(a) In furtherance of the Comprehensive Energy Strategy established pursuant to section 16a-3d relating to the evaluation of district heating and thermal loops in high-density areas, on or before January 1, 2018, an electric distribution company serving customers located in a distressed municipality, as defined in section 32-9p, that has a population in excess of one hundred twenty-seven thousand, shall conduct a procurement for electricity and renewable energy credits from a combined heat and power system located in such municipality that (1) has a nameplate capacity of not more than ten megawatts, (2) is in a configuration that is compatible for use with a district heating system, as defined in section 16-258, (3) is owned by a thermal energy transportation company, and (4) may include fuel cells. Such combined heat and power system shall be (A) procured by a thermal energy transportation company through a competitive bidding process, (B) in a configuration compatible for use with a district heating system, and (C) installed at a location that will maximize the efficient use of the thermal energy from the combined heat and power system by a thermal energy transportation company. The thermal energy produced by such combined heat and power system shall be subject to firm customer commitments to subscribe to thermal energy services from such thermal energy transportation company, as demonstrated by such thermal energy transportation company, for the term of the power purchase agreement entered into pursuant to this section. After reviewing any proposals submitted in response to such procurement, the electric distribution company may enter into a power purchase agreement with a thermal energy distribution company for the purchase of electricity and renewable energy credits for a period of not more than twenty years.

(b) No later than fifteen days after an electric distribution company enters into a power purchase agreement pursuant to subsection (a) of this section, the electric distribution company shall submit such agreement to the Public Utilities Regulatory Authority for review and approval. The authority shall evaluate such agreement and may approve such agreement if the authority finds that the agreement (1) complies with the requirements of this section, and (2) serves the long-term interests of ratepayers. The authority shall not approve any agreement supported in any form of cross subsidization by entities affiliated with the electric distribution company. A combined heat and power system acquired and built pursuant to a power purchase agreement entered into pursuant to this section shall not exceed a total nameplate capacity rating of ten megawatts in the aggregate. The electric distribution company may not, under any circumstances, recover more than the full costs of the agreement approved by the authority. The net costs of any such agreement, including costs incurred by the electric distribution company under the agreement and reasonable costs incurred by the electric distribution company in connection with the agreement, shall be recovered on a timely basis through a reconciling component of electric rates as determined by the authority that is nonbypassable when switching electric suppliers. Any net revenues from the sale of products purchased in accordance with any agreement entered into pursuant to this section shall be credited to customers through the same reconciling component of electric rates that is utilized to recover the costs of such agreement. Certificates issued by the New England Power Pool Generation Information System for any Class I or Class III source procured by an electric distribution company pursuant to this section may be (A) sold into the New England Power Pool Generation Information System renewable energy credit market to be used by an electric supplier or electric distribution company to meet the requirements of section 16-245a, so long as the revenues from such sale are credited to electric distribution company customers as described in this subsection, or (B) retained by the electric distribution company to meet the requirements of section 16-245a. In considering whether to sell or retain such certificates, the company shall select the option that is in the best interest of such company’s ratepayers, consistent with the procurement plan approved pursuant to sections 16-244c and 16-244m.

(June Sp. Sess. P.A. 17-2, S. 264.)

History: June Sp. Sess. P.A. 17-2 effective October 31, 2017.