SubTitle16-243a-1_16-243a-7. Contract Procedures Pertaining to Electric Public Service Companies for Private Power Producers and Private Power Providers, Title16 Public Service Companies, Regulations of Connecticut State Agencies

Regulations of Connecticut State Agencies (Last Updated: June 14,2023)

SubTitle16-243a-1_16-243a-7. Contract Procedures Pertaining to Electric Public Service Companies for Private Power Producers and Private Power Providers

Sec. 16-243a-1. General rule and definitions

Latest version.

(a) General Rule

This section and section 16-243a-2 of the Regulations of Connecticut State Agencies establish procedures implementing section 16-243a of the Connecticut General Statutes concerning the purchase and sale of electricity between electric public service companies and private power producers or qualifying facilities, and section 16-243f of the Connecticut General Statutes concerning the manner in which capacity needs of electric public service companies may be met through the provision of electricity conservation and demand management measures by private power providers. The procedures shall apply to all private power producers, all private power providers, and all qualifying facilities. Nothing in this section and section 16-243a-2 of the Regulations of Connecticut State Agencies shall be construed to preclude or restrain the company’s short term management decisions made to improve the economics or reliability of its system or fuel mix through wholesale or retail supply or demand opportunities made in the operation of its franchise.

(b) Definitions

As used in this section and section 16-243a-2 of the Regulations of Connecticut State Agencies:

(1) “Authority” has the same meaning as provided in section 16-1 of the Connecticut General Statutes.

(2) “Electric public service company” means an “electric distribution company” as defined in section 16-1 of the Connecticut General Statutes.

(3) “Private power producer” has the same meaning as provided in section 16-243b of the Connecticut General Statutes.

(4) “Private power production facility” has the same meaning as provided in section 16-243b of the Connecticut General Statutes.

(5) “Private power provider” has the same meaning as provided in section 16-243b of the Connecticut General Statutes.

(6) “Electricity conservation or demand management measures” means the provision by an electric public service company, directly or through private power providers, of equipment or services to conserve electricity, measured in British thermal units at the point of use, or to manage electric load.

(7) “PURPA” means the Public Utilities Regulatory Policies Act of 1978, Public Law 95-617, which is codified at 16 USC 824a-3, as amended from time to time, and its implementing regulations, codified at 18 CFR 292, as amended from time to time.

(8) “Qualifying facility” has the same meaning as provided in 18 CFR 292.101(b)(1), as amended from time to time.

(9) “Avoided cost” has the same meaning as provided in section 16-243a of the Connecticut General Statutes.

(Effective October 26, 1989; Amended February 2, 2023)

Sec. 16-243a-2. Tariffs to be Maintained on File

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(a) Not later than December 31, 2023, each electric public service company shall file with the Authority for review and approval three pro forma tariffs for the purchase of energy and capacity from private power producers and eligible qualifying facilities, from whom the electric public service company purchases energy or capacity or both pursuant to section 16-243a of the Connecticut General Statutes or 18 CFR 292.303, as amended from time to time. Collectively, the tariffs required under this section shall address each of the following types of transactions: (1) energy-only sales; (2) capacity-only sales; and (3) energy and capacity sales.

(b) Each tariff submitted pursuant to this section shall establish a process by which private power producers or qualifying facilities may elect to be compensated either:

(1) Based on avoided costs calculated at the time of delivery, or

(2) Based on avoided costs forecasted at the time an obligation to purchase arises pursuant to 18 CFR 292.303, as amended from time to time.

(1) Each tariff applicable to sales of capacity compensated at avoided costs calculated at the time of delivery shall include a method for calculating avoided costs based on the effective wholesale capacity prices in New England for the relevant delivery years.

(2) Each tariff applicable to sales of energy compensated at the avoided cost of energy calculated at the time of delivery shall include a methodology for calculating avoided costs based on real-time wholesale clearing prices for electricity at the time of delivery.

(3) Each tariff applicable to sales of energy compensated using a forecasted rate shall include a forecasting methodology for calculating per megawatt-hour energy prices at the time an obligation to purchase arises pursuant to PURPA based on forecasted day-ahead prices for each year of the prospective delivery term.

