AN ACT CONCERNING COLOCATED ELECTRIC SUPPLIERS AND LARGE ELECTRIC LOAD CUSTOMERS.

House of Representatives
HB5469 / File No. 421 1

General Assembly File No. 421
February Session, 2026 House Bill No. 5469

House of Representatives, April 7, 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 bill ought to pass.

AN ACT CONCERNING COLOCATED ELECTRIC SUPPLIERS AND
LARGE ELECTRIC LOAD CUSTOMERS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Subsection (a) of section 16-1 of the 2026 supplement to the 1
general statutes is repealed and the following is substituted in lieu 2
thereof (Effective July 1, 2026): 3
(a) Terms used in this title and in chapters 244, 244a, 244b, 245, 245a 4
and 245b shall be construed as follows, unless another meaning is 5
expressed or is clearly apparent from the language or context: 6
(1) "Authority" means the Public Utilities Regulatory Authority and 7
"department" means the Department of Energy and Environmental 8
Protection; 9
(2) "Utility commissioner" means a utility commissioner of the Public 10
Utilities Regulatory Authority; 11
(3) "Public service company" includes electric distribution, gas, 12
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telephone, pipeline, sewage, water and community antenna television 13
companies and holders of a certificate of cable franchise authority, 14
owning, leasing, maintaining, operating, managing or controlling plants 15
or parts of plants or equipment, but shall not include towns, cities, 16
boroughs, any municipal corporation or department thereof, whether 17
separately incorporated or not, a private power producer, as defined in 18
section 16-243b, or an exempt wholesale generator, as defined in 15 USC 19
79z-5a; 20
(4) "Plant" includes all real estate, buildings, tracks, pipes, mains, 21
poles, wires and other fixed or stationary construction and equipment, 22
wherever located, used in the conduct of the business of the company; 23
(5) "Gas company" includes every person owning, leasing, 24
maintaining, operating, managing or controlling mains, pipes or other 25
fixtures, in public highways or streets, for the transmission or 26
distribution of gas for sale for heat or power within this state, or engaged 27
in the manufacture of gas to be so transmitted or distributed for such 28
purpose, but shall not include (A) a person manufacturing gas through 29
the use of a biomass gasification plant provided such person does not 30
own, lease, maintain, operate, manage or control mains, pipes or other 31
fixtures in public highways or streets, (B) a municipal gas utility 32
established under chapter 101 or any other gas utility owned, leased, 33
maintained, operated, managed or controlled by any unit of local 34
government under any general statute or any public or special act, or 35
(C) an entity approved to submeter pursuant to section 16-19ff; 36
(6) "Water company" includes every person owning, leasing, 37
maintaining, operating, managing or controlling any pond, lake, 38
reservoir, stream, well or distributing plant or system employed for the 39
purpose of supplying water to fifty or more consumers. A water 40
company does not include homeowners, condominium associations 41
providing water only to their members, homeowners associations 42
providing water to customers at least eighty per cent of whom are 43
members of such associations, a municipal waterworks system 44
established under chapter 102, a district, metropolitan district, 45
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municipal district or special services district established under chapter 46
105, chapter 105a or any other general statute or any public or special 47
act which is authorized to supply water, or any other waterworks 48
system owned, leased, maintained, operated, managed or controlled by 49
any unit of local government under any general statute or any public or 50
special act; 51
(7) "Consumer" means any private dwelling, boardinghouse, 52
apartment, store, office building, institution, mechanical or 53
manufacturing establishment or other place of business or industry to 54
which water is supplied by a water company; 55
(8) "Sewage company" includes every person owning, leasing, 56
maintaining, operating, managing or controlling, for general use in any 57
town, city or borough, or portion thereof, in this state, sewage disposal 58
facilities which discharge treated effluent into any waterway of this 59
state; 60
(9) "Pipeline company" includes every person owning, leasing, 61
maintaining, operating, managing or controlling mains, pipes or other 62
fixtures through, over, across or under any public land, water, 63
parkways, highways, parks or public grounds for the transportation, 64
transmission or distribution of petroleum products for hire within this 65
state; 66
(10) "Community antenna television company" includes every person 67
owning, leasing, maintaining, operating, managing or controlling a 68
community antenna television system, in, under or over any public 69
street or highway, for the purpose of providing community antenna 70
television service for hire and shall include any municipality which 71
owns or operates one or more plants for the manufacture or distribution 72
of electricity pursuant to section 7 -213 or any special act and seeks to 73
obtain or obtains a certificate of public convenience and necessity to 74
construct or operate a community antenna television system pursuant 75
to section 16-331 or a certificate of cable franchise authority pursuant to 76
section 16 -331q. "Community antenna television company" does not 77
include a certified competitive video service provider; 78
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(11) "Community antenna television service" means (A) the one-way 79
transmission to subscribers of video programming or information that 80
a community antenna television company makes available to all 81
subscribers generally, and subscriber interaction, if any, which is 82
required for the selection of such video programming or information, 83
and (B) noncable communications service. "Community antenna 84
television service" does not include video service provided by a certified 85
competitive video service provider; 86
(12) "Community antenna television system" means a facility, 87
consisting of a set of closed transmission paths and associated signal 88
generation, reception and control equipment that is designed to provide 89
community antenna television service which includes video 90
programming and which is provided in, under or over any public street 91
or highway, for hire, to multiple subscribers within a franchise, but such 92
term does not include (A) a facility that serves only to retransmit the 93
television signals of one or more television broadcast stations; (B) a 94
facility that serves only subscribers in one or more multiple unit 95
dwellings under common ownership, control or management, unless 96
such facility is located in, under or over a public street or highway; (C) 97
a facility of a common carrier which is subject, in whole or in part, to the 98
provisions of Subchapter II of Chapter 5 of the Communications Act of 99
1934, 47 USC 201 et seq., as amended, except that such facility shall be 100
considered a community antenna television system and the carrier shall 101
be considered a public service company to the extent such facility is used 102
in the transmission of video programming directly to subscribers; or (D) 103
a facility of an electric distribution company which is used solely for 104
operating its electric distribution company systems. "Community 105
antenna television system" does not include a facility used by a certified 106
competitive video service provider to provide video service; 107
(13) "Video programming" means programming provided by, or 108
generally considered comparable to programming provided by, a 109
television broadcast station; 110
(14) "Noncable communications service" means any 111
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telecommunications service, as defined in section 16-247a, and which is 112
not included in the definition of "cable service" in the Communications 113
Act of 1934, 47 USC 522, as amended. Nothing in this definition shall be 114
construed to affect service which is both authorized and preempted 115
pursuant to federal law; 116
(15) "Cogeneration technology" means the use for the generation of 117
electricity of exhaust steam, waste steam, heat or resultant energy from 118
an industrial, commercial or manufacturing plant or process, or the use 119
of exhaust steam, waste steam or heat from a thermal power plant for 120
an industrial, commercial or manufacturing plant or process, but shall 121
not include steam or heat developed solely for electrical power 122
generation; 123
(16) "Renewable fuel resources" means energy sources described in 124
subdivisions (20) and (21) of this subsection; 125
(17) "Telephone company" means a telecommunications company 126
that provides one or more noncompetitive or emerging competitive 127
services, as defined in section 16-247a; 128
(18) "Domestic telephone company" includes any telephone company 129
which has been chartered by or organized or constituted within or 130
under the laws of this state; 131
(19) "Telecommunications company" means a person that provides 132
telecommunications service, as defined in section 16 -247a, within the 133
state, but shall not mean a person that provides only (A) private 134
telecommunications service, as defined in section 16 -247a, (B) the one -135
way transmission of video programming or other programming 136
services to subscribers, (C) subscriber interaction, if any, which is 137
required for the selection of such video programming or other 138
programming services, (D) the two-way transmission of educational or 139
instructional programming to a public or private elementary or 140
secondary school, or a public or independent institution of higher 141
education, as required by the authority pursuant to a community 142
antenna television company franchise agreement, or provided pursuant 143
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to a contract with such a school or institution which contract has been 144
filed with the authority, or (E) a combination of the services set forth in 145
subparagraphs (B) to (D), inclusive, of this subdivision; 146
(20) "Class I renewable energy source" means (A) electricity derived 147
from (i) solar power, (ii) wind power, (iii) a fuel cell, (iv) geothermal, (v) 148
anaerobic digestion or other biogas derived from biological sources, (vi) 149
thermal electric direct energy conversion from a certified Class I 150
renewable energy source, (vii) ocean thermal power, (viii) wave or tidal 151
power, (ix) low emission advanced renewable energy conversion 152
technologies, including, but not limited to, zero emission low grade heat 153
power generation systems based on organic oil free rankine, kalina or 154
other similar nonsteam cycles that use waste heat from an industrial or 155
commercial process that does not generate electricity, (x) (I) a run -of-156
the-river hydropower facility that began operation after July 1, 2003, has 157
a generating capacity of not more than sixty megawatts, is not based on 158
a new dam or a dam identified by the Commissioner of Energy and 159
Environmental Protection as a candidate for removal, and meets 160
applicable state and federal requirements, including state dam safety 161
requirements and applicable site -specific standards for water quality 162
and fish passage, or (II) a run -of-the-river hydropower facility that 163
received a new license after January 1, 2018, under the Federal Energy 164
Regulatory Commission rules pursuant to 18 CFR 16, as amended from 165
time to time, is not based on a new dam or a dam identified by the 166
Commissioner of Energy and Environmental Protection as a candidate 167
for removal, and meets applicable state and federal requirements, 168
including state dam safety requirements and applicable site -specific 169
standards for water quality and fish passage, (xi) a biomass facility, 170
provided such facility has executed an agreement to provide energy to 171
an electric distribution company prior to October 1, 2025, that (I) uses 172
sustainable biomass fuel and has an average emission rate of equal to or 173
less than .075 pounds of nitrogen oxides per million BTU of heat input 174
for the previous calendar quarter, or (II) has a capacity of less than five 175
hundred kilowatts that began construction before July 1, 2003, may be 176
considered a Class I renewable energy source for the duration of such 177
agreement, or (xii) a nuclear power generating facility constructed on or 178
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after October 1, 2023, or (B) any electrical generation, including 179
distributed generation, generated from a Class I renewable energy 180
source, provided, on and after January 1, 2014, any megawatt hours of 181
electricity from a renewable energy source described under this 182
subparagraph that are claimed or counted by a load -serving entity, 183
province or state toward compliance with renewable portfolio 184
standards or renewable energy policy goals in another province or state, 185
other than the state of Connecticut, shall not be eligible for compliance 186
with the renewable portfolio standards established pursuant to section 187
16-245a; 188
(21) "Class II renewable energy source" means electricity derived 189
from a trash -to-energy facility that has obtained a permit pursuant to 190
section 22a -208a and section 22a -174-33 of the regulations of 191
Connecticut state agencies; 192
(22) "Electric distribution services" means the owning, leasing, 193
maintaining, operating, managing or controlling of poles, wires, 194
conduits or other fixtures along public highways or streets for the 195
distribution of electricity, or electric distribution-related services; 196
(23) "Electric distribution company" or "distribution company" means 197
any person providing electric transmission or distribution services 198
within the state, but does not include: (A) A private power producer, as 199
defined in section 16 -243b; (B) a municipal electric utility established 200
under chapter 101, other than a participating municipal electric utility; 201
(C) a municipal electric energy cooperative established under chapter 202
101a; (D) an electric cooperative established under chapter 597; (E) any 203
other electric utility owned, leased, maintained, operated, managed or 204
controlled by any unit of local government under any general statute or 205
special act; (F) an electric supplier; (G) an entity approved to submeter 206
pursuant to section 16 -19ff; or (H) a municipality, state or federal 207
governmental entity authorized to distribute electricity across a public 208
highway or street pursuant to section 16-243aa; 209
(24) "Electric supplier" means any person, including an electric 210
aggregator or participating municipal electric utility that is licensed by 211
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the Public Utilities Regulatory Authority in accordance with section 16-212
245, as amended by this act, that provides electric generation services to 213
end use customers in the state using the transmission or distribution 214
facilities of an electric distribution company, regardless of whether or 215
not such person takes title to such generation services, but does not 216
include: (A) A municipal electric utility established under chapter 101, 217
other than a participating municipal electric utility; (B) a municipal 218
electric energy cooperative established under chapter 101a; (C) an 219
electric cooperative established under chapter 597; or (D) any other 220
electric utility owned, leased, maintained, operated, managed or 221
controlled by any unit of local government under any general statute or 222
special act; 223
(25) "Electric aggregator" means (A) a person, municipality or 224
regional water authority that gathers together electric customers for the 225
purpose of negotiating the purchase of electric generation services from 226
an electric supplier, or (B) the MIRA Dissolution Authority, if it gathers 227
together electric customers for the purpose of negotiating the purchase 228
of electric generation services from an electric supplier, provided such 229
person, municipality or authority is not engaged in the purchase or 230
resale of electric generation services, and provided further such 231
customers contract for electric generation services directly with an 232
electric supplier, and may include an electric cooperative established 233
pursuant to chapter 597; 234
(26) "Electric generation services" means electric energy, electric 235
capacity or generation-related services; 236
(27) "Electric transmission services" means electric transmission or 237
transmission-related services; 238
(28) "Generation entity or affiliate" means a corporate affiliate or a 239
separate division of an electric distribution company that provides 240
electric generation services; 241
(29) "Participating municipal electric utility" means a municipal 242
electric utility established under chapter 101 or any other electric utility 243
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owned, leased, maintained, operated, managed or controlled by any 244
unit of local government under any general statute or any public or 245
special act, that is authorized by the authority in accordance with section 246
16-245c to provide electric generation services to end use customers 247
outside its service area, as defined in section 16-245c; 248
(30) "Person" means an individual, business, firm, corporation, 249
association, joint stock association, trust, partnership or limited liability 250
company; 251
(31) "Regional independent system operator" means the "ISO - New 252
England, Inc.", or its successor organization as approved by the Federal 253
Energy Regulatory Commission; 254
(32) "Certified telecommunications provider" means a person 255
certified by the authority to provide intrastate telecommunications 256
services, as defined in section 16 -247a, pursuant to sections 16 -247f to 257
16-247h, inclusive; 258
(33) "Gas registrant" means a person registered to sell natural gas 259
pursuant to section 16-258a; 260
(34) "Customer-side distributed resources" means (A) the generation 261
of electricity from a unit with a rating of not more than sixty -five 262
megawatts on the premises of a retail end user within the transmission 263
and distribution system including, but not limited to, fuel cells, 264
photovoltaic systems or small wind turbines, or (B) a reduction in the 265
demand for electricity on the premises of a retail end user in the 266
distribution system through methods of conservation and load 267
management, including, but not limited to, peak reduction systems and 268
demand response systems; 269
(35) "Federally mandated congestion charges" means any cost 270
approved by the Federal Energy Regulatory Commission as part of New 271
England Standard Market Design including, but not limited to, 272
locational marginal pricing, locational installed capacity payments, any 273
cost approved by the Public Utilities Regulatory Authority to reduce 274
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federally mandated congestion charges in accordance with section 7 -275
233y, this section, sections 16 -32f, 16-50i, 16-50k, 16-50x, 16-243i to 16 -276
243q, inclusive, 16 -244c, 16-245m, 16 -245n and 16 -245z, section 21 of 277
public act 05-1 of the June special session, subsection (f) of section 16a -278
3j and reliability must run contracts; 279
(36) "Combined heat and power system" means a system that 280
produces, from a single source, both electric power and thermal energy 281
used in any process that results in an aggregate reduction in electricity 282
use; 283
(37) "Grid-side distributed resources" means the generation of 284
electricity from a unit with a rating of not more than sixty -five 285
megawatts that is connected to the transmission or distribution system, 286
which units may include, but are not limited to, units used primarily to 287
generate electricity to meet peak demand; 288
(38) "Class III source" means the electricity output from combined 289
heat and power systems with an operating efficiency level of no less 290
than fifty per cent that are part of customer -side distributed resources 291
developed at commercial and industrial facilities in this state on or after 292
January 1, 2006, a waste heat recovery system installed on or after April 293
1, 2007, that produces electrical or thermal energy by capturing 294
preexisting waste heat or pressure from industrial or commercial 295
processes, or the electricity savings created in this state from 296
conservation and load management programs begun on or after January 297
1, 2006, provided on and after January 1, 2014, no such programs 298
supported by ratepayers, including programs overseen by the Energy 299
Conservation Management Board or third -party programs pursuant to 300
section 16-245m, shall be considered a Class III source, except that any 301
demand-side management project awarded a contract pursuant to 302
section 16-243m shall remain eligible as a Class III source for the term of 303
such contract; 304
(39) "Sustainable biomass fuel" means biomass that is cultivated and 305
harvested in a sustainable manner. "Sustainable biomass fuel" does not 306
mean construction and demolition waste, as defined in section 22a-208x, 307
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finished biomass products from sawmills, paper mills or stud mills, 308
organic refuse fuel derived separately from municipal solid waste, or 309
biomass from old growth timber stands, except where (A) such biomass 310
