2023 Connecticut General Statutes › Title 16 - Public Service Companies › Chapter 283 - Telephone, Gas, Power and Water Companies › Section 16-243v. - Connecticut electric efficiency partner program. Residential furnace or boiler replacement and propane fuel tank purchase program.

(a) For purposes of this section: (1) “Connecticut electric efficiency partner program” means the coordinated effort among the Public Utilities Regulatory Authority, persons and entities providing enhanced demand-side management technologies, and electric consumers to conserve electricity and reduce demand in Connecticut through the purchase and deployment of energy efficient technologies; (2) “enhanced demand-side management technologies” means demand-side management solutions, customer-side emergency dispatchable generation resources, customer-side renewable energy generation, load shifting technologies and conservation and load management technologies that reduce electric distribution company customers' electric demand, and high efficiency natural gas and oil boilers and furnaces; and (3) “Connecticut electric efficiency partner” means an electric distribution company customer who acquires an enhanced demand-side management technology or a person, other than an electric distribution company, that provides enhanced demand-side management technologies to electric distribution company customers.
(b) The Energy Conservation Management Board, in consultation with the Renewable Energy Investments Advisory Committee, shall evaluate and approve enhanced demand-side management technologies that can be deployed by Connecticut electric efficiency partners to reduce electric distribution company customers' electric demand. Such evaluation shall include an examination of the potential to reduce customers' demand, federally mandated congestion charges and other electric costs. On or before October 15, 2007, the Energy Conservation Management Board shall file such evaluation with the Public Utilities Regulatory Authority for the authority to review and approve or to review, modify and approve on or before October 15, 2007.
(c) Not later than October 15, 2007, the Energy Conservation Management Board shall file with the authority for the authority to review and approve or to review, modify and approve, an analysis of the state's electric demand, peak electric demand and growth forecasts for electric demand and peak electric demand. Such analysis shall identify the principal drivers of electric demand and peak electric demand, associated electric charges tied to electric demand and peak electric demand growth, including, but not limited to, federally mandated congestion charges and other electric costs, and any other information the authority deems appropriate. The analysis shall include, but not be limited to, an evaluation of the costs and benefits of the enhanced demand-side management technologies approved pursuant to subsection (b) of this section and establishing suggested funding levels for said individual technologies.
(d) Commencing April 1, 2008, any person may apply to the authority for certification and funding as a Connecticut electric efficiency partner. Such application shall include the technologies that the applicant shall purchase or provide and that have been approved pursuant to subsection (b) of this section. In evaluating the application, the authority shall (1) consider the applicant's potential to reduce customers' electric demand, including peak electric demand, and associated electric charges tied to electric demand and peak electric demand growth, (2) determine the portion of the total cost of each project that shall be paid for by the customer participating in this program and the portion of the total cost of each project that shall be paid for by all electric ratepayers and collected pursuant to subsection (h) of this section. In making such determination, the authority shall ensure that all ratepayer investments maintain a minimum two-to-one payback ratio, and (3) specify that participating Connecticut electric efficiency partners shall maintain the technology for a period sufficient to achieve such investment payback ratio. The annual ratepayer contribution for projects approved pursuant to this section shall not exceed sixty million dollars. Not less than seventy-five per cent of such annual ratepayer investment shall be used for the technologies themselves. No person shall receive electric ratepayer funding pursuant to this subsection if such person has received or is receiving funding from the Conservation and Load Management Plan for the projects included in said person's application. No person shall receive electric ratepayer funding without receiving a certificate of public convenience and necessity as a Connecticut electric efficiency partner by the authority. The authority may grant an applicant a certificate of public convenience if it possesses and demonstrates adequate financial resources, managerial ability and technical competency. The authority may conduct additional requests for proposals from time to time as it deems appropriate. The authority shall specify the manner in which a Connecticut electric efficiency partner shall address measures of effectiveness and shall include performance milestones.
