TOWN OF WINDHAM RENEWABLE ENERGY COMMITTEE Minutes of the Regular Meeting, March 26th, 2008 Windham Town Hall, Courtroom 979 Main Street Willimantic
Members Present: Chairman Leo Santucci, Mary Lou Devivo, Dick Bloomer, Grace Adams, and Meg Jones.
Also Present: Town Staff, First Selectwoman Jean DeSmet, Town Engineer Joe Gardner and Water Superintendent Jim Hooper
Members not present: Nancy Tinker, Adam Brzozowski
Public: Lee Hebert, Boston Power Supplies, Inc, Several Town of Lebanon Residents.
Chairman Santucci called the meeting to order at 9:05 AM
Citizens and Delegations: None
Approval of Previous Minutes: M. Devivo motioned to approve the minutes from the March 12th, 2008 Regular Meeting, seconded by D. Bloomer. Unanimously approved.
Update on Energy Audit: J. Gardner addressed the commission. Joe recently gave E.C.S.U. info regarding Town of Windham accounts. They will be generating a report, in mid April. J. Gardner determined which of the Towns 54 accounts could be combined or eliminated. Four small streetlight accounts were identified, two may be eliminated. Joe will have the two accounts disconnected and look at the remaining accounts for the potential of solar or solar storage.
D. Bloomer gave an in-depth presentation on the following. 1. Connecticut Clean Energy initiative 20% Renewable by 2010. 2. Potential Sources for electrical Energy Independence 3. Review of Municipal Power Companies. 4. Peaker Power Plant (Proposed Card) See attachments. New Business: Chairman L. Santucci stated he has prepared a letter for State Representative Walter Pawelkiewicz and Senator Don Williams requesting that Windham become the model for all phases of Energy Conservation, Efficiency and Renewable Energy.
Chairman Santucci distributed information to J. Hooper on American Hydrogen Associations fuel cell powered vehicles.
Chairman Santucci distributed information about E.C.S.U. will celebrate Earth Week April 12th- 25th.
Chairman Santucci tasked Meg Jones to compile a list of pertanate energy web bookmarks for distribution to committee members.
J. De Smet updated the commission with the electric generation proposals. The Tentative date for both CCM and Northeast Energy Partners final proposals will be April 22nd, 2008.
J. De Smet discussed the possibilities of Bio Fuel from grease waste. She will pass along the info to Bill Leahy of E.C.S.U.
J. De Smet also stated that Adam and she met with the Fire Marshal to discuss the use of their heat imaging equipment. It was determined that equipment will not work for the application we need to detect heat loss.
Lee Hebert, discussed power available on the ISO grid verses real time energy consumption. See attachment.
M. Devivo stated information from the Conn Power and Energy Society seminar.
Selection of Next Meeting Date:
A site walk at the Windham Water Department is scheduled for Wednesday April 9th, 2008 at 9:00 AM to view their existing water turbine.
The next scheduled meeting date will be Wednesday, April 23rd, 2008 at 10:30AM at the Windham Town Hall Courtroom.
Citizens and Delegations: Several Town of Lebanon residents stated their concerns with CL&P’s Peaking Generating facility proposal located on 141 Card Street in Lebanon.
Adjournment: 11:20 AM Minutes Taken and Submitted by J. Hooper
Notes-Speaker L. Hebert
March 26, 2008
Mr. Hebert presented a graph showing 2 electrical grid curves. These represented a 24 hour period. The first showed electrical capacity available on the grid. The second showed actual electrical usage at that time.
The difference between the 2 lines on the graph represents the amount of energy not being consumed and hence wasted. The actual curves shown were for the state of Texas. ISO New
England is similar, but showing less generation, less usage and less waste. The amount of wasted energy on the Texas grid amounts to 35-40,000 MWh (equivalent to the power needed to service
35-40 million homes). ISO New England shows a typical amount of wasted energy of 10,000
MWh during off-peak to as little as 2,500 MWh at the highest “100 peak” hours. ISO New
England is wasting, – every day -at the very least, enough energy to power 2.5 million homes and off-peak, as many as 10 million homes could be powered.
Mr. Hebert feels the solution is to use this wasted energy by storing off-peak power to use later during peak time and therefore reduce the demand-side of the power equation rather than to continue build more generation.
Town of Windham, Connecticut: Some Potential Sources for Electrical
Energy Independence
Richard H. Bloomer for The Windham Renewable Energy Committee March, 2008
Town of Windham electricity, distribution and generation options
Major town electricity users the Library uses 127,680 kWh Fire and police = 552,129 kWh Kramer 439,740 kWh Town hall 208,600 kWh
Total, five building 1,328,149 kWh yearly usage at present total Municipal Electricity 2,556,505 kWh yearly Municipal use
Option 1 ( Brokering) If we negotiate a decrease of $0.01 per kWh the town will save $13,281.50 per year on electricity costs on those five buildings or $ 25,565.00 on the total town electric bill
Option 2 (Distribution) If we purchase the wires poles and distribution equipment frm CL&P the town will save on those four buildings alone $517,978 per year. This amounts to a savings to the town of $99,704 on the total electric bill based upon the town’s 2.5 million kWh per year. There would be additional income from the distribution charges to the town folks which we can estimate only with figures from total town consumption. There would be an estimated $200,000 or more distribution charges from town residents, at the present $0.039 rate Added to this the current CL&P consumer up front costs (est. 9000 x $15 per month, equal to $1,620,000 per year Total savings and Income from distribution Savings to Town $ 99,704 Est Income from distribution $ 200,000 Est Income from Consumer cost $1,620,000 Total $1,919,704.
Option 3 (Maximum Solar on 4 major use town Buildings) average solar generating time = 4 hours per day average solar production = 1450 hours per year a 5kWh solar panel generates an average of 7250 kWh per year
Library 127,680 kWh requires 18 x 5 kWh solar panels Fire and police 552,129 kWh requires 76 x 5 kWh solar panels Kramer 439,740 kWh requires 61 x 5 kWh solar panels Town Hall 208,600 kWh requires 29 x 5 kWh solar panels
Total 184 x 5 kW solar panels = 940 kw of solar panels to produce, 1,363,000 kwh per year @ $0.14 per kWh = $190,820 per year savings to the town Much of this comes during the summer at times of peak demand Solar panels themselves presently cost between $3.00 and $4.80 per watt a 5 kW panel ranges between $15,000 and $24,000 average $20,000 we can probably get a much better deal with a quantity purchase
Solar panels cost (this does not include engineering. Inverters, transformers ,wiring and switches, etc.), Library 18 panels x $20,000 = $ 360,000 Fire and police76 panels x $20,000 = $1,520,000 Kramer 61 panels x $20,000 = $1,220,000 Town Hall 29 panels x $20,000 = $ 580,000
Total $ 3,680,000 State Rebate $5.00 per watt x 940,000 $ 4,700,000 Residual funds for Batteries, Inverters, switches etc $1,020,000
Note also that using our own electricity saves us the whole $0.012 per kWh. When selling the surplus to CL&P nets us only wholesale, about $0.038 per kWh and we still have to pay transmission and distribution costs. Note: many of the smaller use municipal installations with limited use and lighting can employ a small off grid solar power at little cost other than the installation.
Option 4 options 2 and 3 combined. If we solarized all Municipal buildings and owned the distribution system yearly savings and income to the town for electricity would approximate $ 2,110,524.
