AN ACT CONCERNING MUNICIPAL ELECTRIC AGGREGATION PROGRAMS.

House of Representatives
sHB5245 / File No. 375 1

General Assembly File No. 375
February Session, 2026 Substitute House Bill No. 5245

House of Representatives, April 2, 2026

The Committee on Energy and Technology reported through
REP. STEINBERG of the 136th Dist., Chairperson of the
Committee on the part of the House, that the substitute bill
ought to pass.

AN ACT CONCERNING MUNICIPAL ELECTRIC AGGREGATION
PROGRAMS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective October 1, 2026) (a) As used in this section: 1
(1) "Authority" means the Public Utilities Regulatory Authority; 2
(2) "Auto-enroll customer" means an eligible customer automatically 3
enrolled in a municipal aggregation program unless such customer opts 4
out of such enrollment. "Auto -enroll customer" does not include any 5
customer who (A) has informed the electric distribution company such 6
customer does not want such customer's account information shared 7
pursuant to subsection (a) of section 16-245o of the general statutes, (B) 8
receives electric supply service from an electric supplier and does not 9
receive standard service from an electric distribution company, (C) is a 10
hardship case for purposes of subdivision (3) of subsection (b) of section 11
16-262c of the general statutes, (D) has arrearages deducted from the 12
sHB5245 File No. 375

sHB5245 / File No. 375 2

customer's bills by an electric distribution company pursuant to 13
subdivision (4) of subsection (b) of section 16 -262c of the general 14
statutes, (E) receives financial assistance from an electric distribution 15
company, or (F) is otherwise protected by law from the shutoff of 16
electric supply service; 17
(3) "Comma-separated value format" means an electronic file format 18
that separates data fields containing numeric or textual values using one 19
or more specific characters such that the document may be easily 20
searched by electronic means; 21
(4) "Community demand response incentive" means an incentive 22
designed to promote changes in electricity usage by electric customers 23
in response to: (A) Changes in the price of electricity over time, 24
including, but not limited to, time -varying rates; or (B) times when the 25
wholesale price for electric supply is abnormally high or when the 26
reliability of the electric grid is jeopardized; 27
(5) "Consultant" means any person or entity retained by a 28
municipality, or two or more municipalities acting jointly, to assist with 29
the development of a municipal aggregation plan and the operations of 30
a public aggregator; 31
(6) "Customer communications" means any communication from a 32
public aggregator to any electric customer concerning the 33
implementation of a municipal aggregation plan or program; 34
(7) "Electric customer" means the customer of record for an account, 35
regardless of customer class, with an electric distribution company; 36
(8) "Electric distribution company" has the same meaning as 37
provided in section 16-1 of the general statutes; 38
(9) "Electric supplier" has the same meaning as provided in section 39
16-1 of the general statutes; 40
(10) "Eligible customer" means any electric customer within a 41
municipal aggregation service area who receives standard service from 42
sHB5245 File No. 375

sHB5245 / File No. 375 3

an electric distribution company and who meets the participation 43
requirements of a municipal aggregation plan and program pursuant to 44
the provisions of this section; 45
(11) "Energy product" means an electric supply product, including 46
community distributed generation, or a community demand response 47
incentive offered by the public aggregator to a program participant; 48
(12) "Municipal aggregation plan" or "plan" means the plan that a 49
municipality, or two or more municipalities acting jointly, that describes 50
the administration of the municipal aggregation program and is 51
submitted to the authority for review and comment; 52
(13) "Municipal aggregation program" or "program" means a 53
program established by a municipality, or two or more municipalities 54
acting jointly, pursuant to a municipal aggregation plan, under which 55
the municipality or municipalities procure electric supply, community 56
distributed generation or community demand response incentives on 57
behalf of program participants; 58
(14) "Municipal aggregation service area" means the geographic area 59
that receives, or is proposed to receive, services under a municipal 60
aggregation program; 61
(15) "Municipality" means any town, city or borough, whether 62
consolidated or unconsolidated; 63
(16) "Opt -out notice" means the notice sent to any auto -enroll 64
customer to inform such customer of such customer's right to opt out of 65
such enrollment; 66
(17) "Program participant" or "participant" means an eligible 67
customer who is participating in a municipal aggregation program; 68
(18) "Program supplier" means a licensed electric supplier that 69
provides energy products to participants of the municipal aggregation 70
program; 71
sHB5245 File No. 375