(e) Beginning February 1, 2010, a certified Connecticut electric efficiency partner may only receive funding if selected in a request for proposal developed, issued and evaluated by the authority. In evaluating a proposal, the authority shall take into consideration the potential to reduce customers' electric demand including peak electric demand, and associated electric charges tied to electric demand and peak electric demand growth, including, but not limited to, federally mandated congestion charges and other electric costs, and shall utilize a cost benefit test established pursuant to subsection (c) of this section to rank responses for selection. The authority shall determine the portion of the total cost of each project that shall be paid by the customer participating in this program and the portion of the total cost of each project that shall be paid by all electric ratepayers and collected pursuant to the provisions of this subsection. In making such determination, the authority shall (1) ensure that all ratepayer investments maintain a minimum two-to-one payback ratio, and (2) specify that participating Connecticut electric efficiency partners shall maintain the technology for a period sufficient to achieve such investment payback ratio. The annual ratepayer contribution shall not exceed sixty million dollars. Not less than seventy-five per cent of such annual ratepayer investment shall be used for the technologies themselves. No Connecticut electric efficiency partner shall receive funding pursuant to this subsection if such partner has received or is receiving funding from the Conservation and Load Management Plan for such technology. The authority may conduct additional requests for proposals from time to time as it deems appropriate. The authority shall specify the manner in which a Connecticut electric efficiency partner shall address measures of effectiveness and shall include performance milestones.
(f) The authority may retain the services of a third party entity with expertise in areas such as demand-side management solutions, customer-side renewable energy generation, customer-side distributed generation resources, customer-side emergency dispatchable generation resources, load shifting technologies and conservation and load management investments to assist in the development and operation of the Connecticut electric efficiency partner program. The costs for obtaining third party services pursuant to this subsection shall be recoverable through the systems benefits charge.
(g) The authority shall develop a long-term low-interest loan program to assist certified Connecticut electric efficiency partners in financing the customer portion of the capital costs of approved enhanced demand-side management technologies. The authority may establish such financing mechanism by the use of one or more of the following strategies: (1) Modifying the existing long-term customer-side distributed generation financing mechanism established pursuant to section 16-243j, (2) negotiating and entering into an agreement with Connecticut Innovations, Incorporated to establish a credit facility or to utilize grants, loans or loan guarantees for the purposes of this section upon such terms and conditions as Connecticut Innovations, Incorporated may prescribe including provisions regarding the rights and remedies available to Connecticut Innovations, Incorporated in case of default, or (3) selecting by competitive bid one or more entities that can provide such long-term financing.
(h) The authority shall provide for the payment of electric ratepayers' portion of the costs of deploying enhanced demand-side management technologies by implementing a contractual financing agreement with Connecticut Innovations, Incorporated or a private financing entity selected through an appropriate open competitive selection process. No contractual financing agreements entered into with Connecticut Innovations, Incorporated shall exceed ten million dollars. Any electric ratepayer costs resulting from such financing agreement shall be recovered from all electric ratepayers through the systems benefits charge.
(i) On or before February 15, 2009, and annually thereafter, the authority shall report to the joint standing committee of the General Assembly having cognizance of matters relating to energy regarding the effectiveness of the Connecticut electric efficiency partner program established pursuant to this section. Said report shall include, but not be limited to, an accounting of all benefits and costs to ratepayers, a description of the approved technologies, the payback ratio of all investments, the number of programs deployed and a list of proposed projects compared to approved projects and reasons for not being approved.
(j) On or before April 1, 2011, the Public Utilities Regulatory Authority shall initiate a proceeding to review the effectiveness of the program and perform a ratepayer cost-benefit analysis. Based upon the authority's findings in the proceeding, the authority may modify or discontinue the partnership program established pursuant to this section.
