Connecticut Energy Advisory Board
2007 Connecticut Energy Plan
Executive Summary
Background
Pursuant to Public Act 03-140, the Connecticut Energy Advisory Board (CEAB) will submit a comprehensive energy plan each year to the joint standing committees of the Connecticut General Assembly having cognizance of matters relating to energy, environment and transportation. CEAB’s goal is to outline for Connecticut’s state policymakers the initiatives that will be key to achieving the state’s long-term visionary goals and that will help the state to create a successful energy policy.
The 2007 Connecticut Energy Plan is a restating of and a recommitment to many of the initiatives developed for the 2006 Connecticut Energy Plan. The structure of the 2007 plan is significantly more comprehensive in order to address energy supply and demand issues and mitigating strategies responsive to the current and forecasted energy environment in the state and region.
In 2005 and 2006, Connecticut energy users experienced the impact of world and national events that may have signaled the end of a period of abundant, moderately priced energy. It became clear that a change in supply and demand anywhere in the world affects the price everywhere, including here in Connecticut. This issue presents circumstances that threaten the state’s economy, the reliability of its energy supply and the overall quality of life for Connecticut residents.
During 2006, oil prices stabilized on the world markets at $60 to $70 per barrel.
Connecticut gasoline prices averaged $2.50 to $3.00 a gallon.
Electric rates for Connecticut Light and Power Company (CL&P) customers increased over 22% and similarly substantial increases are expected for The United Illuminating Company (UI) customers.
Home heating costs for last winter increased 50% for oil and 60% for natural gas.
2005 and 2006 have also been landmark years in Connecticut for initiating forward thinking energy policies. During the past two years Connecticut has faced large increases in the price of all energy sources. The Governor, the Connecticut State Legislature, State agencies and the public clearly recognizing the gravity of these issues, have underwritten the following initiatives addressing energy pricing, reliability and environmental issues in Connecticut:
Approval of the 2005 Climate Change Action Plan, June 2005
Adoption of the Conservation and Development Plan 2005-2010, June 2005
Passage of PA 05-204: An Act Establishing a Low-Income Energy Assistance Advisory Board, July 2005
Passage of PA 05-1: An Act Concerning Energy Independence (EIA), July 2005
Passage of PA 05-2 Special Session: An Act Concerning Home Heating Assistance, October 2005
Development of CEAB’s Near Term and Long Term Final Report on Requirements for Reliability and Mitigation of Federally Mandated Congestion Charges (FMCC) September 2005 and November 2006
Finalization of the ISO-NE capacity market Settlement March 2006 (approved June 2006)
On-going construction of Phase 2 of the transmission improvement project connecting Middletown to Norwalk at 345 KV and completion of Phase I Transmission Line Upgrade from Norwalk to Bethel in the third quarter of 2006
Passage of Public Act No. 06-136: An Act Concerning the Roadmap for Connecticut’s Economic Future, June 2006, addressing transportation issues
Passage of PA 06-161: An Act Concerning Clean Cars, June 2006
Issuance of Long Range RFP by the DPUC, September 2006
Issuance of Governor Rell’s CT’s Energy Vision for a Cleaner, Greener State, September 2006
Having the responsibility to provide the Connecticut State Legislature with an annual energy plan, the CEAB has developed the 2007 plan with a focus on assuring an adequate and reliable energy supply, and mitigating adverse monetary impacts to Connecticut’s energy users for each of the major energy sources. In addition, the plan provides information on the impact of rising energy costs on low-income residents and the progress made in promoting sustainable development. The CEAB continues to recommend the adoption of a statewide goal to reduce peak electric demand by 10% and reduce the use of fossil fuels by 10%. This 10% by 2010 goal is in line with the goals of the New England Governors/Eastern Canadian Premiers Climate Change Action Plan, the Connecticut Climate Change Action Plan, the recently adopted Environmental Protection Agency’s 10% challenge and the request by Governor M. Jodi Rell to all State agencies to reduce consumption in State facilities by 10%.
The CEAB’s statutory responsibilities also include, establishing criteria for evaluating energy proposals; participating in various Connecticut Siting Council proceedings; implementing and conducting requests for proposals (RFPs) to solicit energy projects; and representing the State in regional energy system planning processes conducted by New England’s Independent System Operator, ISO-NE. Together, these functions enable Connecticut to facilitate energy solutions that further the state’s energy, environmental and economic development objectives and Connecticut consumers’ interests. In response to the requirements of Public Act 03-140, the 2007 Energy Plan includes:
The assessment of the current energy supplies, demand and cost found within the first five sections devoted to specific fuels and in Part 3 - Connecticut’s Energy Profile.
An identification and evaluation of the factors likely to affect future energy supplies, demand and costs found in Appendix C links to the following reports: Near Term Requirements Report; Phase II Final Report on Requirements for Reliability and Mitigation of FMCCs; Forecast Report of Capacity, Energy, Loads, and Transmission 2004 - 2013; and Review of the Ten Year Forecast of Connecticut Electric Loads and Resources 2005-2014.
A statement of progress made toward long-term goals set in the previous reports found in Part 1 - Progress on 2006 Goals.
Recommendations for decreasing dependency on fossil fuels by promoting energy conservation, solar and other alternative energy sources; found throughout the plan but specifically in Part 2, Section 3 - Petroleum and Part 2, Section 4 - Renewable Energy and Alternate Fuels.
An assessment of the infrastructure of the state for natural gas and electric systems found in Part 2, Section 1 - Electricity and Section 2 - Natural Gas and in the Appendix links to Near Term Requirements Report; Phase II Final Report on Requirements for Reliability and Mitigation of FMCCs; Forecast Report of Capacity, Energy, Loads, and Transmission 2004 - 2013; and Review of the Ten Year Forecast of Connecticut Electric Loads and Resources 2005-2014.
An evaluation of the impact of regional transmission infrastructure planning processes conducted by the regional independent system operator, as defined in section 16-1 of the general statutes, on the state’s environment, on energy market design, and economic development in the state found in Part 2, Section 1 - Electricity and in Appendix C links to Near Term Requirements Report; Forecast Report of Capacity, Energy, Loads, and Transmission 2004 - 2013; and Review of the Ten Year Forecast of Connecticut Electric Loads and Resources 2005-2014.
The consideration of alternative energy planning mechanisms and targets as an alternative to integrated resource planning found in the CEAB Preferential Criteria and links to the Connecticut Conservation and Development Plan 2005-2010.
A statement of energy policies and long-range energy planning objectives and strategies appropriate to achieve, among other things, the least-cost mix of energy supply sources and measures that reduce demand for energy, giving due regard to such factors as ratepayer impacts, security and diversity of fuel supplies and energy generating methods, protection of public health and safety, adverse or beneficial environmental impacts, conservation of energy and energy resources and the ability of the state to compete economically found in recommendations throughout the 2007 Connecticut Energy Plan.
Recommendations for administrative and legislative actions to implement such policies, objectives and strategies found in recommendations throughout the 2007 Connecticut Energy Plan.
Federally-Mandated Congestion Costs
Effective January 1, 2004, federal law requires that two line item charges for congestion costs, energy-related and/or reliability-related costs be added to customer bills. They are defined as charges to the consumer resulting from deficiencies in the electricity transportation system. Congestion costs occur when a more costly generator is dispatched before a less costly one because there isn't adequate transmission capacity to get the generation from the less costly plant to the load center that needs it.Source: WattsNewCT.com