is used in a biomass gasification plant that received funding prior to 311
May 1, 2006, from the Clean Energy Fund established pursuant to 312
section 16-245n, or (B) the energy derived from such biomass is subject 313
to a long -term power purchase contract pursuant to subdivision (2) of 314
subsection (j) of section 16-244c entered into prior to May 1, 2006; 315
(40) "Video service" means video programming services provided 316
through wireline facilities, a portion of which are located in the public 317
right-of-way, without regard to delivery technology, including Internet 318
protocol technology. "Video service" does not include any video 319
programming provided by a commercial mobile service provider, as 320
defined in 47 USC 332(d), any video programming provided as part of 321
community antenna television service in a franchise area as of October 322
1, 2007, any video programming provided as part of and via a service 323
that enables users to access content, information, electronic mail or other 324
services over the public Internet; 325
(41) "Certified competitive video service provider" means an entity 326
providing video service pursuant to a certificate of video franchise 327
authority issued by the authority in accordance with section 16 -331e. 328
"Certified competitive video service provider" does not mean an entity 329
issued a certificate of public convenience and necessity in accordance 330
with section 16-331 or the affiliates, successors and assigns of such entity 331
or an entity issued a certificate of cable franchise authority in accordance 332
with section 16 -331p or the affiliates, successors and assignees of such 333
entity; 334
(42) "Certificate of video franchise authority" means an authorization 335
issued by the Public Utilities Regulatory Authority conferring the right 336
to an entity or person to own, lease, maintain, operate, manage or 337
control facilities in, under or over any public highway to offer video 338
service to any subscribers in the state; 339
(43) "Certificate of cable franchise authority" means an authorization 340
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issued by the Public Utilities Regulatory Authority pursuant to section 341
16-331q conferring the right to a community antenna television 342
company to own, lease, maintain, operate, manage or control a 343
community antenna television system in, under or over any public 344
highway to (A) offer community antenna television service in a 345
community antenna television company's designated franchise area, or 346
(B) use the public rights -of-way to offer video service in a designated 347
franchise area. The certificate of cable franchise authority shall be issued 348
as an alternative to a certificate of public convenience and necessity 349
pursuant to section 16 -331 and shall only be available to a community 350
antenna television company under the terms specified in sections 16 -351
331q to 16-331aa, inclusive; 352
(44) "Thermal energy transportation company" means any person 353
authorized under any provision of the general statutes or special act to 354
furnish heat or air conditioning or both, by means of steam, heated or 355
chilled water or other medium, to lay and maintain mains, pipes or 356
other conduits, and to erect such other fixtures necessary or convenient 357
in and on the streets, highways and public grounds of any municipality 358
to carry steam, heated or chilled water or other medium from such plant 359
to the location to be served and to return the same; 360
(45) "The Connecticut Television Network" means the General 361
Assembly's state -wide twenty -four-hour state public affairs 362
programming service, separate and distinct from community access 363
channels; 364
(46) "Commissioner of Energy and Environmental Protection" means 365
the Commissioner of Energy and Environmental Protection appointed 366
pursuant to title 4, or the commissioner's designee; 367
(47) "Large-scale hydropower" means any hydropower facility that 368
(A) began operation on or after January 1, 2003, (B) is located in the New 369
England Power Pool Generation Information System geographic 370
eligibility area in accordance with Rule 2.3 of said system or an area 371
abutting the northern boundary of the New England Power Pool 372
Generation Information System geographic eligibility area that is not 373
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interconnected with any other control area that is not a part of the New 374
England Power Pool Generation Information System geographic 375
eligibility area, (C) delivers power into such geographic eligibility area, 376
and (D) has a generating capacity of more than thirty megawatts; 377
(48) "Energy storage system" means any commercially available 378
technology that is capable of absorbing energy, storing it for a period of 379
time and thereafter dispatching the energy, and that is capable of either: 380
(A) Using mechanical, chemical or thermal processes to store electricity 381
that is generated at one time for use at a later time; (B) storing thermal 382
energy for direct use for heating or cooling at a later time in a manner 383
that avoids the need to use electricity at a later time; (C) using 384
mechanical, chemical or thermal processes to store electricity generated 385
from renewable energy sources for use at a later time; or (D) using 386
mechanical, chemical or thermal processes to capture or harness waste 387
electricity and to store such electricity generated from mechanical 388
processes for delivery at a later time; 389
(49) "Distributed energy resource" means any (A) customer -side 390
distributed resource or grid -side distributed resource that generates 391
electricity from a Class I renewable energy source or Class III source, 392
and (B) customer -side distributed resource that reduces demand for 393
electricity through conservation and load management, energy storage 394
system which is located on the customer -side of the meter or is 395
connected to the distribution system or microgrid; [and] 396
(50) "Grid-side system enhancement" means an investment in 397
distribution system infrastructure, technology and systems designed to 398
enable the deployment of distributed energy resources and allow for 399
grid management and system balancing, including, but not limited to, 400
energy storage systems, distribution system automation and controls, 401
intelligent field systems, advanced distribution system metering, and 402
communication and systems that enable two-way power flow; 403
(51) "Colocated electric supplier" means any person that provides, or 404
plans to provide, electric generation services to a large electric load 405
customer (A) through a physical connection behind such customer's 406
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point of interconnection with the electric distribution or transmission 407
system, or (B) if both such supplier and such customer have no 408
connection to the electric distribution or transmission system; and 409
(52) "Large electric load customer" means any electric customer 410
whose peak demand is not less than fifty megawatts. 411
Sec. 2. Section 16 -245 of the general statutes is repealed and the 412
following is substituted in lieu thereof (Effective July 1, 2026): 413
(a) No person shall execute any contract relating to the sale of electric 414
generation services to be rendered after January 1, 2000, to end use 415
customers or large electric load customers located in the state unless 416
such person has been issued a license by the authority in accordance 417
with the provisions of this section. No license shall be valid before July 418
1, 1999. The Public Utilities Regulatory Authority shall have the 419
authority to condition an electric supplier's or colocated electric 420
supplier's license and access to the systems and billing of the electric 421
distribution companies on terms the authority determines to be just and 422
reasonable, including, but not limited to, proof that the electric 423
supplier's or colocated electric supplier's products are not overpriced or 424
harmful to residential customers. 425
(b) On and after January 1, 2000, no person, no municipality and no 426
regional water authority shall sell or attempt to sell electric generation 427
services to end use customers located in the state using the transmission 428
or distribution facilities of an electric distribution company unless the 429
person has been issued a license by the Public Utilities Regulatory 430
Authority in accordance with the provisions of this section, provided an 431
electric distribution company is not required to be licensed pursuant to 432
this section to provide electric generation services pursuant to section 433
16-244c. On and after April 30, 2002, the MIRA Dissolution Authority 434
shall not sell or attempt to sell electric generation services to end use 435
customers located in the state using the transmission or distribution 436
facilities of an electric distribution company unless the authority has 437
been issued a license by the Public Utilities Regulatory Authority in 438
accordance with the provisions of this section. Not later than January 1, 439
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1999, the authority shall, by regulations adopted pursuant to chapter 54, 440
develop licensing procedures. The licensing process shall begin not later 441
than April 1, 1999. On and after July 1, 2026, no person, municipality or 442
regional water authority shall sell, attempt to sell or otherwise provide 443
electric generation services to a large electric load customer in a 444
colocated or behind -the-meter arrangement unless the person, 445
municipality or regional water authority has been issued a license by the 446
authority to serve as a colocated electric supplier in accordance with this 447
section. 448
(c) To ensure the safety and reliability of the supply of electricity in 449
this state, the Public Utilities Regulatory Authority shall not issue a 450
license unless the applicant [can demonstrate ] demonstrates to the 451
satisfaction of the authority that the applicant has the technical, 452
managerial and financial capability to provide electric generation 453
services and provides and maintains a bond or other security in amount 454
and form approved by the authority, to ensure its financial 455
responsibility and its supply of electricity to end use customers in 456
accordance with contracts, agreements or arrangements. [A] Any license 457
granted pursuant to this section shall be subject to periodic review on a 458
schedule to be established by the authority. 459
(d) An application for a license pursuant to this section shall be filed 460
with the Public Utilities Regulatory Authority [,] and accompanied by a 461
fee [pursuant to ] as specified in subsection (e) of this section. The 462
application shall contain such information as the authority may deem 463
relevant, including, but not limited to: [, the following:] (1) The address 464
of the applicant's headquarters and the articles of incorporation or 465
certificate of organization, as filed with the state in which the applicant 466
is incorporated or organized; (2) the address of the applicant's principal 467
office in the state, if any, or the address of the applicant's agent for 468
service in the state; (3) the applicant's toll-free telephone number for 469
customer service; (4) information about the applicant's corporate 470
structure, including names and financial statements, as appropriate, 471
concerning corporate affiliates; (5) a disclosure of whether the applicant 472
or any of the applicant's corporate affiliates or officers have been or are 473
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currently under investigation for the violation of any consumer 474
protection law or regulation , [to which it is subject, either ] whether in 475
this state or in another state; (6) a copy of [its] the applicant's standard 476
service contract; and (7) a scope of service plan which sets forth, among 477
other things, a description of the geographic area the applicant plans to 478
serve. 479
(e) The application fee shall include the costs to investigate and 480
administer the licensing procedure pursuant to this section and shall be 481
commensurate with the level of investigation necessary, as determined 482
by regulations adopted by the Public Utilities Regulatory Authority. 483
(f) Not more than thirty days after receiving an application, the Public 484
Utilities Regulatory Authority shall notify the applicant whether the 485
application is complete or whether the applicant must submit additional 486
information. The authority shall grant or deny a license application not 487
more than ninety days after receiving all information required of an 488
applicant. The authority shall hold a public hearing on an application 489
upon the request of any interested party. 490
(g) [As] Except as provided in subsection (h) of this section, as 491
conditions of continued licensure, in addition to the requirements of 492
subsection (c) of this section , a licensee shall : (1) [The licensee shall 493
comply] Comply with the National Labor Relations Act and regulations, 494
if applicable; (2) [the licensee shall] comply with the Connecticut Unfair 495
Trade Practices Act and applicable regulations; (3) operate each 496
[generating] generation facility [operated by or under long -term 497
contract to the licensee shall comply ] in compliance with chapter 277a, 498
and any state environmental laws and regulations adopted by the 499
Commissioner of Energy and Environmental Protection, pursuant to 500
section 22a-174j, or ensure that any generation facility with which the 501
licensee enters into a long-term contract complies with said chapter and 502
any such laws and regulations ; (4) [the licensee shall] comply with the 503
renewable portfolio standards established in or pursuant to section 16-504
245a; (5) [the licensee shall ] be a member of the New England Power 505
Pool or its successor or have a contractual relationship with one or more 506
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entities who are members of the New England Power Pool or its 507
successor, and [the licensee shall] comply with the rules of the regional 508
independent system operator and standards and any other reliability 509
guidelines of the regional independent systems operator; (6) [the 510
licensee shall] agree to cooperate with the authority and other electric 511
suppliers in the event of an emergency condition that may jeopardize 512
the safety and reliability of electric service; (7) [the licensee shall] comply 513
with the code of conduct established pursuant to section 16-244h; (8) for 514
a license to a participating municipal electric utility, [the licensee shall] 515
provide open and nondiscriminatory access to its distribution facilities 516
to other licensed electric suppliers; (9) [the licensee or the entity or 517
entities with whom the licensee has a contractual relationship to 518
purchase power shall be in compliance ] comply with all applicable 519
licensing requirements of the Federal Energy Regulatory Commission , 520
and ensure that any entity from whom the licensee purchases power 521
pursuant to a contract is in compliance with such requirements; (10) [the 522
licensee shall] offer and file with the authority a time-of-use [price] rate 523
option [to] for customers [. Such option shall include ] that includes a 524
two-part price [that is designed to achieve an overall minimization of ] 525
designed to minimize customer bills by encouraging the reduction of 526
electricity consumption during [the most energy intense hours of the 527
day. The licensee shall file its time-of-use rates with the Public Utilities 528
Regulatory Authority; (11) the licensee shall ] hours of peak demand ; 529
(11) acknowledge that it is subject to chapters 208, 212, 212a and 219, as 530
applicable, and [the licensee shall] pay all taxes it is subject to in [this] 531
the state; (12) [the licensee shall ] make available to the authority for 532
posting on the authority's Internet web site and [shall] list on the 533
licensee's own Internet web site, on a monthly basis, the highest and 534
lowest electric generation service rate charged by the licensee as part of 535
a variable rate offer in each of the preceding twelve months to any 536
customer with a peak demand of less than fifty kilowatts, cumulated of 537
all such customer's meters, during a twelve -month period; and (13) 538
provide, in any contract between [a] the licensee and a residential 539
customer eligible for standard service entered into on and after July 1, 540
2014, [shall provide ] for the same electric generation service rate that 541
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may not be exceeded for at least the first three billing cycles of the 542
contract, provided the licensee may decrease such rate at any time. [Also 543
as] As a condition of [licensure] maintaining a license pursuant to this 544
section, the authority shall prohibit [each] a licensee from declining to 545
provide service to [customers for the reason that the customers are] any 546
customer because such customer is located in economically distressed 547
[areas] area. The authority may establish additional reasonable 548
conditions for maintaining a license pursuant to this section to [assure] 549
ensure that all retail customers will continue to have access to electric 550
generation services. 551
(h) For any licensee that is a colocated electric supplier, the authority 552
may, in the authority's discretion, waive any of the requirements of 553
subsection (g) of this section. 554
[(h)] (i) The authority shall maintain regular communications with 555
the regional independent system operator to effectuate the provisions of 556
this section and to ensure that an adequate, safe and reliable supply of 557
electricity is available. 558
[(i)] (j) Each licensee shall, at such times as the authority requires, but 559
not less than annually, submit to the Public Utilities Regulatory 560
Authority, [on] in a form and manner prescribed by the authority, [an 561
update of ] updated information the authority deems relevant for a 562
licensee to maintain a license pursuant to this section. Each licensee shall 563
notify the authority [at least] not less than ten days before: (1) A change 564
in corporate structure that affects the licensee; (2) a change in the scope 565
of service, as provided in the licensee's scope of service plan submitted 566
to the authority as part of the application process; and (3) any other 567
change the authority deems relevant. 568
[(j)] (k) No license may be transferred, and no customer may be 569
assigned or transferred, without the prior approval of the authority. 570
[Notice of ] An electric supplier or a colocated electric supplier shall 571
provide notice of any such assignment or transfer [shall be provided to 572
the Public Utilities Regulatory Authority at least ] to the authority not 573
less than thirty days [prior to] before the effective date of the assignment 574
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or transfer of a customer from one electric supplier to another electric 575
supplier or from one colocated electric supplier to another colocated 576
electric supplier . The authority may, upon its review of such notice, 577
approve, require [certain] specific conditions or deny the assignment or 578
transfer of such customer. [Customer] The authority shall approve, 579
modify with conditions or deny the assignment or transfer [shall be 580
approved, modified or denied by the authority within ] not more than 581
thirty business days [of] after the authority's receipt of such notice from 582
the electric supplier or colocated electric supplier , unless the authority 583
and electric supplier or colocated electric supplier agree to a specified 584
extension of time, or such assignment or transfer is otherwise deemed 585
approved. The authority may [assess] impose additional licensing fees 586
to pay the administrative costs of reviewing a request for such transfer. 587
[(k)] (l) Any licensee who fails to comply with a license condition or 588
who violates any provision of this section, except for the renewable 589
portfolio standards contained in subsection (g) of this section, shall be 590
subject to civil penalties by the Public Utilities Regulatory Authority in 591
accordance with section 16-41, including direction that a portion of the 592
civil penalty be paid to a nonprofit agency engaged in energy assistance 593
programs named by the authority in its decision or notice of violation, 594
the suspension or revocation of such license and a prohibition on 595
accepting new customers following a hearing that is conducted as a 596
contested case in accordance with chapter 54. Notwithstanding the 597
provisions of subsection (b) of section 16 -244c regarding an alternative 598
transitional standard offer option or an alternative standard service 599
option, the authority shall require a payment by a licensee that fails to 600
comply with the renewable portfolio standards in accordance with 601
subdivision (4) of subsection (g) of this section in the amount of: (1) For 602
calendar years up to and including calendar year 2017, five and one-half 603
cents per kilowatt hour, (2) for calendar years commencing on January 604
1, 2018, and up to and including the calendar year commencing on 605
January 1, 2020, five and one-half cents per kilowatt hour if the licensee 606
fails to comply with the renewable portfolio standards during the 607
subject annual period for Class I renewable energy sources, and two and 608
one-half cents per kilowatt hour if the licensee fails to comply with the 609
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HB5469 / File No. 421 20

