This update features policy, regulatory, legislative, and regional developments in Connecticut and New England. The policy updates are compiled by the CPES New Energy Professionals Team. If you are interested in learning more about the New Energy Professionals, the Policy Committee, or if you have ideas for future policy updates, we would welcome your input and feedback. Please send comments to Kathryn Dube, CPES Executive Director, via email: kdube@ctpower.org.
In this Update:
- RGGI States Announced Proposed Program Changes Beginning in 2021
- United State Department of Energy Releases Report on Electric Grid Reliability and Resilience
- 2017 CES Technical Meeting: September 13
REGIONAL AND INDUSTRY DEVELOPMENTS
RGGI STATES ANNOUNCE PROPOSED PROGRAM CHANGES BEGINNING IN 2021
On August 23, 2017, the nine Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative (RGGI) announced proposed changes to the program beginning in 2021. The proposed changes, stemming from a 2016 Program Review, include a regional cap of 75,147,784 tons of CO2 in 2021, which will decline by 2.275 million tons of CO2 per year through 2030, resulting in a 30% reduction in the regional cap from 2020 to 2030. Additional adjustments have been proposed to account for the full bank of excess allowances at the end of 2020, as well as other proposed modifications.
The RGGI states will seek stakeholder comment on the draft program elements in a public meeting scheduled for September 25. Materials, including a stakeholder meeting notice and a supplementary table of year-by-year regional numbers, are posted to the RGGI, Inc. website.
UNITED STATES DEPARTMENT OF ENERGY RELEASES REPORT ON ELECTRIC GRID RELIABILITY AND RESILIENCE
On August 23, 2017, the US Department of Energy (DOE) released a report focused on a variety of challenges impacting the reliability and resilience of the electric grid. The report was initiated by the Secretary of Energy in April, with a focus on the effects of various economic and political factors on electric grid operations, including baseload generation powered by nuclear and coal.
The report highlights the significant impact of lower-cost natural gas on the retirement of generators that previously operated as baseload generation. The report also discusses the impacts of lower electricity demand (in part due to investments in energy efficiency), increased output from renewable resources, and various environmental regulations on nuclear and coal-fired power plants. DOE makes several recommendations for ways to improve reliability and resiliency, including for the Federal Energy Regulatory Commission (FERC) to move forward with efforts to improve price formation in wholesale markets and potentially find ways to compensate assets providing important reliability characteristics.
The full report is available at: https://energy.gov/staff-report-secretary-electricity-markets-and-reliability
CONNECTICUT
DATES SET FOR THE DRAFT 2017 COMPREHENSIVE ENERGY STRATEGY TECHNICAL HEARINGS
The Connecticut Department of Energy and Environmental Protection (DEEP) released a draft of the 2017 Comprehensive Energy Strategy (CES) on June 26th. They will hold a technical meeting on September 13, 2017 at 11:00 a.m. in Hearing Room 1, at DEEP’s New Britain Office, Ten Franklin Square, New Britain, Connecticut Directions to DEEP’s New Britain Office. The purpose of the technical meetings are to allow stakeholders an opportunity to present oral comments and to pose questions to DEEP staff and consultants involved in the preparation of the analytics and the findings in the draft Strategy. DEEP requests that you RSVP and send your questions to DEEP.EnergyBureau@ct.gov three business days prior to the scheduled date if you plan on attending and/or participating in any of the scheduled technical meetings. Visit the DEEP website for more information.
Katie Dykes, Deputy Commissioner for Energy of the Connecticut Department of Energy and Environmental Protection (DEEP), delivered opening remarks, highlighting the work Connecticut has done to advance the objectives of electric restructuring and to prepare a comprehensive energy strategy for the state. Dykes explained that one of the primary objectives of electric restructuring, in addition to shifting investment risk away from electric ratepayers and onto company shareholders, was to maintain a commitment to fuel diversity, including the development of clean energy resources. She noted that since 2011, Connecticut has launched five competitive Requests for Proposals (RFPs) for grid-scale renewable energy sources, resulting in the procurement of more than 465 megawatts (MW) of renewable energy. Dykes signaled a continued need to decarbonize the electric grid in order to meet the state’s long-term greenhouse gas (GHG) reduction goals contained in the 2008 Global Warming Solutions Act (GWSA). The GWSA calls for an 80% reduction in GHG emissions below 2001 levels by 2050. Dykes touched on the role of existing generation in the state, particularly nuclear, in maintaining fuel diversity and meeting the state’s GHG reduction goals. This issue, she said, will be taken up in the 2016 Comprehensive Energy Strategy, scheduled for release in draft form later this year. A copy of her presentation can be found 
Eric Johnson, Director of External Affairs for ISO New England, moderated the first panel of the day on Connecticut’s upcoming Comprehensive Energy Strategy and what it means for the state’s economic competitiveness. Panelists included Carl Gustin, Consultant with the New England Coalition for Affordable Energy; Marc Montalvo, President of Daymark Energy Advisors; and Heather Hunt, Executive Director of the New England States Committee on Electricity (NESCOE). Carl Gustin focused his remarks on the affordability of energy and the concerns he has surrounding price volatility and regional competitiveness. Gustin stressed the need for additional energy infrastructure in the region, including natural gas pipeline capacity, in order to avoid billions of dollars of added energy costs by 2020. Marc Montalvo discussed analysis his organization is completing to quantify the impacts of not building cost-effective energy infrastructure in the region, including impacts on employment and gross domestic product. Heather Hunt touched on the Integrating Markets and Public Policy (IMAPP) Initiative, an effort the New England Power Pool (NEPOOL) has launched to identify how state laws that promote clean energy can be incorporated into the region’s wholesale electricity markets. This effort, she explained, is in the beginning stages; any changes to the wholesale electricity markets will take several years to implement.
Sandi Hennequin, Vice President of U.S. Public Affairs for Emera Energy, moderated the second panel of the day on new trends and technologies for managing electricity use. Panelists included Mackey Dykes, Vice President of Commercial and Industrial Programs for the Connecticut Green Bank; Tim Maurer, Director of Energy Information Services for Artis Energy Solutions; and Bill Kenworthy, Director of Products for Direct Energy Business. Mackey Dykes discussed the sophisticated financing mechanisms employed by the Connecticut Green Bank to promote commercial and residential energy-efficiency and renewable energy projects in the state. Tim Maurer focused on the importance of using data analytics and interoperability to find energy savings for business customers, especially in a high-cost region like New England. Bill Kenworthy discussed the use of technology to monitor energy consumption so that companies can understand exactly where their energy use is coming from and how to create savings.
Brad Kane, Editor for the Worcester Business Journal, moderated the final panel of the day, featuring perspectives from various media outlets in Connecticut. Panelists included Mark Pazniokas, Capitol Bureau Chief for the Connecticut Mirror; Max Reiss, State Reporter for NBC Connecticut; and Steve Kotchko, News Director for the Connecticut Radio Network. The panelists discussed state politics and dynamics at play within the state legislature. They stressed that the General Assembly is a part-time legislature, and, oftentimes, legislators do not have the background or resources to understand all of the ramifications of a particular bill. They also noted that pressures unrelated to energy, like closing a budget deficit, can drive the legislative process during session.
During breaks, conference attendees visited Direct Energy’s one-of-a-kind Innovation to Inspiration mobile exhibit, which featured innovative devices and appliances for managing energy use in your home or business. For more information, visit: 
