Connecticut Seal

General Assembly

Amendment

 

January Session, 2015

LCO No. 9137

   
 

*SB0057009137SDO*

Offered by:

 

SEN. DOYLE, 9th Dist.

SEN. FORMICA, 20th Dist.

REP. REED, 102nd Dist.

REP. ACKERT, 8th Dist.

 

To: Subst. Senate Bill No. 570

File No. 611

Cal. No. 343

"AN ACT CONCERNING ELECTRIC FIXED BILL FEES AND GRID MODERNIZATION. "

Strike everything after the enacting clause and substitute the following in lieu thereof:

"Section 1. (NEW) (Effective July 1, 2015) (a) As used in this section:

(1) "Residential fixed charge" means any fixed fee charged to residential electric customers, including, but not limited to, (A) a fixed charge for distribution basic service, (B) a distribution customer service charge, (C) a customer charge, or (D) a basic service fee which is separate and distinct from any distribution charge per kilowatt-hour.

(2) "Electric distribution company" has the same meaning as provided in section 16-1 of the general statutes, as amended by this act.

(b) The Public Utilities Regulatory Authority shall adjust each electric distribution company's residential fixed charge upon such company's filing with the authority an amendment of rate schedules pursuant to section 16-19 of the general statutes to recover only the fixed costs and operation and maintenance expenses directly related to metering, billing, service connections and the provision of customer service.

(c) The provisions in subsection (b) of this section shall not permit or enable the authority to cause a cost-shift to other rate classes.

(d) This section shall not apply to electric customers that subscribe to a residential electric heating service rate class.

Sec. 2. Subsection (a) of section 16-1 of the general statutes is amended by adding subdivisions (48) and (49) as follows (Effective July 1, 2015):

(NEW) (48) "Distributed energy resource" means any customer-side distributed resource or grid-side distributed resource, that generates electricity from a Class I renewable energy source or Class III source, customer-side distributed resource that reduces demand for electricity through conservation and load management, energy storage system located on the customer-side of the meter or connected to the distribution system or microgrid.

(NEW) (49) "Grid-side system enhancement" means an investment in distribution system infrastructure, technology and systems designed to enable the deployment of distributed energy resources and allow for grid management and system balancing, including, but not limited to, energy storage systems, distribution system automation and controls, intelligent field systems, advanced distribution system metering and communication and systems that enable two-way power flow.

Sec. 3. (NEW) (Effective July 1, 2015) Not later than October 1, 2016, the Department of Energy and Environmental Protection shall issue, either as part of the Comprehensive Energy Strategy, issued pursuant to section 16a-3d of the general statutes, or in a separate proceeding that provides opportunity for public review and comment consistent with that mandated for the Comprehensive Energy Strategy pursuant to section 16a-3d of the general statutes, a study and recommendations for regulatory, legislative and policy mechanisms necessary to transform the electric distribution company business model and related constructs for supporting and deploying distributed energy resources to increase system-wide efficiencies in the integration of more distributed energy resources, and ensure that such companies are appropriately incentivized to support and deploy distributed energy resources, in such a way that increases (1) customer choice; (2) net benefits to the electric system, electric ratepayers and society, including through the avoidance of electric system costs related to generation and transmission; (3) deployment of cost-effective distributed energy resources; (4) system reliability and resiliency; and (5) reduction of greenhouse gas emissions and other pollutants.

Sec. 4. (NEW) (Effective July 1, 2015) (a) Notwithstanding subsection (a) of section 16-244e of the general statutes, each electric distribution company, as defined in section 16-1 of the general statutes, as amended by this act, shall submit a proposal or proposals to the Department of Energy and Environmental Protection for a pilot program to build, own or operate grid-side system enhancements, including, but not limited to, energy storage systems, as defined in section 16-1 of the general statutes, as amended by this act, for the purpose of demonstrating and investigating how distributed energy resources, as defined in section 16-1 of the general statutes, as amended by this act, can be reliably and efficiently integrated into the operation of the electric distribution system in a manner that maximizes the value provided to the electric grid, electric ratepayers and the public from such resources. Such proposal shall complement and enhance the programs, products and incentives available through the Connecticut Green Bank and the Connecticut Energy Efficiency Fund, pursuant to sections 16-244r, 16-244s and 16-244t of the general statutes, and other similar programs that support the deployment of distributed energy resources.