renewable portfolio standards during the subject annual period for 610
Class II renewable energy sources, and (3) for calendar years 611
commencing on and after January 1, 2021, four cents per kilowatt hour 612
if the licensee fails to comply with the renewable portfolio standards 613
during the subject annual period for Class I renewable energy sources, 614
and two and one -half cents per kilowatt hour if the licensee fails to 615
comply with the renewable portfolio standards during the subject 616
annual period for Class II renewable energy sources. On or before 617
December 31, 2013, the authority shall issue a decision, following an 618
uncontested proceeding, on whether any licensee has failed to comply 619
with the renewable portfolio standards for calendar years up to and 620
including 2012, for which a decision has not already been issued. On 621
and after June 5, 2013, the Public Utilities Regulatory Authority shall 622
annually conduct an uncontested proceeding in order to determine 623
whether any licensee has failed to comply with the renewable portfolio 624
standards during the preceding year. Not later than December 31, 2014, 625
and annually thereafter, the authority shall, following such proceeding, 626
issue a decision as to whether the licensee has failed to comply with the 627
renewable portfolio standards during the preceding year. The authority 628
shall allocate such payment to the Clean Energy Fund for the 629
development of Class I renewable energy sources, provided, on and 630
after June 5, 2013, any such payment shall be refunded to ratepayers by 631
using such payment to offset the costs to all customers of electric 632
distribution companies of the costs of contracts and tariffs entered into 633
pursuant to sections 16-244r, 16-244t and section 16-244z, except that, on 634
and after January 1, 2023, any such payment that is attributable to a 635
failure to comply with the Class II renewable portfolio standards shall 636
be deposited in the sustainable materials management account 637
established pursuant to section 16-244bb. Any excess amount remaining 638
from such payment shall be applied to reduce the costs of contracts 639
entered into pursuant to subdivision (2) of subsection (j) of section 16 -640
244c, and if any excess amount remains, such amount shall be applied 641
to reduce costs collected through nonbypassable, federally mandated 642
congestion charges, as defined in section 16 -1, as amended by this act. 643
For any licensee that is a colocated electric supplier, the authority may, 644
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HB5469 / File No. 421 21

