HB 5471

General Assembly  Raised Bill No. 5471
 February Session, 2026  LCO No. 2493
Referred to Committee on ENERGY AND TECHNOLOGY
Introduced by:
  (ET)
 AN ACT CONCERNING COMMUNITY RENEWABLE GENERATION
 SOURCES AND ENERGY STORAGE SYSTEMS.
 Be it enacted by the Senate and House of Representatives in General
 Assembly convened:
1      Section 1. (NEW) (Effective October 1, 2026) (a) As used in this section
2    and section 2 of this act:
3(1) "Authority" means the Public Utilities Regulatory Authority;
4      (2) "Baseline annual usage" means (A) a subscriber's accumulated
5   electricity use in kilowatt–hours for the twelve months immediately
6   preceding the subscriber's most recent subscription, or (B) for a
7   subscriber that does not have a record of twelve months of electricity
8   use at the time of the subscriber's most recent subscription, an estimate
9   of the subscriber's accumulated twelve months of electricity use in
10   kilowatt–hours, determined in a manner approved by the authority;
11     (3) "Certificates" means certificates issued by the New England Power
12   Pool Generation Information System;
13      (4) "Class I renewable energy source" has the same meaning as
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14 provided in section 16-1 of the general statutes;
15    (5) "Community renewable energy generating system" means a solar
16 photovoltaic electricity generating system, or an energy storage system,
17 including an energy storage system connected to a solar photovoltaic
18 electricity generating system, that either (A) stores energy generated by
19 a Class I renewable energy source, or (B) purchases and retires
20 certificates produced by a wind or solar electricity generating source
21 located in the United States in an amount equivalent to all energy
22 dispatched by such energy storage system that (i) is located in the state
23 or in the territory of the regional independent system operator, (ii) is
24 connected to the electric meter of a subscriber or is a separate facility,
25 (iii) credits its generated or discharged electricity, or the value of its
26 generated or discharged electricity, to the bills of the subscribers
27 through virtual net energy metering, (iv) has at least two subscribers,
28 (v) does not have individual subscriptions constituting more than sixty
29 per cent of its subscriptions, and (vi) may be owned by any person or
30 entity that is not an electric distribution company;
31   (6) "Electric distribution company" has the same meaning as
32 provided in section 16-1 of the general statutes;
33    (7) "Electric supplier" has the same meaning as provided in section
34 16-1 of the general statutes;
35    (8) "Energy storage system" has the same meaning as provided in
36 section 16-1 of the general statutes;
37    (9) "Program" means the community renewable energy generating
38 system program;
39    (10) "Regional independent system operator" has the same meaning
40 as provided in section 16-1 of the general statutes;
41   (11) "Retail rate" means eighty per cent of the total cost per kilowatt-
42 hour paid by an electric customer, based on such customer's rate class.
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43 "Retail rate" includes, but is not limited to, charges for generation,
44 transmission and distribution of electricity and other applicable
45 economic costs;
46    (12) "Subscriber" means a retail customer of an electric distribution
47 company that (A) holds a subscription to a community renewable
48 energy generating system, and (B) has identified one or more individual
49 electric meters or accounts to which the subscription shall be attributed;
50   (13) "Subscriber organization" means a person or entity that (A) owns
51 or operates a community renewable energy generating system, or (B)
52 markets subscriptions to potential subscribers;
53    (14) "Subscription" means the portion of the electricity generated by
54 a community renewable energy generating system that is credited to a
55 subscriber;
56   (15) "Unsubscribed energy" means any community renewable energy
57 generating system output in kilowatt–hours that is not allocated to any
58 subscriber; and
59    (16) "Virtual net energy metering" means measurement of the
60 difference between the kilowatt–hours or value of electricity that is
61 supplied by an electric distribution company and the kilowatt–hours or
62 value of electricity attributable to a subscription to a community
63 renewable energy generating system and fed into the electric grid over
64 a subscriber's billing period.
