OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-337

AN ACT REQUIRING THE PUBLIC UTILITIES REGULATORY AUTHORITY TO INITIATE A DOCKET TO STUDY RENEWABLE NATURAL GAS AND CONCERNING CONTRACTS FOR ELECTRICITY GENERATED FROM A BIOMASS FACILITY.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 19 $

FY 20 $

Public Utilities Regulatory Authority (PURA)

CC&PUCF - Cost

Up to $125,000

None

Consumer Counsel

CC&PUCF - Cost

Up to $125,000

None

Note: CC&PUCF=Consumer Counsel and Public Utility Control Fund

Municipal Impact: None

Explanation

The bill requires the Public Utilities Regulatory Authority (PURA) to open a proceeding to study and make recommendations about renewable natural gas no later than November 1, 2018. As PURA and the Office of the Consumer Counsel currently do not have expertise in renewable natural gas, the two agencies would each incur one-time costs of up to $125,000 in FY 19, to hire outside consultants for this purpose.

The Out Years

The bill requires an electric distribution company (i.e., Eversource or United Illuminating) to file for PURA's approval for a 10-year contract to purchase 7.5 megawatts of electric capacity from a certain renewable energy facility. Contracts of this type are anticipated to be above current market rates, and therefore are anticipated to result in increased electricity rates for the state and municipalities, as ratepayers, in the outyears.