Sec. 16-245m. Conservation and load management program; charge assessed against electric customers to fund program; scope and purpose of program. Deposit of certain moneys from the Energy Conservation
Sec. 16-245m. Conservation and load management program; charge assessed
against electric customers to fund program; scope and purpose of program. Deposit
of certain moneys from the Energy Conservation and Load Management Funds
in General Fund. (a)(1) On and after January 1, 2000, the Department of Public Utility
Control shall assess or cause to be assessed a charge of three mills per kilowatt hour of
electricity sold to each end use customer of an electric distribution company to be used
to implement the program as provided in this section for conservation and load management programs but not for the amortization of costs incurred prior to July 1, 1997, for
such conservation and load management programs.
(2) Notwithstanding the provisions of this section, receipts from such charge shall
be disbursed to the resources of the General Fund during the period from July 1, 2003,
to June 30, 2005, unless the department shall, on or before October 30, 2003, issue a
financing order for each affected electric distribution company in accordance with sections 16-245e to 16-245k, inclusive, to sustain funding of conservation and load management programs by substituting an equivalent amount, as determined by the department
in such financing order, of proceeds of rate reduction bonds for disbursement to the
resources of the General Fund during the period from July 1, 2003, to June 30, 2005.
The department may authorize in such financing order the issuance of rate reduction
bonds that substitute for disbursement to the General Fund for receipts of both the charge
under this subsection and under subsection (b) of section 16-245n and also may, in its
discretion, authorize the issuance of rate reduction bonds under this subsection and
subsection (b) of section 16-245n that relate to more than one electric distribution company. The department shall, in such financing order or other appropriate order, offset any
increase in the competitive transition assessment necessary to pay principal, premium, if
any, interest and expenses of the issuance of such rate reduction bonds by making an
equivalent reduction to the charge imposed under this subsection, provided any failure
to offset all or any portion of such increase in the competitive transition assessment
shall not affect the need to implement the full amount of such increase as required by
this subsection and by sections 16-245e to 16-245k, inclusive. Such financing order
shall also provide if the rate reduction bonds are not issued, any unrecovered funds
expended and committed by the electric distribution companies for conservation and
load management programs, provided such expenditures were approved by the department after August 20, 2003, and prior to the date of determination that the rate reduction
bonds cannot be issued, shall be recovered by the companies from their respective competitive transition assessment or systems benefits charge but such expenditures shall
not exceed four million dollars per month. All receipts from the remaining charge imposed under this subsection, after reduction of such charge to offset the increase in the
competitive transition assessment as provided in this subsection, shall be disbursed to
the Energy Conservation and Load Management Fund commencing as of July 1, 2003.
Any increase in the competitive transition assessment or decrease in the conservation
and load management component of an electric distribution company's rates resulting
from the issuance of or obligations under rate reduction bonds shall be included as rate
adjustments on customer bills.
(b) The electric distribution company shall establish an Energy Conservation and
Load Management Fund which shall be held separate and apart from all other funds or
accounts. Receipts from the charge imposed under subsection (a) of this section shall
be deposited into the fund. Any balance remaining in the fund at the end of any fiscal
year shall be carried forward in the fiscal year next succeeding. Disbursements from
the fund by electric distribution companies to carry out the plan developed under subsection (d) of this section shall be authorized by the Department of Public Utility Control
upon its approval of such plan.
(c) The Department of Public Utility Control shall appoint and convene an Energy
Conservation Management Board which shall include representatives of: (1) An environmental group knowledgeable in energy conservation program collaboratives; (2) the
Office of Consumer Counsel; (3) the Attorney General; (4) the Department of Environmental Protection; (5) the electric distribution companies in whose territories the activities take place for such programs; (6) a state-wide manufacturing association; (7) a
chamber of commerce; (8) a state-wide business association; (9) a state-wide retail
organization; (10) a representative of a municipal electric energy cooperative created
pursuant to chapter 101a; (11) two representatives selected by the gas companies in this
state; and (12) residential customers. Such members shall serve for a period of five years
and may be reappointed. Representatives of the gas companies shall not vote on matters
unrelated to gas conservation. Representatives of the electric distribution companies
and the municipal electric energy cooperative shall not vote on matters unrelated to
electricity conservation.
(d) (1) The Energy Conservation Management Board shall advise and assist the
electric distribution companies in the development and implementation of a comprehensive plan, which plan shall be approved by the Department of Public Utility Control,
to implement cost-effective energy conservation programs and market transformation
initiatives. Each program contained in the plan shall be reviewed by the electric distribution company and either accepted or rejected by the Energy Conservation Management
Board prior to submission to the department for approval. The Energy Conservation
Management Board shall, as part of its review, examine opportunities to offer joint
programs providing similar efficiency measures that save more than one fuel resource
or otherwise to coordinate programs targeted at saving more than one fuel resource.