(b) The department shall evaluate such proposals and may approve such proposals if such proposals demonstrate: (1) How grid-side system enhancements, including, but not limited to, energy storage systems, can be reliably and cost-effectively integrated into the electric distribution system; and (2) that such proposals maximize the value provided to ratepayers. Any proposal that is approved by the department shall be subject to review and approval by the Public Utilities Regulatory Authority, and shall be approved by the authority if the authority concludes that investment in such grid-side system enhancement is reasonable, prudent and provides value to ratepayers.

(c) Each electric distribution company may enter into joint ownership agreements, partnerships or other contractual agreements for services with private entities to carry out the provisions of this section. The costs incurred by the electric distribution companies as a result of such agreement shall be recovered from all customers of the contracting electric distribution company through a fully reconciling component of electric rates for all customers of electric distribution companies, until the electric distribution company's next rate case, at which time such costs and investments shall be recoverable through base distribution rates.

(d) Not later than January 1, 2017, the department shall evaluate such approved proposals pursuant to this section and submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to energy, regarding the performance, costs and benefits associated with grid-side system enhancements, including, but not limited to, energy storage systems procured pursuant to this section.

Sec. 5. (NEW) (Effective July 1, 2015) (a) After the effective date of this section, the Commissioner of Energy and Environmental Protection shall initiate an uncontested proceeding or proceedings to (1) determine the net value that any type of customer-side Class I renewable energy source or Class III source, as defined in section 16-1 of the general statutes, as amended by this act, provide to the electric grid, ratepayers and the public; and (2) make recommendations regarding any changes to ratemaking mechanisms and other programs supporting Class I renewable energy sources or Class III sources that would credit the owners of such distributed energy resource for such net value.

(b) In determining the value of any type of Class I renewable energy source or Class III source in any proceeding initiated pursuant to this section, the commissioner shall consider the costs and benefits associated with the following factors: (1) Energy; (2) generation capacity; (3) distribution system impacts, including, but not limited to, line loss savings; (4) transmission system impacts, including, but not limited to, line loss savings; (5) price suppression; (6) quantifiable environmental attributes; (7) reliability and resiliency; and (8) fuel price volatility reduction benefits. The commissioner shall consider the extent to which the rate design for crediting such Class I renewable energy source or Class III source avoids participant contribution to the combined public benefits charge that funds programs supporting such sources.

(c) In any proceeding initiated pursuant to this section, the commissioner shall convene a public scoping meeting with interested stakeholders to determine the types of Class I renewable energy sources or Class III sources to be evaluated at such proceeding, the scope of such proceeding, and any other issues the commissioner deems relevant. Not less than thirty days after convening any such scoping meeting, the commissioner shall conduct not less than one public meeting and one technical meeting where technical personnel shall be made available to respond to questions. In conducting any proceeding pursuant to this section, the commissioner shall:

(1) Not less than fifteen days prior to convening any public, scoping or technical meeting pursuant to this subsection, publish notice of such meeting. Such notice shall disclose the time period for public comment and the time, date and location of such meeting. The testimony, public comments and exhibits made at such proceeding and at such public and technical meetings shall be transcribed and made available on the department's Internet web site.

(2) Not later than sixty days after convening the public meeting or technical meeting required pursuant to this subsection, whichever is later, make proposed recommendations available for public comment for a period of not less than thirty days after issuing such proposed recommendations in any proceeding conducted pursuant to subsection (a) of this section. The commissioner shall fully consider all oral and written public comments concerning the proposed valuation methodology for such Class I renewable energy source or Class III source before issuing the final valuation methodology.

(d) At the conclusion of any proceeding conducted pursuant to subsection (a) of this section, the commissioner shall (1) establish a final valuation methodology, including provisions for how such methodology shall be updated over time to account for changed market conditions, for the distributed Class I renewable energy source or Class III source evaluated in the proceeding, and (2) make recommendations regarding any changes to ratemaking mechanisms and other programs supporting Class I renewable energy sources or Class III sources that would credit the owners of such distributed energy resource for such net value.