sHB5245 / File No. 375 4

(19) "Public aggregator" means a municipality, or two or more 72
municipalities acting jointly, under a municipal aggregation program 73
established pursuant to this section for the purpose of grouping 74
residential and commercial electric customers receiving standard 75
service from an electric distribution company to solicit bids, broker and 76
contract for electric supply, community distributed generation or 77
community demand response incentives for such customers; 78
(20) "Standard service" means the electric generation service that an 79
electric distribution company provides to electric customers in the 80
electric distribution company's service territory pursuant to subsection 81
(a) of section 16-244c of the general statutes; and 82
(21) "Voluntary energy product" means any energy product offered 83
under a municipal aggregation program that a participant of such 84
program shall receive only if such participant affirmatively selects to 85
receive such product. 86
(b) A municipality, or two or more municipalities acting jointly, may 87
form a public aggregator pursuant to a municipal aggregation program. 88
Any such public aggregator may enter into agreements for services to 89
facilitate the sale and purchase of energy products, including renewable 90
energy certificates. A public aggregator may enter into a contract on 91
behalf of a municipal aggregation program. A public aggregator shall 92
not be considered a public service company as defined in section 16-1 of 93
the general statutes, and providing energy products to electric 94
customers within a municipal aggregation service area shall not be 95
considered a wholesale utility transaction. 96
(c) A municipality may establish a municipal aggregation program 97
and create a public aggregator upon the (1) affirmative vote of the 98
legislative body of such municipality, and (2) approval of the chief 99
executive officer of such municipality, provided such municipality has 100
complied with the requirements of subdivision (1) of subsection (d) of 101
this section. Two or more municipalities may jointly establish a 102
municipal aggregation program and create a public aggregator, 103
provided each municipality shall authorize the establishment of such 104
sHB5245 File No. 375

sHB5245 / File No. 375 5

program and such aggregator by the vote and approval required in 105
subdivisions (1) and (2) of this subsection in each municipality. 106
(d) (1) Prior to the affirmative vote and approval required to establish 107
a municipal aggregation program and create a public aggregator 108
pursuant to subsection (c) of this section, the municipality, or 109
municipalities acting jointly, shall develop a municipal aggregation plan 110
for review by the electors of such municipality or municipalities that 111
details the process for, and consequences of, electric load aggregation 112
under such plan. Each municipality shall allow for a public review 113
period of not less than thirty days for such plan and shall hold not less 114
than one public hearing concerning such plan prior to seeking the 115
affirmative vote of the legislative body of the municipality. 116
(2) A municipal aggregation plan shall include, but need not be 117
limited to, the following components: (A) A general description of the 118
planned program implementation; (B) the provision of universal access 119
in the municipal aggregation service area; (C) the provision of reliable 120
service; (D) the provision of equitable treatment of all classes of electric 121
customers; (E) the organizational structure of the public aggregator; (F) 122
any proposed customer communications, including opt-out notices; (G) 123
the public aggregator's method of providing funding for services under 124
the program and for program administration; (H) a description of how 125
the program rates will be set and structured; (I) the rights and 126
responsibilities of program participants; (J) a plan for resolving 127
complaints by program participants, including any arbitration or 128
dispute resolution procedures, that ensures that the public aggregator 129
shall participate in the resolution of complaints directly related to the 130
program and does not rely on the authority or an electric distribution 131
company to address such complaints; (K) a public aggregator's intent to 132
offer optional voluntary energy products; (L) a description of any 133
voluntary energy products that the public aggregator will offer to 134
electric customers; and (M) the method for suspending or terminating 135
the municipal aggregation program. If, at the time of filing the plan with 136
the authority, a public aggregator has not determined whether the 137
aggregator shall offer voluntary energy products, the plan shall identify 138
sHB5245 File No. 375

sHB5245 / File No. 375 6

and describe the factors and criteria that the public aggregator will 139
consider in making such a determination. 140
(3) After the establishment of a public aggregator pursuant to 141
subsection (c) of this section, the municipal aggregation plan shall be 142
filed with the authority for review. Any proposed customer 143
communications included in such plan shall be approved or denied by 144
the authority not later than one hundred twenty days after the date 145
upon which the plan was filed with the authority. If the authority does 146
not approve or deny such communications within the time specified in 147
this subdivision, such communications shall be deemed approved by 148
the authority. 149
(4) Not later than fourteen days after the authority has approved the 150
proposed customer communications, or such communications have 151
been deemed approved, the public aggregator shall submit a timeline 152
concerning the implementation of the municipal aggregation plan to 153
any electric distribution company serving electric customers within the 154
municipal aggregation service area. The public aggregator shall submit 155
monthly updates concerning the implementation of the plan to any such 156
electric distribution company until the public aggregator executes an 157
agreement with a program supplier. The public aggregator shall 158
provide notice of the execution of such agreement to any such electric 159
distribution company, and the program supplier shall provide any such 160
electric distribution company with information necessary to enroll 161
customers with the program supplier as set forth in subsection (g) of this 162
section. 163
(5) A public aggregator may modify a municipal aggregation plan in 164
a manner consistent with this section, provided the public aggregator 165
shall provide a public review period of not less than thirty days for any 166
such revised plan. The public aggregator shall submit any such revised 167
plan to the authority on the first day of such public review period. A 168
material revision to any proposed customer communication shall be 169
approved or denied by the authority not later than thirty days after the 170
date upon which the revised plan was filed with the authority. If the 171
sHB5245 File No. 375

