Agreement is Reached on Proposed Forward Capacity Market for New England

A forward capacity market (FCM) plan, proposed for the electric industry by the Independent System Operator (ISO) of New England, has been agreed to by Connecticut, New Hampshire, Rhode Island and Vermont – in lieu of the Locational Installed Capacity (LICAP) plan proposed in 2004. The plan calls for ISO New England to project how much electricity the region would need three years into the future and then use a free-market auction to attract enough generators to produce the needed power at the lowest possible price. These payments will be utilized to encourage generators to begin building new power plants before or as the auction system begins in 2010, or to continue operating plants they have been considering closing because they don't make enough money. Opponents include the Massachusetts Attorney General, NSTAR Electric and Gas, and various other state officials from Maine and Massachusetts, who argue that the plan burdens New England ratepayers with paying for subsidies that may not result in the production of new power plants. Supporters of the plan include ISO New England, the Associated Industries of Massachusetts, and National Grid. Important to energy efficiency policy for the region is that this new plan allows alternative resources, including demand resources such as distributed generation, demand response and energy efficiency, to participate in the capacity market and receive capacity payments. Details on the rules and operational procedures are expected to be worked out over the next six months. For more information, see the press release from ISO New England and the FCM plan.

RGGI States Release Draft Model Rule for Regional Carbon Cap and Trade System

Partners to the Regional Greenhouse Gas Initiative (RGGI) agreement (Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont) have released a draft model rule to reduce greenhouse gas emissions through a flexible, market-based cap-and-trade program. Public comments on the draft model rule will be accepted until May 22, 2006. For more information, read the press release.

Study Concludes Alternatives Exist to Siting Broadwater LNG Import Terminal

Synapse Energy Economics issued a report at the request of Save the Sound to identify and evaluate potential alternatives to the Liquefied Natural Gas (LNG) Broadwater Import Terminal, which has been proposed in order to address energy shortages threatening the Long Island Sound region of New York and Connecticut.  Synapse concludes in the report that there is no compelling local or regional need for the project, the project is not well suited for the local or regional gas supply needs, and several more suitable supply and demand management alternatives, such as investing in peak facilities and reducing reliance on fossil fuels, exist. The report is available from Synapse Energy Economics.

ASAP Releases New Report on Appliance Efficiency Standards

NEGC/ECP discuss meet to discuss critical natural gas issues

Interim Decision Issued on Class III Portfolio Standard

The Connecticut Department of Public Utility Control (DPUC) has issued a draft interim decision regarding the development of a new distributed resources portfolio standard (Class III resources) in Docket 05-07-19. Qualifying resources include conservation (energy efficiency) and load management (CL&M). Any C&LM measure installed after January 1, 2006 by commercial and industrial customers in Conn. are eligible for certification and issuance of Class III credits, provided that the installation is verified and the savings are determined using the International Performance, Measurement and Verification Protocol (IPMVP). A final decision is due in April. The draft decision can be obtained on the DPUC Web site.

Natural Gas and Oil Conservation Legislation Pending in Conn. General Assembly

In response to the rapidly increasing fuel prices in New England, draft legislation (RB 5261) has been filed in Connecticut that includes the establishment of natural gas and oil conservation programs. The bill calls for funding natural gas energy efficiency programs in the amount of not less than 1.1 cents per hundred cubic feet of natural gas projected sales in 2007, 2.2 cents in 2008, and 3.3 cents in 2009 and annually thereafter. Energy efficiency services would be available to all gas customers and the costs would be collected as a portion of the delivery charges. For oil conservation, the bill proposes that the Energy Conservation Management Board (ECMB) select an entity qualified to administer and implement energy efficiency programs for fuel oil customers, and that a "fuel oil conservation account" be established as a separate, non-lapsing account within the General Fund. The funding would be $5 million for 2007; $10 million for 2008; and $15 for 2009. The full bill is available from the Connecticut General Assembly Web site. 

Attorney General Proposes Electricity Market Change

Attorney General Richard Blumenthal recently proposed major changes to the state's electricity market. His suggestions include the creation of a public authority to buy all of the state's power, and a windfall profits tax on power generators. The proposed authority would buy power at public auctions and provide it to the utilities at a cost. In addition, it would finance, build, buy and operate power plants and block any attempted Locational Installed Capacity (LICAP). These proposals are aimed at reducing energy costs due to the failure of the free market. For more information, read the press release.

