OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ↓ (860) 240-0200
AN ACT CONCERNING CONNECTICUT'S CLEAN ENERGY GOALS.
LCO No.: 6346
File Copy No.: 120
Senate Calendar No.: 141
OFA Fiscal Note
The amendment strikes the underlying bill and its associated fiscal impact.
The amendment modifies the renewable portfolio standard (RPS) that electric utilities and suppliers must achieve. These modifications include expanded types of hydropower and biogas resources that count as Class I resources as well as create a new class that includes certain large-scale hydropower resources. It is anticipated that expanding the resources that count as a Class I resource and creating a new class would result in a savings to ratepayers, including the state and municipalities.
The amendment also allows the commissioner of the Department of Energy and Environmental Protection (DEEP) to solicit proposals and enter into long-term agreements with certain renewable energy source providers for energy, capacity, and environmental attributes, subject to the Public Utility Review Authority (PURA) review and approval. It is anticipated that this will result in a short term savings to the state as it is expected that the rates would be less than the current market value. The costs associated with a PURA review are anticipated to be minimal. These costs are required to be recovered through a reconciling component on electric rates, including the state and municipalities.
The amendment also changes to how certain compliance payments and civil penalties are handled.1 Under current law, these payments are used for the development of Class I renewable energy sources. The amendment requires these payments to be used to offset ratepayer's costs for certain contracts prior to being used for the development of Class I renewable energy sources. This provision will result in reduced costs to ratepayers, including the state and municipalities.
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.
1 To-date in FY 13, the Clean Energy Fund has received $215,000 in compliance payments for 2009 noncompliance of electric companies and $2,000 in civil penalties from competitive suppliers.