In addition to this we may be able to put solar panels on many of the buildings on main street, on industrial plants, and south facing residences. This should increase both income and cut costs, We should consider using a tax incentive for the installation, while Windham maintains ownership of the equipment. This would allow us to save inverter and battery costs.
Flow of the River Electricity Generation Recently there has been some concern mostly from fishermen and white water kayakers about the electric power damns on Connecticut rivers. In their best of all possible worlds all dams would disappear and the fish and kayakers would have untrammeled run of the river. There are many argument s pro and con to this concept which is beyond our scope here. These groups have raised the concept of “Flow of the River” electricity generation” to resolve our electrical needs Flow of the river electricity generation- is a technique of anchoring small, usually a floating generator, in the river and making use of the movement of the water to generate electricity. Most folks advocate this technique assuming the generators will be along the side and the center of the river will be available for navigation, Unfortunately, as Huckelberry Finn has so aptly demonstrated several times the movement of water on the sides of rivers is much slower than that in the center since the banks and shallower sides generate friction to slow, stop and sometimes even reverse the flow. Flow of the River electricity is possible only in the middle of small rivers and streams. Unfortunately these flow of the river generators and their supports are a hazard to navigation. Flow of the river is dependent upon the speed of the water. . Most sources I consulted want a speed of 4 to 5 feet per minute for small run of the river turbines Cubic feet per second (cfs) is the measure used by the US Geological survey to determine the amount of water flow in a river. The actual speed of the river which is critical for Run of the River electricity production is determined by the volume of the river , the water depth times the width of the river. Thus a river that is 100 feet across and two feet deep has a volume of 2000 cubic feet per linear foot of river. If the flow is 100cfs it will take that volume 20 seconds to move a foot or three feet per minute, insufficient for flow of the river electricity production thus in our 100 ft wide x 2ft deep river we will need a flow of 150cfs for the 4.5 feet per minute the minimum required for flow of the river generation. As is shown below the use of flow of the river electricity generation and shallow draft navigation as well in the Willimantic, Natchaug, and Setucket rivers is impractical for five months of the year. If the dams were removed the amount of available water in the summer and early fall would diminish even more and the danger of winter and spring floods would increase. There are alternatives. Construction of a flume which narrows the river will increase the speed of the flow. Unfortunately for navigation the turbine must be within the flume so careful design will be required. A second alternative is to build a canal to divert some of the water into a large pond which will act as a reserve and the turbines can be fed downstream through a pentstock.
Option 5 Hydro power I have no information on potential power generation facilities for Windham along its three rivers It seems clear from casual perusal that we can probably generate another megawatt or two on top of the 4 megawatt capacity of existing generating plants that are current ly in the river on the following pages I will explore the rivers themselves and provide the capacity of each of the extant power generating facilities on the Town of Windham..
Willimantic River In Windham Hydro is a good compliment for solar. In the winter months when solar potential is less there is usually considerable water in the Willimantic river on average up to around four feet, with an average discharge of around 300 cfs (USGS 01119500).Calculation of the volume in cfs to procuce a current of 5mph, necessary acceptable for power generation in the Willimantic is 208cfs, A line through the graph below shows that most days do not reach the necessary 5mph,
In the summer the average depth falls below 3 feet and the flow diminishes by a factor of 10 to an average 30cfs from June to October, with a low of .7 cfs. Flow of the river, in the Willimantic River without a dam to provide water storage electrical power will be very erratic of during these five months, except possibly below the tailstock of existing plants
The Natchaug River Similarly the Natchaug river from February to may averages about 3.5 feet in depth and a flow of approximately 300cfs. The minimum flow to generate run of the river electricity at 5 mph is 68 cfs From July through December the depth of the Natchaug River is less than 30 inches, and the flow averages 30 cfs. Here again, run of the river power generation at 30 cfs would be very non productive during the summer months without a dam to conserve the supply of water. “Run of the River may be possible in the tailstock of the existing generators
The Shetucket River The Shetucket River in Windham is largely within the pond of the Scotland Dam. From January to June averages about 700cfs with a depth averaging about 3.5 feet The Shetucket river requires a flow of 300 cfs to produce a current of five miles per hour necessary for run of the river electricity production.. From July to December the flow averages around 100cfs with a low of 35cfs and the depth is less that two feet. Even being in Scotland Dam pond there are days during the summer when the depth is insufficient to float a canoe. For many of the months of low water and hence diminished Hydro power there is greater sunshine. Solar power can in some measure offset the diminished hydro power.
Windham’s Current Hydro power There has been some speculation about the electric potential in the Willimantic, Natchaug and Shetucket rivers, with little information readily available The Mystery begins to unfold
Non-Operational damn site without a FERC license In Windham on the Willimantic River there is a 390 KW unlicensed hydro unit owned or operated by Summit Hydro FERC #09731 Maximum Capacity 3,416,400 kWh per year, wholesale @ $0.038 = $129,823
The Willimantic Water Works has a capacity of 520 kW and a FERC # CT036 Maximum Capacity 4,555,200 kWh per year wholesale @ $0.038 = $173,098
The Mills: Willimantic 1 Class II with a 700 kw capacity licensed to Willimantic Power Corp FERC #08047 License expires 9/30/2025 Maximum 6,123,000 kWh per year , wholesale @ 0.038 = $232674
Willimantic 2 Class II with a 700 kw capacity licensed to Willimantic Power Corp FERC #08051 license expires 11/30/2025 Maximum 6,123,000 kWh per year , wholesale @ 0.038 = $232674
the Willimantic Power Corp(a Connecticut Company) is a wholly owned subsidiary of The Willimantic Hydro Company , (a Delaware company, authorized to do business in Connecticut), and are both wholly owned subsidiaries of CHI Energy Inc. (S.E.C 10-K405) CHI Energy has many energy interests around the nation and in Quebec and Argentine. I think it is one of those holding companies which just skim the profits. I’d be interested in who the stockholders are?
