History: P.A. 98-28 effective July 1, 1998; P.A. 03-135 amended Subsec. (a) to make technical changes and, in Subdiv.
(1), to add new Subpara. (D) re federally mandated congestion costs and to redesignate existing Subpara. (D) as new
Subpara. (E), effective June 26, 2003; P.A. 04-86 amended Subsec. (a) to require department to adopt regulations re direct
billing and collection services by electric supplier and to make conforming changes, and amended Subsec. (b) to add "that
provides billing services for an electric supplier" and to make a technical change; P.A. 04-257 made a technical change
in Subsec. (a)(1)(D), effective June 14, 2004; P.A. 05-210 amended Subsec. (a)(1) to make a technical change in Subpara.
(B), add new Subpara. (C) re the transmission rate, and redesignate existing Subparas. (C) to (E), inclusive, as Subparas.
(D) to (F), inclusive, effective July 6, 2005; June Sp. Sess. P.A. 05-1 amended Subsec. (a) to change deadline for adoption
of regulations from January 1, 2005, to January 1, 2006, to change threshold by deleting customers that "use a demand
meter" and by changing maximum demand from not less than five hundred kilowatts to not less than one hundred kilowatts,
and to make technical changes, effective July 21, 2005.
Sec. 16-245l. Systems benefits charge. Determination by department of
amount and how applied to customers. (a) The Department of Public Utility Control
shall establish and each electric distribution company shall collect a systems benefits
charge to be imposed against all end use customers of each electric distribution company
beginning January 1, 2000. The department shall hold a hearing that shall be conducted
as a contested case in accordance with chapter 54 to establish the amount of the systems
benefits charge. The department may revise the systems benefits charge or any element
of said charge as the need arises. The systems benefits charge shall be used to fund (1)
the expenses of the public education outreach program developed under subsections
(a), (f) and (g) of section 16-244d other than expenses for department staff, (2) the
reasonable and proper expenses of the education outreach consultant pursuant to subsection (d) of section 16-244d, (3) the cost of hardship protection measures under sections
16-262c and 16-262d and other hardship protections, including, but not limited to, electric service bill payment programs, funding and technical support for energy assistance,
fuel bank and weatherization programs and weatherization services, (4) the payment
program to offset tax losses described in section 12-94d, (5) any sums paid to a resource
recovery authority pursuant to subsection (b) of section 16-243e, (6) low income conservation programs approved by the Department of Public Utility Control, (7) displaced
worker protection costs, (8) unfunded storage and disposal costs for spent nuclear fuel
generated before January 1, 2000, approved by the appropriate regulatory agencies, (9)
postretirement safe shutdown and site protection costs that are incurred in preparation
for decommissioning, (10) decommissioning fund contributions, (11) the costs of temporary electric generation facilities incurred pursuant to section 16-19ss, (12) operating
expenses for the Connecticut Energy Advisory Board, and (13) legal, appraisal and
purchase costs of a conservation or land use restriction and other related costs as the
department in its discretion deems appropriate, incurred by a municipality on or before
January 1, 2000, to ensure the environmental, recreational and scenic preservation of
any reservoir located within this state created by a pump storage hydroelectric generating
facility. As used in this subsection, "displaced worker protection costs" means the reasonable costs incurred, prior to January 1, 2008, (A) by an electric supplier, exempt
wholesale generator, electric company, an operator of a nuclear power generating facility in this state or a generation entity or affiliate arising from the dislocation of any
employee other than an officer, provided such dislocation is a result of (i) restructuring
of the electric generation market and such dislocation occurs on or after July 1, 1998,
or (ii) the closing of a Title IV source or an exempt wholesale generator, as defined in
15 USC 79z-5a, on or after January 1, 2004, as a result of such source's failure to meet
requirements imposed as a result of sections 22a-197 and 22a-198 and this section or
those Regulations of Connecticut State Agencies adopted by the Department of Environmental Protection, as amended from time to time, in accordance with Executive Order
Number 19, issued on May 17, 2000, and provided further such costs result from either
the execution of agreements reached through collective bargaining for union employees
or from the company's or entity's or affiliate's programs and policies for nonunion
employees, and (B) by an electric distribution company or an exempt wholesale generator arising from the retraining of a former employee of an unaffiliated exempt wholesale
generator, which employee was involuntarily dislocated on or after January 1, 2004,
from such wholesale generator, except for cause. "Displaced worker protection costs"
includes costs incurred or projected for severance, retraining, early retirement, outplacement, coverage for surviving spouse insurance benefits and related expenses. "Displaced
worker protection costs" does not include those costs included in determining a tax
credit pursuant to section 12-217bb.