sHB5245 / File No. 375 7

authority does not approve or deny such communications within the 172
time specified in this subdivision, such communications shall be 173
deemed approved by the authority. 174
(e) A public aggregator may establish the practices, terms and 175
conditions of the offerings and services to be provided from time to 176
time, including, but not limited to: (1) Rates to support the program, 177
including the provision of energy products; (2) supply terms; (3) the 178
start time of the program; (4) energy product offerings, including any 179
periodic changes in the price or composition of such energy product 180
offerings; (5) contract terms and conditions for energy products 181
included in the program; (6) the format and mechanisms for delivering 182
any notice to program participants; (7) the maintenance of an Internet 183
web site dedicated to current program information; and (8) 184
accommodating consumers with limited English proficiency. The 185
practices, terms and conditions of the offerings and services identified 186
in this subsection need not be approved by the authority. 187
(f) A public aggregator shall deliver customer communications 188
concerning the plan, including opt-out notices, as approved or deemed 189
approved by the authority to electric customers in the municipal 190
aggregation service area. Such communications shall be made 191
consistent with the municipal aggregation plan and by one or more 192
delivery methods deemed most effective by the public aggregator. To 193
enable such delivery, any electric distribution company shall provide to 194
the public aggregator a current list of the names, mailing addresses, 195
electronic mail addresses and service addresses of any electric customer 196
receiving electric distribution services, as defined in section 16 -1 of the 197
general statutes, from such company in the municipal aggregation 198
service area, except the electric distribution company shall not include 199
any electric customer in such list who (1) has opted out of the 200
aggregation; (2) has a contract with a licensed electric supplier; (3) has a 201
contract with the electric distribution company that prohibits the electric 202
customer from being automatically enrolled in the municipal 203
aggregation program; (4) is not located within the municipal 204
aggregation service area; (5) has informed the electric distribution 205
sHB5245 File No. 375

sHB5245 / File No. 375 8

company such customer does not want such customer's account 206
information shared; (6) is a hardship case for purposes of subdivision 207
(3) of subsection (b) of section 16 -262c of the general statutes; (7) has 208
arrearages deducted from such customer's bill by the electric 209
distribution company pursuant to subdivision (4) of subsection (b) of 210
section 16-262c of the general statutes; (8) receives financial assistance 211
from the electric distribution company; or (9) is otherwise protected by 212
law from shutoff of electricity services. 213
(g) (1) Participation by any eligible customer in a municipal 214
aggregation program shall be voluntary. On and after the date upon 215
which eligible customers may begin enrolling in the program, auto -216
enroll customers shall be transferred to the program according to the 217
opt-out process described in the municipal aggregation plan. Such 218
transfers shall occur on either the January or July electric meter read date 219
for such customers, provided no such customer may be automatically 220
enrolled unless such customer was sent an opt-out notice thirty or more 221
days before such meter read date. 222
(2) Any municipal aggregation program shall allow any electric 223
customer to opt out of such program and choose any electric supplier or 224
provider, including standard service from an electric distribution 225
company, and a public aggregator shall not prohibit or otherwise 226
restrict electric suppliers or electric distribution companies from 227
enrolling customers within the municipal aggregation service area. 228
(3) Once enrolled in the program, any program participant who 229
chooses to opt out not more than one hundred eighty days after 230
enrollment shall do so without penalty. 231
(4) After the initial enrollment of auto -enroll customers after the 232
approval of a municipal aggregation program by the authority, the 233
subsequent enrollment of any new auto -enroll customer or account 234
within the municipal aggregation service area shall be governed by the 235
terms for enrollment set forth in the municipal aggregation plan. 236
(h) A public aggregator shall provide written notice to any auto -237
sHB5245 File No. 375

