Welcome to the Energy and Technology Committee

1. Welcome to the Energy and Technology Committee Kevin E. McCarthy, Ph.D. Lee Hansen Office of Legislative Research

2. Committee Jurisdiction • Matters relating to the Department of Public Utility Control (DPUC), energy, telecommunications, and information systems.

3. Our Friends and Neighbors • DPUC has jurisdiction over certain aspects of the electric, gas, telecommunications, and water industries • Office of Consumer Counsel represents consumer interests before the DPUC and federal agencies • Office of Policy and Management has authority over energy policy

4. More Friends and Neighbors • Connecticut Siting Council • Connecticut Energy Advisory Board and other advisory boards • Clean Energy Fund • Regulated companies • Consumer groups and trade associations

5. Foundations Corporations Individuals Fuel Oil Growth in gross receipts tax on petroleum products Electric (CL&P/UI) Ratepayer Funded 3 mills per kwh FMCC Add-a-Dollar 1 mill per kwh Electric Efficiency Partners (DPUC) SBC (portion of 1 mill charge) Fuel Oil Conservation Board Operation Fuel EIA programs CT Clean Energy Fund (CCEF) RGGI CT Energy Efficiency Fund (CEEF) Commercial & Industrial Customers Volunteer Fuel Banks FCM Utility MAPP & Arrearages General Fund Class 3 RECs Residential; Commercial & Industrial Customers Low-Income Energy Advisory Board Electric Utilities Gas Utilities NaturalGas 1.DPUC approved rate adjustment 2. Actual rev growth over projected amt US DHHS State Bond $ Regulated Utilities LIHEAP (cash asst.) 30 Energy Conservation Loan Program (ECL) Residential; Commercial & Industrial Customers Low-Income Residents Community Action Agencies 12 Renewable Energy Board DSS DECD 5 Municipal Customers CMEEC Weatherization CHIF Energy Conservation Management Board 1.6 mill per kwh Residential & Multi- Family Municipal Utility Ratepayers DPUC US DOE Legend: Green/diagonal lines – oversight; Gray with dots – recipients; Dark blue/ horizontal lines – funding source; Dotted arrows – funding

6. Shared Jurisdiction with Other Committees • E&T shares jurisdiction with Environment over facility siting issues • E&T shares jurisdiction over water issues with Public Health (water quality) and Environment (water supply) • Planning & Development has primary jurisdiction over municipal utilities

7. Areas Where CT Has Little or No Jurisdiction • Cable TV Rates and Programming • Cell Phone Rates • Wholesale Electric and Gas Rates • Regulation of Wireless Facilities with Regard to Electric/Magnetic Fields (EMF)

8. Major Committee Initiatives • Telecommunications Deregulation (1987, 1999) • Electric Restructuring (1998, 2003, 2005, 2007) • Planning for Energy Facilities/Integrated Resources Planning (2003, 2007) • Transmission Line Siting Criteria (2004)

9. What Can We Do to Make Your Job Easier • Policy research-discussion of current law, laws/programs in other states, pros & cons of legislative proposals • Develop policy options • Bill analyses/Public act summaries • Committee staffing • Serving as a resource for caucuses

10. What We Can’t Do • Engage in partisan/political activities • Tell you how to address the state’s energy and telecommunications issues • Tell you what the price of energy will be in the future

11. PA 10-97 aka the big bill (vetoed) • Establishes programs to promote solar energy, including ones that (1) provide incentives for installing photovoltaic (PV) systems on homes, (2) require electric companies to enter into long-term contracts with developers of large-scale PV systems and pay them based on the energy they produce (feed-in tariff), and (3) require DPUC to study the feasibility of installing PV systems on state facilities • Establishes a funding cap for all of the solar programs • Promotes other renewable energy systems, including fuel cells, wind, and hydropower

12. PA 10-97 (continued) • Allows municipalities to establish loan programs for local residents and businesses to make energy efficiency and renewable energy improvements to their property (PACE- federal issues) • Requires DPUC to establish a pilot program to provide loans for installing cogeneration systems and energy-efficient replacement furnaces and related equipment • Establishes energy efficiency standards for compact audio players, televisions, DVD players, and DVD recorders that go into effect January 1, 2013.

13. PA 10-97 (continued) • Requires DPUC to develop discounted rates for low and moderate income customers, funded by transferring money from existing programs that serve low-income customers and from other resources • Establishes a new division within DPUC responsible for power procurement, conservation, renewable energy, and research • Changes how electric companies procure power for the standard service they provide to customers who do not choose competitive suppliers • Establishes a code of conduct for competitive electric suppliers and related entities

14. Yet more on PA 10-97 • Requires the Energy Efficiency and Clean Energy fund boards and electric companies to establish a program for energy conservation projects for customers in municipalities with enterprise zones. The program must provide funding at a level equal to at least 3% of the total collected for the two funds. • Requires DPUC to identify the impact on Connecticut ratepayers and the New England wholesale electric power market of the operation of ISO-New England and the rules it uses to set wholesale prices and report to the committee. • Explicitly allows municipalities to enter into performance-based energy contracts. Typically, under these contracts a private firm installs energy efficiency measures at its own cost in exchange for part of the resulting energy cost savings.

15. Any questions? • Kevin.McCarthy@cga.ct.gov • Lee.Hansen@cga.ct.gov • Office of Legislative Research, 5300 LOB • 860.240.8400