Scotland Dam produces 2,200 kw currently licensed to Northeast Generation, FERC #20662 License expires 8/31/2012 Maximum Capacity 19,272,000 kWh per year, wholesale @ $0.038 = $732,336
Windham’s current total Hydro Capacity 4510 kw 39,507,600 kWh per year Wholessale @ $0.038 per kWh = $1,502,288 or retail @ $0.12 per kWh = $4,740,912 Maximum Differential $3,238,624
Please note: no electric facility runs at capacity for long. Over the year with fluctuations in demand and in water, they are likely to avera`ge closer to half maximum capacity
A BRIEF PRELIMINARY SURVEY OF MUNICIPAL POWER COMPANIES IN NEW ENGLAND
Richard Bloomer
for the Town of Windham Renewable Energy Committee March 2008
Contents
Overview ...... 4
Current Windham Energy Cost to Consumers...... 4
Overview of Municipal Utilities: Factors in cost savings ...... 5
Basis for Comparisons ...... 5
Comparison of current Town of Windham with a Municipal Utility ...... 5
Arguments in favor of adding an electricity generating component to Windham Public Works...... 6
Examples from New England Municipal Power Companies
Reading Municipal Power ...... 7
Braintree Electric Light Department ...... 8
Chicopee Electric Light ...... 8
Littleton Electric Light and Water Department ...... 9
River Falls Municipal Utilities (Wisconsin) ...... 9
Concord Municipal Light and Power (MA) ...... 10
Norwich Public Utilities (CT)...... 10
Shrewsbury Electric Company (MA)...... 11
Groton Utilities (CT)...... 11
Princeton Municipal Light Department (MA) ...... 12
Hinghan Municipal Lighting Plant (MA) ...... 14
Burlington Electric (VT)...... 14
Windham Electricity Costs: ...... 15
STATUTORY AUTHORITY FOR ESTABLISHING A MUNICIPAL ELECTRIC UTILITY ...... 16
STATE OF CONNECTICUT, MUNICIPAL POWER AUTHORITY ...... 16
STATE OF CONNECTICUT, PUBLIC POWER COMPANY REGULATIONS ...... 19
AN ACT TO ESTABLISH ENERGY IMPROVEMENT DISTRICTS ...... 26
Overview Energy costs are a major factor in the economic health of a community. All things being equal, lower energy costs will weigh heavily in location decisions for businesses and industries. Residential energy costs too, effect the local business climate. The cost of utilities, is a major factor in the discretionary funds consumers may spend in local businesses. Low energy costs are a community stimulus. High energy costs are a stultifying influence on the local economy. State statute has mandated that 20% of each town’s energy shall be from renewable sources by the year 2010. Windham’s current renewable energy use is 1.8% , an 18.2% deficit from the 20% by 2010 criterion. Electricity costs to the consumer in Windham are among the highest in the nation. At present, renewable energy costs approximately 10% more than our current already excessive energy rate. When the scramble to fulfill the 20% criterion for renewable energy peaks in 2010 electricity rates will surge even higher. There are three options: 1. Windham can buy “Energy Credits” from towns that have a surplus of renewable energy. 2. The Windham consumer can pay higher prices for electric energy from a “renewable energy” producer. 3. Windham can produce energy from it’s own renewable resources sources, (and sell any surplus “energy credits” to other towns)
Windham is fortunate to have a number energy options to explore 1. Windham is at the confluence of two rivers with considerable untapped energy sources. 2. Windham has the potential for a large renewable biomass energy plant at its sewage treatment plant and sewer systems 3. Windham has several sites suitable for generation of electricity from wind power 4. Windham has the potential for considerable solar power on schools, municipal buildings, commercial buildings on Main Street and elsewhere, and on south facing residential roofs
In essence Windham could be on the energy supply side in the 20% by 2010. Or, by doing too little, Windham could remain on the demand side and increase the economic burden on the consumer and taxpayer. This is a brief survey of the Municipal Utilities in New England procured from their Internet sites. The municipal utilities are presented below in order of Energy Generation Cost plus the standard base Customer Charge, converted to price per kWh, from least to highest. I have taken this information, available from the internet, and calculated the costs per kWh based on my own current household monthly usage of 607 kWh. Hence a rough estimate of electricity use in a single family household is 7284 kWh per year. Some inaccuracy may be expected as specific situations differ
Current Windham Energy Cost to Consumers Factoring CL&P’s $15.00 customer charge Windham residents are paying $0.1425 per kWh. With additional transmission and distribution costs Windham residents pay $0.19159 per kWh. Should we choose the option 2, buying clean energy from a renewable energy producer this cost will jump to at least $0.21 per kWh. by 2010. Other factors, The precipitous rise in the cost of fuel will be constantly reflected in increased electricity costs. The rate will also increase should CL&P win the approval for their Card Mill power plant to be paid for by the rate payers. The future of CL&P rate payers is bleak
Overview of Municipal Utilities: Factors in cost savings 1. In general the greatest savings to the consumer come to those municipalities that generate most of their own power and own the poles, lines, and electrical equipment. Energy costs to the residential consumer in these communities is in the range of $0.073 to $0.085 per kWh. Generally about 40% the cost of energy in the Town of Windham 2. There is some savings to accrue simply from ownership of poles and lines and brokering energy from several sources. Energy costs in these communities seem to range from $0.085 to $0.107 per kWh 3. Even simple municipal utility brokering from multiple sources tends to provide cheaper electricity than a single source. Brokering electricity seems to result in prices in the $0.107 to $0.136 per kWh.
Basis for Comparison I have calculated the annual savings on the basis of my own February 2008 CL&P electric bill and the average 831 kWh, or average use per household based on 9974 kWh based on the CL&P annual report for energy cost for each of the Municipal Utilities. Total savings relative to the Town of Windham could be roughly estimated by multiplying that figure times the number of households served. Lacking concrete data I have assumed the standard 2.1 per home and rounded to approximately 9,000 consumers in Windham. I will recalculate with more accurate data when available. I have not calculated the differences in transmission and distribution costs since every situation seems to have differing charges, further some of the municipal utilities that own their own poles and lines do not appear to charge distribution costs at all. Those that do report distribution costs are generally less (about 60%) that of CL&P with a distribution cost of nearly $0.05 per kWh. Transmission, distribution and incidental fees total approximately $489 per household per year. Assuming about 9000 customers in Windham, the estimated yearly total transmission, and distribution cost to the Town of Windham consumers is nearly 4.4 million dollars
CL&P’s Windham residential Electricity Costs: Customer charge $15.00/607kWh = $0.024712 per kWh CL&P Generation rate $0.117800 $0.117800 per kWh Energy total $0.142512 per kWh CL&P Distribution Charges Transmission Charge per kWh $0.007700 per kWh Distribution charge per kWh $0.020510 per kWh Combined Public Benefits** $0.005070 per kWh CTA Charge per kWh* $0.010550 per kWh FMCC- Delivery Chg $0.005170 per kWh Subtotal $0.049000 per kWh
Grand Total .191512 per kWh
Cost to average Windham energy consumer per year $1,421.95 Energy Cost to Town of Windham consumers $12,791,655
**Combined Public benefits consist of a Conservation Load Management Charge, a Renewable Energy Investment Charge, and a Systems Benefit Charge??
*The Competitive Transition Assessment is partly owned by CL&P Funding and the State of Connecticut.
The FMCC is a Federally Mandated Congestion Charge Delivery Charge.
