Connecticut General Statutes
Chapter 283 - Telephone, Gas, Power and Water Companies
Section 16-244y. - Fuel cell electricity generation. Soliciation of proposals to aquire new fuel cell electricity generation projects with associated tariffs.

(a) Each electric distribution company shall solicit proposals to acquire new fuel cell electricity generation projects that began operation on or after July 1, 2021. All such projects shall be selected utilizing a competitive process that gives preference to fuel cell electricity generation projects that utilize equipment manufactured in the state or sited on brownfields, as defined in section 32-760, or landfills. On or before January 1, 2022, each electric distribution company shall submit the selected projects and associated tariffs to the Public Utilities Regulatory Authority for approval.

(b) On or before August 1, 2021, all electric distribution companies shall jointly file with the authority for approval a proposed tariff for use in the solicitation authorized in subsection (a) of this section. The facilities acquired under this section shall not exceed a total nameplate capacity rating of thirty megawatts in the aggregate apportioned among each electric distribution company in proportion to distribution load. Any proposed projects submitted by an electric distribution company shall include the electric distribution company's full projected costs and shall demonstrate to the authority that such facility is not supported in any form of cross subsidization by affiliated entities, except that the costs associated with those benefits which the authority determines that a proposed fuel cell project confers on the natural gas system may be recovered from all gas customers through the purchased gas adjustment clause established pursuant to section 16-19b and such costs shall be apportioned relative to the revenues of each gas company as reported to the authority pursuant to section 16-49 for the most recent fiscal year.
(c) The authority may approve any such projects for the purpose of (1) providing commercial or industrial electric or gas customers with on-site generation that increases power quality or resilience, as defined in section 16-243y, or reduces energy costs for such customers, (2) providing emergency service facilities or commercial or industrial electric or gas customers with back-up power, or (3) enhancing distribution system reliability, including, but not limited to, electric voltage or frequency improvements, support of microgrids or other measures that support electric or gas system resiliency. The authority shall evaluate any projects submitted pursuant to this section in a manner that is consistent with the provisions of sections 16-19 and 16-19e.
(d) The costs prudently incurred by an electric distribution company under this section shall be recovered from all customers of the electric distribution company through a fully reconciling component of electric rates for all customers of the electric distribution company, until the electric distribution company's next rate case, at which time any costs and investments for new fuel cell generation owned by the electric distribution company pursuant to this section may be recoverable through base distribution rates, as determined by the authority. Nothing in this section shall preclude the resale or other disposition of any energy products, capacity and associated environmental attributes purchased by the electric distribution company, if so ordered by the authority. The electric distribution company may use any energy products, capacity and environmental attributes produced by such facility to meet the needs of customers served pursuant to section 16-244c, and as determined by the authority. Notwithstanding the provisions of subdivision (1) of subsection (h) of section 16-244c, certificates issued by the New England Power Pool Generation Information System for any Class I renewable energy source acquired pursuant to this section may be retained by the electric distribution company to meet the requirements of section 16-245a, and as determined by the authority.
(P.A. 17-144, S. 1; P.A. 21-162, S. 1.)
History: P.A. 17-144 effective July 1, 2017; P.A. 21-162 deleted provisions re proposals to acquire, enter into power purchase agreements or provide financial incentives re fuel cell generation, added Subsec. (a) re solicitation of new fuel cell electricity generation projects, added Subsec. (b) re approval for proposed tariffs for use in solicitation of such projects, added Subsec. (c) re Public Utilities Regulatory Authority's approval criteria for such projects, and designated existing provisions re costs incurred by electric distribution company as Subsec. (d) and amended same by adding “prudently” to costs recoverable by electric distribution companies, replacing “shall” with “may”, deleting provisions re net cost of payments re resale or disposition of energy products, capacity and associated environmental attributes purchased by electric distribution company, adding “if so ordered by the authority” and references to determinations made by Public Utilities Regulatory Authority, and making a conforming change, effective July 1, 2021.

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