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