Substitute Senate Bill No. 1194 seeks to amend existing laws related to power purchase agreements and the provision of standard service to electric customers. It repeals and replaces subsection (e) of section 16a-3m, introducing new guidelines for solicitations of zero-carbon electricity generating resources, including nuclear, hydropower, Class I renewable energy sources, and energy storage systems. The bill mandates that any agreements must prioritize the best interests of ratepayers, with specific limits on annual energy output and agreement duration based on energy source type. Additionally, it 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 subsections (a) and (b) of section 16-244m, allowing 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. It changes the frequency of procurement plan reports from quarterly to annually and allows EDCs to self-service in purchasing energy and capacity. The bill emphasizes that any net costs not associated with standard service will be recovered through a nonbypassable rate component for all customers. Notable language changes include replacing "Procurement Plan" with "procurement plan" and streamlining procedural requirements, ultimately aiming to enhance the efficiency and cost-effectiveness of standard service provision while safeguarding customer interests. The bill is set to take effect on October 1, 2025.