Connecticut Energy Reform

Prompted by new state energy legislation, Connecticut's two largest utilties, CL&P and UI, recently released a procurement plan. If approved, the plan will triple current efficiency investments -from $113 million to $352 million- by 2014, and reduce demand below current levels by 2018. 

 

Background

Environment Northeast’s energy program started in Connecticut nearly ten years ago, and ENE’s extensive advocacy for energy reforms there is the foundation of its work in the rest of the...
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Connecticut Energy Reform

New commitments to efficiency investments are among the most recent stepts Connecticut has taken toward a more sustainable energy future. The recent set of energy reforms are embodied in PA 07-242, Act Concerning Electricity and Energy Efficiency, which includes sweeping changes that will significantly ramp up efficiency investments, deliver cost savings and put the state on track to reaching its GHG emissions targets. The comprehensive legislation:

  • requires an assessment of “how best to eliminate or stabilize growth in electric demand” 
  • declares that electric needs shall first be procured through all available energy efficiency and demand-side resources that are cost-effective, reliable and feasible
  • creates a broad stakeholder board with consumer, environmental, business and state agency representatives, assisted by expert consultants, to review the utility procurement plan
  • requires the DPUC to decouple distribution revenue recovery from sales for each electric and gas company in rate proceedings
  • creates the first home heating oil efficiency program, managed by a board reporting to the ECMB
  • adopts appliance efficiency standards for nine products
  • continues the ramp-up of the CT Renewable Portfolio Standard (RPS) to achieve 20% new renewables by 2020
  • provides significant new long-term contracting authority for renewables

Proper implementation of these provisions will be crucial to the long-term success of the reforms. For example, ongoing decoupling proceedings at the DPUC are an integral part of the new efficiency procurement system. ENE and fellow members of the ECMB and other new stakeholder boards will play an important role in the administering and monitoring the new planning processes and programs.

 

Connecticut has set many precedents in efficiency and renewable energy policy, including New England's first statewide, stakeholder energy efficiency procurement board and the first home heating oil efficiency program in the region. Connecticut  was recognized by the American Council for an Energy-Efficient Economy (ACEEE) as one of the top three most efficient states in the nation in 2006.