(e) After the conclusion of any proceeding under this section, the commissioner may update the final valuation methodology established under subsection (d) of this section as needed to reflect changed market conditions.

(f) Not later than six months after such proceeding, the commissioner shall report, in accordance with section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to energy regarding such valuation methodology and recommendations.

Sec. 6. (NEW) (Effective July 1, 2015) On or after the effective date of this section, the Commissioner of Energy And Environmental Protection may direct each electric distribution company to submit an active demand response resource plan to the department for the procurement of active demand response resources that can reduce generation service charges or other electric service charges through one or more tariffs. The department shall review and may approve, modify or reject such plans. Each electric distribution company shall file an application with the Public Utilities Regulatory Authority for approval of a tariff pursuant to section 16-19 of the general statutes, associated with such demand response resource plans approved by the department. The department may require each electric distribution company to submit additional active demand response resource plans pursuant to this section, as needed to reduce generation service charges. Each electric distribution company's costs associated with the compliance with the provisions of this section shall be recoverable through a fully reconciling component of electric rates for all customers of electric distribution companies. Not later than July 1, 2017, the department shall submit a report in accordance with the provisions of section 11-4a of the general statutes, regarding such approved demand response resource plans to the joint standing committee of the General Assembly having cognizance of matters relating to energy.

Sec. 7. Section 16-245a of the general statutes is amended by adding subsection (i) as follows (Effective July 1, 2015):

(NEW) (i) Notwithstanding the provisions of this section and the regulations adopted pursuant to subsection (f) of this section, the Public Utilities Regulatory Authority shall issue registration numbers to electric generating facilities that are eligible Class I renewable energy sources and derive electricity from either solar power, wind power or a fuel cell. The owner of such electric generating facility shall register with the authority, subject to section 16-33, using a self-certification process as prescribed by the authority and shall sign a statement under oath indicating that such owner has complied with the requirements and criteria for the issuance of a Class I renewable energy source registration number. Failure to comply with such requirements and criteria may result in the authority revoking such registration.

Sec. 8. Subsection (c) of section 16-243y of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):

(c) The department shall award grants or loans under the microgrid grant and loan pilot program to any number of recipients. To the extent possible, the amount of loans and grants awarded under the program shall be evenly distributed between small, medium and large municipalities. Such grants and loans [shall only be used to] may provide assistance to recipients for the cost of a microgrid's design, engineering services and interconnection infrastructure, and may provide matching funds or low interest loans for new generation, energy storage systems, or both for any such microgrid, provided such generation is derived from a Class I renewable energy source or Class III source or a gas microturbine with an efficiency factor of 40 or greater. The department may establish any financing mechanism to provide or leverage additional funding to support the development of interconnection infrastructure, distributed energy generation and microgrids. [that is not limited to the cost of interconnection infrastructure. ]

Sec. 9. Subsection (g) of section 16-244u of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):

(g) A municipal, state or agricultural customer host shall be allowed to aggregate [all] electric meters that are located on the same parcel or property of one of the virtual net metering facilities that are billable to such customer host.

Sec. 10. (NEW) (Effective July 1, 2015, and applicable to assessment years commencing on or after October 1, 2015) Any municipality may, by vote of its legislative body or, in a municipality where the legislative body is a town meeting, by vote of the board of selectmen, abate up to one hundred per cent of the property taxes due for any tax year, for not more than twenty-five tax years, with respect to personal property of any gas company, as defined in section 16-1 of the general statutes, as amended by this act, in order to facilitate natural gas expansion projects in such municipality. The gas company shall include the amount of such abatement when calculating the hurdle rate pursuant to section 16-19ww of the general statutes for gas expansion projects within such municipality.

