Connecticut Ends REC Add-On Program, Says New Program Will Be Considered Under Alternative Default Service Statute

The Connecticut PURA has issued an order terminating the Connecticut Clean Energy Options (CCEO) Program, effective December 31, 2016, but said that, "the Authority will develop and implement a new program, pursuant to §16-244c(b) of the General Statutes of Connecticut, to advance Connecticut's voluntary renewable market."

§16-244c(b) of the General Statutes of Connecticut provides that, "the Department of Energy and Environmental Protection may, from time to time, direct an electric distribution company to offer, through an electric supplier or electric suppliers, one or more alternative standard service options."

"Such alternative options shall include, but not be limited to, an option that consists of the provision of electric generation services that exceed the renewable portfolio standards established in section 16-245a and may include an option that utilizes strategies or technologies that reduce the overall consumption of electricity of the customer," the statute provides

Under such alternative standard service option, the statute provides that, "The authority shall determine the terms and conditions of such alternative option or options, including, but not limited to, (i) the minimum contract terms, including pricing, length and termination of the contract, and (ii) the minimum percentage of electricity derived from Class I or Class II renewable energy sources, if applicable. The electric distribution company shall, under the supervision of the authority, subsequently conduct a bidding process in order to solicit electric suppliers to provide such alternative option or options."

The current REC-only Clean Energy Options Program was implemented under the alternative standard service option statute.

"[B]ased on the growth of the voluntary renewable market, as evidenced by the increase in suppliers' voluntary green offers, the Authority intends to develop and implement a new, progressive program pursuant to Conn. Gen . Stat. §16-244c(b), to reflect and incorporate current renewable market conditions and practices," PURA said.

The Authority intends to have a new program developed and implemented by no later than September 2017

The Clean Energy Options Program is a REC add-on program marketed to default service customers, in which REC suppliers do not serve the customer's load and customers remain on default service. Approximately 25,000 customers are on the Clean Energy Options Program

The Authority will permit the current Clean Energy Options suppliers, including former CCEO supplier, Sterling Planet, to maintain and serve their existing customers under the current contract terms and conditions for a period of nine months after the cessation of the Program, while the new program is being developed . Notice to CCEO customers is not required at this time.

PURA noted that it is examining the option of requiring all electricity suppliers with renewable energy product options listed on the EnergizeCT site, to define the product source by renewable technology type, geographic location and price using established definitions, similar to required CCEO disclosures, to bring more candidness to the renewable energy market.

"To provide greater transparency, the Authority notes that it is currently working closely with competitive suppliers through working group meetings by exploring options of implementing similar standards instituted with the CCEO suppliers in disclosing voluntary renewable products to ratepayers," PURA said

"Due to the growing number of competitive suppliers that are offering voluntary green products, the Authority is also reviewing compliance with voluntary green offers in separate proceedings with the objective of establishing a clear oversight into the disclosure of the various renewable options that were provided by competitive suppliers," PURA said

The Authority also opened a new docket to develop rules and disclosure forms for voluntary green products (16-08-23)