(b) The amount of the systems benefits charge shall be determined by the department
in a general and equitable manner and shall be imposed on all end use customers of
each electric distribution company at a rate that is applied equally to all customers of
the same class in accordance with methods of allocation in effect on July 1, 1998, provided the system benefits charge shall not be imposed on customers receiving services
under a special contract which is in effect on July 1, 1998, until such special contracts
expire. The system benefits charge shall be imposed beginning on January 1, 2000, on
all customers receiving services under a special contract which are entered into or renewed after July 1, 1998. The systems benefits charge shall have a generally applicable
manner of determination that may be measured on the basis of percentages of total costs
of retail sales of generation services. The systems benefits charge shall be payable on
an equal basis on the same payment terms and shall be eligible or subject to prepayment
on an equal basis. Any exemption of the systems benefits charge by customers under a
special contract shall not result in an increase in rates to any customer.
(P.A. 98-28, S. 18, 117; P.A. 99-17, S. 1, 2; P.A. 02-64, S. 3; P.A. 03-135, S. 8; 03-140, S. 14; P.A. 04-236, S. 17, 18;
04-247, S. 1; P.A. 05-288, S. 220.)
History: P.A. 98-28 effective July 1, 1998; P.A. 99-17 amended Subsec. (a) by adding new Subdiv. (11) re costs of
conservation or land use restriction, effective May 12, 1999 (Revisor's note: In Subdiv. (11) of Subsec. (a), "... department
it its discretion ..." was changed editorially by the Revisors to "... department in its discretion ..." for accuracy); P.A. 02-64 amended Subsec. (a) by redefining "displaced worker protection costs" to change "costs incurred prior to January 1,
2006," to "costs incurred prior to January 1, 2008," to add electric suppliers and exempt wholesale generators, to include
reasonable costs associated with the dislocation of an employee that is the result of the closing of a Title IV source or
exempt wholesale generator due to the source's failure to meet sulfur dioxide emission requirements and to make technical
changes, effective January 1, 2004; P.A. 03-135 amended Subsec. (a) to add reference to Subsecs. (f) and (g) of Sec. 16-244d in Subdiv. (1), to add new Subdiv. (11) re the costs of temporary electric generation facilities, to redesignate existing
Subdiv. (11) as Subdiv. (12), and to add "an operator of a nuclear power generating facility in this state or" and "coverage
for surviving spouse insurance benefits" to the definition of "displaced worker protection costs", effective January 1, 2004;
P.A. 03-140 amended Subsec. (a) to add "operating expenses for the Connecticut Energy Advisory Board", effective July
1, 2003, until January 1, 2004; P.A. 04-236 amended Subsec. (a) to make a technical change, effective June 8, 2004; P.A.
04-247 amended Subsec. (a) to make technical changes and add certain costs of retraining certain former employees of an
unaffiliated exempt wholesale generator in definition of "displaced worker protection costs", effective June 3, 2004; P.A.
05-288 made technical changes in Subsec. (a), effective July 13, 2005.
Sec. 16-245m. Conservation and load management program; charge assessed
against electric customers to fund program; scope and purpose of program. Deposit
of certain moneys from the Energy Conservation and Load Management Funds
in General Fund. (a)(1) On and after January 1, 2000, the Department of Public Utility
Control shall assess or cause to be assessed a charge of three mills per kilowatt hour of
electricity sold to each end use customer of an electric distribution company to be used
to implement the program as provided in this section for conservation and load management programs but not for the amortization of costs incurred prior to July 1, 1997, for
such conservation and load management programs.