Sec. 11. Subdivision (3) of subsection (a) of section 16-244u of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):

(3) "Agricultural customer host" means an in-state retail end user of an electric distribution company that uses electricity for the purpose of agriculture, as defined in subsection (q) of section 1-1, owns, leases or enters into a long-term contract for an agricultural virtual net metering facility and participates in agricultural virtual net metering;

Sec. 12. Section 16a-41b of the general statutes is amended by adding subsection (c) as follows (Effective October 1, 2015):

(NEW) (c) The Low-Income Energy Advisory Board shall convene and devise recommendations to improve the implementation of heating assistance programs, particularly those created to benefit low-income households, through coordination and optimization of existing energy efficiency and energy assistance programs. Such recommendations shall consider: (1) How the Department of Energy and Environmental Protection, Department of Social Services, community action agencies, as defined by section 17b-885, electric distribution companies, as defined by section 16-1, and municipal electric utilities, as defined by section 7-233b, can securely share heating assistance program applicant data, with respect to customer energy usage levels, past participation and eligibility for energy assistance and energy efficiency programs and other data deemed relevant to improve coordination among such programs and program administrators; (2) the costs and benefits of current energy assistance and energy efficiency programs and how to maximize customer benefits through such customers' participation in any combination of energy assistance and energy efficiency programs; (3) how to streamline the application process for energy assistance and energy efficiency program applicants and the possible development of joint electronic applications; (4) how to make energy assistance and energy efficiency programs more accessible and feasible for tenants in rental housing units, including, but not limited to, how to best secure landlord permission for such services; and (5) coordination efforts to best improve boiler and furnace replacement programs. Not later than January 1, 2016, the Low-Income Energy Advisory Board shall report such recommendations, in accordance with section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy, appropriations and human services.

Sec. 13. Section 16-2 of the general statutes is amended by adding subsection (n) as follows (Effective from passage):

(NEW) (n) Two or more utility commissioners serving on a panel established pursuant to subsection (c) of this section may confer or communicate regarding the matter before such panel. Any such conference or communication that does not occur before the public at a hearing or proceeding shall not constitute a meeting as defined in section 1-200.

Sec. 14. (NEW) (Effective from passage) The Commissioner of Energy and Environmental Protection shall administer a federally appropriated weatherization assistance program to provide, within available appropriations, weatherization assistance in accordance with the provisions of the state plan implementing the weatherization assistance block grant program authorized by the federal Low-Income Home Energy Assistance Act of 1981 and programs of weatherization assistance with funds authorized by the federal Low-Income Home Energy Assistance Act of 1981 and by the United States Department of Energy in accordance with 10 CFR 440 promulgated under The Energy Conservation and Production Act, 42 USC 6801, as amended from time to time.

Sec. 15. Subdivision (2) of subsection (e) of section 4a-57 of the general statutes is repealed and following is substituted in lieu thereof (Effective from passage):

(2) Any purchase of or contract by the department for electric generation services that are subject to competitive bidding and competitive negotiations shall be conducted in cooperation with the [Office of Policy and Management] Department of Energy and Environmental Protection pursuant to section 16a-14e.

Sec. 16. Section 16a-14 of the general statutes is repealed and the following is submitted in lieu thereof (Effective from passage):

In addition to the duties set forth in any other law, the Commissioner of Energy and Environmental Protection may: (1) Be designated as the state official to implement and execute any federal program, law, order, rule or regulation related to the allocation, rationing, conservation, distribution or consumption of energy resources, (2) investigate any complaint concerning the violation of any federal or state statute, rule, regulation or order pertaining to pricing, allocation, rationing, conservation, distribution or consumption of energy resources and shall transmit any evidence gathered by such investigation to the proper federal or state authorities, (3) coordinate all state and local government programs for the allocation, rationing, conservation, distribution and consumption of energy resources, (4) cooperate with the appropriate authorities of the United States government, or other state or interstate agencies with respect to allocation, rationing, conservation, distribution and consumption of energy resources, (5) conduct programs of public education regarding energy conservation, (6) represent the state's energy policy interest before any appropriate federal agency, which shall include, but not be limited to, supporting or opposing transmission projects to meet public policy needs before the Federal Energy Regulatory Commission, (7) carry out a program of studies, hearings, inquiries, surveys and analyses necessary to carry out the purposes of this chapter and sections 4-124i, 4-124l, 4-124p, 8-3b, 8-35a and 8-189, subsection (b) of section 8-206 and sections 16a-20, 16a-102, 22a-352 and 22a-353, provided if an individual or business furnishing commercial or financial information concerning such individual or business requests in writing at the time such information is furnished that it be treated as confidential proprietary information, such information, to the extent that it is limited to (A) volume of sales, shipments, receipts and exchanges of energy resources, (B) inventories of energy resources, and (C) local distribution patterns of energy resources, shall be exempt from the provisions of subsection (a) of section 1-210, [(7)] (8) enter into contracts with any person to do all things necessary or convenient to carry out the functions, powers and duties of the commissioner and the Department of Energy and Environmental Protection under this chapter and sections 4-5, 4-124l, 4-124p, 8-3b, 8-35a and 8-189, subsection (b) of section 8-206 and sections 16a-20, 16a-102, 22a-352 and 22a-353, [(8)] (9) adopt regulations, in accordance with chapter 54, to establish standards for solar energy systems, including experimental systems, which offer practical alternatives to the use of conventional energy with regard to current technological feasibility and the climate of this state, and [(9)] (10) undertake such other duties and responsibilities as may be delegated by other state statutes or by the Governor.

