Substitute Senate Bill No. 1194 seeks to amend existing laws related to power purchase agreements and the provision of standard service to electric customers. The bill repeals and replaces subsection (e) of section 16a-3m, introducing new guidelines for solicitations of zero-carbon electricity generating resources, including nuclear, hydropower, and Class I renewable energy sources. It emphasizes that agreements must prioritize the best interests of ratepayers, with specific limits on energy output and agreement duration based on the energy source. Additionally, the bill requires the Public Utilities Regulatory Authority (PURA) to review and approve these agreements, ensuring they meet standards for reliability, public need, and cost-effectiveness.

The bill also modifies section 16-244m by repealing subsections (a) and (b) and replacing them with new provisions that require the procurement manager of PURA to develop an annual procurement plan for electric generation services. It allows electric distribution companies (EDCs) to use energy and capacity purchased under approved agreements for standard service, contingent upon consultation with the procurement manager and the Office of Consumer Counsel (OCC). The bill clarifies the procurement process by replacing "Procurement Plan" with "procurement plan," mandates annual follow-up reports on the plan's implementation, and outlines the process for PURA to amend the procurement plan. Importantly, it ensures that costs associated with standard service provision are excluded from net cost recovery provisions, with an effective date set for October 1, 2025.