Any costs for joint programs shall be allocated equitably among the conservation programs. The Energy Conservation Management Board shall give preference to projects
that maximize the reduction of federally mandated congestion charges. The Department
of Public Utility Control shall, in an uncontested proceeding during which the department may hold a public hearing, approve, modify or reject the comprehensive plan
prepared pursuant to this subsection.
(2) There shall be a joint committee of the Energy Conservation Management Board
and the Renewable Energy Investments Board. The board and the advisory committee
shall each appoint members to such joint committee. The joint committee shall examine
opportunities to coordinate the programs and activities funded by the Renewable Energy
Investment Fund pursuant to section 16-245n with the programs and activities contained
in the plan developed under this subsection to reduce the long-term cost, environmental
impacts and security risks of energy in the state. Such joint committee shall hold its first
meeting on or before August 1, 2005.
(3) Programs included in the plan developed under subdivision (1) of this subsection
shall be screened through cost-effectiveness testing which compares the value and payback period of program benefits to program costs to ensure that programs are designed
to obtain energy savings and system benefits, including mitigation of federally mandated
congestion charges, whose value is greater than the costs of the programs. Cost-effectiveness testing shall utilize available information obtained from real-time monitoring
systems to ensure accurate validation and verification of energy use. Such testing shall
include an analysis of the effects of investments on increasing the state's load factor.
Program cost-effectiveness shall be reviewed annually, or otherwise as is practicable.
If a program is determined to fail the cost-effectiveness test as part of the review process,
it shall either be modified to meet the test or shall be terminated. On or before March
1, 2005, and on or before March first annually thereafter, the board shall provide a report,
in accordance with the provisions of section 11-4a, to the joint standing committees of
the General Assembly having cognizance of matters relating to energy and the environment (A) that documents expenditures and fund balances and evaluates the cost-effectiveness of such programs conducted in the preceding year, and (B) that documents the
extent to and manner in which the programs of such board collaborated and cooperated
with programs, established under section 7-233y, of municipal electric energy cooperatives. To maximize the reduction of federally mandated congestion charges, programs
in the plan may allow for disproportionate allocations between the amount of contributions to the Energy Conservation and Load Management Funds by a certain rate class
and the programs that benefit such a rate class. Before conducting such evaluation, the
board shall consult with the Renewable Energy Investments Board. The report shall
include a description of the activities undertaken during the reporting period jointly or
in collaboration with the Renewable Energy Investment Fund established pursuant to
subsection (c) of section 16-245n.
(4) Programs included in the plan developed under subdivision (1) of this subsection
may include, but not be limited to: (A) Conservation and load management programs,
including programs that benefit low-income individuals; (B) research, development and
commercialization of products or processes which are more energy-efficient than those
generally available; (C) development of markets for such products and processes; (D)
support for energy use assessment, real-time monitoring systems, engineering studies
and services related to new construction or major building renovation; (E) the design,
manufacture, commercialization and purchase of energy-efficient appliances and heating, air conditioning and lighting devices; (F) program planning and evaluation; (G)
indoor air quality programs relating to energy conservation; (H) joint fuel conservation
initiatives programs targeted at reducing consumption of more than one fuel resource; (I)
public education regarding conservation; and (J) the demand-side technology programs
recommended by the procurement plan approved by the Department of Public Utility
Control pursuant to section 16a-3a. Such support may be by direct funding, manufacturers' rebates, sale price and loan subsidies, leases and promotional and educational activities. The plan shall also provide for expenditures by the Energy Conservation Management Board for the retention of expert consultants and reasonable administrative costs
provided such consultants shall not be employed by, or have any contractual relationship
with, an electric distribution company. Such costs shall not exceed five per cent of the
total revenue collected from the assessment.
(e) Notwithstanding the provisions of subsections (a) to (d), inclusive, of this section, the Department of Public Utility Control shall authorize the disbursement of a total
of one million dollars in each month, commencing with July, 2003, and ending with
July, 2005, from the Energy Conservation and Load Management Funds established
pursuant to said subsections. The amount disbursed from each Energy Conservation
and Load Management Fund shall be proportionately based on the receipts received by
each fund. Such disbursements shall be deposited in the General Fund.
(f) No later than December 31, 2006, and no later than December thirty-first every
five years thereafter, the Energy Conservation Management Board shall, after consulting
with the Renewable Energy Investments Board, conduct an evaluation of the performance of the programs and activities of the fund and submit a report, in accordance with
the provisions of section 11-4a, of the evaluation to the joint standing committee of the
General Assembly having cognizance of matters relating to energy.