in the authority's discretion, waive or modify any of the requirements 645
of this subsection. 646
[(l) (1) An] (m) (1) No electric aggregator shall [not] be subject to the 647
provisions of subsections (a) to [(k)] (l), inclusive, of this section. 648
(2) No electric aggregator shall negotiate a contract for the purchase 649
of electric generation services from an electric supplier unless such 650
aggregator has (A) obtained a certificate of registration from the Public 651
Utilities Regulatory Authority in accordance with this subsection, or (B) 652
in the case of a municipality, regional water authority and the MIRA 653
Dissolution Authority, registered in accordance with section 16 -245b. 654
An electric aggregator that was licensed pursuant to this section prior to 655
July 1, 2003, shall receive a certificate of registration on July 1, 2003. 656
(3) An electric aggregator shall file an application for a certificate of 657
registration [shall be filed] with the authority, accompanied by a fee as 658
determined by the authority. The application shall contain such 659
information as the authority [may deem] deems relevant, including, but 660
not limited to : [, the following: ] (A) The address of the applicant's 661
headquarters and the articles of incorporation or certificate of 662
organization, if applicable, as filed with the state in which the applicant 663
is incorporated or organized; (B) the address of the applicant's principal 664
office in the state, if any, or the address of the applicant's agent for 665
service in the state; (C) the toll -free or in-state telephone number of the 666
applicant; (D) information about the applicant's corporate structure, if 667
applicable, including financial names and financial statements, as 668
relevant, concerning corporate affiliates; and (E) disclosure of whether 669
the applicant or any of the applicant's corporate affiliates or officers, if 670
applicable, have been or are currently under investigation for violation 671
of any consumer protection law or regulation to which it is subject, 672
either in this state or in another state. Each registered electric aggregator 673
shall [update] provide updates of the information contained in this 674
subdivision to the authority as necessary. 675
(4) Not more than thirty days after receiving an application for a 676
certificate of registration, the authority shall notify the applicant 677
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HB5469 / File No. 421 22

