Substitute Senate Bill No. 1194 seeks to amend existing laws governing power purchase agreements and the provision of standard service to electric customers in Connecticut. The bill repeals and replaces subsection (e) of section 16a-3m, establishing new guidelines for solicitations of zero-carbon electricity generating resources. It mandates that agreements must prioritize the best interests of ratepayers, with specific limits on annual energy output and agreement duration based on energy source type. Additionally, the bill requires the Public Utilities Regulatory Authority (PURA) to review and approve these agreements, ensuring they meet criteria for reliability, public need, and cost-effectiveness. The bill also modifies section 16-244m by repealing subsections (a) and (b) and replacing them with provisions that allow electric distribution companies (EDCs) to utilize energy and capacity purchased under approved agreements for standard service, contingent upon consultation with PURA and the Office of Consumer Counsel.

Moreover, the bill changes the frequency of procurement plan reports from quarterly to annually and allows for amendments to the procurement plan if they can significantly reduce costs or volatility for standard service. It introduces provisions for EDCs to purchase energy and capacity directly from applicable markets and specifies that costs or revenues related to standard service provision are excluded from current recovery mechanisms. The effective date for these changes is set for October 1, 2025. Overall, the bill aims to enhance the procurement process for electric generation while ensuring consumer protection and promoting zero-carbon energy sources.