65    (b) On or before August 1, 2026, the Public Utilities Regulatory
66 Authority shall initiate a proceeding to establish a community
67 renewable energy generating system program. The authority shall issue
68 a final decision in the proceeding not later than December 1, 2026. The
69 program shall have a duration of three years commencing from the date
70 such decision is issued and shall comply with the following:
71   (1) Any electric customer, regardless of such customer's rate class,
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72 shall be eligible to participate in the program. The program shall be
73 structured such that subscribers to a community renewable energy
74 generating system shall pay electricity costs lower than electric
75 customers who receive standard service pursuant to section 16-244c of
76 the general statutes;
77   (2) Subscribers receiving standard service, as described in section 16-
78 244c of the general statutes, and subscribers served by an electric
79 supplier may hold subscriptions to the same community renewable
80 energy generating system;
81   (3) A subscriber organization shall (A) determine how to allocate
82 subscriptions to subscribers, and (B) notify each electric distribution
83 company or electric supplier that provides services to its subscribers
84 about such allocations pursuant to regulations adopted by the authority
85 under subsection (c) of this section;
86   (4) An electric distribution company shall use the tariff structure
87 adopted under subsection (c) of this section to provide each subscriber
88 with the credits calculated by a subscriber organization;
89    (5) A subscriber may not receive credit for excess generation pursuant
90 to virtual net energy metering that exceeds two hundred per cent of the
91 subscriber's baseline annual usage;
92    (6) Each subscriber organization shall establish a host bank program
93 to account for any unsubscribed or overproduced energy generated by
94 the system or unsubscribed energy dispatched by a community
95 renewable generating system in kilowatt-hours. A subscriber
96 organization may monetize any such unsubscribed or overproduced
97 energy or dispatch through such host bank program at the rates
98 established pursuant to this section when a subscriber contracts to
99 utilize such energy. Any dispatch of energy from a community
100 renewable generating system under this section shall be eligible, on a
101 monthly basis, for any incentive authorized under this section. The
102 accounting records of each such host bank program shall be maintained
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103 by the subscriber organization and be made available by the subscriber
104 organization to the Public Utilities Regulatory Authority upon request;
105    (7) An electric distribution company shall offer a subscriber
106 organization the option to utilize a consolidated billing system whereby
107 the electric distribution company administers billing credits or charges
108 for subscribers concerning the operations of the community renewable
109 energy generating system. Each electric distribution company shall
110 develop and make available to any subscriber organization such
111 consolidated billing system not later than January 1, 2027. After January
112 1, 2027, an electric distribution company that has not developed and
113 made available such system shall provide a monthly billing credit in an
114 amount determined by the authority, provided such credit shall be in an
115 amount of not less than twenty-five dollars each month for each
116 subscriber that the electric distribution company fails to develop and
117 make available such system as required by this subdivision;
118    (8) An electric distribution company shall use energy generated by a
119 community renewable energy generating system and delivered to the
120 electric distribution company to offset purchases from wholesale
121 electricity suppliers for the provision of standard service to customers
122 of the electric distribution company. All benefits or costs associated with
123 the program established pursuant to this section shall be recovered
124 through the generation services charge on customer electric bills. An
125 electric distribution company shall facilitate a subscriber organization's
126 compliance with the provisions of this section, including by agreeing to
127 receive electricity from a subscriber organization as provided in this
128 section;
129    (9) A subscriber organization may contract with a third party for the
130 financing, construction, ownership, operation or electricity delivery of a
131 community renewable energy generating system;
132    (10) A municipal electric utility or cooperative utility may participate
133 in the program;
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134   (11) The authority shall limit the program participation to a total
135 nameplate capacity rating of six hundred megawatts each year of the
136 program;
137    (12) (A) Except as provided in subparagraph (B) of this subdivision,
138 each community renewable energy generating system participating in
139 the program pursuant to this section shall incorporate an energy storage
140 system that shall (i) have a rated power capacity greater than or equal
141 to twenty-five per cent of the nameplate capacity of the associated
142 community renewable energy generating system, as measured in
143 kilowatts; and (ii) provide a minimum storage duration of two hours at
144 such system's rated power capacity;
145     (B) The requirement that an energy storage system be installed in
146 connection with a community renewable energy generating system
147 participating in the program pursuant to this section shall not apply if
148 (i) the electric distribution company does not provide interconnection
149 approval for both the community renewable energy generating system
150 and the energy storage system not later than ninety days after the
151 submission of a completed application pursuant to this section, or (ii)
152 the electric distribution company requires the subscriber organization
153 to pay for infrastructure upgrades as a condition of interconnection
154 approval;
155    (C) An energy storage system operated in combination with an
156 associated solar photovoltaic electricity generating system under the
157 program may be located either on the same site as the associated solar
158 photovoltaic electricity generating system, or at a separate location
159 within the area served by the regional independent system operator;
160    (D) An energy storage system participating in the program pursuant
161 to this section shall be entitled to the community renewable energy
162 storage incentive pursuant to subdivision (13) of this subsection;
163   (13) To encourage the adoption of energy storage systems in
164 connection with the development of solar photovoltaic electricity
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165 generating systems pursuant to the program, the authority shall design
166 an incentive for the output of an energy storage system associated with
167 a solar photovoltaic system pursuant to this section. The incentive
168 developed pursuant to this subdivision shall apply to community
169 renewable energy systems with a connected energy storage system that
170 is configured to (A) discharge electricity during system periods of peak
171 demand, as defined by the authority, and (B) dispatch electricity not less
172 than fifty-two times per year during such peak periods. Such incentive
173 shall be paid by the electric distribution company at a rate of five cents
174 per kilowatt-hour of discharged energy from a community renewable
175 energy generating system pursuant to this section. The incentive
176 provided in this section shall be in addition to any other applicable
177 incentives or programs for which a battery storage system may qualify;
178 and
179    (14) An owner of a community renewable energy generating system
180 with an energy storage system component may determine, on an annual
181 basis, to operate the energy storage system at times specified by such
182 owner, provided such owner shall not (A) receive an incentive for the
183 dispatch of energy from such system pursuant to subdivision (13) of this
184 subsection during any period for which such system is not operational,
185 or (B) be deemed in default of any agreement concerning the use of such
186 system entered into pursuant to this section by reason of such specified
187 period that such system is not operational. Nothing in this section shall
188 be interpreted to prohibit such owner from contracting with a third
189 party to manage the operation of, or the administration of any programs
190 related to, such an energy storage system.
