OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www.cga.ct.gov/ofa

SB-493

AN ACT REDUCING ELECTRICITY COSTS AND PROMOTING RENEWABLE ENERGY.

AMENDMENT

LCO No.: 5570

Senate Calendar No.: 545

OFA Fiscal Note

SEE BELOW

The amendment strikes the language of the underlying bill and eliminates the associated fiscal impact.

Section 1 establishes an energy council. It would result in a minimal cost to the Office of Legislative Management (OLM)  for mileage reimbursement, as it requires certain legislators to participate on the task force.  The current rate of mileage reimbursement is $0.50 per mile.

Section 2 requires electric and gas companies to establish a rate discount for low income customers, which includes approximately 78, 000 households. The costs for the discounts will be recovered from the rate adjustments, the systems benefits charge, or from savings from other program that DPUC terminates or reduces. As the state and municipalities are electric and gas rate payers, both provisions would result in a potential cost.

Section 3 permits municipalities to establish a loan program, supported by the issuance of municipal bonds, to finance sustainable energy improvements. The net impact of this provision is uncertain, pending implementation by municipalities. Provided that municipalities receive sufficient loan repayments to cover: 1) the debt service costs on the bonds issued to fund the program and 2) the administrative costs of the program, there is no fiscal impact.

Section 4 requires the DPUC to develop a procurement plan in consultation with each electric distribution company. It allows the electric utility companies to recover costs incurred in connection with the development and implementation the plan. Such costs will be borne by standard service customers within their generation service charge.

Section 5 establishes an energy savings infrastructure pilot program. The program must provide financial incentives for the installing combined heat and power systems, energy efficient heating oil burners, boilers and furnaces and natural gas boilers and furnaces by eligible entities. The amendment is unclear regarding funding for this program.

Section 6 authorizes electric companies to build, own and operate solar electric generating facilities. Any such costs would be recovered through a rate filing with the DPUC.

Section 7-8 allows the Renewable Energy Board to establish a Condominium Renewable Energy Grant program and permits the board to provide grants to condominium associations within available appropriations. There are no such funds provided for this purpose. Because this program is discretionary in nature, it is anticipated that the board will implement this program only to the extent it results in no fiscal impact.

Section 9-11 makes changes that have no fiscal impact.

Section 12 may result in a revenue gain from fines imposed by the Department of Consumer Protection due to an expansion of areas covered by the Connecticut Unfair Trade Practice Act.

Section 13 requires the Renewable Energy Investment Board (Clean Energy Board) to establish and administer a pilot program to install fuel cells in state building. Funding for the pilot program will be $5 million from the Clean Energy Fund. It is anticipated that any costs incurred would come from its operating funds, which reduces funding available for current investments and programs but would not alter rates and therefore has no fiscal impact.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.