(2) Notwithstanding the provisions of this section, receipts from such charge shall
be disbursed to the resources of the General Fund during the period from July 1, 2003,
to June 30, 2005, unless the department shall, on or before October 30, 2003, issue a
financing order for each affected electric distribution company in accordance with sections 16-245e to 16-245k, inclusive, to sustain funding of conservation and load management programs by substituting an equivalent amount, as determined by the department
in such financing order, of proceeds of rate reduction bonds for disbursement to the
resources of the General Fund during the period from July 1, 2003, to June 30, 2005.
The department may authorize in such financing order the issuance of rate reduction
bonds that substitute for disbursement to the General Fund for receipts of both the charge
under this subsection and under subsection (b) of section 16-245n and also may, in its
discretion, authorize the issuance of rate reduction bonds under this subsection and
subsection (b) of section 16-245n that relate to more than one electric distribution company. The department shall, in such financing order or other appropriate order, offset any
increase in the competitive transition assessment necessary to pay principal, premium, if
any, interest and expenses of the issuance of such rate reduction bonds by making an
equivalent reduction to the charge imposed under this subsection, provided any failure
to offset all or any portion of such increase in the competitive transition assessment
shall not affect the need to implement the full amount of such increase as required by
this subsection and by sections 16-245e to 16-245k, inclusive. Such financing order
shall also provide if the rate reduction bonds are not issued, any unrecovered funds
expended and committed by the electric distribution companies for conservation and
load management programs, provided such expenditures were approved by the department after August 20, 2003, and prior to the date of determination that the rate reduction
bonds cannot be issued, shall be recovered by the companies from their respective competitive transition assessment or systems benefits charge but such expenditures shall
not exceed four million dollars per month. All receipts from the remaining charge imposed under this subsection, after reduction of such charge to offset the increase in the
competitive transition assessment as provided in this subsection, shall be disbursed to
the Energy Conservation and Load Management Fund commencing as of July 1, 2003.
Any increase in the competitive transition assessment or decrease in the conservation
and load management component of an electric distribution company's rates resulting
from the issuance of or obligations under rate reduction bonds shall be included as rate
adjustments on customer bills.
(b) The electric distribution company shall establish an Energy Conservation and
Load Management Fund which shall be held separate and apart from all other funds or
accounts. Receipts from the charge imposed under subsection (a) of this section shall
be deposited into the fund. Any balance remaining in the fund at the end of any fiscal
year shall be carried forward in the fiscal year next succeeding. Disbursements from
the fund by electric distribution companies to carry out the plan developed under subsection (d) of this section shall be authorized by the Department of Public Utility Control
upon its approval of such plan.
(c) The Department of Public Utility Control shall appoint and convene an Energy
Conservation Management Board which shall include representatives of: (1) An environmental group knowledgeable in energy conservation program collaboratives; (2) the
Office of Consumer Counsel; (3) the Attorney General; (4) the Department of Environmental Protection; (5) the electric distribution companies in whose territories the activities take place for such programs; (6) a state-wide manufacturing association; (7) a
chamber of commerce; (8) a state-wide business association; (9) a state-wide retail
organization; (10) a representative of a municipal electric energy cooperative created
pursuant to chapter 101a; (11) two representatives selected by the gas companies in this
state; and (12) residential customers. Such members shall serve for a period of five years
and may be reappointed. Representatives of the gas companies shall not vote on matters
unrelated to gas conservation. Representatives of the electric distribution companies
and the municipal electric energy cooperative shall not vote on matters unrelated to
electricity conservation.
(d) (1) The Energy Conservation Management Board shall advise and assist the
electric distribution companies in the development and implementation of a comprehensive plan, which plan shall be approved by the Department of Public Utility Control,
to implement cost-effective energy conservation programs and market transformation
initiatives. The plan shall be consistent with the comprehensive energy plan approved
by the Connecticut Energy Advisory Board pursuant to section 16a-7a at the time of
submission to the department. Each program contained in the plan shall be reviewed
by the electric distribution company and either accepted or rejected by the Energy Conservation Management Board prior to submission to the department for approval. The
Energy Conservation Management Board shall, as part of its review, examine opportunities to offer joint programs providing similar efficiency measures that save more than
one fuel resource or otherwise to coordinate programs targeted at saving more than
one fuel resource. Any costs for joint programs shall be allocated equitably among
the conservation programs. The Energy Conservation Management Board shall give
preference to projects that maximize the reduction of federally mandated congestion
charges.