Sec. 17. Subdivision (4) of subsection (d) of section 16-245m of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(4) The Commissioner of Energy and Environmental Protection shall adopt an independent, comprehensive program evaluation, measurement and verification process to ensure that the [Energy Conservation Management Board's] programs in the plan developed under subdivision (1) of this subsection are administered appropriately and efficiently and [,] comply with statutory requirements. [,] The Commissioner shall ensure that the costs and benefits of programs and measures are measured and verified with the goal of increasing cost [effective] effectiveness, evaluation reports are accurate and issued in a timely manner, evaluation results are appropriately and accurately taken into account in program development and implementation, and information necessary to meet any third-party evaluation requirements is provided. An annual schedule and budget for evaluations as determined by [the board] the commissioner, in consultation with the board, shall be included in the plan filed [with the commissioner] pursuant to subdivision (1) of this subsection. The electric distribution and gas company representatives and the representative of a municipal electric energy cooperative may not vote on board plans, budgets, recommendations, actions or decisions regarding such process or its program evaluations and their implementation. Program and measure evaluation, measurement and verification shall be conducted on an ongoing basis, with emphasis on impact and process evaluations, programs or measures that have not been studied, and those that account for a relatively high percentage of program spending. Evaluations shall use statistically valid monitoring and data collection techniques appropriate for the programs or measures being evaluated. All evaluations shall contain a description of any problems encountered in the process of the evaluation, including, but not limited to, data collection issues, and recommendations regarding addressing those problems in future evaluations. The board shall contract with one or more consultants not affiliated with the board members to act as an evaluation administrator, advising the commissioner and the board regarding development of a schedule and plans for evaluations and overseeing the program evaluation, measurement and verification process on behalf of the [board] state. Consistent with board processes and approvals and the Commissioner of Energy and Environmental Protection's decisions and priorities regarding evaluation, such evaluation administrator shall implement the evaluation process by preparing requests for proposals and selecting evaluation contractors to perform program and measure evaluations and by facilitating communications between evaluation contractors and program administrators to ensure accurate and independent evaluations. In the evaluation administrator's discretion and at his or her request, the electric distribution and gas companies shall communicate with the evaluation administrator for purposes of data collection, vendor contract administration, and providing necessary factual information during the course of evaluations. The evaluation administrator shall bring unresolved administrative issues or problems that arise during the course of an evaluation to the [board] commissioner for resolution. [, but shall have sole authority regarding substantive and implementation decisions regarding any evaluation. ] Board members, including electric distribution and gas company representatives, may [not] communicate with an evaluation contractor about an ongoing evaluation [except with the express permission of the evaluation administrator, which may only be granted] if the evaluation administrator believes the communication will not compromise the independence of the evaluation. The evaluation administrator shall file evaluation reports with the board and with the Commissioner of Energy and Environmental Protection in its most recent uncontested proceeding pursuant to subdivision (1) of this subsection and the board shall post a copy of each report on its Internet web site. The board and its members, including electric distribution and gas company representatives, may file written comments regarding any evaluation with the commissioner or for posting on the board's Internet web site. Within fourteen days of the filing of any evaluation report, the commissioner, [members of the board or other interested persons may request in writing, and the commissioner] shall conduct, a [transcribed] technical meeting to review the methodology, results and recommendations of any evaluation. Participants in any such [transcribed] technical meeting shall include the evaluation administrator, the evaluation contractor and the Office of Consumer Counsel at its discretion. On or before November 1, 2011, and annually thereafter by March first of each year, the board shall report to the joint standing committee of the General Assembly having cognizance of matters relating to energy, with the results and recommendations of completed program evaluations.

