In a move mandating major changes in state energy policy, the General Assembly passed a bill restructuring the Department of Utility Control (DPUC), emphasizing energy efficiency and giving a boost to the solar industry.
Crafted by Hartford State Sen. John W. Fonfara (D-1) and State Rep. Vicki O. Nardello (D-89) of Cheshire, co-chairs of the Energy and Technology Committee and former rivals, the bill went through several revisions, amid intense lobbying on both sides, before its passage by the Senate and the House in the final hours of the legislative session.Among other provisions, the bill orders the implementation of a process to lower state electricity rates by 15 percent by July 1, 2012, provides homeowners with assistance in procuring energy-efficient furnaces and boilers, creates a new state bureaucracy, the Connecticut Energy & Technology Authority, requires the Department of Public Utility Control (DPUC) to facilitate the generation of 30 megawatts of residential solar electricity by 2021, requires electric companies to contract with owners of solar photovoltaic (PV) systems of up to two megawatts and to contract with power generators to provide 25 megawatts of electric capacity through wind projects, 15 megawatts through hydro-electric and five to ten percent from other renewable resources.
The bill's passage drew praise from solar and environmental groups but less laudatory comments from state utility companies and others.
"We think this bill is a huge step forward for Connecticut's energy policy, and really moves us toward a cleaner, more energy efficient future," said Environment Connecticut Program Director Christopher Phelps.
Connecticut Clean Energy Fund President Lise Dondy said the bill allows CEEF's rebate-based residential solar photovoltaic program to continue as is, but a new financing paradigm will come into play for commercial and other non-residential solar electric projects.
"You won't get that upfront payment, but you will get a payment through a long-term contract based on production of kilowatt hours," Dondy said.
And that will "provide a stable source of revenue, through long-term contracts, for solar installations in the state, and some assurance there can be a viable solar industry, where jobs can remain and continue to be created," Dondy added.
"My members are thrilled," said Mike Trahan, executive director of Solar Connecticut, an industry trade group.
Northeast Utilities spokesperson Tanya Meck said the company agrees with many of the bill's underlying goals but has "serious concerns" regarding its scope.
"Passing something of this magnitude in the last few hours of the legislative session with no public hearings or sufficient time for analysis could have many unintended consequences and increase costs to consumers," Meck said.
United Illuminating Co. spokesperson Ed Crowder expressed similar sentiments, saying the bill's benefits were outweighed by its potential for increased consumer costs. On the plus side, he said, the bill gives the utilities greater flexibility in procuring power contracts, and could make them more competitive with alternate power suppliers.
"We didn't like the new mandates for renewable energy resources, which we think will drive up costs for consumers," Crowder explains. "We think the better model would be for us to build them ourselves and incorporate them into the rate base, which is the time-honored way of doing it."
Crowder said UI also does not support the reorganization of the DPUC and formation of the Connecticut Energy and Technology Authority, and questions whether the bill's mandate to reduce electricity prices by 15 percent by January 1, 2012 is a realistic goal.
"We have grave concerns with the bill," adds Kevin Hennessey, staff attorney for the Connecticut Business & Industry Association. "It's going to be very expensive for ratepayers and particularly business ratepayers, and we're hopeful there will be a veto."
As of press time Gov. M. Jodi Rell had not signed the bill, though Attorney General Richard Blumenthal was among those urging her to do so. If she does not veto it within 15 days of its passage, it will become law.
- Karen Singer
cutlineCBIA's Hennessey says the new legislation will be 'very expensive for ratepayers and particularly business ratepayers.'
end of file
| < Prev | Next > |
|---|