whether the application is complete or whether the applicant must 678
submit additional information. The authority shall grant or deny the 679
application for a certificate of registration not more than ninety days 680
after receiving all information required of an applicant. The authority 681
shall hold a public hearing on an application upon the request of any 682
interested party. 683
(5) As a condition for maintaining a certificate of registration, the 684
registered electric aggregator shall ensure that, where applicable, [it] 685
such aggregator complies with the National Labor Relations Act and 686
regulations, if applicable, and [it complies] with the Connecticut Unfair 687
Trade Practices Act and applicable regulations. 688
(6) Any registered electric aggregator that fails to comply with a 689
registration condition or violates any provision of this section shall be 690
subject to civil penalties by the Public Utilities Regulatory Authority in 691
accordance with the procedures contained in section 16 -41, or the 692
suspension or revocation of such registration, or a prohibition on 693
accepting new customers following a hearing that is conducted as a 694
contested case in accordance with the provisions of chapter 54. 695
(n) In addition to the requirements of subsections (c) to (l), inclusive, 696
of this section, unless any requirement contained in said subsections has 697
been waived by the authority as provided in said subsections, to be 698
eligible to receive and maintain a license under this section, a colocated 699
electric supplier shall file an application for such license with the 700
authority that conforms with the requirements of this subsection. To 701
receive and maintain a license under this section, the authority shall 702
require that a colocated electric supplier shall: 703
(1) Supply not less than one hundred per cent of the anticipated 704
electric load of the large load electric customer served by such supplier, 705
plus an additional amount to cover a specified reserve margin as 706
determined by the authority, from a generation source that enters 707
service on or after July 1, 2026, or from an incremental increase to an 708
existing generation resource's nameplate capacity determined by the 709
authority to be adequate to meet the requirements of this section. 710
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Notwithstanding the provisions of this subdivision, the authority may 711
waive the requirement that a colocated electric supplier supply the 712
entire anticipated electric load of such customer, or for a reserve margin, 713
if the authority deems that such waiver is (A) in the best interest of all 714
ratepayers in the state, (B) consistent with the integrated resources plan 715
developed pursuant to section 16a -3a, if applicable, and (C) consistent 716
with the comprehensive energy strategy developed pursuant to section 717
16a-3d, if applicable; 718
(2) File an annual report with the authority that describes the 719
generation and load characteristics of the colocated electric supplier and 720
large electric load customer to demonstrate to the authority that the 721
colocated electric supplier remains in compliance with the provisions of 722
subdivision (1) of this subsection; and 723
(3) Comply with the provisions of section 16 -245a that apply to an 724
electric supplier, provided, for any generation source used by a 725
colocated electric supplier that enters service on or after December 31, 726
2030, the authority may require that the colocated electric supplier retire 727
a greater number of certificates issued by the New England Power Pool 728
Generation Information System than is otherwise required by section 729
16-245a if the authority finds that the integrated resources plan adopted 730
pursuant to section 16a-3a supports such a requirement. 731
(o) Any person, municipality or regional water authority may seek a 732
declaratory ruling from the authority to determine whether any existing 733
project or any project planned or proposed by such person, municipality 734
or authority will be deemed a colocated electric supplier pursuant to this 735
section. The authority may, on its own motion, open a proceeding to 736
investigate any person supplying electricity to any large electric load 737
customer or any potential large electric load customer to determine 738
whether the person supplying such electricity to such customer is acting 739
as a colocated electric supplier without a license issued pursuant to this 740
section. 741
(p) (1) Not later than April 1, 2027, each electric distribution company 742
and municipal utility shall file with the authority a proposal for a tariff 743
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HB5469 / File No. 421 24