Sec. 18. Subdivision (57) of section 12-81 of the general statutes is amended by adding subparagraph (F) as follows (Effective from passage):

(NEW) (F) For assessment years commencing on and after October 1, 2015, any municipality may, by vote of its legislative body or, in a municipality where the legislative body is a town meeting, by vote of the board of selectmen, abate up to one hundred per cent of the property taxes due for any tax year, for not longer than the term of the power purchase agreement, with respect to any Class I renewable energy source, as defined in section 16-1, as amended by this act, that is the subject of such power purchase agreement approved by the Public Utilities Regulatory Authority pursuant to section 16a-3f.

Sec. 19. (NEW) (Effective October 1, 2015) As used in this section, sections 16-19f and 16a-3e of the general statutes, as amended by this act, and section 21 of this act:

(1) "Electric vehicle" means any vehicle that derives motive power from electricity either stored in batteries or generated on-board the vehicle and complies with all federal safety requirements necessary for legal operation on a limited access highway as defined by 40 CFR 85. 1703;

(2) "Electric vehicle service equipment" means an electric component assembly or cluster of component assemblies designed specifically to charge batteries within electric vehicles by permitting the transfer of electric energy to a battery or other storage device in an electric vehicle;

(3) "Electric vehicle charging services" means the transfer of electric energy from electric vehicle service equipment to a battery or other storage device in an electric vehicle;

(4) "Electric vehicle charging station" means one or more facilities or locations served by electric vehicle service equipment;

(5) "Public electric vehicle charging station" means one or more publicly available facilities or locations served by electric vehicle service equipment;

(6) "Fee-based electric vehicle charging station" means an electric vehicle charging station where customers, other than the owner or operator of the charging station, pay for electric vehicle charging services; and

(7) "Fee-based public electric vehicle charging station" means an electric vehicle charging station that is both a public electric vehicle charging station and fee-based electric vehicle charging station.

Sec. 20. Section 16-19f of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) As used in this section:

(1) "Cost of service" means an electric utility rate for a class of consumer which is designed, to the maximum extent practicable, to reflect the cost to the utility in providing electric service to such class;

(2) "Declining block rate" means an electric utility rate for a class of consumer which prices successive blocks of electricity consumed by such consumer at lower per-unit prices;

(3) "Time of day rate" means an electric utility rate for a class of consumer which is designed to reflect the cost to the utility of providing electricity to such consumer at different times of the day;

(4) "Seasonal rate" means an electric utility rate for a class of consumer designed to reflect the cost to the utility in providing electricity to such consumer during different seasons of the year;

(5) "Electric vehicle time of day rate" means an electric utility rate for a class of consumer designed to reflect the cost to the utility of providing electricity to such consumer charging an electric vehicle [at a public electric vehicle charging station] at different times of the day, but shall not include demand charges;

[(6) "Public electric vehicle charging station" means an electric vehicle charging station, electric recharging point, charging point or electric vehicle supply equipment, which is an element in an infrastructure that supplies electricity for the recharging of plug-in electric vehicles, including all-electric cars, neighborhood electric vehicles and plug-in hybrids, and which allows any electric vehicle owner or operator to access and use the charging station free of charge; ]

[(7)] (6) "Interruptible rate" means an electric utility rate designed to reflect the cost to the utility in providing service to a consumer where such consumer permits his service to be interrupted during periods of peak electrical demand;

[(8)] (7) "Load management techniques" means cost-effective techniques used by an electric utility to reduce the maximum kilowatt demand on the utility.