sHB5245 / File No. 375 9

enroll customer in advance of such customer's automatic enrollment (1) 238
that such customer will be automatically enrolled in the program, (2) 239
that such customer has the right to opt out of the program, and (3) to 240
provide the deadline after which such customer may be assessed an opt-241
out penalty. Such notice shall also prominently state any program 242
charges and the standard service rate, how an electric customer may 243
receive the standard service and the fact that standard service is 244
available to such customer without penalty. 245
(i) A public aggregator shall notify each program participant in 246
advance of any change in (1) energy products offered under the 247
program, or (2) rates for energy products offered under the program, 248
and that each participant has the right, without penalty, to opt out of the 249
program or to select another energy product available under the 250
program, if applicable. In the event of any such change, each participant 251
shall continue to be enrolled in the program unless the participant opts 252
out of the program. 253
(j) A public aggregator may offer, and a program participant may 254
select, voluntary energy products at a price greater than the standard 255
service rate. 256
(k) Upon approval from a public aggregator, a program supplier 257
under contract with the public aggregator may communicate with 258
program participants and offer products separate from the energy 259
products offered under the program to such participants. 260
(l) Unless an electric customer has informed an electric distribution 261
company that such customer does not want such customer's account 262
information shared, the electric distribution company shall provide real-263
time interval meter data in fifteen -minute increments, if such data is 264
available to the electric distribution company, in comma -separated 265
value format. 266
(m) Each program supplier shall file an annual report with the public 267
aggregator that includes the following information for the preceding 268
program year: (1) The monthly enrollment statistics by customer class; 269
sHB5245 File No. 375

sHB5245 / File No. 375 10

(2) the number and percentage of customers that opted out of the 270
program; (3) the number and percentage of customers that selected a 271
voluntary energy product, if applicable; and (4) a description of each 272
customer complaint and the disposition of each complaint. 273
(n) A violation of this section, including the use of unauthorized or 274
deceptive customer communications, by a consultant, program supplier 275
or public aggregator shall subject such consultant, supplier or 276
aggregator to the penalties provided in section 16 -41 of the general 277
statutes, as amended by this act, and the authority may order that any 278
consultant or program supplier found in violation of this section be 279
prohibited from providing further services to a public aggregator. 280
Sec. 2. Subsection (a) of section 16 -41 of the general statutes is 281
repealed and the following is substituted in lieu thereof (Effective October 282
1, 2026): 283
(a) Each (1) public service company and its officers, agents and 284
employees, (2) electric supplier or person providing electric generation 285
services without a license in violation of section 16-245, and its officers, 286
agents and employees, (3) certified telecommunications provider or 287
person providing telecommunications services without authorization 288
pursuant to sections 16-247f to 16-247h, inclusive, and its officers, agents 289
and employees, (4) person, public agency or public utility, as such terms 290
are defined in section 16-345, subject to the requirements of chapter 293, 291
(5) person subject to the registration requirements under section 16 -292
258a, (6) cellular mobile telephone carrier, as described in section 16 -293
250b, (7) Connecticut electric efficiency partner, as defined in section 16-294
243v, (8) company, as defined in section 16 -49, (9) entity approved to 295
submeter pursuant to section 16 -19ff, [and] (10) person involved in the 296
transportation of gas, as such terms are defined in section 16 -280a, (11) 297
consultant, as defined in section 1 of this act, (12) program supplier, as 298
defined in section 1 of this act, and (13) public aggregator, as defined in 299
section 1 of this act, shall obey, observe and comply with all applicable 300
provisions of this title and each applicable order made or applicable 301
regulations adopted by the Public Utilities Regulatory Authority by 302
sHB5245 File No. 375

sHB5245 / File No. 375 11

virtue of this title as long as the same remains in force. Any such 303
company, electric supplier, certified telecommunications provider, 304
cellular mobile telephone carrier, Connecticut electric efficiency partner, 305
entity approved to submeter, person, consultant, program supplier or 306
public aggregator, or any officer, agent or employee thereof, or public 307
agency or public utility which the authority finds has failed to obey or 308
comply with any such provision of this title, order or regulation shall be 309
fined, ordered to pay restitution to customers or ordered to pay a 310
combination of a fine and restitution by order of the authority in 311
accordance with the penalty prescribed for the violated provision of this 312
title or, if no penalty is prescribed, not more than ten thousand dollars 313
for each offense, except that the penalty shall be a fine, restitution to 314
customers or a combination of a fine and restitution of not more than 315
forty thousand dollars for failure to comply with an order of the 316
authority made in accordance with the provisions of section 16-19 or 16-317
247k or within thirty days of such order or within any specific time 318
period for compliance specified in such order. The authority may direct 319
a portion of any fine levied pursuant to this section to be paid to a 320
nonprofit agency engaged in energy assistance programs named by the 321
authority in its decision or notice of violation and may direct a portion 322
of any fine levied pursuant to this section against a person involved in 323
the transportation of gas, as such terms are defined in section 16 -280a, 324
to support the study, installation and deployment of residential 325
methane detectors by one or more public service companies, as 326
determined by the authority. Any such nonprofit agency that receives a 327
portion of a fine pursuant to this subsection shall administer such funds 328
as directed by the authority and submit an annual report to the 329
authority, at the end of each fiscal year and in a form determined by the 330
authority, that details the expenditure of such funding. No such 331
nonprofit agency shall use more than ten per cent of such funding for 332
administrative purposes. Notwithstanding any provision of this 333
subsection, for the fiscal years ending June 30, 2023, and June 30, 2024, 334
the authority shall direct not less than ninety -five per cent of any fine 335
levied pursuant to this section to nonprofit agencies engaged in energy 336
assistance programs. Each distinct violation of any such provision of 337
sHB5245 File No. 375

