Connecticut Governor Ned Lamont has signed House Bill 7156, which provides for the procurement of offshore wind by the electric distribution companies

The bill authorizes the state to purchase, via the EDCs, up to 2,000 MW of offshore wind (or equivalent to 30 percent of state load) via PPAs of up to 20 years

The bill does not specifically address the disposition of any energy or capacity under the PPAs, but given that the bill does not disturb current statutes governing standard service, the energy and capacity presumably will be disposed of in the wholesale market

However, the bill provides that RECs sourced under the procurement may be:

(1) Sold into the New England Power Pool Generation Information System renewable energy credit market to be used by any electric supplier or electric distribution company to meet the requirements of section 16-245a of the general statutes, as amended by this act, provided the revenues from such sale are credited to electric distribution company customers as described in this section; or

(2) retained by the electric distribution company to meet the requirements of section 16-245a of the general statutes (RPS) The net costs of any PPAs shall be recovered through a fully reconciling component of electric rates for all customers of electric distribution companies.

Any net revenues from the sale of products purchased in accordance with long-term contracts entered into pursuant to this section shall be credited to customers through the same fully reconciling rate component for all customers of the contracting electric distribution company.

Tags:
Connecticut   Long-term contracts   Offshore wind  

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