Comparison of current Town of Windham with a Municipal Utility Windham’s electric power costs are much higher than any Municipal Utility in the New England area. They are more than two and one half times greater than Reading Mass. Municipal Power, the most economical New England municipal utility I found: . Reading Mass, Total energy cost of $0.0727630 per kWh
Savings over Windham $0.06975 per kWh Estimated Household energy savings per year $655.69
Town of Windham, residents estimated potential yearly savings:(based on 9,000 customers) Estimated gross energy savings per year $5,901,210 Estimated gross transmission/distribution savings $4,398,534 Total $10,299,744 Estimated Town of Windham Municipal savings $115,042 Note: There is apparently no distribution costs since they own their own poles and facilities In 1894 The power station was equipped with two 125 hp boilers and two Corliss engines, one 100 hp, the other 200 hp. The engines were belted to a jackshaft, which extended the length of the engine room where four electric generators were belted. The plant was put into operation on September 26, 1895. 1926 an agreement with Boston Edison to purchase the required current was reached RMLD became the first Massachusetts electric plant to offer customers a residential rate for the use of electricity “any time and for any purpose.” The residential rate was further modified to a low rate of 2.33 cents per kilowatt hour, making it the lowest in Massachusetts. Town of Reading exercised its rights under its agreement with Boston Edison to purchase underground ducts and cables . More than 84 years after Town Meeting members voted to establish their own electric utility, the Department had 19,500 customers and gross revenues of $17 million in 1978. By 1984 an additional 1,500 customers were added, to bring the total number of meters to 21,000. Revenues in 1984 increased to $45 million. The plant value of $13 million in 1976 increased to $24 million by 1984. `
Arguments in favor of adding an electricity generating component to Windham Public Works. 1. A Municipal Utility functional administrative structure is currently in place 2. Billing and administrative procedures are already available and running well. 3. Water and sewer pay for themselves at no additional cost to the taxpayer . 4. We are already making some electricity and have much of the knowledge and know how required to develop a profitable electrical component 5. There are other portions of our current water and sewer complex that can be easily adapted to produce renewable electric power a. Biomass digested in sewage treatment for gas electric generation of fuel cell operation b. Electrical generation in sewers themselves. c. All three rivers offer numerous possibilities for hydroelectric production. d. There are several sites in Windham where windpower might be feasible. e. Main Street, the schools, and many of the residential areas have southerly facing roofs suitable for solar power * 6. Most successful municipal utilities return PILOT in one form or another to the town thus helping reduce the tax burden on citizens and businesses 7. A municipal utility would decrease cost to local consumers for solar and other installations by: a. wholesale purchase of solar collectors generators and other equipment b. provision of a local municipal electrician licensed for solar installation c. providing a funding service for qualified consumers * 8. Municipal utilities increase jobs in the local area: a. linemen b. operators for generators c. clerical staff d. electricians for installations and maintenance * 9. When the 20% by 2010 goes into effect Windham will be spared from buying expensive Energy Credits, or the at least 10% inevitable price increases for “renewable” energy. * 10. A functioning municipal electrical utility will be able to sell Energy Credits to other towns. * 11 Other Municipal utilities in other communities have been able to: a, construct, maintain and amortize production facilities, b. own and maintain distribution facilities, c. provide shorter local recovery times from catastrophic causing power outages. d. pay some form of pilot to the municipality, and, e. still provide reliable electricity to consumers at rates much lower rates than CL&P or the New England Pool. * 12. Lower cost electricity will be important in the decisions of businesses and industries to settle in the town of Windham. 13. Lowered electricity rates will provide each taxpayer with several hundred dollars in additional disposable income which, in turn, will act as an economic stimulus to the local area. * 14. Provides a local taxpayer voice in the energy production and use in Windham and protects Windham taxpayer from the unreasonable electric rate increases so common in the past. 15. There are several state and federal subsidies available to help pay for the development of renewable power,. These stipends diminish every year and are set phase out by 2012.
Other Examples from New England Municipal Power Companies
Braintree Electric Light Department (MA) also serves broadband Internet and cable began in the 1890's to provide street lights. Braintree was once the only town on the rail service that did not have street lights. They built a coal fired generating plant and had street lights on from dusk to midnight 25 days a moth. The moon, they reasoned. would provide enough light on those five nights. Currently they have diesel generation facilities and two sub stations for peak power They both buy and sell power from the grid. They are in the process of building a new generating plant and have demolished their older one. Residential electricity there is a Customer charge of $3.65 per month/607= $0.006013 per kWh Electricity Charges $0.071000 per kWh Total Electricity $0.077013 per kWh
Savings over Windham’s current rate.= $0.06549 per kWh
Estimated household energy savings per year = $653,20 Estimated Town of Windham residents savings per year $5,878,775 Estimated Windham Muncipal Savings per year $104,816
Transmission charge $0.00550 per kWh Distribution charge. $0.02800 per kWh. Total Distribution $0.03350 per kWh Grand total $0.110513 per kWh Braintree also has broadband Internet is $43.25 and complete bundled cable and Internet broadband is $123.50 They pay a PILOT to the Town of Braintree ($842,000) one year and support various benefits (i.e. $10,000 to a town parade.)
Chicopee Electric Light (MA) began as the result of high power costs from private companies in 1886 with a coal fired generator. They have expanded to meet the need over the years, especially during WWII, and buy some power from the Holyoke water power company. Now some power seems to be brokered from PASNY (Power Authority of New York), Quebec hydropower, and North east utilities. The residential cost is $.076 per kWh added to this is a transmission charge of $.0297 per kWh and a purchase power adjustment of $.0035
Customer Charge $5.60 per month./607= $0.009226 per kWh Electricity Generation Charge $0.076000 per kWh Total $0.085226 per kWh Savings over Windham’s current rate = $0.0573 per kWh
Estimated Household energy savings per year = $571.51 Estimated Windham residents savings per year $5,143,591 Estimated Windham Municipal savings per year $84,346
Transmission Charge $0.029700 per kWh Grand Total $0.114925
Littleton Electric Light and Water Department (MA) they were not explicit on their power generation sources they appear to be power distributors hooked on to the GRID they appear to be somewhat cheaper than most of the other Grid companies Customer charge: (*) $ 5.00 per month/607= $0.0082372 Energy charge: $ 0.0829 per kWh $0.0829 Total $.0911372 per kWh Savings over Windham’s current rate = $0.0517 per kWh
Estimated Household energy savings per year = $515.66 Estimated Windham residents savings per year $4,640,902 Estimated Windham Municipal savings per year, $68,770 Note This do not include the following costs PCA charge: For all kWh's, an additional charge or credit per kWh for periodic changes in cost of power in accordance with currently filed Power Cost Adjustment Clause (PCA). PASNY credit: A credit is given to residential electric customers each month based on discounted purchased power from Niagara Falls Hydro. ECS charge: State regulations mandate that a fee be collected from all customers to cover the cost of the Energy Conservation Service. See Rate Schedule: Energy Conservation Service. Minimum charge: The Customer Charge plus the ECS charge.
River Falls Municipal Utilities (Wisconsin) started in 1900 apparently they own the lines and service generally their information is pretty vague about power sources they provide a picture of a Dam and a power plant but there is no indication that they are other than brokers of electricity, They also supply water and sewer. They have the lowest rates in Wisconsin it appears that they sell electricity at .082 (this is not an accurate quote but a estimate I made from a sample bill). They also charge for water and sewer on the same bill and there are a couple of separate “municipal” fees and a $6.00 user fee for all services and an adjustment for the variable cost of electricity 5500 customers Consumer Service monthly $6.00 /607 per kWh= $0.0098846 Electricity Charge. $0.082 per kWh $0.082000 Total Electricity $0.091885
Savings over Windham = $0.0506 per kWh
Estimated Household energy savings per year = $504.68 Estimated Windham residents savings per year $4,542,160 Estimated Windham Municipal savings per year $66,469 note: There were no available distribution charges available
Concord Municipal Light and Power (MA) was voted in 1897 due to dissatisfaction with the cost from private power companies. They constructed their first coal fired generating plant in 1899. As they grew over the years there were several offers from Edison Electric to buy the company but each time the voters decided to remain a non profit municipal utility. In 1930 Boston Electric provided power at a cheap rate and the power house was shut down. Essentially the CMLP owned the poles and wires but Boston Edison provided the electricity. Soon Boston Edison’s Favorable wholesale power rate increased by 37% followed by several other repeated increases, in 1980 CMLP joined the New England Power Pool CMLP currently serves 7200 as a distributor the cost of electricity is $.0946 with a customer charge of $8.05
Customer Charge $8.05 per month/607kWh= $0.013262 per kWh Electricity Charge $0.094600 per kWh Total $0.10.786 per kWh Note: They do not report the line and distribution costs on the web site Savings over Windham = $0.0346 per kWh
Estimated Household energy savings per year = $345.10 Estimated potential Town of Windham savings per year $3,105,903
Norwich Public Utilities (CT) A municipally owned utility serving Norwich, CT with natural gas, electricity, water and sewer services. They apparently acquire and distribute power from the Grid. Norwich is the first municipality in Connecticut to meet the 20% by 2010 criterion. Norwich Public Utilities Charges Residential Customer Charge, Per Month $7.14/ 607= $0.011763 First 1,000 kWh per Month $0.09738 per kWh $0.09738 Total $0.109143 per kWh
All over 1,000 kWh per Month $0.08728 per kWh Savings over Windham = $0.0334
Household savings per year = $343.10 Estimated Windham residents savings per year $3,422,079 Estimated Windham Municipal savings per year $23,008 Purchased Power Adjustment (PPA) The Purchased Power Adjustment Rate will be applied to all kWh billed. Energy Efficiency Fund A charge will be applied to all billed kWh consumption to recover the costs of investment in renewable energy resources and energy efficiency and load reduction initiatives through the NPU Energy Efficiency Fund.
