CPES Policy Committee Update: March 17, 2020

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 Committee or if you have ideas for future policy updates, we welcome your input and feedback. Please send comments to Kathryn Dube, CPES Executive Director, via email: kdube@ctpower.org.

In this Update:

  • PURA Directs Utilities to Cease Residential Shut-Offs During COVID-19 Outbreak
  • PURA’s 2020 Report to the General Assembly Regarding the CT Electric Efficiency Partners Program
  • Connecticut Cities, Solar Installers Locked in Legal Fight Over Property Taxes
  • Solar and Wind Power are Pushing Down Electricity Prices in New England, but Carbon Fuels Still Dominate          
  • 2020 Legislative Session Update
  • Sens. Manchin, Murkowski introduce American Energy Innovation Act
  • ISO-NE Releases the 2020 Regional Electricity Outlook: The Road to a Clean Energy Future
  • ISO’s Final Draft 2020 10-yr Forecasts for Heating Electrification and EVs
  • New England Sees Back-to-Back Afternoon Demand Lows 

CONNECTICUT

PURA Directs Utilities to Cease Residential Shut-Offs During COVID-19 Outbreak
Connecticut’s Public Utilities Regulatory Authority (PURA) announced that it issued a ruling directing all regulated electric, natural gas, and water companies in the state to cease residential service terminations for non-payment as a protective measure during the current public health emergency. Docket 20-03-15 

PURA Publishes the 2020 Report to the General Assembly Regarding the CT Electric Efficiency Partners Program

Connecticut Cities, Solar Installers Locked in Legal Fight Over Property Taxes
At least 15 municipalities in Connecticut are locked in court battles with solar companies who say they are wrongfully taxing residential solar installations. Since 2017, nearly 200 lawsuits involving hundreds of properties around the state have been filed in the state Superior Court. At the root of the challenges is a state statute granting a property tax exemption to renewable energy sources that generate electricity for “private residential use.” A

Solar and Wind Power are Pushing Down Electricity Prices in New England, but Carbon Fuels Still Dominate
Renewable energy is beginning to have an impact where it counts, in the cost of electricity, as generators pledge to sell power to the New England grid at prices that keep falling and will be down more than 70% over four years by 2023. As a result, consumers will likely pay less, but the dollar impact on electricity bills is not known because utilities will factor the costs differently in rates.

2020 Legislative Session
The state Capitol is currently closed due to COVID-19.  There is no information on how the extended closing will impact the legislative session or the legislative process. Legislative leaders plan to revisit the decision as they receive additional information. Information will be shared as it becomes available. COVID-19 updates are available here.

Energy and Technology Committee
March 5th Public Hearing: The agenda included the Governor’s bill, SB 10, which codifies the Governor’s Executive Order No. 3 to require a statewide zero carbon electric sector by 2040. The Committee has made electricity storage a priority this session. HB 5351 encourages 1,000 MW of storage by December 31, 2030 and shares similar language regarding storage with the Governor’s bill, SB 10. HB 5350, which concerns natural gas infrastructure connectivity, gained a lot of traction during Thursday’s public hearing. This bill, which has been referred to as “the gas bill,” repeals the gas pipeline tax to prevent natural gas expansion in addition to requiring PURA to establish a hurdle-rate utilizing a 25-year payback period to compare revenue requirements of connecting new customers to gas distribution systems. 

February 27th Public Hearing: This hearing was largely focused on the technology side regarding Public, Educational, or Government (PEG) Programming fees, and Net Neutrality. A Distributed Energy Resource bill, which helps the procurement process of natural gas from anaerobic digestion facilities, was discussed. View PURA’s testimony here and DEEP’s testimony here.  An energy efficiency bill also made an appearance again this year. This bill updates energy and water efficiency standards for common household and commercial appliances.

INDUSTRY

Sens. Manchin, Murkowski introduce American Energy Innovation Act
U.S. Sens. Joe Manchin (D-WV) and Lisa Murkowski (R-AK) released on Feb. 27, the text of the American Energy Innovation Act (AEIA), a compilation of more than 50 energy-related measures individually reported by the Senate Energy and Natural Resources Committee (ENR) last year. MORE

ISO-NE Releases the 2020 Regional Electricity Outlook: The Road to a Clean Energy Future
ISO-NE’s annual report looks at the trends affecting New England’s power system and the innovative solutions the ISO is pursuing to ensure reliable electricity for homes and businesses as the region moves along its decarbonization journey. See the press release and the report for more information.

ISO’s Final Draft 2020 10-yr Forecasts for Heating Electrification and EVs
ISO published its first Final Draft 2020 Heating Electrification Forecast and Final Draft 2020 Transportation Electrification Forecast to capture growth in air source heat pumps and light-duty electric vehicles and to quantify resulting increases in grid electricity demand. The ISO forecasts that by 2029 roughly 750,000 air source heat pumps will be installed in New England with a near 600 megawatt (MW) increase in load during the winter months. Light-duty electric vehicles (including cars and light-duty trucks) are estimated to number over 515,000 region-wide, adding up to 400 MW of load a month by the end of 2029. Learn more at ISO’s Newswire.

New England Sees Back-to-Back Afternoon Demand Lows 
February 22 and 23 solar generation lead to a mid-day drop in grid demand followed by a steep evening increase- see the charts and read more at ISO’s website.