OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-7036

AN ACT PROMOTING THE USE OF FUEL CELLS FOR ELECTRIC DISTRIBUTION SYSTEM BENEFITS AND RELIABILITY.


OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below

Explanation

The bill allows electric distribution companies (EDCs, i.e. Eversource and United Illuminating), under certain conditions, to build, own or operate new fuel cell generation. 

The bill also requires the Public Utilities Regulatory Authority's (PURA) approval for an EDC's plans to acquire new fuel cell generation and any proposals subsequently received under an approved plan.  PURA may approve proposals if they meet certain criteria.  It is anticipated that PURA will only approve plans that are in the best interest of the ratepayer, which may result in savings to the state and municipalities.

Also, the bill requires the net costs EDCs incur under the plan and proposals to be recovered from their ratepayers.  This would result in a cost to the state and municipalities as ratepayers.  However, there would be no cost to ratepayers, including the state and municipalities, until PURA revises the utility rates to incorporate the bill's costs.

The Out Years

The fiscal impact to the state and municipalities as a ratepayer in the outyears is dependent on the cost of certain fuel cell projects and the cost of electricity.

The Out Years

The fiscal impact to the state and municipalities as a ratepayer in the outyears is dependent on the cost of certain fuel cell projects and the cost of electricity.