sHB5245 / File No. 375 12

this title, order or regulation shall be a separate offense and, in case of a 338
continued violation, each day thereof shall be deemed a separate 339
offense. Each such penalty and any interest charged pursuant to 340
subsection (g) or (h) of section 16 -49 shall be excluded from operating 341
expenses for purposes of rate-making. 342
Sec. 3. Section 16 -245b of the general statutes is repealed and the 343
following is substituted in lieu thereof (Effective October 1, 2026): 344
Notwithstanding the provisions of subsection (a) of section 16 -245, 345
the provisions of said section shall not apply to (1) any municipality or 346
regional water authority that aggregates the sale of electric generation 347
services, including any public aggregator established pursuant to 348
section 1 of this act, or to the MIRA Dissolution Authority if such 349
authority aggregates the sale of electric generation services, for end use 350
customers located within the boundaries of such municipality or 351
regional water authority, (2) any municipality that joins together with 352
other municipalities to aggregate the sale of electric generation services 353
for end use customers located within the boundaries of such 354
municipalities, or (3) any municipality or regional water authority that 355
aggregates the purchase of electric generation services for municipal 356
facilities, street lighting, boards of education and other publicly-owned 357
facilities within (A) the municipality for which the municipality is 358
financially responsible, or (B) the municipalities that are within the 359
authorized service area of the regional water authority. Any 360
municipality or regional water authority that aggregates in accordance 361
with this section shall register not less than annually with the Public 362
Utilities Regulatory Authority on a form prescribed by the authority. 363
Sec. 4. Subsection (b) of section 33 -219 of the general statutes is 364
repealed and the following is substituted in lieu thereof (Effective October 365
1, 2026): 366
(b) Notwithstanding the provisions of subsection (a) of this section, 367
cooperative, nonprofit, membership corporations may be organized 368
under this chapter for the purpose of generating electric energy by 369
means of cogeneration technology, renewable energy resources or both 370
sHB5245 File No. 375

sHB5245 / File No. 375 13

and supplying it to any member or supplying it to, purchasing it from 371
or exchanging it with a public service company, electric supplier, as 372
defined in section 16 -1, [municipal] electric aggregator, as defined in 373
[said] section 16-1, municipal utility or municipal electric energy 374
cooperative, in accordance with an agreement with the company, 375
electric supplier, electric aggregator, municipal utility or cooperative. 376
No membership corporation under this subsection may exercise those 377
powers contained in subsection (i) or (j) of section 33-221 unless the prior 378
approval of the Public Utilities Regulatory Authority is obtained, after 379
opportunity for hearing in accordance with title 16 and chapter 54. Any 380
cooperative organized on or after July 1, 1998, pursuant to this 381
subsection shall collect from its members the competitive transition 382
assessment levied pursuant to section 16-245g and the systems benefits 383
charge levied pursuant to section 16 -245l in such manner and at such 384
rate as the Public Utilities Regulatory Authority prescribes, provided 385
the authority shall order the collection of said assessment and said 386
charge in a manner and rate equal to that to which the members of the 387
cooperative would have been subject had the cooperative not been 388
organized. 389
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 16-41(a)
Sec. 3 October 1, 2026 16-245b
Sec. 4 October 1, 2026 33-219(b)

Statement of Legislative Commissioners:
In Section 1(a)(2)(D), "subdivision (5)" was changed to "subdivision (4)",
for accuracy; and in Section 1(l), "comma -separated value separated
format" was changed to "comma-separated value format", for accuracy.

ET Joint Favorable Subst. -LCO

sHB5245 File No. 375

sHB5245 / File No. 375 14

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Public Utilities Regulatory
Authority (PURA)
CC&PUCF -
Potential Cost
See Below See Below
Resources of the General Fund GF - Revenue Gain Potential Potential
Note: GF=General Fund; CC&PUCF=Consumer Counsel and Public Utility Control Fund

Municipal Impact:
Municipalities Effect FY 27 $ FY 28 $
All Municipalities Potential
Savings
See Below See Below
All Municipalities Potential
Cost
See Below See Below
All Municipalities Potential
Revenue
Gain
See Below See Below

