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:

• ISO New England and NEPOOL Make Joint Filing Regarding Full Integration of Demand Response
• Connecticut DEEP Releases Draft 2017 Comprehensive Energy Strategy
• Bids for the Massachusetts Clean Energy RFP have been posted
• Governor Malloy Signs Executive Order Calling for Resource Assessment of Millstone Station
• PURA established two new dockets, one to implement the Governor’s Executive Order Number 59 and the other for Promulgation of Regulations Concerning Electric Suppliers Posting Generation Offers to the Rate Board.

REGIONAL AND INDUSTRY DEVELOPMENTS

ISO NEW ENGLAND AND NEPOOL MAKE JOINT FILING REGARDING Regarding FULL INTEGRATION OF DEMAND RESPONSE
On July 27, 2017, the ISO, joined by the New England Power Pool (NEPOOL) Participants Committee, submitted to the Federal Energy Regulatory Commission (FERC) revisions to Market Rule 1 to fully integrate demand response into New England’s wholesale electricity markets on June 1, 2018. This filing represents the latest, and final, in a series of filings that began with the ISO’s Order No. 745 compliance filing.  For more information, visit the ISO Newswire.

CONNECTICUT
DEEP RELEASES DRAFT 2017 COMPREHENSIVE ENERGY STRATEGY
On June 26, 2017, the Connecticut Department of Energy and Environmental Protection (DEEP) released a draft of the 2017 Comprehensive Energy Strategy (CES). DEEP is required to develop a Comprehensive Energy Strategy for the State of Connecticut every three years to assess and plan for all energy needs of the state. The first CES was released in 2013.

In the draft report, DEEP states that the 2017 update is guided by the goal of “cheaper, cleaner, more reliable energy,” and that Connecticut energy policy must:

• Align with and support the State’s broader environmental policies to meet clean air, clean water, land conservation and development, and waste reduction goals;
• Put the State on a clear path to meet the Global Warming Solutions Act to reduce GHG emissions 10 percent below 1990 levels by 2020 and 80 percent below 2001 levels by 2050;
• Focus on grid modernization, strategic electrification, increasing efficiency, and improving reliability and security;
• Increase energy affordability and economic security to help strengthen the State’s economy now and into the future;
• Maintain equitable access to the benefits of clean and efficient energy generation and transportation options.

With these principles in mind, DEEP laid out two recommendations for the electric power sector:

• Goal 1: Align existing programs supporting renewable and zero carbon resources with renewable portfolio standards and global warming solutions act goals
• Goal 2: Continue to support regional and state reliability and resiliency efforts

DEEP plans to hold technical and public meetings to discuss the draft before issuing the final report. Visit the DEEP website for more information.

MASSACHUSETTS
BIDS FOR THE MASSACHUSETTS CLEAN ENERGY RFP HAVE BEEN POSTED
Bids have been posted in response to a solicitation in Massachusetts for long-term contracts for clean energy projects. The clean energy RFP is referred to as 83D, which is a reference to section 83D of the 2016 Massachusetts legislation that created the RFP process (An Act to Promote Energy Diversity). The RFP website includes a timeline for approval of the submitted bids.

GOVERNOR MALLOW SIGNS EXECUTIVE ORDER FOR CALLING FOR RESOURCE ASSESSMENT OF MILLSTONE STATION
On July 25, 2017, Governor Malloy signed an executive order directing the Connecticut Department of Energy and Environmental Protection (DEEP) and the Public Utilities Regulatory Authority (PURA) to immediately begin a resource assessment of the economic viability of Millstone Nuclear Power Station located in Waterford, Connecticut. The purpose of the assessment is to determine whether the state should take action to support existing nuclear power facilities to ensure continued progress towards Connecticut’s Global Warming Solutions Act requirements and other emissions targets. In conducting their proceedings, DEEP and PURA are required to provide opportunity for public participation.

The assessment must include an analysis of the current and projected economic viability of the plant’s continued operation using the best available information and other financial data that can be reasonably requested of Millstone’s owner, Dominion Energy. The assessment must also examine the role of nuclear power, among other emissions-free resources, in helping Connecticut meet its carbon reduction requirements and other emissions targets “at the least cost and with the greatest net benefit to Connecticut ratepayers, while maintaining the reliability of Connecticut’s electric grid.” DEEP and PURA must also consider the best mechanisms to ensure continued progress towards meeting the state’s environmental goals and whether these mechanisms are compatible with the competitive wholesale and retail electricity markets in New England and Connecticut.

The findings of the resource assessment must be reported to the Governor, the General Assembly’s Energy & Technology Committee, and the Governor’s Council on Climate Change no later than February 1, 2018.

PUBLIC UTILITIES REGULATORY AUTHORITY NEW DOCKETS:
On July 31, 2017, PURA established the following docket:

• Docket No. 17-07-32:  DEEP and PURA Joint Proceeding to Implement the Governor’s Executive Order Number 59. 

On August 3, 2017, PURA established the following docket:

• Docket No. 17-08-02:  PURA Promulgation of Regulations Concerning Electric Suppliers Posting Generation Offers to the Rate Board.