(2) There shall be a joint committee of the Energy Conservation Management Board
and the Renewable Energy Investments Advisory Committee. The board and the advisory committee shall each appoint members to such joint committee. The joint committee shall examine opportunities to coordinate the programs and activities funded by the
Renewable Energy Investment Fund pursuant to section 16-245n with the programs and
activities contained in the plan developed under this subsection to reduce the long-term cost, environmental impacts and security risks of energy in the state. Such joint
committee shall hold its first meeting on or before August 1, 2005.
(3) Programs included in the plan developed under subdivision (1) of subsection
(d) of this section shall be screened through cost-effectiveness testing which compares
the value and payback period of program benefits to program costs to ensure that programs are designed to obtain energy savings and system benefits, including mitigation
of federally mandated congestion charges, whose value is greater than the costs of the
programs. Cost-effectiveness testing shall utilize available information obtained from
real-time monitoring systems to ensure accurate validation and verification of energy
use. Program cost-effectiveness shall be reviewed annually, or otherwise as is practicable. If a program is determined to fail the cost-effectiveness test as part of the review
process, it shall either be modified to meet the test or shall be terminated. On or before
March 1, 2005, and on or before March first annually thereafter, the board shall provide
a report, in accordance with the provisions of section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy and the
environment (A) that documents expenditures and fund balances and evaluates the cost-effectiveness of such programs conducted in the preceding year, and (B) that documents
the extent to and manner in which the programs of such board collaborated and cooperated with programs, established under section 7-233y, of municipal electric energy cooperatives. To maximize the reduction of federally mandated congestion charges, programs in the plan may allow for disproportionate allocations between the amount of
contributions to the Energy Conservation and Load Management Funds by a certain
rate class and the programs that benefit such a rate class. Before conducting such evaluation, the board shall consult with the Renewable Energy Investments Advisory Committee. The report shall include a description of the activities undertaken during the reporting period jointly or in collaboration with the Renewable Energy Investment Fund
established pursuant to subsection (c) of section 16-245n.
(4) Programs included in the plan developed under subdivision (1) of subsection (d)
of this section may include, but not be limited to: (A) Conservation and load management
programs, including programs that benefit low-income individuals; (B) research, development and commercialization of products or processes which are more energy-efficient
than those generally available; (C) development of markets for such products and processes; (D) support for energy use assessment, real-time monitoring systems, engineering studies and services related to new construction or major building renovation;
(E) the design, manufacture, commercialization and purchase of energy-efficient appliances and heating, air conditioning and lighting devices; (F) program planning and
evaluation; (G) indoor air quality programs relating to energy conservation; (H) joint
fuel conservation initiatives programs targeted at reducing consumption of more than
one fuel resource; and (I) public education regarding conservation. Such support may
be by direct funding, manufacturers' rebates, sale price and loan subsidies, leases and
promotional and educational activities. The plan shall also provide for expenditures by
the Energy Conservation Management Board for the retention of expert consultants and
reasonable administrative costs provided such consultants shall not be employed by, or
have any contractual relationship with, an electric distribution company. Such costs
shall not exceed five per cent of the total revenue collected from the assessment.
(e) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section, the Department of Public Utility Control shall authorize the disbursement of a total
of one million dollars in each month, commencing with July, 2003, and ending with
July, 2005, from the Energy Conservation and Load Management Funds established
pursuant to said subsections. The amount disbursed from each Energy Conservation
and Load Management Fund shall be proportionately based on the receipts received by
each fund. Such disbursements shall be deposited in the General Fund.
