The proposed Substitute Senate Bill No. 1560 aims to tackle the energy affordability crisis in Connecticut by establishing the Connecticut Energy Procurement Authority (CEPA). This new authority will oversee electricity procurement strategies, grid infrastructure investments, and consumer engagement to reduce electric system costs. The bill highlights inefficiencies in the current procurement process and proposes policies to enhance the electric distribution system's efficiency, including promoting electrification, developing high-voltage fast-charging infrastructure for electric vehicles, and implementing smart meters for dynamic pricing. Key provisions include the creation of a board of directors for CEPA, the establishment of the Electric Rate Stabilization Fund to mitigate cost volatility, and the introduction of time-of-use rates to optimize electricity consumption.

Additionally, the bill modifies existing laws by repealing the System Benefits Charge (SBC) and transferring funding responsibilities to the newly created Green Bond Fund, which is authorized to issue up to $2.4 billion in general obligation bonds. It mandates electric distribution companies to deploy advanced metering systems by 2027 and implement time-of-use rates by 2026. The bill also reclassifies all nuclear generating facilities in Connecticut as Class I renewable energy sources and introduces a sales and use tax exemption for electricity used in commercial or industrial properties. Overall, the bill aims to streamline funding for energy programs, enhance energy efficiency, and support the electrification of heating and cooling systems, with an effective date set for July 1, 2025.

Statutes affected:
Raised Bill: 16-245l, 16-243h, 16-243v, 16-243n, 16-243w, 16-245e, 16-245g, 16-245i, 12-412
FIN Joint Favorable: 16-245l, 16-243h, 16-243v, 16-243n, 16-243w, 16-245e, 16-245g, 16-245i, 12-412
File No. 902: 16-245l, 16-243h, 16-243v, 16-243n, 16-243w, 16-245e, 16-245g, 16-245i, 12-412