concerning the provision of electricity to large load electric customers 744
that interconnect to the distribution or transmission system in the state 745
after October 1, 2026. Except for any large electric load customer served 746
by a colocated electric supplier, such tariff shall, at a minimum, require 747
any such customer to contract with or otherwise provide for a 748
generation source that supplies not less than one hundred per cent of 749
the anticipated electric load of such customer, plus an additional 750
amount to cover a specified reserve margin as determined by the 751
authority, from a generation source that enters service on or after July 1, 752
2026, and that has not previously cleared a capacity market auction of 753
the regional independent system operator. The tariff shall account for 754
any potential transmission or distribution impacts of any large electric 755
load customer on all other ratepayers in the state, including any large 756
electric load customers served by a colocated electric supplier. 757
(2) (A) Upon the filing of a tariff proposal by an electric distribution 758
company or municipal utility pursuant to this subsection, the authority 759
shall initiate a proceeding to review and seek public comment on any 760
such proposal. In determining whether to approve or modify any such 761
proposal, the authority shall consider whether the proposed tariff 762
reasonably protects ratepayers who are not large electric load customers 763
against increased retail rates due to new or increased transmission, 764
distribution, capacity, energy or other costs resulting solely or primarily 765
from serving large electric load customers. 766
(B) In carrying out the provisions of this section, the authority shall 767
require each electric distribution company or municipal utility to: (i) 768
Ensure that any new large electric load customer provides adequate 769
financial guarantees that such customer shall pay for not less than 770
eighty-five per cent of the electric service requested by such customer 771
for a period of not less than ten years after electric service commences 772
for such customer; (ii) require any new large electric load customer to 773
demonstrate, to the reasonable satisfaction of the authority, that the 774
project proposed by such customer is unique and not duplicative of any 775
other large electric load customer project, whether located in the state or 776
elsewhere, and to identify the project's interdependencies; (iii) in 777
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HB5469 / File No. 421 25