(f) No later than December 31, 2006, and no later than December thirty-first every
five years thereafter, the Energy Conservation Management Board shall, after consulting
with the Renewable Energy Investments Advisory Committee, conduct an evaluation
of the performance of the programs and activities of the fund and submit a report, in
accordance with the provisions of section 11-4a, of the evaluation to the joint standing
committee of the General Assembly having cognizance of matters relating to energy.
(g) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section, the Department of Public Utility Control shall authorize the disbursement of a total
of one million dollars in each month, commencing with August 1, 2006, and ending with
July 31, 2007, from the Energy Conservation and Load Management Funds established
pursuant to said subsections. The amount disbursed from each Energy Conservation
and Load Management Fund shall be proportionately based on the receipts received by
each fund. Such disbursements shall be deposited in the General Fund.
(P.A. 98-28, S. 33, 117; P.A. 03-135, S. 9; June 30 Sp. Sess. P.A. 03-6, S. 49; Sept. 8 Sp. Sess. P.A. 03-1, S. 9; P.A.
04-129, S. 1; 04-236, S. 12, 13; 04-247, S. 3; P.A. 05-251, S. 89; June Sp. Sess. P.A. 05-1, S. 5.)
History: P.A. 98-28 effective July 1, 1998; P.A. 03-135 amended Subsec. (d) to divide existing provisions into Subdivs.
(1) to (3) and make conforming changes, to add provision re review of each program and acceptance or rejection by the
Energy Conservation Management Board in Subdiv. (1), to add provision re cost-effectiveness testing in Subdiv. (2), and
to add "real-time monitoring systems" in Subdiv. (3), effective July 1, 2003; June 30 Sp. Sess. P.A. 03-6 amended Subsec.
(a) to provide for a plan to avoid disbursements from the Energy Conservation and Load Management Fund to the General
Fund in the implementation of the budget for the biennium ending June 30, 2005, effective August 20, 2003; Sept. 8 Sp.
Sess. P.A. 03-1, S. 9 re disbursements to the General Fund for the biennium ending June 30, 2005, was added editorially
by the Revisors as Subsec. (e), effective September 10, 2003; P.A. 04-129 amended Subsec. (d)(3) to redesignate existing
Subpara. (G) as Subpara. (H) and to add new Subpara. (G) re indoor air quality programs; P.A. 04-236 amended Subsecs.
(a) and (d)(2) to make technical changes, effective June 8, 2004; P.A. 04-247 amended Subsec. (d)(2) to change reporting
date from January 31, 2001, and annually thereafter until January 31, 2006, to March 1, 2005, and March 1, 2006, effective
July 1, 2004; P.A. 05-251 added provisions, designated by the Revisors as Subsec. (g), re monthly disbursements to General
Fund from August 1, 2006, to July 31, 2007, effective June 30, 2005; June Sp. Sess. P.A. 05-1 made technical changes in
Subsecs. (a), (c) and (d), amended Subsec. (c) to add new Subdivs. (10) and (11) re a representative of a municipal electric
energy cooperative and two representatives selected by gas companies and to add provisions re voting on unrelated matters,
amended Subsec. (d)(1) to require plan to be consistent with the comprehensive energy plan, to require examination of
opportunities for joint programs, and to require preference for projects that maximize reduction of federally mandated
congestion charges, added new Subsec. (d)(2) establishing a joint committee of the Energy Conservation Management
Board and the Renewable Energy Investments Advisory Committee, renumbering former Subsec. (d)(2) as new Subsec.
(d)(3), amended Subsec. (d)(3) to add language re system benefits, to change the deadline for providing report, to require
report to contain information on cooperation with municipal electric energy cooperatives, to allow disproportionate allocations from the funds, to require consultation with the Renewable Energy Investments Advisory Committee, and to require
the report to describe collaboration with the Renewable Energy Investment Fund, renumbering former Subsec. (d)(3) as
new Subsec. (d)(4), amended Subsec. (d)(4) to add language re programs to benefit low-income individuals and joint fuel
conservation initiatives, and to revise language re expenditures for consultants and administrative costs, and added Subsec.
(f) re evaluation of the performance of programs, effective July 21, 2005.