TITLE 16 PUBLIC SERVICE COMPANIES
CHAPTER 283 DEPARTMENT OF PUBLIC UTILITY CONTROL: TELEGRAPH,
TELEPHONE, ILLUMINATING, POWER AND WATER COMPANIES
§ 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. The plan shall be consistent
with the comprehensive energy plan approved by the Connecticut Energy Advisory
Board pursuant to section 16a-7a at the time of submission to the department.
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.
(2) There shall be a joint committee of the Energy Conservation Management Board and the Renewable Energy Investments
Advisory Committee. 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 subsection
(d) of this section 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. 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 Advisory Committee. 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 subsection
(d) of this section 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; and (I) public education regarding conservation. 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
Advisory Committee, 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) 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
August 1, 2006, and ending with July 31, 2007, 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.