OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-106

AN ACT CONCERNING THE DIVERSITY OF BASELOAD ENERGY SUPPLIES IN THE STATE AND ACHIEVING CONNECTICUT'S GREENHOUSE GAS EMISSIONS MANDATED LEVELS.


OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below

Explanation

The bill (1) requires the state to solicit proposals for certain types of energy, (2) extends certain programs related to renewable energy credits, and (3) allows the electric distribution companies (EDC's, i.e., Eversource and United Illuminating) to purchase power from, and provide incentives for, certain fuel cell systems.

The bill results in a cost of up to $2.0 million to the Department of Energy and Environmental Protection (DEEP) as it allows DEEP to hire consultants with expertise in quantitative modeling of electric markets and physical electric system modeling to assist in evaluating certain proposals. The costs for consultants would be recovered by a reconciling component of electric rates, as determined by PURA and as required by the bill. These costs would increase electric rates, including the rates the state and municipalities pay. Any resultant costs to the state and municipalities would be negligible.

Additionally, the bill allows DEEP to select proposals that are in the best interest of ratepayers. The bill subjects any resulting agreement to the Public Utilities and Regulatory Authority's (PURA) review and approval.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to the cost of electricity and consultants.