Connecticut Continues Clean Energy Options REC Program for Five Years

The Connecticut DPUC issued a final order continuing the Connecticut Clean Energy Options program, which allows default service customers to purchase RECs without leaving their utility, for the period January 1, 2012, through January 1, 2017 (10-05-07).

Notwithstanding the emergence of renewable energy offers, both 100% and in other amounts, from competitive electric suppliers, the DPUC said that continuing the Clean Energy Options program is appropriate given its minimal costs.

The Department will conduct a new RFP for REC suppliers for the period 2012-2017, rather than awarding the program to the two incumbent REC suppliers. The program will still be limited to two suppliers.

The DPUC also confirmed that RPS obligations shall not be used to offset the amount of green energy purchased under the various levels of the Clean Energy Options program (e.g. 50%, 100%). This results in the Clean Energy Options customer receiving more renewable energy than provided for under solely the Clean Energy Options program (e.g. the customer receives 100% offsetting RECs via Clean Energy Options, but their load still must be accounted for in calculating RPS obligations, resulting in combined RECs equal to 110% of usage under current RPS mandates). The DPUC recognized that competitive retail suppliers can market renewable energy reflecting a combination of their mandated RPS percent plus a voluntary green amount, and said that this may give the competitive suppliers a price advantage versus the Clean Energy Options REC suppliers. However, the DPUC said that it is up to the Clean Energy Option suppliers to explain to customers the features of the Clean Energy Option program that set it apart from non-Clean Energy Option products.

Clean Energy Option levels will remain 50% and 100% for residential customers and be set at 25%, 50%, and 100% for non-residential customers.