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The Fairfield County Economy Energy Independence

The Fairfield County Economy Energy Independence. The United Illuminating Company Anthony J. Cortiglio May 10, 2006. It’s A Journey. Where Are We? Where Do We Want To Be? How Do We Get There?. Where Are We?. Not enough efficient generation in Connecticut

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The Fairfield County Economy Energy Independence

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  1. The Fairfield CountyEconomyEnergy Independence The United Illuminating Company Anthony J. Cortiglio May 10, 2006

  2. It’s A Journey • Where Are We? • Where Do We Want To Be? • How Do We Get There?

  3. Where Are We? • Not enough efficient generation in Connecticut • Inadequate transmission infrastructure to import energy and move it around • Electric load in southwest Connecticut continues to grow • Summertime system instability continues to be a threat

  4. Where Do We Want To Be? Transmission and generation resources provide reliable, cost effective energy to support robust growth in the economy of southwest Connecticut

  5. How Do We Get There? • Complete the transmission projects currently under way in southwest Connecticut (345 kV lines, Bethel and Middletown to Norwalk) • Encourage the addition of generation resources • Continue to support conservation, load management and clean energy initiatives • Promote the actions of the Connecticut Energy Independence legislation

  6. C&LM Fund • Conservation and energy efficiency projects • Lighting, motors chillers, energy management systems • Customer side resource • Incentives to reduce usage or invest in more energy efficient equipment • Incentives up to 50% of project cost • Fund source: utility Public Benefits Charge

  7. CT Clean Energy Fund • Renewable energy sources • Fuel cells, wind, hydro, biogas • Grants up to 50% of project cost • Fund source: utility Public Benefits Charge

  8. CT Energy Independence Act • Enacted by the Connecticut State Legislature in 2005 • Purpose – to reduce long term costs by authorizing and incenting customer side projects (short term and long term) • Implemented by the Connecticut DPUC in Dockets 05-07-14PH1 and 05-07-17

  9. CT EI Load Response Program (Short Term) • Emergency load reduction including curtailment and backup generation • Existing capacity • Customer side • No capital grants • Incentives for performance only • Current Incentive $80 per kW-year • Funding source: utility FMCC

  10. CT EI DG – Base Load +/or Combined Heat and Power • Retail customers on the T&D grid • Located in UI or CL&P territory • Siting new or incremental capacity • Grant application by customer directly to the DPUC • Excluded – existing capacity • Funding source: utility FMCC

  11. CT EI DG – Base Load +/or Combined Heat and Power • Utility interconnect agreement – approved after July 21, 2005 • Designed to run at 85% capacity during designated times • Summer: June 1 to September 30 • Winter: January 1 to February 29 • Hours: 12:00 to 8:00 PM weekdays • Commitment: 5 years from in-service date

  12. CT EI DG – Base Load +/or Combined Heat and Power Financial Incentives • Grants up to $450 per kW to reimburse capital costs • Additional $50 per kW in SWCT if operational before 4/30/2008 • Financing - interest buy down of at least 1% • Gas distribution credit • No customer electric utility demand-ratchet or back-up charges for new capacity • Grant paid at start of operation

  13. CT EI DG – Emergency and Backup Generation • Retail customers on the T&D grid • Located in UI or CL&P territory • Siting emergency or back-up generation • Grant application by customer directly to the DPUC • Excluded – existing capacity • Excluded – sites required by federal or state statutes to have generators e.g. health care facilities

  14. CT EI EG – Emergency and Backup Generation • Utility interconnect agreement – approved after July 21, 2005 • Run only when called by ISO • Designed to run during ISO-NE OP4 Action 12 emergency events and for test • Emergency events may occur at any time but typically occur during summer months • Hours: 7:00 AM to 6:00 PM weekdays • Commitment: 5 years from in-service date

  15. CT EI DG – Emergency and Backup GenerationFinancial Incentives • Grants up to $200 per kW to reimburse capital costs • Additional $50 per kW in SWCT if operational before 4/30/2008 • Financing - interest buy down of at least 1% • Grant paid at start of operation

  16. CT EI EG – Emergency and Backup GenerationFinancial Incentives (con’t) • Must Register for ISO-NE 30 Minute RT Demand Program • Eligible for ICAP payments starting December 2006 at about $40 per kW year • Not eligible for supplemental capacity payments • Funding source EI Act

  17. Questions?

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