Sec. 16-243q. Class III renewable energy portfolio standards.
Sec. 16-243q. Class III renewable energy portfolio standards. (a) On and after
January 1, 2007, each electric distribution company providing standard service pursuant
to section 16-244c and each electric supplier as defined in section 16-1 shall demonstrate
to the satisfaction of the Department of Public Utility Control that not less than one per
cent of the total output of such supplier or such standard service of an electric distribution
company shall be obtained from Class III sources. On and after January 1, 2008, not
less than two per cent of the total output of any such supplier or such standard service
of an electric distribution company shall, on demonstration satisfactory to the Department of Public Utility Control, be obtained from Class III sources. On or after January
1, 2009, not less than three per cent of the total output of any such supplier or such
standard service of an electric distribution company shall, on demonstration satisfactory
to the Department of Public Utility Control, be obtained from Class III sources. On and
after January 1, 2010, not less than four per cent of the total output of any such supplier
or such standard service of an electric distribution company shall, on demonstration
satisfactory to the Department of Public Utility Control, be obtained from Class III
sources. Electric power obtained from customer-side distributed resources that does not
meet air and water quality standards of the Department of Environmental Protection is
not eligible for purposes of meeting the percentage standards in this section.
(b) Except as provided in subsection (d) of this section, the Department of Public
Utility Control shall assess each electric supplier and each electric distribution company
that fails to meet the percentage standards of subsection (a) of this section a charge of
up to five and five-tenths cents for each kilowatt hour of electricity that such supplier
or company is deficient in meeting such percentage standards. Seventy-five per cent of
such assessed charges shall be deposited in the Energy Conservation and Load Management Fund established in section 16-245m, and twenty-five per cent shall be deposited
in the Renewable Energy Investment Fund established in section 16-245n, except that
such seventy-five per cent of assessed charges with respect to an electric supplier shall
be divided among the Energy Conservation and Load Management Funds of electric
distribution companies in proportion to the amount of electricity such electric supplier
provides to end use customers in the state using the facilities of each electric distribution
company.
(c) An electric supplier or electric distribution company may satisfy the requirements of this section by participating in a conservation and distributed resources trading
program approved by the Department of Public Utility Control. Credits created by conservation and customer-side distributed resources shall be allocated to the person that
conserved the electricity or installed the project for customer-side distributed resources
to which the credit is attributable and to the Energy Conservation and Load Management
Fund. Such credits shall be made in the following manner: A minimum of twenty-five
per cent of the credits shall be allocated to the person that conserved the electricity or
installed the project for customer-side distributed resources to which the energy credit
is attributable and the remainder of the credits shall be allocated to the Energy Conservation and Load Management Fund, based on a schedule created by the department no
later than January 1, 2007, and reviewed annually thereafter. The department may, in
a proceeding and for good cause shown, allocate a larger proportion of such credits
to the person who conserved the electricity or installed the customer-side distributed
resources. The department shall consider the proportion of investment made by a ratepayer through various ratepayer-funded incentive programs and the resulting reduction
in federally mandated congestion charges. The portion allocated to the Energy Conservation and Load Management Fund shall be used for measures that respond to energy
demand and for peak reduction programs.
(d) An electric distribution company providing standard service may contract with
its wholesale suppliers to comply with the conservation and customer-side distributed
resources standards set forth in subsection (a) of this section. The Department of Public
Utility Control shall annually conduct a contested case, in accordance with the provisions
of chapter 54, to determine whether the electric distribution company's wholesale suppliers met the conservation and distributed resources standards during the preceding
year. Any such contract shall include a provision that requires such supplier to pay the
electric distribution company in an amount of up to five and one-half cents per kilowatt
hour if the wholesale supplier fails to comply with the conservation and distributed
resources standards during the subject annual period. The electric distribution company
shall immediately transfer seventy-five per cent of any payment received from the
wholesale supplier for the failure to meet the conservation and distributed resources
standards to the Energy Conservation and Load Management Fund and twenty-five per
cent to the Renewable Energy Investment Fund. Any payment made pursuant to this
section shall not be considered revenue or income to the electric distribution company.
(e) The Department of Public Utility Control shall conduct a contested proceeding
to develop the administrative processes and program specifications that are necessary
to implement a Class III sources conservation and distributed resources trading program.
The proceeding shall include, but not be limited to, an examination of issues such as
(1) the manner in which qualifying activities are certified, tracked and reported, (2) the
manner in which Class III certificates are created, accounted for and transferred, (3)
verification of the accuracy of conservation and customer-side distributed resources
credits, (4) verification of the fact that resources or credits used to satisfy the requirement
of this section have not been used to satisfy any other portfolio or similar requirement,
(5) the manner in which credits created by conservation and customer-side distributed
resources may best be allocated to maximize the impact of the trading program, and (6)
setting such alternative payment amounts at a level that encourages development of
conservation and customer-side distributed resources. The department may retain the
services of a third party entity with expertise in the development of energy efficiency
trading or verification programs to assist in the development and operation of the program. The department shall issue a decision no later than February 1, 2008.
(June Sp. Sess. P.A. 05-1, S. 16; P.A. 07-242, S. 43.)
History: June Sp. Sess. P.A. 05-1 effective July 21, 2005; P.A. 07-242 changed "Class III resources" to "Class III
sources" throughout, amended Subsec. (a) to add water quality standards to standards that electric power obtained from
customer-side distributed resources must meet, and amended Subsec. (e) to delete former Subdiv. (3) re feasibility and
benefits of expanding eligible Class III resources to include those resulting from residential customer electricity savings,
redesignate existing Subdivs. (4) to (7) as Subdivs. (3) to (6) and change date by which department must issue a decision
from February 1, 2006, to February 1, 2008.