(4) Each tariff applicable to sales of capacity compensated using a forecasted rate shall include a forecasting methodology for calculating per kilowatt-month capacity prices at the time an obligation to purchase arises pursuant to PURPA based on forecasted capacity prices for each year of the prospective delivery term.

(5) Each tariff applicable to sales of capacity shall provide that the avoided cost for capacity purchased from a private power producer or qualifying facility that cannot offset the amount of capacity that the electric public service company is required to purchase for resource adequacy purposes, or is otherwise in excess of the electric public service company’s capacity purchase obligation, shall be fixed at $0.

(6) Each tariff shall provide a specific term of years. Private power producers and qualifying facilities providing both capacity and energy need not offer energy and capacity in concurrent periods.

(d) Each electric public service company shall file an annual report with the Authority, on or before the first of July, providing:

(1) Updated avoided cost calculations,

(2) Avoided cost forecasts,

(3) Its need for electricity generating capacity,

(4) How its capacity needs are met, and

(5) Whether any need for capacity is not met.

(e) Pursuant to section 16-243f of the Connecticut General Statutes, if an electric public service company reports any need for capacity is not met, the Authority may hold a hearing to determine whether any need for unmet capacity may be met through electricity conservation and demand management measures by private power providers. If such need for unmet capacity may be met through electricity conservation and demand management measures by private power providers, the Authority may have each electric public service company submit a proposed tariff to procure unmet capacity from private power providers which includes a monitoring plan and evaluation plan for documenting the demand and energy savings achieved.

(f) In the event that PURPA is amended, each electric public service company shall, not later than six months after such amendment, submit to the Authority for review and approval (1) an analysis of whether such amendment requires modification of the pro forma tariffs and (2) revised pro forma tariffs for private power producers and qualifying facilities to address any such modification. Thereafter, the Authority shall determine whether modification is required.

(g) In the event that PURPA is repealed, existing PURPA tariffs shall be honored for the duration of the tariff term, but no new PURPA tariff shall be entered into after the date the PURPA program ends.

(h) In the event that section 16-243a of the Connecticut General Statutes is amended, each electric public service company shall, not later than six months after such amendment, submit to the Authority for review and approval (1) an analysis of whether such amendment requires modification of the pro forma tariffs and (2) revised pro forma tariffs for private power producers and qualifying facilities to address any such modification. Thereafter, the Authority shall determine whether modification is required.

(i) In the event that section 16-243a of the Connecticut General Statutes is repealed, existing tariffs for private power producers shall be honored for the duration of the tariff term, but no new private power producer tariff shall be entered into after the date the private power producer program ends.

(j) In the event that section 16-243f of the Connecticut General Statutes is amended and no private power provider tariffs exist, the Authority may hold a hearing to determine if the electric public service companies shall take action to address the amendment. In the event that section 16-243f of the Connecticut General Statutes is amended and private power provider tariffs exist, each electric public service company shall, not later than six months after such amendment, submit to the Authority for review and approval (1) an analysis of whether such amendment requires modification of the private power provider tariff and (2) a revised private power provider tariff to address any such modification. Thereafter, the Authority shall determine whether modification is required.

(k) In the event that section 16-243f of the Connecticut General Statutes is repealed, existing tariffs for private power providers shall be honored for the duration of the tariff term, but no new private power provider tariff shall be entered into after the date the private power provider program ends.

(l) In the event that section 16-243a of the Connecticut General Statutes is repealed, section 16-243a-1 of the Regulations of Connecticut State Agencies and this section shall continue to be applicable insofar as they apply to the Authority’s continued implementation of PURPA, in accordance with section 16-6b of the Connecticut General Statutes.

(m) In the event that PURPA and sections 16-243a and 16-243f of the Connecticut General Statutes are repealed, section 16-243a-1 of the Regulations of Connecticut State Agencies and this section shall cease to be applicable.

(n) The Authority may, in its discretion, call for additional public hearings or reporting relating to PURPA, private power producers, or private power providers as it deems appropriate.

(Effective October 26, 1989; Amended February 2, 2023)

Sec. 16-243a-3. [Repealed]

Latest version.

Repealed February 2, 2023.