(k) (1) As used in this section:
(A) “Residential retail end use customer” means any electric, gas or heating fuel customer, regardless of heating source, who wishes to replace heating furnace or boiler equipment, or purchase either an underground or above ground propane fuel tank, including, but not limited to, a propane fuel tank that the residential retail end use customer leases, provided a residential retail end use customer (i) shall be a customer of an electric distribution company, and (ii) shall not include a customer who occupies leased premises or who does not own the premises on which the replacement heating furnace or boiler equipment is located or on which the underground or above ground propane tank to be purchased is located or will be located;
(B) “Heating furnace or boiler equipment” means the primary heating equipment for space and hot water needs, along with the ancillary piping, pumps, duct work and associated other equipment that may be required as part of the replacement of a heating furnace or boiler;
(C) “Furnace or boiler replacement and propane fuel tank purchase funds” means any funds approved by the third-party administrator pursuant to this subsection, provided (i) such funds may be used for the loan principal in an amount not to exceed fifteen thousand dollars, excluding interest expense associated with such loan and the expense for any loan default, and (ii) participating residential retail end use customers may be charged interest on the loan principal in an amount not to exceed three per cent, based on income eligibility as determined by the third-party administrator;
(D) “Electric distribution company” and “gas company” have the same meanings as provided in section 16-1;
(E) “Propane fuel tank” means a tank used to store propane fuel that is used in connection with residential heating of space, hot water needs, operation of an emergency generator for such space or the performance of indoor installed-appliance-based cooking in such space.
(2) Not later than September 1, 2013, the electric distribution and gas companies shall develop a residential furnace or boiler replacement and propane fuel tank purchase program funded by the systems benefits charge pursuant to section 16-245
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in a manner that minimizes the impact on ratepayers. Said program shall be reviewed and approved or modified by the Department of Energy and Environmental Protection, in consultation with the Energy Conservation Management Board, within sixty days of receipt of the plan for said program. Said program shall include a contract for retention of a third-party administrator to become effective upon approval of the program by the department. Said program shall continue until the end of the eleventh year of the program. On or before January 1, 2014, the electric distribution and gas companies shall retain the services of a third-party administrator with expertise in developing, implementing and administering residential lending programs, including credit evaluation, to provide financing for improvement projects by property owners, loan servicing and program administration. The third-party administrator shall, in conjunction with the electric distribution companies and gas companies, develop the program. On and after December 29, 2015, said program shall be amended to provide such residential lending to residential retail end use customers who seek to purchase either an underground or above ground propane fuel tank, including, but not limited to, a propane fuel tank that the residential retail end use customer leases.
(3) The third-party administrator shall be responsible for extending loans and administering the residential furnace or boiler replacement and propane fuel tank purchase program to assist residential retail end use customers in funding heating furnace or boiler equipment replacements and propane fuel tank purchases that meet all of the program requirements. (A) For heating furnace or boiler equipment replacements, the program requirements shall include, but not be limited to, (i) the total projected direct cost savings to the eligible residential retail end use customer resulting from the heating furnace or boiler replacement, calculated on an annual basis commencing from the month that the replacement furnace or boiler is projected to be in service, shall be greater than the total cost of the replacement funds over the term of the program in order to qualify for the program, (ii) the eligible customer shall pay a contribution of not less than ten per cent of the total cost of the replacement or conversion of the heating furnace or boiler and any additional amounts that are required in order to meet the program requirements, (iii) eligible customers shall have six consecutive months of timely utility payments and shall not have any past due balance owed to any electric distribution company or gas company, (iv) the term of the repayment of the replacement funds shall be the lesser of (I) the simple payback period of the replacement funds plus two years, or (II) ten years, and (v) the replacement furnace or boiler shall meet or exceed federal Energy Star standards. (B) For propane fuel tank purchases, the program requirements shall include, but not be limited to, (i) eligible customers shall have six consecutive months of timely utility payments and shall not have any past due balance owed to any electric distribution company, propane seller or gas company, (ii) the term of the repayment of the replacement funds shall be not longer than ten years, and (iii) the loan recipient shall have such propane tank inspected on an annual basis and forward a certificate of inspection to the third-party administrator. In the event that such propane tank is found to need repair as a result of such inspection, any person performing such inspection shall inform the homeowner and the applicable local fire marshal. If the requisite repair is not made in a timely fashion or as otherwise recommended or ordered by the local fire marshal, said fire marshal shall render such propane tank inoperable. Eligible residential retail end use customers may apply to the third-party administrator for participation in the program. The third-party administrator shall screen each applicant to ensure that the applicant meets the eligibility requirements and such program requirements prior to accepting the customer into the program. The third-party administrator shall create awareness of the propane fuel tank purchase provisions of the program by the general public and, in particular, by residential propane purchasers.