DPUC Closes Investigation on Decoupling

The Connecticut Department of Public Utility Control (DPUC) has closed Docket 05-09-09, which examined decoupling local distribution company revenues from sales. The investigation was in accordance with the provisions set forth in Section 21 of Public Act 05-01: An Act Concerning Energy Independence. The DPUC concluded that the current conservation adjustment mechanism (CAM) applied to the low-income gas conservation programs is an appropriate, moderate decoupling mechanism. The investigation included research into alternative decoupling mechanisms that were more extensive.  Through their study, the DPUC found that the more extensive mechanisms would be unacceptable to gas ratepayers, would not foster customer-initiated conservation measures, would eliminate normal business risks for local distribution companies (LDCs) and lessen their incentive to manage their fixed cost. The full docket is available on the DPUC Web site.

Connecticut Releases Joint 2006 Natural Gas Efficiency Program Plan

The plan sets the natural gas conservation program budget at $2,382,000. This budget provides funding for the existing Low Income Weatherization and Heating System, the Connecticut Housing Investment Fund (CHIF) Loan Program, the Residential Conservation Service (RCS) Audit Program, and Energy Conservation Management Board (ECMB) and Evaluation programs and new programs, which include general weatherization (non-income specific). The entire plan is available on the DPUC Web site.

Connecticut Issues Annual Climate Change Report

The report, published by Connecticut Climate Change in February 2006, was submitted in accordance with PA 04-252. It highlights the progress made by the state in the last year. The top accomplishments of 2005 include: joining the Regional Greenhouse Gas Initiative (RGGI), allocating $1 billion for a mass transit program, adopting regulations to cut CO2 emissions from cars and light trucks by 30 percent, creating a fund to conserve farmland, launching the Connecticut Clean Energy Options program, passing the Energy Independence Act, and hosting the first insurance industry summit on climate change in the United States. The report can be found on the Connecticut Climate Change Web site.

Advisory Board Releases 2006 Energy Plan

The Connecticut Energy Advisory Board (CEAB) plan summarizes the 2005 issues and accomplishments and states the 2006 strategies and initiatives, which include: reducing electric peak and fossil fuel consumption by 10 percent by 2010, managing the state’s electric use and peak demand to reduce federally mandated congestion charges (FMCC), promoting distributed generation and combined heat and power, promoting clean and renewable energy technologies, developing transportation and land use policies that reduce energy use, and exploring the creation of an energy supply and demand-side technology cluster. The full plan can be downloaded from the CEAB Web site.

Efficiency Standards Legislation Moving Forward

On March 14, 2006 Connecticut's Joint Committee on Energy and Technology reported out an efficiency standards bill containing many of the products mentioned in the Appliance Standards Awareness Project's (ASAP) recently released Leading the Way report. The Committee significantly weakened the furnace and boiler standard by making it only applicable to state purchases. This was the result of opposition from Carrier Corporation, whose parent company, United Technologies, is a leading employer in the state. In an important positive development, unlike other years, the state’s leading utility, Connecticut Light and Power, endorsed the legislation. This is significant because utility support has been crucial in successful efforts in other states. 

New York Energy Smart Programs Extended Five Years

The December 21, 2005 order provides funding of approximately $896 million for the programs administered by the New York State Energy Research and Development Authority (NYSERDA). NYSERDA submitted their proposed 5 year plan on March 2, 2006. For more information, read the funding order and NYSERDA's plan.

Legislative Efforts Underway to Gain Authority to Appropriate NYSERDA’s Public Benefits Program and Renewable Portfolio Standard Funds

According to sources at NYSERDA, the New York legislature has included language in the state’s budget bill that would give it appropriation authority over NYSERDA's $175 million public benefits program as well as its $100 million per year renewable portfolio standard program. Currently, all of NYSERDA's programs except the public benefits and renewable programs are already subject to annual appropriation by the State Legislature. It is unclear whether the appropriate language will remain in the budget bill or be vetoed by the Governor, who has line-item veto authority.

Efficiency Standards Rulemaking

Unlike standards bills adopted in other states, the New York Legislature opted in most cases not to include the actual standards in the legislation. Consequently, the standards will be set during the rulemaking process. The New York State Energy Research and Development Authority (NYSERDA) has set up an advisory committee consisting of representatives from state agencies, environmental organizations and industry to provide advice on developing the precise standards.