Explanation
Municipal Impact:
The bill allows municipalities to procure electric supply and related
energy products through municipal aggregation programs. The bill also
establishes a framework to allow municipalities to form a public
aggregator. This results in a potential cost to municipalities to establish
a public aggregator and potential savings to the extent contracts are
more cost-effective when purchased through a municipal aggregation
program. It is not anticipated that a municipality will establish a public
aggregator program if they will not realize savings exceeding the cost of
such a program.
sHB5245 File No. 375

sHB5245 / File No. 375 15

There is also a potential revenue gain to municipalities beginning in
FY 27 to the extent fees are set for use of the program and an opt out
penalty is set and enforced.
State Impact:
The bill could result in a potential cost to the Public Utilities
Regulatory Authority (PURA) associated with expanded
responsibilities related to municipal aggregation plans. Depending on
the number of municipalities who participate in the aggregation plans
and the level of review and oversight by PURA, additional staff will be
required. One new Assistant Rate Specialist will result in an annual
salary of $78,594 with corresponding fringe benefits of $32,868, any
additional costs will be incurred by the Consumer Counsel and Public
Utility Control Fund.
Additionally, the bill allows PURA to impose fines or restitution up
to $10,000 to a consultant or program supplier that violates the bill’s
provisions. To the extent fines are imposed this could result in a revenue
gain to the General Fund, the amount of revenue is unknown and will
be dependent upon the number of violations and the amount of the fines
imposed.
Rate Payer Impact
The rate payer impact of the bill is indeterminate. While it is assumed
that municipalities will assume potential savings to the extent contracts
are more cost -effective when purchased through a municipal
aggregation program, the actual rates will be dependent upon the
specific program. However, rates could be negatively impact ed by
increasing the risk premium where standard service load is less
predictable.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation, contract savings and fines.
sHB5245 File No. 375

sHB5245 / File No. 375 16

OLR Bill Analysis
sHB 5245

AN ACT CONCERNING MUNICIPAL ELECTRIC AGGREGATION
PROGRAMS.

SUMMARY
This bill authorizes municipalities to procure electric supply and
related energy products through municipal aggregation programs.
Currently, electric distribution company (EDC, Eversource or United
Illuminating) customers may choose to purchase electric s upply
through a third -party supplier or through standard service from the
EDC. Generally, under the bill, EDC customers in a municipality that
establishes a municipal aggregation program instead purchase electric
supply the municipality procures, unless the customer opts not to (“opts
out”) and with certain other exceptions.
Existing law allows municipalities to act as electric aggregators by
gathering electric customers to negotiate electric generation service
purchases from an electric supplier, so long as the customer contracts
directly with the electric supplier and the mu nicipality does not
purchase or resell these services. By law, these aggregators are not
subject to laws on electric suppliers, including licensure requirements
and consumer protections. Existing law does not generally authorize
these aggregators to automatically enroll customers.
The bill establishes a separate framework for municipal aggregation
programs, allowing municipalities to form a public aggregator, which
can enter into contracts for energy products and set terms and
conditions for program services and offerings. The bill similarly
exempts these public aggregators from electric supplier requirements (§
3).
To establish a municipal aggregation program, the bill requires a
sHB5245 File No. 375

sHB5245 / File No. 375 17

municipality (or multiple municipalities acting jointly) to (1) develop a
municipal aggregation plan that generally details the process for electric
load aggregation and its consequences, among other things, (2) hold at
least one public hearing, and (3) get approval for the plan from the
municipality’s legislative body and chief executive officer.
Certain customers are automatically enrolled in the program if they
receive electric service in an area served by a municipal aggregation
program (the “municipal aggregation service area”). The bill excludes
from automatic enrollment hardship customers and customers who
already contract with electric suppliers, among others. The bill
establishes notice requirements for (1) auto -enrolled customers before
enrollment and (2) changes to program services or rates.
Under the bill, an eligible customer’s participation in the program is
voluntary. The bill requires a municipal aggregation program to allow
any electric customer to opt out and choose an electric supplier or
provider, including standard service. It prohibits customer penalties for
opting out within 180 days after enrolling in the municipal aggregation
program.
The bill requires the Public Utilities Regulatory Authority (PURA) to
approve certain customer communications and allows PURA to order
fines or customer restitution for violations of the bill’s provisions. The
bill specifies that providing energy products to electric customers within
a municipal aggregation service area is not a wholesale utility
transaction (which are generally under federal jurisdiction).
The bill requires EDCs to share (1) certain customer account
information with a public aggregator and (2) meter data. Each program
supplier (generally, a licensed electric supplier providing energy
products under the program) must report annually to the pu blic
aggregator on program information for the preceding calendar year.
The bill also makes technical and conforming changes.
EFFECTIVE DATE: October 1, 2026
sHB5245 File No. 375

