Contact: Adam Joseph
May 1, 2013
Renewable energy reform legislation passed the Connecticut State Senate on Wednesday afternoon that will help the state continue to meet its world-leading renewable energy goals while also taking innovative steps to reduce the cost of electricity across the board.
State Senator Bob Duff (D-Norwalk), Senate Chair of the Energy & Technology Committee, led passage of the legislation, saying that it addresses the state’s urgent economic need to lower overall electric rates, while also deriving more power from renewable sources.
“Connecticut has made one of the most substantial commitments to renewable energy in the country, even the world. With this bill, we are reaffirming that commitment, but carrying it out in a more affordable way,” said Senator Duff. “Connecticut has some of the highest electricity costs in the country. Bringing those costs down is important for our economy, our households and businesses. At the same time, we must make real progress on renewable energy. I believe this bill strikes the appropriate balance to achieve both.”
“For years, we’ve known that Connecticut has been forced to buy some less desirable, out of state energy resources in order to meet our State’s bold and admirable renewable energy goals,” said Rep. Lonnie Reed (D-Branford), House Chair of the Energy & Technology Committee. “We had two choices to correct the situation. Either diminish our goals or replace dirtier renewable generation like Maine biomass with clean options. This bill does that and protects the integrity of our whole renewables program. Hopefully, it will help lead to more affordable energy as well.”
Effective immediately, the bill permits the Commissioner of the Department of Energy & Environmental Protection (DEEP) to initiate a competitive bidding process for the construction of new “Class I” (ex: solar, wind) renewable energy generation facilities. Long-term power purchase contracts of up to 20 years would be signed with winning bidders to provide a stable source of revenue for their projects.
These contracts will harness competitive market forces to significantly drive down the cost of building new renewable electric generation facilities. Existing state law calls for 20 percent of all the state’s electricity to come from Class I renewable sources by 2020.
Without displacing any of Connecticut’s existing renewable energy commitments, the legislation would also permit the DEEP to enter into 15-year power purchase agreements for either Class I renewable energy or large-scale hydroelectric energy from New England or the Northeastern provinces of Canada, totaling up to 5 percent of Connecticut’s total electric load. This provision would reduce the state’s greenhouse gas emissions while also helping to displace the need to operate older, dirty fossil fuel generators at times of peak electric demand. These “peaking” generators dramatically increase overall electric rates on any day they operate.
In a separate provision, and only in the event that the state is not able to meet its Class I renewable energy targets in a given year, the bill permits the DEEP to allow 1 percentage point of the state’s Class I RPS requirement to be met by large-scale hydroelectric power, secured through a power purchase agreement. By 2020, no more than 5 percentage points of the RPS may be satisfied in this way.
Further provisions of the bill would:
Today’s legislation was adopted by the Senate in a 26 to 6 vote. It now proceeds to the floor of the House of Representatives, where it will await further action.
Legislative Office Building
Hartford, CT 06106-1591
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