addition to any other security required by the authority, provide for the 778
posting of deposits or financial security, in a form approved by the 779
authority, sufficient to protect ratepayers against a material increase in 780
rates should the large electric load customer project cease operations or 781
require less electric service than anticipated over the ten -year period 782
beginning when service commences; and (iv) implement any other 783
provisions that the authority deems necessary to protect ratepayers in 784
the state. 785
(C) Notwithstanding the provisions of subdivision (1) of this 786
subsection, the authority may waive the requirement that a large electric 787
load customer not served by a colocated electric supplier be served by a 788
generation source that enters service on or after July 1, 2026, and that 789
has not previously cleared a capacity market auction of the regional 790
independent system operator, if the customer demonstrates to the 791
authority the customer has sufficient electric demand flexibility to 792
eliminate the need for such generation. The authority shall have the 793
discretion to determine what constitutes an appropriate level of electric 794
demand flexibility. In exercising its discretion under this subparagraph, 795
the authority shall consider how the regional independent system 796
operator treats electric demand or operational flexibility in transmission 797
and resource adequacy planning. 798
(q) Not later than January 1, 2027, the authority shall initiate a 799
proceeding to implement the requirements of subsections (n) to (p), 800
inclusive, of this section. 801
(r) Nothing in this section shall be construed to limit the authority of 802
the Connecticut Siting Council to act with respect to the siting of any 803
facility. 804
Sec. 3. Subsection (a) of section 16 -245w of the general statutes is 805
repealed and the following is substituted in lieu thereof (Effective July 1, 806
2026): 807
(a) As used in this section, "self -generation facility" means a facility 808
that (1) generates electricity, (2) is owned or operated by an entity other 809
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HB5469 / File No. 421 26

than an electric distribution company, [as defined in section 16-1, or] an 810
electric supplier, or a colocated electric supplier, as those terms are 811
defined in [said] section 16-1, as amended by this act, and (3) operates 812
in parallel with other generation on the distribution system of an electric 813
distribution company and which reduces or eliminates the purchase of 814
electricity through the distribution network.815
This act shall take effect as follows and shall amend the following
sections:

Section 1 July 1, 2026 16-1(a)
Sec. 2 July 1, 2026 16-245
Sec. 3 July 1, 2026 16-245w(a)

ET Joint Favorable

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HB5469 / File No. 421 27

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: None
Municipal Impact: None
Explanation
The bill requires the Public Utilities Regulatory Authority (PURA) ,
by January 1, 2027, to open a proceeding on co-located supplier licenses
and tariffs for grid -connected large load electric customers . This is not
expected to result in a fiscal impact as PURA has the staff and expertise
necessary to do so. The bill makes other changes to electric distribution
companies and co-located electric suppliers, which has no fiscal impact
on the state.
Rate Payer Impact
The bill subjects co -located suppliers to the same licensing
procedures and provisions as retail electric suppliers and establishes
new tariffs for grid -connected large load electric customers that
interconnect to the state’s distribution or transmission system after
October 1, 2026 (grid -connected large load customers). The changes
implemented within the bill ensure that existing utility customers do not
pay the total costs related to interconnecting new large electric load
customers, which could result in savings to rate payers.
Additionally, by controlling load growth rate payers are less likely to
incur additional costs. The net impact, which is anticipated to yield
lower costs to rate payers , is indeterminate and would be dependent
upon various decisions that are outside the immediate scope of the bill.
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The Out Years
State Impact: None
Municipal Impact: None

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HB5469 / File No. 421 29

OLR Bill Analysis
HB 5469

AN ACT CONCERNING COLOCATED ELECTRIC SUPPLIERS AND
LARGE ELECTRIC LOAD CUSTOMERS.

