Regulatory Body: Department of Public Utility Control
Legislative and Regulatory Activities
In 2007 Connecticut enacted the Energy Efficiency Act, which requires utilities to file Advanced Metering Infrastructure plans and Time-of-use rates as part of its energy conservation programs. The Act imposes an implementation deadline for advanced metering systems by 2008.
The Energy Independence Act of 2005, mainly promoting renewable and distributed generation, requires utilities to submit plans to support net metering for distributed generation and offer time-of-use rates or real-time pricing.
In 2007 the DPUC issued an order that required Connecticut Light and Power to conduct more cost-benefit studies for expanding the technical capabilities of its meters to offer complex real-time pricing. DPUC stated that while CL&P’s existing meters could support net metering and time-of-use rates, expanding the capabilities of the meters for all customers could be costly to ratepayers and required further examination. CL&P was directed to conduct a "500 meter test" and a "10,000 meter study" for customer acceptance of expanded time-based rates.
In March 2008, the DPUC issued a decision approving United Illumination's plan to deploy 5,000 smart meters to comply with the Energy Efficiency Act. UI must submit a variable-peak-pricing tariff for all customers by January 2009.
In February 2010, CL&P presented the results of its studies and the pilot program as well as its cost-benefit studies. A DPUC review is pending, and the Connecticut AG has filed a brief opposing a full-scale deployment proposed by the CL&P (see entry).
The DPUC allows utilities to recover lost revenues for new conservation and load management programs. The Energy Efficiency Act mandates utilities to decouple their revenues from sales. The decoupling may be achieved by: “(1) A mechanism that adjusts actual distribution revenues to allowed distribution revenues, (2) rate design changes that increase the amount of revenue recovered through fixed distribution charges, or (3) a sales adjustment clause, rate design changes that increase the amount of revenue recovered through fixed distribution charges, or both.”