Connecticut

Note: In October 2012, the Connecticut Department of Energy and Environmental Protection issued a draft Comprehensive Energy Strategy report. The draft indicates that the state will study and review the Renewable Portfolio Standard.

Established in 1998 and subsequently revised several times, Connecticut's renewables portfolio standard (RPS) requires each electric supplier and each electric distribution company wholesale supplier to obtain at least 23% of its retail load by using renewable energy by January 1, 2020. The RPS also requires each electric supplier and each electric distribution company wholesale supplier to obtain at least 4% of its retail load by using combined heat and power (CHP) systems and energy efficiency by 2010.

Separate portfolio standards are required for energy resources classified as "Class I," "Class II," or "Class III." Class I resources include energy derived from solar power, wind power, fuel cells (using renewable or non-renewable fuels), methane gas from landfills and anaerobic digestion, ocean thermal power, wave or tidal power, low-emission advanced renewable energy conversion technologies, certain newer run-of-the-river hydropower facilities not exceeding five megawatts (MW) in capacity, and sustainable biomass facilities. Emissions limits apply to electricity generated by sustainable biomass facilities. Electricity produced by end-user distributed generation (DG) systems using Class I resources also qualifies. Class II resources include trash-to-energy facilities, certain biomass facilities not included in Class I, and certain older run-of-the-river hydropower facilities.

Class III resources include: customer-sited CHP systems, with a minimum operating efficiency of 50%, installed at commercial or industrial facilities in Connecticut on or after January 1, 2006; (2) electricity savings from conservation and load management programs that started on or after January 1, 2006; and (3) systems that recover waste heat or pressure from commercial and industrial processes installed on or after April 1, 2007. The revenue from these credits must be divided between the customer and the state Conservation and Load Management Fund, depending on when the Class III systems are installed, whether the owner is residential or nonresidential, and whether the resources received state support.

Electric providers must meet the standard with at least 20% Class I resources and 3% Class I or II resources by January 1, 2020, and 4% Class III sources by 2010, and thereafter, according to the following schedule:

• On and after 1/1/2006: 2.0% Class I + 3% Class I or II
• On and after 1/1/2007: 3.5% Class I + 3% Class I or II + 1% Class III
• On and after 1/1/2008: 5.0% Class I + 3% Class I or II + 2% Class III
• On and after 1/1/2009: 6.0% Class I + 3% Class I or II + 3% Class III
• On and after 1/1/2010: 7.0% Class I + 3% Class I or II + 4% Class III
• On and after 1/1/2011: 8.0% Class I + 3% Class I or II + 4% Class III
• On and after 1/1/2012: 9.0% Class I + 3% Class I or II + 4% Class III
• On and after 1/1/2013: 10.0% Class I + 3% Class I or II + 4% Class III
• On and after 1/1/2014: 11.0% Class I + 3% Class I or II + 4% Class III
• On and after 1/1/2015: 12.5% Class I + 3% Class I or II + 4% Class III
• On and after 1/1/2016: 14.0% Class I + 3% Class I or II + 4% Class III
• On and after 1/1/2017: 15.5% Class I + 3% Class I or II + 4% Class III
• On and after 1/1/2018: 17.0% Class I + 3% Class I or II + 4% Class III
• On and after 1/1/2019: 19.5% Class I + 3% Class I or II + 4% Class III
• On and after 1/1/2020: 20.0% Class I + 3% Class I or II + 4% Class III

RPS requirements may be satisfied by purchasing electricity generated using Class I or Class II resources within the jurisdiction of the regional independent system operator (ISO New England). Renewable energy credit trades and purchases are tracked through the NEPOOL Generation Information System (NEPOOL-GIS). Renewables within the jurisdiction of New York, Pennsylvania, New Jersey, Maryland, and Delaware are also eligible, provided that the Connecticut Public Utilities Regulatory Authority (PURA)* determines these states have an RPS comparable to Connecticut's.

Electric providers that fail to comply with the RPS during an annual period must pay $0.055 per kWh to the PURA; these payments will be allocated to the Connecticut Clean Energy Fund (CCEF) for the development of Class I renewables. The PURA Renewable Energy web site provides additional documents related to its RPS.

Public Act 11-80 of 2011 requires the Clean Energy Finance and Investment Authority to develop a residential solar incentive program that will result in a minimum 30 megawatts of new residential solar by December 31, 2022, and will be funded by the state's existing public benefits fund. Energy produced from systems funded in this way help reduce utility RPS obligations.

Public Act 11-80 of 2011 also requires that utilities enter into long-term contracts (15 years) for renewable energy credits from zero emission Class I renewable energy facilities (on the customer side of the meter) up to 1 MW. Zero emission Class I facilities include solar, wind, and hydro generators. Resulting zero emission renewable energy credits (ZRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend $8 million on contracts in year one, $16 million in year two, $24 million in year three, and $32 million in year four -- at which point the PURA will conduct a review. The maximum payment per ZREC authorized during the first year is $350. PURA may reduce this maximum per ZREC price yearly by 3-7%. The electric distribution companies submitted their six-year solicitation plan to PURA in December 2011. A Request for Proposal will be issued in the first half of 2012. See PURA docket 11-12-06 for additional details.

Public Act 11-80 of 2011 also requires that utilities enter into long-term contracts (15 years) for renewable energy credits from low emission Class I renewable energy facilities (on the customer side of the meter) up to 2 MW. The law establishes the emission criteria required to achieve "low emission facility" status, but could include facilities that generate using fuel cells, biomass, and landfill gas. Resulting low emission renewable energy credits (LRECs) may be used for RPS compliance during the year of generation or the subsequent year. Utilities are required to spend up to $4 million on contracts in year one, and an additional $4 million in subsequent years. PURA will conduct a review in year three. The maximum payment per LREC authorized during year one is $200. As part of the six-year solicitation plan for ZRECs, the utilities companies also included their solicitation plan for LRECs. The RFP for ZRECs will also solicit LRECs.

* Previously known as the Connecticut Department of Public Utilities (DPUC).