sHB5245 / File No. 375 18

MUNICIPAL AGGREGATOR PROGRAM
Public Aggregator Powers
The bill authorizes a municipality (or multiple municipalities acting
jointly) to form a public aggregator under a municipal aggregator
program. Under the bill, municipalities may form a public aggregator to
group residential and commercial electric customers receiving standard
service from an EDC to solicit bids, broker, and contract for electric
supply, community distributed generation, or community demand
response incentives for this group of customers. A community demand
response incentive is designed t o promote changes in customer
electricity usage in response to (1) the price of electricity over time (for
example, through time -varying rates) or (2) times when the wholesale
price of electricity is abnormally high or when grid reliability is
jeopardized. The bill does not define community distributed generation.
Under the bill, public aggregators are not public service companies,
which means, among other things, that they are not subject to rate
regulation by PURA. Public aggregators may enter into agreements for
services to facilitate energy product sales and pur chases, including
renewable energy certificates. The bill also authorizes them to enter into
contracts on behalf of a municipal aggregation program. Presumably,
these include agreements with (1) consultants, which are any person or
entity a municipality retains to help develop a municipal aggregation
plan and operate a public aggregator and (2) program suppliers, which
are licensed electric suppliers that provide energy products (electric
supply, community distributed generation, or community demand
response incentives) to municipal aggregation customers.
The bill authorizes public aggregators to establish practices, terms,
and conditions of program offerings and services, which, under the bill,
are not subject to PURA’s approval. These include:
1. rates to support the program, including provision of energy
products;
2. supply terms;
sHB5245 File No. 375

sHB5245 / File No. 375 19

3. the program’s start date;
4. energy product offerings, including any periodic changes in their
price or composition;
5. contract terms and conditions for energy products;
6. the format and delivery methods for any notice to program
customers;
7. a program website; and
8. accommodating customers with limited English proficiency.
The bill also authorizes public aggregators to offer voluntary energy
products (any energy product that a program participant only receives
if he or she affirmatively selects it) at a higher rate than standard service.
PROGRAM ESTABLISHMENT, REVIEW, AND APPROVAL
To establish a program, municipalities must develop a municipal
aggregation plan for review by their voters that generally details the
process for electric load aggregation and its consequences, among other
things. They must file these plans with PURA and get its approval for
portions of the plans related to communications with customers.
Municipal Aggregation Plan Components
The bill requires municipal aggregation plans to generally describe
the plan to implement the program. The plan must provide for universal
access in the municipal aggregation service area, reliable service, and
equitable treatment of all classes of electri c customers. It must also
include:
1. the public aggregator’s organizational structure;
2. any proposed customer communications, including opt -out
notices;
3. how the public aggregator will fund program administration and
services under the program;
sHB5245 File No. 375

sHB5245 / File No. 375 20

4. how program rates will be set and structured;
5. program participants’ rights and responsibilities;
6. a plan for resolving complaints, including any arbitration or
dispute resolution procedures that ensures that the public
aggregator will participate in resolving complaints related to the
program and not rely on PURA or an EDC to address them; and
7. the method for suspending or terminating the municipal
aggregation program.
The plan must also include a public aggregator’s intent to offer
optional voluntary energy products and a description of any voluntary
energy products it will offer. If the public aggregator has not yet
determined whether to offer voluntary energy products when it submits
the plan to PURA , the plan must identify and describe the factors and
criteria the public aggregator will consider when making that
determination.
Municipal Approval
Municipalities must have a 30-day public review period and hold at
least one public hearing on the plan. After taking these actions, the
municipality may establish a municipal aggregation program and create
a public aggregator by (1) affirmative vote of th e municipality’s
legislative body and (2) approval by the municipality’s chief executive
officer.
PURA Review and EDC Notification
Once the municipality establishes a public aggregator, it must submit
the municipal aggregation plan to PURA. The bill requires PURA to
approve or deny any proposed customer communications in the plan
no later than 120 days after it receives the plan. “Cus tomer
communications” are any communication from a public aggregator to
an electric customer that concern the implementation of a municipal
aggregation plan or program. If PURA takes no action during that time,
communications are deemed approved.
sHB5245 File No. 375

sHB5245 / File No. 375 21

Within 14 days after PURA approves the customer communications,
the bill requires the public aggregator to submit a plan implementation
timeline to any EDC serving customers in the municipal aggregation
service area. The public aggregator must also (1) sub mit monthly
updates on plan implementation to the EDC until the public aggregator
executes an agreement with a program supplier and (2) notify the EDC
when it executes an agreement. The program supplier must give the
EDC any information needed to enroll customers.
CUSTOMER ENROLLMENT
Auto-Enroll Customer Initial Enrollment
The bill allows the public aggregator to set the program’s start date.
Starting on the date when customers may begin enrolling, the bill
requires auto -enroll customers to be transferred to the program
according to the municipal aggregation plan’s opt-out process.
Auto-enroll customers are automatically enrolled in a municipal
aggregation program unless the customer opts out of enrollment. Auto-
enroll customers do not include any customer who:
1. receives electric supply service from an electric supplier and does
not receive standard service from an EDC;
2. is a hardship case (generally, customers with income under 60%
of the state median income or customers who are seriously ill);
3. has arrearages deducted from the bill by the EDC through a
matching payment program;
4. receives financial assistance from an EDC,
5. is otherwise subject to shutoff protections, or
6. indicated they do not want their information shared.
Existing law (1) requires EDCs to make customer information
(names, addresses, phone numbers, and rate class) available to electric
suppliers and (2) establishes a process for customers to inform EDCs
sHB5245 File No. 375

