AN ACT CONCERNING CONNECTICUT'S ENERGY POLICY.

State Impact: See Below

Municipal Impact: See Below

Explanation

The bill makes various changes in energy related statutes that could affect rates paid by states and municipalities, the extent of which cannot be determined at this time.

The bill also results in other fiscal impacts, as follows:

Section 1 requires the Department of Environmental Protection (DEP) to serve on the Connecticut Electricity Procurement Authority (CEPA). DEP anticipates that service on the CEPA board of directors will increase costs through increased workload created under this bill. This would result in the diversion of ¼ of an employee away from current duties, or would require additional resources of approximately $25,000. It is anticipated that the Secretary of the Office of Policy and Management can serve on CEPA without incurring additional cost.

Sections 3 and 4 of the bill allow the Auditors of Public Accounts to audit the Connecticut Electricity Procurement Authority, which the agency can accomplish without requiring additional resources.

The Department of Public Utility Control (DPUC) can implement provisions of both the senior/disabled education and outreach program, along with the summer conservation program, within available staff resources.

Costs may be incurred, however, for marketing provisions related to these programs of approximately $500,000-$600,000 but would be funded through a surcharge on SBC/AT&T ratepayer charges. Costs may also be incurred for program implementation related to these programs, which would be funded through electric ratepayer funds. These effects, an additional telecommunications surcharge and program implementation, could impact the state and municipalities as telecommunications and electricity ratepayers, the extent of which cannot be determined at this time.

Section 7 allows DPUC to retain outside consultants for assistance in developing and implementing the public education outreach program, to be reimbursed through the electric systems benefit charge. This added consultant cost could affect the state and municipalities as ratepayers, the extent of which is also unknown at this time.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation. The impact on the electric rate payers in the state in the future is uncertain.