SUMMARY
This bill generally establishes a framework for regulating the electric
supply of certain large electric load customers (for example, large data
centers). Primarily, the bill (1) sets licensure requirements for co-located
electric suppliers who provide electricity to large load customers and (2)
requires the electric distribution companies (EDCs ; Eversource and
United Illuminating) to create new tariffs (rate schedules and related
requirements) for providing electricity to other large electric load
customers that interconnect to the state’s distribution or transmission
system after October 1, 2026 (grid-connected large load customers).
Under the bill, a “large electric load customer ” is any electric
customer whose peak demand is at least 50 megawatts. A “co -located
electric supplier ” is any person (including entities) that provides, or
plans to provide, electric generation services to a large electric load
customer (1) through a physical connection behind the customer’s point
of interconnection with the electric distribution or transm ission system
(for example, behind -the-meter on -site generation) or (2) if both the
supplier and the customer have no connection to the electric distribution
or transmission system (generation that connects only with the
customer and not the grid).
The bill generally subjects co-located suppliers to the same licensing
procedures and provisions as retail electric suppliers, including
provisions that require licensees to annually submit certain information
to the Public Utilities Regulatory Authority (PURA) and prohibit
transferring a license without PURA’s approval . However, the bill also
allows PURA to waive certain provisions. It also sets certain licensing
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criteria specific to co-located suppliers, such as a requirement for them
to supply all of their large electric load customer’s anticipated electric
load, plus an additional amount to cover a specified reserve margin,
with energy from new generation (that entered service after July 1,
2026), subject to certain exceptions.
Through the new tariffs for grid -connected large electric load
customers, the bill generally requires, among other things:
1. the customer to contract with new generation for all of the
customer’s anticipated electric load, plus an additional amount
to cover a specified reserve margin;
2. PURA to consider, when deciding whether to approve the tariff,
whether it reasonably protects other ratepayers against increased
retail rates due to new or increased transmission, distribution,
capacity, energy, or other costs; and
3. the EDCs to ensure that a new large electric load customer has
adequate financial guarantees to pay for at least 85% of its
requested electric service for at least 10 years.
The bill requires PURA, by January 1, 2027, to open a proceeding to
implement the bill’s provisions on co -located supplier licenses and
tariffs for grid -connected large electric load customers. It also makes
numerous minor, technical, and conforming changes.
EFFECTIVE DATE: July 1, 2026
CO-LOCATED ELECTRIC SUPPLIERS
The bill requires any person, municipality, or regional water
authority that wants to sell, attempt to sell, or otherwise provide electric
generation services to a large electric load customer in a co -located or
behind-the-meter arrangement to first obtain a co -located electric
supplier license from PURA.
Licensing Provisions Specific to Co-Located Suppliers
The bill generally requires a co -located electric supplier licensee to
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meet the same licensing process and requirements as a licensed retail
electric supplier, although it also allows PURA to waive or modify many
of them (see below). However, it also adds additional requirements
specific to co-located electric supplier licenses.
More specifically, to qualify for a license a co-located electric supplier
must file an application with PURA. The bill sets licensure requirements
on new generation, annual reporting, and renewable portfolio standard
(RFS) compliance, as described below.
Supply From New Generation. The co-located supplier must supply
at least 100% of its large electric load customer’s anticipated electric
load, plus an additional amount to cover a specified reserve margin
determined by PURA, from a generation source that enters service on or
after J uly 1, 2026, or from an incremental increase to an existing
generation resource’s nameplate capacity that PURA determines to be
adequate. However, PURA may waive this requirement if it is (1) in the
best interest of all ratepayer s in the state; (2) consistent with the state’s
Integrated Resources Plan (IRP), if applicable; and (3) consistent with
the state’s Comprehensive Energy Strategy, if applicable.
Annual Report. The co-located supplier must file an annual report
with PURA that describes the generation and load characteristics of the
co-located supplier and large electric load customer to show PURA that
the co -located supplier complies with the supply requirements
described above.
Renewable Portfolio Standard. The co -located supplier must
comply with the state’s RFS requirements for retail electric suppliers.
However, for any generation source used by a co -located supplier that
enters service on or after December 31, 2030, PURA may require the co-
located supplier to retire a greater number of regional renewable energy
certificates than the RPS requires if PURA finds that the IRP supports
such a requirement.
Generally, the RPS law requires EDCs and retail suppliers to procure
an increasing portion of their power from certain renewable and other
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clean energy resources.
Applicable Retail Supplier Licensing Provisions
As mentioned above, the bill also generally requires a co -located
electric supplier to meet the same licensing process and requirements as
a licensed retail electric supplier. Among other things, these provisions
generally:
1. allow PURA to condition a license on proof that the applicant’s
products are not overpriced or harmful to residential customers;
2. require a license applicant to show that it has the technical,
managerial, and financial capability to provide electric
generation services and maintain a bond or other security to
ensure its financial responsibility;
3. specify the license application and approval process;
4. require a licensed supplier to notify PURA at least 10 days in
advance of a change in its corporate structure or scope of service;
5. require PURA’s approval before a license or customer may be
assigned or transferred; and
6. allow PURA to issue civil penalties for noncompliance with the
supplier licensing laws.
Retail Supplier Requirements That PURA May Waive for Co-
Located Suppliers
The bill allows PURA, in its discretion, to waive or modify for a co -
located electric supplier certain provisions that currently apply to
licensed retail electric suppliers. Among other things, these provisions
generally require licensed suppliers to:
1. comply with the National Labor Relations Act, if applicable, and
the Connecticut Unfair Trade Practices Act;
2. have their generating facilities comply with state laws on siting
electric generation facilities and emissions;
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3. comply with the state’s RPS law;
4. join the New England Power Pool and comply with the regional
independent system operator’s (ISO-NE) rules and guidelines;
5. agree to cooperate with PURA if there is an emergency condition
that may jeopardize the safety and reliability of electric service;
6. comply with the code of conduct for EDCs;
7. comply with the Federal Energy Regulatory Commission’s
applicable licensing requirements;
8. offer a time-of-use price option to customers; and
9. acknowledge that it is subject to certain state taxes and pay all
state taxes it is subject to.
The bill also allows PURA, in its discretion, to waive or modify for a
co-located electric supplier current provisions that generally (1) subject
licensed suppliers to PURA-imposed civil penalties for failing to comply
with their licensing conditions or vi olating the supplier licensing law
and (2) require certain payments by and procedures for suppliers who
fail to meet certain RPS requirements.
Declaratory Rulings
The bill allows any person, municipality, or regional water authority
to seek a declaratory ruling from PURA to determine whether any
existing project or any project they planned or proposed will be deemed
a co -located electric supplier. The bill also allo ws PURA, on its own
motion, to open a proceeding to investigate any person supplying
electricity to a large electric load customer or a potential large electric
load customer to determine whether the person is acting as an
unlicensed co-located electric supplier.
GRID-CONNECTED LARGE ELECTRIC LOAD CUSTOMERS
The bill requires each EDC and municipal utility, by April 1, 2027, to
file with PURA a proposal for a tariff on providing electricity to large
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electric load customers that interconnect to the distribution or
transmission system in the state after October 1, 2026. (The bill does not
define “municipal utility ,” but p resumably, this would only include
municipal electric companies.)
Except for large electric load customers served by a co-located electric
supplier, the tariff must at least require the large load customer to
contract with or otherwise provide for a generation source that supplies
at least 100% of the customer’s anticipa ted electric load, plus an
additional amount to cover a specified reserve margin determined by
PURA, from a generation source that enters service on or after July 1,
2026, and that has not previously cleared an ISO -NE capacity market
auction. The tariff mu st also account for any potential transmission or
distribution impacts of any large electric load customer on all other
ratepayers in the state, including any large electric load customers
served by a co-located electric supplier.
Once an EDC or municipal utility files the tariff, the bill requires
PURA to open a proceeding to review and seek public comment on the
proposal. In determining whether to approve or modify the proposal,
PURA must consider whether it reasonably protects ratepayers who are
not large electric load customers against increased retail rates due to
new or increased transmission, distribution, capacity, energy, or other
costs resulting solely or primarily from serving large electric load
customers.
The bill requires PURA, in carrying out the bill’s provisions, to
require each EDC or municipal utility to:
1. ensure that any new large electric load customer has adequate
financial guarantees that it will pay for at least 85% of the electric
service it requests for at least 10 years after its electric service
begins;
2. require any new large electric load customer to (a) show, to
PURA’s reasonable satisfaction, that its proposed project is
unique and not duplicative of any other large electric load
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customer project, whether located in the state or elsewhere, and
(b) identify the project’s interdependencies;
3. provide for the posting of deposits or financial security, in a
PURA-approved form (and in addition to any other PURA -
required security), sufficient to protect ratepayers against a
material rate increase if the large electric load customer project
ceases operations or requires less electric service than anticipated
over the 10-year period after service begins; and
4. implement any other provisions that PURA deems necessary to
protect ratepayers in the state.
The bill allows PURA, regardless of the bill’s tariff provisions, to
waive the new generation requirement for a large electric load customer
that does not have a co -located electric supplier (the requirement to be
served by a generation source that enters service on or after July 1, 2026,
and that has not previously cleared an ISO-NE capacity market auction).
To do so, the customer must show PURA that it has sufficient electric
demand flexibility to eliminate the need for the generation. The bill
gives PURA discretion to determine what constitutes an appropriate
level of electric demand flexibility. But in exercising this discretion,
PURA must consider how ISO-NE treats electric demand or operational
flexibility in transmission and resource adequacy planning.
OTHER PROVISIONS
The bill specifies that it does not limit the Connecticut Siting
Council’s authority to act on siting any facility. It also specifies that a co-
located electric supplier is not a “self-generation facility.” Generally, the
law requires customers who have in stalled self-generation facilities to
pay a PURA-determined fee to offset any revenue loss or potential loss
to the competitive transition assessment, the systems benefits charge,
the conservation adjustment mechanisms, and the Clean Energy Fund
assessment charged on ratepayers’ electric bills.

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COMMITTEE ACTION
Energy and Technology Committee
Joint Favorable
Yea 26 Nay 0 (03/19/2026)