joshua M. Hall Democratic Yea
Juan R. Candelaria Democratic Yea
Julio A. Concepcion Democratic Yea
Kadeem Roberts Democratic Yea
Kai J. Belton Democratic Yea
Kaitlyn Shake Democratic Yea
Kara Rochelle Democratic Yea
Kate Farrar Democratic Yea
Kenneth Gucker Democratic Yea
Kerry S. Wood Democratic Yea
Kevin Brown Democratic Yea
Larry B. Butler Democratic Yea
Laurie Sweet Democratic Yea
Liz Linehan Democratic Yea
Lucy Dathan Democratic Yea
Marcus Brown Democratic Yea
Maria P. Horn Democratic Yea
Mary Fortier Democratic Yea
Mary M. Mushinsky Democratic Yea
Mary Welander Democratic Yea
Maryam Khan Democratic Yea
Matt Blumenthal Democratic Yea
Matthew Ritter Democratic Yea
Melissa Osborne Democratic Yea
Michael "MJ" Shannon Democratic Yea
Michael D. Quinn Democratic Yea
Michael DiGiovancarlo Democratic Yea
Mike Demicco Democratic Yea
Minnie Gonzalez Democratic Nay
Moira Rader Democratic Yea
Nicholas Menapace Democratic Yea
Nick Gauthier Democratic Yea
Patricia A. Dillon Democratic Yea
Patrick Biggins Democratic Yea
Patrick S. Boyd Democratic Yea
Raghib Allie-Brennan Democratic Yea
Rebecca Martinez Democratic Yea
Renee LaMark Muir Democratic Yea
Robin E. Comey Democratic Yea
Roland J. Lemar Democratic Yea
Ronald A. Napoli Democratic Yea
Sarah Keitt Democratic Yea
Savet Constantine Democratic Yea
Stephen R. Meskers Democratic Yea
Steven J. Stafstrom Democratic Yea
Steven Winter Democratic Yea
Susan M. Johnson Democratic Yea
Tammy R. Exum Democratic Yea
Toni E. Walker Democratic Yea
Travis Simms Democratic Yea
Trenee McGee Democratic Yea
William Heffernan Democratic Yea
Amy Romano Republican Yea
Anne Dauphinais Republican Yea
Arnold Jensen Republican Yea
Ben McGorty Republican Yea
Bill Buckbee Republican Nay
Brian Lanoue Republican Not Voting
Cara Christine Pavalock-D'Amato Republican Yea
Carol Hall Republican Yea
Chris Aniskovich Republican Yea
Chris Stewart Republican Not Voting
Christie M. Carpino Republican Yea
Craig C. Fishbein Republican Nay
Dave W. Yaccarino Republican Yea
David Rutigliano Republican Yea
Devin R. Carney Republican Yea
Donna Veach Republican Not Voting
Doug Dubitsky Republican Yea
Gale L. Mastrofrancesco Republican Yea
Greg S. Howard Republican Yea
Irene M. Haines Republican Yea
Jason Buchsbaum Republican Yea
Jay M. Case Republican Yea
Joe Canino Republican Yea
Joe Hoxha Republican Yea
Joe Polletta Republican Yea
John E. Piscopo Republican Yea
Joseph H. Zullo Republican Yea
Karen Reddington-Hughes Republican Yea
Kathy Kennedy Republican Yea
Kurt Vail Republican Yea
Lezlye Zupkus Republican Yea
Mark DeCaprio Republican Yea
Mark W. Anderson Republican Yea
Martin Foncello Republican Yea
Mitch Bolinsky Republican Yea
Nicole Klarides-Ditria Republican Yea
Patrick E. Callahan Republican Yea
Seth Bronko Republican Yea
Steve Weir Republican Yea
Tami Zawistowski Republican Yea
Tammy Nuccio Republican Yea
Tim Ackert Republican Yea
Tina Courpas Republican Yea
Tom Delnicki Republican Yea
Tom O'Dea Republican Yea
Tony J. Scott Republican Yea
Tracy Marra Republican Yea
Vincent J. Candelora Republican Yea
William Pizzuto Republican Yea

Official roll call →

Senate Roll Call Vote

Passed 34 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 24100
Republican 10001
Total 34101
% of votes cast 94%3%0%3%
How each member voted (36)
Member Party Vote
Bob Duff Democratic Yea
Catherine A. Osten Democratic Yea
Ceci Maher Democratic Yea
Christine Cohen Democratic Yea
Derek Slap Democratic Yea
Douglas McCrory Democratic Yea
Gary A. Winfield Democratic Yea
Herron Gaston Democratic Yea
James J. Maroney Democratic Yea
Jan Hochadel Democratic Yea
Joan V. Hartley Democratic Yea
John W. Fonfara Democratic Nay
Jorge Cabrera Democratic Yea
Julie Kushner Democratic Yea
MD Rahman Democratic Yea
Mae Flexer Democratic Yea
Martha Marx Democratic Yea
Martin M. Looney Democratic Yea
Matthew L. Lesser Democratic Yea
Norman Needleman Democratic Yea
Patricia Billie Miller Democratic Yea
Paul Honig Democratic Yea
Rick Lopes Democratic Yea
Saud Anwar Democratic Yea
Sujata Gadkar-Wilcox Democratic Yea
Eric C. Berthel Republican Yea
Heather S. Somers Republican Yea
Henri Martin Republican Yea
Jason Perillo Republican Yea
Jeff Gordon Republican Yea
John A. Kissel Republican Not Voting
Paul Cicarella Republican Yea
Rob Sampson Republican Yea
Ryan Fazio Republican Yea
Stephen G. Harding Republican Yea
Tony Hwang Republican Yea

Official roll call →

Subjects

energy
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