191    (c) Not later than January 1, 2027, the authority shall adopt
192 regulations, in accordance with the provisions of chapter 54 of the
193 general statutes, to implement the provisions of this section, including
194 regulations establishing (1) electric consumer protections, (2) a tariff
195 structure for a subscriber organization or an electric distribution
196 company to provide a subscriber with the kilowatt–hours or value of the
197 subscriber's subscription at the retail rate for electricity in the state, (3) a
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198 method for crediting subscriber electric bills based on virtual net energy
199 metering, (4) a protocol for electric distribution companies, electric
200 suppliers and subscriber organizations to communicate the information
201 necessary to calculate and provide monthly electric bill credits and any
202 yearly net excess generation payments required by this section, and (5)
203 a protocol for a subscriber organization to coordinate with an electric
204 distribution company for a community renewable energy generating
205 system.
206    (d) No contract relating to a community renewable energy generating
207 system, energy storage system or subscriber agreement executed in
208 connection with the program shall be terminated or made unenforceable
209 solely due to the termination of the program unless such termination or
210 unenforceability is a provision of such contract.
211    (e) If the program established pursuant to this section terminates, (1)
212 a subscriber organization may continue the operation of a community
213 renewable energy generating system or energy storage system that
214 participated in the program, including the creation and trading of
215 subscriptions, and (2) each electric distribution company shall continue
216 to facilitate the operation of a community renewable energy generating
217 system or energy storage system that began operation during the
218 program in accordance with the program requirements and regulations
219 adopted by the authority pursuant to subsection (c) of this section for a
220 period of twenty years or the useful life of the system, whichever
221 duration is greater.
222    (f) A subscriber organization may post content on the Internet web
223 site of the Energy Conservation Management Board, established
224 pursuant to section 16-245m of the general statutes, to inform customers
225 of an electric distribution company of potential offers and subscriptions
226 provided by such organization, including offers or subscriptions that
227 may be used by such customers in combination with electric supply
228 offers from other sources. Each electric distribution company shall place
229 a monthly message on each customer electric bill informing such
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230 customer how to subscribe to a community renewable energy
231 generating system or energy storage system and information
232 concerning offers on the Energy Conservation Management Board
233 Internet web site during the program.
234    Sec. 2. (Effective October 1, 2026) (a) There is established a working
235 group within the Public Utilities Regulatory Authority to study the
236 value and costs of the program established pursuant to section 1 of this
237 act and make recommendations on the advisability of establishing a
238 permanent program. Such working group shall consist of (1) the
239 chairperson of the Public Utilities Regulatory Authority, or the
240 chairperson's designee, (2) the Commissioner of Energy and
241 Environmental Protection, or the commissioner's designee, (3) the
242 Consumer Counsel, or the counsel's designee, and (4) any other persons
243 the chairperson of the Public Utilities Regulatory Authority believes
244 may serve to accomplish the purpose of the working group.
245    (b) All initial appointments to the working group shall be made not
246 later than July 1, 2027. Any vacancy shall be filled by the chairperson of
247 the Public Utilities Regulatory Authority. The chairperson of the Public
248 Utilities Regulatory Authority shall serve as chairperson of the working
249 group and shall schedule the first meeting of the working group, which
250 shall be held not later than October 1, 2027.