Shrewsbury Electric Company (MA) sells electricity, cable and Internet service. The Town has operated a municipal light department since 1908. Power is purchased primarily from Massachusetts Wholesale Electric Company and four other utilities. Rate: Customer Charge $ 2.90 per month/607= $0.004778
Distribution Charge $ 0.01700 per kWh Transmission Charge $ 0.00510 per kWh Transition Charge $ 0.05600 per kWh PASNY Credit $-0.00500 per kWh Generation Service Charge $ 0.02800 per kWh total= $0.10610 per kWh Grand Total $0..11088 per kWh??
note: I was unable to factor out the energy cost from the transmission costs for the SEC
??Savings over Windham = $0.0316 per kWh?? Estimated Household energy savings per year = $ $315,18 Estimated Windham residents savings per year $2,836,606 Estimated Windham Municipal savings per year $23,520
Groton Utilities (CT) appears to be basically an electric power broker who also has water, cable TV and Internet service. They have recently bought Bozrah Light and Power which caused a rate increase for BLP customers of $8.00 per month. They also help engineer new electrical projects Monthly Rate is the sum of Customer Charge, Energy Charge, and any Purchased Power Adjustment: Customer Charge: $9.14/ 607 kWh= $0.015058 per kWh Energy Charge: $0.096300 per kWh Total $0.111358 per kWh Savings over Windham = $0.0311 per Kwh
Estimated Household energy savings per year = $310.19 Estimated Windham residents savings per year $2,038,770 Estimated Windham Municipal savings per year $16,980
Purchased Power Adjustment applied to every kWh sold is based on any difference between current and base unit Demand Charge, Energy Charge, and Fuel Cost of the jointly-owned wholesale power supplier of the Department, Connecticut Municipal Electric Energy Cooperative, all as set forth in Appendix B of the Department’s Rules and Regulations.
Princeton Municipal Light Department (MA) since 1911 PMLD is a non-profit public service corporation whose primary goal is to provide reliable and low cost electric service to the residents and businesses of the Town of Princeton provides electric power to approximately 1500 customers throughout the 35.85 square miles of Princeton, MA. PMLD is a Town asset, working as a separate governmental unit, with its own Board of Light Commissioners, policies and budget serving the needs and providing value to our ratepayers. They have operated a wind farm in the past but ir became to costly to repair. They are starting a new wind farm (see below) which will drastically reduce their electricity cost to the consumer Monthly Service charge: Customer service Charge $8.95 /607 kWh= $0.0147611 per kWh Energy Charge: $0.1183 per kWh Total $0.1330611 per kWh. Savings over Windham = $0.0094 per kWh
Estimated Household energy savings per year = $93.76 Estimated Windham residents savings per year $843,800 Estimated Windham Municipal savings per year ($38,475) They also provide broad band Internet service. They have had a wind farm since 1984. It is now out of operation and power is purchased from the grid PMLD purchases and distributes about 21 million kWh from Northeast Utilities, VPPSA, PSNY, various hydro stations (Webster, Dudley, Powder Mill, South Barre) in central Massachusetts and the spot market, when necessary.
From a Newspaper Article about the New Princeton Wind Farm They are currently replacing the wind farm with two 1.5-megawatt wind turbines in the spring of next year and then erect them at the town wind farm on Mount Wachusett. They expect the energy cost to drop nearly in half to around $.05 per kWh They plan to sell about 8 million kilowatt hours of energy credits to the alliance annually once the town’s wind turbines are built, The Princeton Municipal Light Department, because it is a municipal light company, is exempt from the energy credit requirement. Nevertheless, the Light Department will voluntarily comply by using about a million kilowatt hours of credits per year to comply with the standard. The additional eight million kilowatt hours of credits produced by the turbines will be used as a revenue source. Project Cost 7.4 million PMLD Joined MMWEC to form "municipal lighting plant cooperatives" to conduct business associated with the purchase, sale and distribution of electricity. "Forming the cooperative gives us the ability to finance and construct an energy facility, in this case a wind turbine facility, total cost for the two turbines and towers is $4.6 million. The total budget for the project is $7.15 million. They think the cost of electricity will fall from $.10 per kWh to .05 per kWh If they are able to achieve a five cent kWh it will save the average consumer over $600 per year in energy costs
DeCurzio, chief financial and operating officer of MMWEC, said, "There were a number of issues to address in financing the Princeton project, but Peoples Bank stepped up with the willingness and expertise needed to close the deal. The wind energy co-op is all about moving renewable energy projects like this into production, and the agreement with Peoples Bank is an important step forward for the Princeton project." MMWEC negotiated the financing package, providing the cooperative with a variety of financial, power-supply and administrative services. "MMWEC has worked with this bank before," said Fitch. He said PeoplesBank had the best deal, interest, terms and conditions, and wanted to show they are interested in investing in renewable energy projects. "The long-term financing won't happen until after the wind turbines are installed. That financing will be for 20 years," Fitch said. "This financing with PeoplesBank is short term for 18 months. At the end of that time we'll go out and secure long-term financing, and go out to bid again at that time."
An alternative is to finance with a Clean Renewable Energy Bond, said Fitch. "If we get a CREB allocation it would give us a no interest borrowing, because the investor would be paid the interest by the government. That means the cooperative would pay no interest for the 20-year borrowing cost. The government would pick up the interest tab because they support renewable energy projects." The PMLD currently has an 18-month construction loan for $7.15 million, said Fitch. "Once we convert the construction loan to a long-term loan we'll be paying equal or less for what I would be paying for energy anyway," he said. "If we receive a CREB loan it's a great deal for us and our ratepayers because we'll save approximately $3 million in interest costs over the life of the loan based on five percent interest. The first year's interest on a long term loan would be at the most and we'd save $360,000 with a CREB allocation. The interest goes down over the life of the loan. `"If all that works out our energy will cost us much less than we're paying now," he said. "The average cost will be about five cents per kilowatt hour versus the nine to 10 cents per kilowatt hour we're paying now for energy." Fitch is confident PMLD will get some amount of C.B. allocation. "The Internal Revenue Service has called me for updates about the wind project so I feel confident we're being considered." He said there are hundreds of renewable projects across the country, and all are looking for CREB bonds. 2006 was the first allocation of $800 million in CREB bonds. "They had 709 applications from 40 different states. In the second round [2007] they also wanted to do $800 million in clean energy credits. We had to have our application in by April 2007. The allocations only go to public projects," he said. "It's essentially a zero interest loan."