(4) Program participants shall repay the furnace or boiler replacement and propane fuel tank purchase funds through a monthly charge on the customer's residential electric or gas utility bill, provided heating fuel customers shall be able to repay such replacement and propane fuel tank purchase funds through a monthly charge on such customer's electric or gas utility bill. Furnace or boiler replacement and propane fuel tank purchase funds provided shall be reflected on the residential retail end use customer's electric service or gas account, as applicable, for the premises on which the replacement heating furnace or boiler equipment or propane fuel tank is located. If the premises are sold, the amount of replacement or propane fuel tank purchase funds remaining to be repaid shall be transferred to subsequent service account holders at such premises, who may become program participants for purposes of the repayment obligation, unless the seller and buyer agree that the loan will not be transferred.
(5) Furnace or boiler replacement and propane fuel tank purchase funds shall be recovered through the systems benefits charge of the respective electric distribution company where the heating furnace or boiler equipment or propane tank is located. Any program costs incurred by the third-party administrator or the propane or gas company and funds not repaid by customers who default on their repayment obligations and other costs associated with the program or customers' failure to repay replacement or propane fuel tank purchase funds to the third-party administrator shall be recovered through the systems benefits charge. All administrative and capital carrying costs of the electric distribution companies associated with the program shall be recovered by the companies through a reconciling component, such as the systems benefits charge as approved by the Public Utilities Regulatory Authority.
(6) On or before January 1, 2016, and on or before January 1, 2018, the Department of Energy and Environmental Protection and the Energy Conservation Management Board shall engage an independent third party to evaluate and submit a report, in accordance with section 11-4a, to the joint standing committees of the General Assembly having cognizance of matters relating to energy and finance, revenue and bonding on the status of the program. Such report shall also include an evaluation of the program developed pursuant to section 16a-40m. The report shall include, but not be limited to, for each program, a review of (A) cost effectiveness of the program, (B) number of customers served and potential for growth, (C) the customer classes served, and (D) the fuel type of the financed equipment.
(7) The third-party administrator shall be entitled to take all available legal action as may be necessary to secure the furnace or boiler replacement and propane fuel tank purchase funds and repayment of the funds, including, but not limited to, attaching liens and requiring filings to be made on applicable land records or as otherwise necessary or required.
(P.A. 07-242, S. 94; P.A. 11-80, S. 1; June 12 Sp. Sess. P.A. 12-1, S. 152; P.A. 13-247, S. 117; Dec. Sp. Sess. P.A. 15-1, S. 48; P.A. 18-50, S. 14; P.A. 19-35, S. 14.)
History: P.A. 07-242 effective June 4, 2007; pursuant to P.A. 11-80, “Department of Public Utility Control” and “department” were changed editorially by the Revisors to “Public Utilities Regulatory Authority” and “authority”, respectively, effective July 1, 2011; pursuant to June 12 Sp. Sess. P.A. 12-1, “Connecticut Development Authority” was changed editorially by the Revisors to “Connecticut Innovations, Incorporated” in Subsecs. (g) and (h), effective July 1, 2012; P.A. 13-247 added Subsec. (k) re residential furnace and boiler replacement program, effective June 19, 2013; Dec. Sp. Sess. P.A. 15-1 amended Subsec. (k) by changing “residential furnace and boiler replacement program” to “residential furnace or boiler replacement and propane fuel tank purchase program”, by redefining “residential retail end use customer”, replacing defined term “furnace or boiler replacement funds” with “furnace or boiler replacement and propane fuel tank purchase funds” and defining “propane fuel tank” in Subdiv. (1), by changing “third year” to “sixth year” in Subdiv. (2), by adding provisions re propane fuel tank purchase in Subdivs. (2) to (5) and (7), by adding “and on or before January 1, 2018,” in Subdiv. (6), and by making conforming changes, effective December 29, 2015; P.A. 18-50 amended Subsecs. (d) and (e) by changing “Energy Conservation and Load Management Funds” to “Conservation and Load Management Plan”, effective January 1, 2020; P.A. 19-35 amended Subsec. (k)(2) by changing “sixth year” to “eleventh year”, effective June 28, 2019.