(b) The Public Utilities Regulatory Authority, with respect to each electric public service company and each municipal electric company, shall (1) within two years, consider and determine whether it is appropriate to implement any of the following rate design standards: (A) Cost of service; (B) prohibition of declining block rates; (C) time of day rates; (D) seasonal rates; (E) interruptible rates; and (F) load management techniques, [and] (2) within one year, consider and determine whether it is appropriate to implement electric vehicle time of day rates for public electric vehicle charging stations, and (3) not later than June 1, 2016, implement electric vehicle time of day rates for residential customers. The consideration of said standards by the authority and each municipal electric company shall be made after public notice and hearing. Such hearing may be held concurrently with a hearing required pursuant to subsection (b) of section 16-19e. The authority and each municipal company shall make a determination on whether it is appropriate to implement any of said standards. Said determination shall be in writing, shall take into consideration the evidence presented at the hearing and shall be available to the public. A standard shall be deemed to be appropriate for implementation if such implementation would encourage energy conservation, optimal and efficient use of facilities and resources by an electric public service company or municipal electric company and equitable rates for electric consumers.

(c) The Public Utilities Regulatory Authority, with respect to each electric public service company, and each municipal electric company may implement any standard determined under subsection (b) of this section to be appropriate or decline to implement any such standard. If the authority or a municipal electric company declines to implement any standard determined to be appropriate, it shall state in writing its reasons for doing so and make such statement available to the public.

(d) The provisions of this section shall not apply to any municipal electric company which has total annual sales of electricity for purposes other than resale of five hundred million kilowatt-hours or less.

Sec. 21. (NEW) (Effective October 1, 2015) (a) Each electric distribution company, as defined in section 16-1 of the general statutes, as amended by this act, shall integrate electric vehicle charging load projections into each company's distribution planning. Such projections shall include available information regarding the number of electric vehicles, as defined in section 19 of this act, registered in the state and projected increases or decreases in sales of such vehicles.

(b) Not later than January 1, 2016, and annually thereafter, each electric distribution company shall publish on such company's Internet web site information explaining the incorporation of such company's electric vehicle charging load projections for the company's distribution planning.

Sec. 22. Section 16a-3e of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

The Integrated Resources Plan to be adopted in 2012 and biennially thereafter, shall (1) indicate specific options to reduce electric rates and costs. Such options may include the procurement of new sources of generation. In the review of new sources of generation, the Integrated Resources Plan shall indicate whether the private wholesale market can supply such additional sources or whether state financial assistance, long-term purchasing of electricity contracts or other interventions are needed to achieve the goal; (2) analyze in-state renewable sources of electricity in comparison to transmission line upgrades or new projects and out-of-state renewable energy sources, provided such analysis also considers the benefits of additional jobs and other economic impacts and how they are created and subsidized; (3) include an examination of average consumption and other states' best practices to determine why electricity rates are lower elsewhere in the region; (4) assess and compare the cost of transmission line projects, new power sources, renewable sources of electricity, conservation and distributed generation projects to ensure the state pursues only the least-cost alternative projects; (5) analyze the potential for electric vehicles, as defined in section 19 of this act, to provide energy storage and other services to the electric grid and ensure that the grid is prepared to support increased electric vehicle charging, based on projections of sales of electric vehicles; (6) continually monitor supply and distribution systems to identify potential need for transmission line projects early enough to identify alternatives; and [(6)] (7) assess the least-cost alternative to address reliability concerns, including, but not limited to, lowering electricity demand through conservation and distributed generation projects before an electric distribution company submits a proposal for transmission lines or transmission line upgrades to the independent system operator or the Federal Energy Regulatory Commission, provided no provision of such plan shall be deemed to prohibit an electric distribution company from making any filing required by law or regulation.

Sec. 23. Subsection (o) of section 16-245o of the general statutes, as amended by section 2 of substitute senate bill 573 of the current session, as amended by Senate Amendment Schedule "A" is repealed and the following is substituted in lieu thereof (Effective from passage):

(o) On or before October 1, 2015, the Public Utilities Regulatory Authority shall initiate a proceeding to develop recommendations and guidance regarding (1) what type of generation services rate structure is best suited for residential customers who allow a fixed contract with an electric supplier to expire and begin paying a month-to-month rate for generation services from such supplier; and (2) what [rate increase is just and reasonable if a generation services rate increase is necessary] change to the generation services rate and to the terms and conditions of such service that customers may experience after the expiration of a fixed contract [and] when such [customer begins] customers begin paying a month-to-month rate. The authority shall report, in accordance with the provisions of section 11-4a, [of the general statutes] the findings of such proceeding to the joint standing committee of the General Assembly having cognizance of matters relating to energy, on or before January 1, 2016.