Hinghan Municipal Lighting Plant (MA) is not actually a plant. It has been in operation for over a century provides In 1894 it bought the poles and lighting equipment electricity from a private company and had brokered power ever since. It provides power to approximately 10,000 customers in the town of Hingham. HMLP is a member of New England Power Pool (NEPOOL) and ISO-NE (Independent System Operator – New England), so it can provide power more reliably since it is connected to the power grid and not buying power from a single supplier. This rate is available for lighting and other domestic uses in single residential premises,
Customer Charge $4.13 per month/607= $0.006804 Energy Charge $0.1295078 0 per kWh Total Energy $0.136304 per kWh
Note: They do not report the distribution charges but they own the poles and lines
Savings over Windham = $0.0062 per kWh
Estimated household energy savings per year = $61.84 Estimated potential Town of Windham savings per year $556,549 Estimated Windham Municipal savings per year ($46,794)
Burlington Electric (VT) department has 16000 residential customers and 3600 commercial customers. Formed in 1905 as the result of dissatisfaction with the costs of electricity from private power with a coal fired generator since then has used oil natural gas and wood as fuels.
Burlington standard residential service Customer Charge $7.37/607 kWh= $0.012142 Initial Block (<= 100 kWh) $0.097070 per kWh Average at 607 kWh $0.126830 Tail block (> 100 kWh) $0.132700 per kWh Total energy $0.138972 per kWh Savings over Windham= $0.003528
Burlington Energy Only Estimated Household savings per year $35.19 Estimated Windham residents savings per year $316,694 Estimated Windham Municipal savings per year ($55,610) but
Distribution charges Power Miser Credit $1.23/ 607 kWh = $0.002063 per kWh Residential EEC $0.003160 per kWh City Franchise Fee 3.5% $.0.005050 per kWh Transmission/distribution Sub Total $0.010270 per kWh Grand Total $0.149242 per kWh
They charge a lower $.097 for the first 100 kWh and a higher rate $.1327 for service above 100 kWh. The city of Burlington charges a 3.5% sales tax. Their distribution charges are one fifth those of CL&P
Burlington Energy, Plus Transmission Overall savings over total CL&P $0.0423 per kWh Overall Estimated Household savings per year $421.90 per year Estimated Windham residents savings per year $3,797,102 Estimated Windham Municipal savings per year $469,171
Note: While Burlington’s generation cost exceeds that of CL&P. It’s transmission costs are only 21% of CL&P.
Note: Ipswich and Holyoke both have Municipal utilities but do not have active websites In Summary All New England Municipal Utilities Offer
STATUTORY AUTHORITY FOR ESTABLISHING A MUNICIPAL ELECTRIC UTILITY
The statutes of the State of Connecticut grant authority to towns and municipalities to institute a Municipal Electric Utility similar to the water and sewer departments. (page 15)
There are also a series of statutes governing public power utilities (page 18)
The statutes also provide for the establishment of a local Energy Improvement District which may facilitate the acquisition of monies for purchase of plants and facilities (Page24)
Note: I have altered the language of the statutes in an attempt to make them more comprehensible. I have reduced redundancy, the “thereunto’s and whereas’s and underlined some of the pertinent phrases and the like. Hopefully more legible translations of these statutes follow. The reader is referred to the original general statute before taking any action on any section at www.cgact.gov
STATE OF CONNECTICUT, MUNICIPAL POWER AUTHORITY
Sec. 7-213. Municipalities may establish plants. Any municipality may, construct, purchase, lease or establish, and maintain plants for the manufacture and distribution of gas or electricity for furnishing light for municipal use and for the use of its inhabitants, and may own or operate a community antenna television system,
Sec. 7-214. Requirements for exercise of authority. No municipality shall exercise the authority in section 7-213 until affirmative action by a two-thirds vote o of its legislative body by those present at a legal meeting, approval of the chief executive officer and ratified by a majority voting at the regular municipal election
Sec. 7-216. Board of commissioners. A Board of Electrical or utility commissioners shall be appointed, who, subject to any ordinances by the municipality, is responsible for the operation, control, management and repair of plant, and the manufacture, generation and distribution of gas and electricity,
Sec. 7-217. Issuance of debt. Any municipality establishing or purchasing a plant, or, reconstructing, extending or enlarging the same, or paying or liquidating obligations for power purchase contract, may issue of bonds, not to be sold at less than par, and payable, not exceeding thirty years, Bonds shall only after a vote by the common council
Sec. 7-217a. Temporary notes. any municipality operating a plant may issue temporary notes for financing any capital project related to the plant for not more than fifteen years, or for the purpose of purchasing capacity or energy, for not more than six years. Sec. 7-217b The legislative body of a municipality issuing temporary notes shall determine the maximum authorized amount and may authorize an officer or officers to determine the form of such notes, their date, etc. and approved by the board of commissioners of the plant.
Sec. 7-218. Reconstruction or enlargement of plant. Any municipality owning a plant under the authority of this chapter may reconstruct or enlarge the same, but no reconstruction or enlargement, without a vote by the common council.
Sec. 7-219. Assessment for pipes and other appliances. A municipality pass ordinances for the equitable assessment on the owner or occupant any part of the cost of furnishing, laying and maintaining pipes, wires etc. for the distribution of gas or electricity to such premises. Payment of the assessment is not obligatory but payment will be made before supplying of gas or electricity to the premises
Sec. 7-220. Manufacture and distribution. A municipality, may manufacture, generate and distribute gas or electricity for municipal purposes or the use of the inhabitants, under any regulations and conditions it establishes, but no municipality shall be compelled to furnish gas or electricity to any person or corporation, except by order of the commissioners . Any person or corporation aggrieved by the refusal of the municipality to supply gas or electricity may appeal to the commissioners, setting forth in appeal what is asked for by the municipality in as much detail as the commissioners require.
Sec. 7-221. Keeping of accounts. The business books and accounts shall be kept in a form to be prescribed by the board of commissioners, and the accounts closed each year on the last day of July.
Sec. 7-222. Price. (a) The price to be charged to persons or corporations for gas or electricity shall be fixed and not be changed more often than once in three months. All changes will take effect on the first day of the month, and advertised in the newspaper at least one month in advance A sufficient deposit to cover the payment for gas or electricity for three months may be required in advance, The supply may be shut off from any premises until all delinquent back payments for gas or electricity are paid.
Sec. 7-222a. Rate for interconnection of generation facilities. any participating municipal electric utility,, shall, in consultation with the municipal electric energy cooperative, set, a rate for the interconnection of generation facilities into its transmission and distribution system of the generation facilities located in the service territory of the municipal electric utility and began operations after June 26, 2003.
Sec. 7-223. Ordinances. A municipality may adopt ordinances regulating the production, control and use of its plant, fixtures and appurtenances; and for methods or plans for installing, piping, wiring etc. The board of utility commissioners may appoint an inspector or inspectors, electric piping, wiring, etc and may provide a penalty not exceeding fifty dollars for any violation.
Sec. 7-224. Purchase by municipality of plant owned by a corporation. When any municipality decides to establish an electric plant, before establishing its plant, shall purchase, if such corporation elects to sell, any portion of the electric plant and suitable property that has been in use in or acquired for such business in the municipality. If a single corporation owns both a gas plant and an electric plant, the municipality shall purchase both whether they are located within or without the limits of the municipality, provided the plant provides or distributes gas or electricity in the municipality.