251    (c) In conducting the study pursuant to this section, the working
252 group shall identify and examine (1) a framework for valuation of the
253 costs and benefits related to community renewable projects and virtual
254 net energy metering, (2) the costs and benefits of community renewable
255 energy generating systems to participating subscribers and to
256 nonsubscriber ratepayers, (3) an appropriate credit mechanism and
257 operational structure that allows a community renewable energy
258 generating system to minimize administrative costs to an electric
259 distribution company, electric supplier or subscriber organization, (4)
260 the benefits to and the technical and cost impacts of community
261 renewable programs and virtual net energy metering on an electric
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262 distribution company's distribution grid, (5) issues, benefits and
263 concerns related to the participation of electric distribution companies,
264 including investor–owned utilities, in community renewable programs
265 and projects, including owners and operators of the projects, (6) whether
266 and how community renewable projects or virtual net energy metering
267 have a substantially different technical impact on the distribution
268 system than traditional net energy metering, (7) identification of any
269 impacts the program may have on the standard offer service
270 procurement process by the electric distribution companies, (8) a review
271 of community renewable programs and cost–benefit studies in other
272 states, (9) whether and how community renewable programs can help
273 reduce the cost of compliance with the renewable energy portfolio
274 standards established pursuant to section 16-243q of the general
275 statutes, (10) how community renewable energy generating systems can
276 impact locational marginal prices in the state, (11) the impacts of the
277 program on energy costs, electric grid reliability and equitable cost
278 allocation for ratepayers, (12) how community renewable project
279 developers can increase participation by low and moderate–income
280 retail electric customers in community renewable projects, (13) the
281 progress of the program established pursuant to section 1 of this act in
282 attracting low and moderate–income retail electric customers, (14)
283 whether community renewable energy generating and storage systems
284 are an overall net benefit in helping the state achieve its distributed
285 generation and renewable goals, and (15) any other matters the working
286 group considers relevant and appropriate.
287    (d) Not later than January 1, 2029, the chairperson of the Public
288 Utilities Regulatory Authority shall submit a report, in accordance with
289 the provisions of section 11-4a of the general statutes, to the joint
290 standing committee of the General Assembly having cognizance of
291 matters relating to energy and technology. Such report shall include an
292 analysis of the factors identified in subsection (c) of this section. The
293 working group shall terminate on the date that it submits such report or
294 January 1, 2029, whichever is later.
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295    Sec. 3. (NEW) (Effective October 1, 2026) (a) On and after October 1,
296 2027, an electric supplier may offer to any customer of an electric
297 distribution company a contract for a guaranteed savings plan. The
298 purpose of any such plan shall be to guarantee a customer a lower
299 electric rate compared to standard service provided by an electric
300 distribution company as described in section 16-244c of the general
301 statutes. Any such contract shall (1) provide annual savings to
302 customers compared to the standard service generation rate, (2) allow
303 the electric supplier to select a customer's generation service provider,
304 including standard service, on billing cycles during the agreement, and
305 (3) allow the electric supplier to alter the price of generation rates,
306 provided such rates are lower than the current standard service rates,
307 up to three days prior to a billing cycle. An electric supplier may comply
308 with the savings requirements imposed on contracts entered into
309 pursuant to this section through reduced electric generation rates,
310 billing credits on customer electric bills provided through a billing
311 system maintained by an electric distribution company or other
312 methods of monetary transfer that benefit a customer of such supplier.
313   (b) No contract entered into pursuant to subsection (a) of this section
314 shall contain any provision imposing a termination fee on a residential
315 customer. Nothing in this section shall be construed to limit the
316 maximum or minimum duration of any such contract.
317    (c) Any electric supplier, or an electric supplier's agent, may submit
318 content to be posted on the Internet web site of the Energy Conservation
319 Management Board, established pursuant to section 16-245m of the
320 general statutes, to inform customers of the availability of guaranteed
321 savings plans. Any such posting shall allow the listing to direct
322 consumers to the Internet web site of the supplier, or the agent, to
323 review available offers from one or multiple electric suppliers or
324 subscriber organizations.
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 This act shall take effect as follows and shall amend the following
 sections:
 Section 1  October 1, 2026  New section
 Sec. 2  October 1, 2026  New section
 Sec. 3  October 1, 2026  New section
Statement of Purpose:
To (1) allow shared clean energy subscriber organizations to build, own
and operate electrical generation or storage facilities that generate or
store electricity from renewable sources, (2) allow any end user of an
electric distribution company to enter into a subscription with a shared
clean energy subscriber organization, (3) require any electric
distribution company to provide billing credits to any end user who
enters into such a subscription, (4) establish a working group to study
the impacts of the community renewable energy generating system
program, and (5) allow electric suppliers to offer guaranteed savings
plans.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]
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