(a)(1) The Commissioner of Energy and Environmental Protection, in consultation with the procurement manager identified in subsection (l) of section 16-2, the Office of Consumer Counsel and the Attorney General, may solicit proposals, in one solicitation or multiple solicitations, from providers of energy derived from anaerobic digestion.
(2) In responding to any solicitations issued pursuant to this section, a bidder shall submit a proposal or proposals for facilities that are animal feeding operations and collocated on land used for the purpose of farming, as defined in subsection (q) of section 1-1. For purposes of this subsection, “animal feeding operation” has the same meaning as provided in section 22a-208cc.
(b) If the commissioner finds such proposals to be in the interest of ratepayers, including, but not limited to, the delivered price of such sources, and consistent with the requirements to reduce greenhouse gas emissions in accordance with section 22a-200a, and in accordance with the policy goals outlined in the Comprehensive Energy Strategy, adopted pursuant to section 16a-3d, and in accordance with the policy goals outlined in the state-wide solid waste management plan developed pursuant to section 22a-241a, the commissioner may select proposals from such resources that have a total nameplate capacity rating of not more than ten megawatts in the aggregate. The commissioner may, on behalf of all customers of electric distribution companies, direct the electric distribution companies to enter into power purchase agreements for energy, capacity and environmental attributes, or any combination thereof, for periods of not more than twenty years.
(c) Certificates issued by the New England Power Pool Generation Information System procured by an electric distribution company pursuant to this section may be: (1) Sold into the New England Power Pool Generation Information System renewable energy credit market to be used by any electric supplier or electric distribution company to meet the requirements of section 16-245a, provided the revenues from such sale are credited to electric distribution company customers as described in this section; or (2) retained by the electric distribution company to meet the requirements of section 16-245a. In considering whether to sell or retain such certificates, the company shall select the option that is in the best interest of such company's ratepayers.
(d) Any such agreement shall be subject to review and approval by the Public Utilities Regulatory Authority, which review shall commence upon the filing of the signed power purchase agreement with the authority. The authority shall issue a decision on such agreement not later than sixty days after such filing. In the event the authority does not issue a decision within sixty days after such agreement is filed with the authority, the agreement shall be deemed approved.
(e) The net costs of any such agreement, including costs incurred by the electric distribution company under the agreement and reasonable costs incurred by the electric distribution company in connection with the agreement, shall be recovered on a timely basis through a fully reconciling component of electric rates for all customers of the electric distribution company. Any net revenues from the sale of products purchased in accordance with long-term contracts entered into pursuant to this section shall be credited to customers through the same fully reconciling rate component for all customers of the contracting electric distribution company. The commissioner may hire consultants with expertise in quantitative modeling of electric and gas markets to assist in implementing this section, including, but not limited to, the evaluation of proposals submitted pursuant to this section. All reasonable costs associated with the commissioner's solicitation and review of proposals pursuant to this section shall be recoverable through the same fully reconciling rate component for all customers of the electric distribution companies.
(P.A. 19-35, S. 17.)
History: P.A. 19-35 effective June 28, 2019.