Sec. 7-225. When purchase to embrace entire plant. When a portion of an electric plant of any corporation would, be included in a purchase by any municipality, such municipality shall, at the election of the owner or owners of such plant, purchase all of the plant, instead of only the portion employed for consumers in the municipality. If the municipality believes price or conditions of such plant purchase to be unreasonable, the municipality may, within thirty days, petition the superior court for relief. If court finds it unreasonable, modify the price and conditions for the premises, The municipality shall comply with such orders before establishing its plant for electricity production.
Sec. 7-226. Determination of plant value. The price to be paid for the plant, shall be its fair market value. No portion of such plant to be estimated at less than its fair market value including, as an element the value based upon the actual earnings at the time of the final vote of the municipality, less the amount of any mortgage or other encumbrance or lien at the time of the transfer of title The municipality may require that the plant or property be it free and clear of any mortgage or lien, unless the Superior Court, otherwise determines
Sec. 7-227. Valuation of capital paid in property. When any capital has been paid in property instead of cash, the valuation placed upon such property, may be disputed by the municipality and,, may be reduced by the authority fixing the price No municipality shall be obliged to buy any apparatus or appliances covered by letters patent of the United States or embodying a patentable invention, unless the complete right to use the same and all other necessary apparatus and appliances are assigned to the municipality at a cost as low as the cost to the corporation.
Sec. 7-228. Compulsory purchase by municipality. Any corporation desiring to enforce the obligation of any municipality, to purchase any property shall file with the clerk of such municipality, within thirty days after the passage of the final vote to establish a plant, a detailed schedule, describing such property and stating the terms of sale proposed. If the parties fail to agree, either party may, after thirty days, petition the superior court an adjudication The judge may, appoint a special hearing commission, who will give the parties an opportunity to be heard and adjudicate whether the property properly belongs to such plant and should be purchased, and the time, price and other conditions of sale and delivery The commission shall report its doings to the superior court for confirmation
Sec. 7-229. Remonstrance to acceptance of report. Any party aggrieved by the doings of the commission may, within fourteen days after its report has been filed with the superior court, file a remonstrance to such report.
Sec. 7-230. Appeal. An appeal of the decision of said court, accepting the report of the commission, to the Appellate Court in the same manner in which appeals are usually taken
Sec. 7-231. Private rights extinguished by municipal purchase. Whenever the existing electric plant has been acquired by any municipality the powers and rights of such person or corporation to manufacture gas or electricity and the distribution to consumers within the municipality shall, from the date of such acquirement, cease.
Sec. 7-232. Damages by reason of operating plant. Any municipality owning or operating a plant or plants shall be responsible for any injury or damage to persons or property, in the same manner and to the same extent as individuals or a private corporation.
Sec. 7-232a. Information exempt from Freedom of Information Act. A municipal utility may withhold from public disclosure under the Freedom of Information Act, any commercially valuable, confidential or proprietary information.
Sec. 7-233. Applicability of statutes and ordinances. All provisions of the statutes, and all ordinances of any municipality, relative to the manufacture, use, generation or distribution of gas or electricity, shall apply to the municipality, as the same are applied to persons and corporations engaged in making, generating and distributing gas or electricity
STATE OF CONNECTICUT, PUBLIC POWER COMPANY REGULATIONS
Sec. 16-229. Excavation in highway. Requires approval from municipal authority
Sec. 16-230. Bond requirement. Before any such public service company makes any application, it shall file a bond with the Secretary of the State, with surety, in a form and amount satisfactory to and approved by him, This bond is waved by the secretary of state if the company has at least five hundred thousand dollars in equipment and resources
Sec. 16-231. Appeal. Any company aggrieved by the neglect or refusal of the authority having such jurisdiction to grant a permit, or by the terms and conditions therein imposed, may appeal to the Department of Public Utility Control, Sec. 16-233. Municipal and state signal wires. Each town, city, borough, fire district or the Department of Transportation shall have the right to occupy and use for municipal and state signal wires, without payment , one gain upon each public utility pole or in each underground communications duct system installed by a public service company within the limits of any such town,
Sec. 16-234. Rights of adjoining proprietors. No electric light company may change the location of, or to erect or place, wires, etc without the consent of the adjoining proprietors, or, if unable to obtain consent, without the approval of the Department of Public Utility Control,
Sec. 16-235. Control by local authorities. Orders. Appeals. the common council OR THE Municipal utility commission full direction and control over the placing, erection and maintenance of any wires, poles etc., including the relocation or removal of the same but no authority granted to any city or borough or a town planning, zoning, inland wetland, historic district, building, gas, water or electrical board, commission or committee, shall be construed to apply to so much of the operations, plant, building, structures or equipment of any public service company under the jurisdiction of the Department of Public Utility Control, or the Connecticut Siting Council, Zoning commissions and inland wetland agencies may, within their respective municipalities, regulate and restrict the proposed location of any steam plant, electric or gas plant, etc public service company not subject to the jurisdiction of the Connecticut Siting Council. Each such order shall be subject to the right of appeal within thirty days from the giving of such notice by any party aggrieved to the Department of Public Utility Control,
Sec. 16-236. Appraisal of damages; costs. Any judge of the Superior Court may, upon the application of any party interested, appoint three disinterested persons to make a written appraisal of all damages due any person by reason of anything done under any provision of section 16-228 or 16-234 or which is in violation of any order made under section 16-235.
Sec. 16-237. No prescriptive right. No person or corporation building and maintaining electric light or power wires etc., shall, by reason of any occupation or use of any buildings or lands for the support of the wires or, acquire by the use or occupation any prescriptive right to so occupy or use the same. No length of possession, user or occupancy or any easement therein or right there to belonging to an electric light or power corporation, and used for its corporate purposes, shall create or continue any right in or to such land,
Sec. 16-238. Wires may be cut; notice. When it is deemed necessary to cut or disconnect the wires etc. of any electric light or power company referred to, or to remove such wires from the poles or fixtures, for the transportation of any object on the highway, any person or corporation may do so, exercising reasonable care therein, after obtaining written consent of the municipality or other authority. Sec. 16-243. Jurisdiction of department over electricity transmission lines. The State Department of Public Utility Control shall have exclusive jurisdiction and direction over construction or reconstruction of each system used for the transmission or distribution of electricity, including all plants and apparatus used for generating electricity
Sec. 16-243a. Private power producers. Purchase and sale of electricity. Avoided costs. Small renewable power projects. (a) As used in this section, "avoided costs" means the incremental costs to a municipal electric energy utility, of electric energy or capacity or both which, but for the purchase from a private power producer, as defined in section 16- 243b, such company, cooperative or utility would generate itself or purchase from another source.
Sec.16-243b (b) Each municipal electric utility shall: (1) Purchase any electrical energy and capacity made available, directly by a private power producer (2) sell backup electricity to any private power producer in its service territory; (3) make such interconnections necessary to accomplish such purchases and sales; (4) upon approval by the Department of Public Utility Control of an application filed by a willing private power producer, transmit energy or capacity from the private power producer to any other such company, cooperative or utility (5) offer to operate in parallel with a private power producer.