Sec. 24. Subsection (b) of section 16a-4d of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(b) Applicants interested in participating in such test program shall submit an application to the commissioner on forms prescribed by the commissioner. The commissioner shall review such application for sufficiency within thirty days of receiving such application. Not later than one hundred twenty days after receipt of such application the commissioner shall make a determination as to whether the technology, product or process meets the requirements of subsection (a) of this section. If the commissioner finds that using such technology, product or process would be feasible in the operations of a state agency and would not have any detrimental effect on such operations, the commissioner, notwithstanding the requirements of chapter 58, may direct a state agency to accept delivery of such technology, product or process and to undertake such a test program, as prescribed by the commissioner. Any costs associated with the acquisition and use of such technology, product or process by the testing agency for the test period shall be borne by the manufacturer, the marketer or any investor or participant in such business. The acquisition of any technology, product or process for purposes of the test program established pursuant to this section shall not be deemed to be a purchase under the provisions of state procurement law. The manufacturer, the marketer or any investor or participant in such business shall maintain records related to such test program, as required by the commissioner. All proprietary information derived from such test program shall be exempt from the provisions of subsection (a) of section 1-210.

Sec. 25. Section 7-222 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) The price to be charged to persons or corporations for gas or electricity shall be fixed and shall not be changed more often than once in three months. Any change shall take effect on the first day of the month, and the new price adopted shall, before the change takes effect, be advertised at least one month in some newspaper published in the municipality where the plant is located and, if none is published therein, in some newspaper published in the county where the plant is situated. Such price shall be fixed on a basis of not less than a net profit per year of five per cent on the cost of the investment in plant made by the municipality and also depreciation of the plant at not less than five per cent per annum of its cost, and the price shall not be greater than to allow a net profit of eight per cent per annum to the municipality on such cost. In fixing such basis on which to establish the price to be charged to persons and corporations, the gas and electricity used by the municipality shall be charged to it at cost. A sufficient deposit to cover the payment for gas or electricity for three months may be required in advance from any taker, and the supply may be shut off from any premises until all arrearages for gas or electricity furnished thereon are paid. Such deposit may be made by cash, letter of credit or surety bond. After three months' default in payment of such arrearages, all appliances for distribution on such premises belonging to the municipality may be removed and after such removal shall not be restored, except on payment of all such arrearages and a sufficient sum to cover all expenses incurred by the removal and restoration, with the penalty which the municipality may impose in such cases.

(b) The provisions of this section shall not apply to the sale of compressed natural gas.

(c) Each member municipal electric utility of a municipal electric energy cooperative, as defined in section 7-233b, may return fifty per cent of the deposit, as described in subsection (a) of this section, to each nonresidential electric customer if such customer's account remains in good standing for two years."

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2015

New section

Sec. 2

July 1, 2015

16-1(a)

Sec. 3

July 1, 2015

New section

Sec. 4

July 1, 2015

New section

Sec. 5

July 1, 2015

New section

Sec. 6

July 1, 2015

New section

Sec. 7

July 1, 2015

16-245a

Sec. 8

July 1, 2015

16-243y(c)

Sec. 9

July 1, 2015

16-244u(g)

Sec. 10

July 1, 2015, and applicable to assessment years commencing on or after October 1, 2015

New section

Sec. 11

July 1, 2015

16-244u(a)(3)

Sec. 12

October 1, 2015

16a-41b

Sec. 13

from passage

16-2

Sec. 14

from passage

New section

Sec. 15

from passage

4a-57(e)(2)

Sec. 16

from passage

16a-14

Sec. 17

from passage

16-245m(d)(4)

Sec. 18

from passage

12-81(57)

Sec. 19

October 1, 2015

New section

Sec. 20

October 1, 2015

16-19f

Sec. 21

October 1, 2015

New section

Sec. 22

October 1, 2015

16a-3e

Sec. 23

from passage

16-245o(o)

Sec. 24

from passage

16a-4d(b)

Sec. 25

October 1, 2015

7-222