sHB5245 / File No. 375 22

that they do not want their information shared (CGS § 16-245o(a)).
Auto-enroll customer transfers must occur on either January or July
meter read dates for these customers and at least 30 days after the public
aggregator sends the customer an opt -out notice describing the
customer’s right to opt out of program enrollment. The bill requires a
public aggregator to give written notice that the customer will be
automatically enrolled in the program, has the right to opt out, and the
deadline to opt-out without paying an opt-out penalty (see below). The
notice must also prominently state (1) any program charges, (2) how the
customer may receive standard service provided through the EDC, (3)
that standard service is available to the customer without penalty.
Subsequent Enrollment
After auto-enroll customers are initially enrolled in the program, the
bill requires subsequent enrollment of new auto -enroll customers or
accounts within the municipal aggregation service area to be governed
by the municipal aggregation plan’s enrollment terms.
Opt-Out Requirements
The bill requires municipal aggregation programs to allow any
electric customer to opt out and choose an electric supplier or provider,
including standard service. Relatedly, the bill prohibits a public
aggregator from prohibiting or restricting electric s uppliers or EDCs
from enrolling customers in the municipal aggregation service area.
The bill prohibits penalties for opting out within 180 days after
enrolling in the municipal aggregation program. (Presumably, this
means penalties may apply for opting out after 180 days, which appears
to conflict with the bill’s requirements that (1) aut o-enroll customer
notices state that standard service is available to customers without
penalty (see above) and (2) rate or product change notices state that each
program participant has the right, without penalty, to opt out of the
program (see below).)
OTHER CUSTOMER COMMUNICATIONS
The bill requires public aggregators to deliver customer
sHB5245 File No. 375

sHB5245 / File No. 375 23

communications on the plan, including opt -out notices, to electric
customers in the municipal aggregation service area, as approved by
PURA and consistent with the municipal aggregation plan.
To enable this delivery, the bill requires EDCs to give the public
aggregator a current list of names, mailing addresses, email addresses,
and service addresses for EDC customers in the municipal aggregation
service area. The EDC must exclude from this lis t the customers
excluded from auto -enrollment (for example, hardship customers, see
above) and any customer who has a contract with the EDC that prohibits
the customer from being automatically enrolled in the municipal
aggregation program.
Program Product and Rate Changes Notice
The bill requires a public aggregator to notify program participants
before changing energy products offered under the program or their
rates. The notice must state that each participant has the right, without
penalty, to opt out of the program of or selec t another energy product
available under the program, if applicable.
Program Supplier Communication
The bill allows program suppliers, under contract with and with
approval from a public aggregator, to communicate with program
customers and offer products that are separate from the energy products
offered under the program.
EDC METER DATA
The bill requires EDCs to provide real-time interval meter data in 15-
minute increments in comma -separated value format (an electronic
format that separates data fields with numeric or text values using one
or more specific characters, making it easy to search electronically). The
EDC must provide this meter data (presumably, to the public
aggregator) if it is available to the EDC and unless an electric customer
has informed an EDC that the customer does not want account
information shared.
REPORTING REQUIREMENT
sHB5245 File No. 375

sHB5245 / File No. 375 24

The bill requires each program supplier to report annually to the
public aggregator on information for the preceding calendar year,
including:
1. monthly enrollment statistics by customer class;
2. the number and percentage of customers that opted out of the
program;
3. the number and percentage of customers that selected a
voluntary energy product, if applicable; and
4. a description of each customer complaint and its disposition.
VIOLATIONS
The bill extends PURA’s general enforcement authority to program
suppliers, consultants, and public aggregators under the bill. The bill
makes violations of its provisions, including unauthorized or deceptive
customer communications, subject to existing law . Under existing law,
PURA may prescribe up to $10,000 in fines or restitution to customers
for each offense. The bill allows PURA to prohibit a consultant or
program supplier that violates the bill’s provisions from providing
further services to a public aggregator.
COMMITTEE ACTION
Energy and Technology Committee
Joint Favorable
Yea 24 Nay 2 (03/17/2026)