(g) Repealed by P.A. 06-186, S. 91, effective July 1, 2006.
(P.A. 98-28, S. 33, 117; P.A. 03-135, S. 9; June 30 Sp. Sess. P.A. 03-6, S. 49; Sept. 8 Sp. Sess. P.A. 03-1, S. 9; P.A.
04-129, S. 1; 04-236, S. 12, 13; 04-247, S. 3; P.A. 05-251, S. 89; June Sp. Sess. P.A. 05-1, S. 5; P.A. 06-186, S. 91; P.A.
07-152, S. 3; 07-242, S. 105.)
History: P.A. 98-28 effective July 1, 1998; P.A. 03-135 amended Subsec. (d) to divide existing provisions into Subdivs.
(1) to (3) and make conforming changes, to add provision re review of each program and acceptance or rejection by the
Energy Conservation Management Board in Subdiv. (1), to add provision re cost-effectiveness testing in Subdiv. (2), and
to add "real-time monitoring systems" in Subdiv. (3), effective July 1, 2003; June 30 Sp. Sess. P.A. 03-6 amended Subsec.
(a) to provide for a plan to avoid disbursements from the Energy Conservation and Load Management Fund to the General
Fund in the implementation of the budget for the biennium ending June 30, 2005, effective August 20, 2003; Sept. 8 Sp.
Sess. P.A. 03-1, S. 9 re disbursements to the General Fund for the biennium ending June 30, 2005, was added editorially
by the Revisors as Subsec. (e), effective September 10, 2003; P.A. 04-129 amended Subsec. (d)(3) to redesignate existing
Subpara. (G) as Subpara. (H) and to add new Subpara. (G) re indoor air quality programs; P.A. 04-236 amended Subsecs.
(a) and (d)(2) to make technical changes, effective June 8, 2004; P.A. 04-247 amended Subsec. (d)(2) to change reporting
date from January 31, 2001, and annually thereafter until January 31, 2006, to March 1, 2005, and March 1, 2006, effective
July 1, 2004; P.A. 05-251, S. 89 added provisions, designated by the Revisors as Subsec. (g), re monthly disbursements
to General Fund from August 1, 2006, to July 31, 2007, effective June 30, 2005; June Sp. Sess. P.A. 05-1 made technical
changes in Subsecs. (a), (c) and (d), amended Subsec. (c) to add new Subdivs. (10) and (11) re a representative of a municipal
electric energy cooperative and two representatives selected by gas companies and to add provisions re voting on unrelated
matters, amended Subsec. (d)(1) to require plan to be consistent with the comprehensive energy plan, to require examination
of opportunities for joint programs, and to require preference for projects that maximize reduction of federally mandated
congestion charges, added new Subsec. (d)(2) establishing a joint committee of the Energy Conservation Management
Board and the Renewable Energy Investments Advisory Committee, renumbering former Subsec. (d)(2) as new Subsec.
(d)(3), amended Subsec. (d)(3) to add language re system benefits, to change the deadline for providing report, to require
report to contain information on cooperation with municipal electric energy cooperatives, to allow disproportionate allocations from the funds, to require consultation with the Renewable Energy Investments Advisory Committee, and to require
the report to describe collaboration with the Renewable Energy Investment Fund, renumbering former Subsec. (d)(3) as
new Subsec. (d)(4), amended Subsec. (d)(4) to add language re programs to benefit low-income individuals and joint fuel
conservation initiatives, and to revise language re expenditures for consultants and administrative costs, and added Subsec.
(f) re evaluation of the performance of programs, effective July 21, 2005; P.A. 06-186 repealed P.A. 05-251, S. 89,
previously designated by the Revisors as Subsec. (g), re monthly disbursements to General Fund from August 1, 2006, to
July 31, 2007, effective July 1, 2006; P.A. 07-152 amended Subsec. (d)(1) to require Department of Public Utility Control
to review comprehensive plan and amended Subsecs. (d) and (f) to change Renewable Energy Investments Advisory
Committee to Renewable Energy Investments Board; P.A. 07-242 amended Subsec. (d)(1) to delete provision re comprehensive energy plan approved pursuant to Sec. 16a-7a, amended Subsec. (d)(3) to add "Such testing shall include an
analysis of the effects of investments on increasing the state's load factor" and added Subsec. (d)(4)(J) re demand-side
technology programs, effective July 1, 2007.
See Sec. 3-114l re recording of payments from the Energy Conservation and Load Management Funds to the General
Fund as revenue for the fiscal year.