You asked for a discussion of the eligibility of municipal electric utility customers for Clean Energy Fund programs.

Historically, municipal electric utility customers were ineligible for Clean Energy Fund programs because they do not contribute to the fund. The legislation opening the electric industry to competition (PA 98-28) allowed municipal electric utilities to participate in the competitive market, subject to the same conditions as electric companies. Among these conditions is that the municipal utility charge its customers the surcharges that fund the Clean Energy Fund and the Connecticut Energy Efficiency Fund. To date, none of the state's six municipal electric utilities have chosen to participate in the competitive market and their customers do not pay into these funds.

However, the Clean Energy Fund has recently received approximately $20 million under the American Recovery and Reinvestment Act (the federal stimulus bill). Customers of municipal utilities as well as electric companies will be able to participate in four Clean Energy Fund programs that are supported by this funding. These are programs to support solar water heaters and other thermal technologies (described in OLR Report 2009-R-0327) as well as programs to promote photovoltaics, geothermal systems, and fuel cells. An Office of Policy and Management (OPM) website, www.ct.gov/opm/cwp/view.asp?a=2994&q=436446, describes OPM's application for funding under the stimulus bill and its contracts with the Clean Energy Fund for the funded programs. This funding runs through April 30, 2012.

In addition, customers of the Norwalk Third District municipal utility can access the Clean Energy Fund's residential photovoltaic rebate program using funding provided by the Connecticut Municipal Electric Energy Cooperative (CMEEC). This provision is being expanded to the other municipal utilities and to commercial and industrial customers.

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