(a) The Public Utilities Regulatory Authority shall direct each electric distribution company, as defined in section 16-1, to submit on or before January 1, 2023, no more than three proposals to the authority for a pilot program for the company to build, own and operate energy storage systems, as defined in section 16-1, for the purpose of demonstrating and investigating how energy storage systems can improve resiliency of critical infrastructure and improve reliability of the electric distribution system.

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Terms Used In Connecticut General Statutes 16-244cc

  • Authority: means the Public Utilities Regulatory Authority and "department" means the Department of Energy and Environmental Protection. See Connecticut General Statutes 16-1
  • distribution company: means any person providing electric transmission or distribution services within the state, but does not include: (A) A private power producer, as defined in section 16-243b. See Connecticut General Statutes 16-1
  • Energy storage system: means any commercially available technology that is capable of absorbing energy, storing it for a period of time and thereafter dispatching the energy, and that is capable of either: (A) Using mechanical, chemical or thermal processes to store electricity that is generated at one time for use at a later time. See Connecticut General Statutes 16-1

(b) The authority shall approve or modify a proposal if it concludes that investment in such energy storage systems is reasonable, prudent and provides value to ratepayers.

(c) An electric distribution company may recover its prudently incurred costs made pursuant to this section through a fully reconciling component of electric rates for all customers until the electric distribution company’s next rate case, at which time such costs and investments shall be recoverable through base distribution rates consistent with the principles set forth in sections 16-19 and 16-19e.

(d) For any completed energy storage system, the company shall maximize the value from the system’s participation in wholesale electricity, capacity or other markets, as applicable, while maintaining distribution system reliability. Any net revenues from such participation shall be credited to ratepayers to offset the cost of the completed system in rates.

(e) The provisions of this section shall not be construed to impose any limitations or caps upon section 16-244e.