In making a decision on an application filed under subdivision (4) of this subsection, the department shall consider whether such transmission would (A) adversely impact the customers of the company, cooperative or utility which would transmit energy or capacity to the private power producer, (B) result in an uncompensated loss for, or unduly burden, such company, cooperative, utility or private power producer, © impair the reliability of service of such company, cooperative or utility or, (D) impair the ability of the company, cooperative or utility to provide adequate service to its customers. The requirements under subdivisions (3), (4) and (5) of this subsection shall be subject to reasonable standards for operating safety and reliability and the nondiscriminatory assessment of costs against private power producers, approved by the Department of Public Utility Control with respect to electric public service companies or determined by municipal electric energy cooperatives and municipal electric utilities.
Sec 16-243c © The Department of Public Utility Control, shall establish rates and conditions of service for: (1) The purchase of electrical energy and capacity made available by a private power producer and (2) the sale of backup electricity to a private power producer. The rates for electricity purchased from a private power producer shall be based on the full avoided costs municipal electric utility,. Payment for energy and capacity purchased from a private power producer by any utility shall be the rates and conditions or the terms of a contract between the parties. The rates and conditions of service for the purchase of energy and capacity established by the department pursuant to this subsection shall include specific schedules for pricing in long-term contracts for the sale of electricity from small renewable power projects to electric public service companies by private power producers. Such schedules shall not exceed the present worth of the projected avoided costs of the electric public service company over the term of the contract.
Sec. 16-243c. Electricity transmission and distribution services for electric cooperatives utilizing cogeneration technology and renewable energy resources. The Department of Public Utility Control may issue orders requiring electric companies to provide, within their service areas, electricity transmission and distribution services between a generating facility operated by an electric cooperative under subsection (b) of section 33-219
Sec, 16-243 (d) When any person, firm or corporation proposes to enter into a contract to sell energy as a private power producer, a municipal electric utility shall respond promptly to all requests and negotiate in good faith to arrive at a contract which fairly reflects the provisions of this section and the anticipated avoided costs over the life of the contract no contract shall exceed 30 years
Sec. 16-243 (e) The department shall consider generating capacity available from cogeneration technology and renewable energy resources in its periodic reviews of electric public service companies and shall require the companies to include the availability of such capacity in applications for rate relief filed in accordance with section 16-19a.
Sec. 16-243e. Electric company purchase of electricity generated by municipal resources recovery facilities.
Sec. 16-243 (f) If a private power producer believes that an electric company has violated any provision of this section it may submit a written petition alleging such violation to the department.
Sec. 16-243 (g) After January 1, 1992, the department shall approve each proposed contract submitted by a private power producer for a small renewable power project, with any
Sec. 16-243h. Credit to residential customers who generate electricity; metering. On and after January 1, 2000, each electric supplier a credit for any electricity generated by a residential customer from a Class I renewable energy source or a hydropower facility. An electric distribution company, at the request of any residential customer, shall make such interconnections necessary and provide for the installation of metering equipment that (1) measures electricity consumed by such customer from the facilities of the electric distribution company, (2) deducts from the measurement the amount of electricity produced by the customer and not consumed by the customer, and (3) registers, for each billing period, the net amount of electricity either (A) consumed and produced by the customer, or (B) the net amount of electricity produced by the customer.
A residential customer who generates electricity of more than ten kilowatts of electricity shall be assessed for the competitive transition assessment, pursuant to section 16-245g and the systems benefits charge, pursuant to section 16-245l based on the amount of electricity consumed by the customer from the facilities of the electric distribution company without netting any electricity produced by the customer. For purposes of this section, "residential customer" means a customer of a single- family dwelling or multifamily dwelling consisting of two to four units.
Sec. 16-243i. Awards to retail end use electric customers and electric distribution companies re customer-side distributed resources. (a) The Department of Public Utility Control shall, grant awards to retail end use customers to fund the capital costs of projects of customer-side distributed resources, as defined in section 16-1. Any project shall receive a one-time, nonrecurring award in an amount of not less than two hundred dollars and not more than five hundred dollars per kilowatt of capacity for such customer-side distributed resources, recoverable from federally mandated congestion charges, as defined in section 16-1. No such award may be made unless the projected reduction in federally mandated congestion charges attributed to the project for such distributed resources is greater than the amount of the award. The amount of an award shall depend on the impact that the customer-side distributed resources project has on reducing federally mandated congestion charges, as defined in section 16-1.
(b) The Department of Public Utility Control shall, not later than January 1, 2006, establish a program to grant to an electric distribution company a one-time, nonrecurring award to educate, assist and promote investments in customer-side distributed resources which will reduce federally mandated congestion charges, in accordance with the following: (1) On or before January 1, 2008, two hundred dollars per kilowatt of such resources, (2) on or before January 1, 2009, one hundred fifty dollars per kilowatt of such resources, (3) on or before January 1, 2010, one hundred dollars per kilowatt of such resources, and (4) fifty dollars per kilowatt of such resources thereafter. Payment of the award shall be made at the time each such resource becomes operational. The cost of the award shall be recoverable from federally mandated congestion charges. Revenues from such awards shall not be included in calculating the electric distribution company's earnings for the purpose of determining whether its rates are just and reasonable under sections 16-19, 16-19a and 16-19e.
Sec. 16-243j. Long-term financing for customer-side distributed resources and advanced power monitoring and metering equipment. (a) Not later than January 1, 2006, the Department of Public Utility Control shall select, pursuant to a competitive bid process, one or more persons to provide long-term financing for customer-side distributed resources, as defined in section 16-1, and advanced power monitoring and metering equipment purchased or leased by customers of electric distribution companies. Such person may not be an electric distribution company, as defined in said section 16-1, but may be a generation affiliate of such company. The department may retain a consultant to assist it in selecting such person or persons.
(b) A successful bidder pursuant to this section shall give preference for such long-term financing to projects of customer-side distributed resources and monitoring and metering equipment that maximize the reduction of the federally mandated congestion charges. Costs eligible for such financing shall include, but not be limited to, the capital costs of projects of customer-side distributed resources and advanced power monitoring and metering equipment. For financing provided by a successful bidder pursuant to this section, the department shall implement a buy down mechanism to reduce the effective annual interest rate to the person receiving the financing to a level that is no greater than the prime rate in effect on the date that the buy down begins for the person receiving the financing.
© A person providing financing pursuant to this section shall, after receiving approval from the department, enter into an agreement with an electric distribution company, as defined in section 16-1, for such company to provide billing services with respect to the payments due to the financing entity from the person receiving financing. The electric distribution company, as defined in said section 16-1, shall recover all reasonable costs incurred in implementing this section, including costs associated with the buy down pursuant to subsection (b) of this section, as federally mandated congestion charges, as defined in section 16-1.
Sec. 16-243k. Assessment of customer-side and grid-side distributed resources, effectiveness of award program. Not later than January 1, 2007, and annually thereafter, the Department of Public Utility Control shall assess the number and types of customer- side and grid-side distributed resources,
Sec. 16-243l. Rebate for customer-side distributed resource projects that use natural gas. On or before January 1, 2006, each electric distribution company shall institute a program to rebate to its customers with projects that use natural gas, which projects are customer-side distributed resources, as defined in section 16-1, an amount equivalent to the customer's retail delivery charge for transporting natural gas from the customer's local gas company to such customer's project of customer-side distributed resources.
Sec. 16-243m. Measures to reduce federally mandated congestion charges. (a) The Department of Public Utility Control shall, identify those measures that can reduce federally mandated congestion charges, that can be implemented, on or before January 1, 2006. Such measures may include, but shall not be limited to, demand response programs, other distributed resources, and contracts between an electric distribution company\
Sec 16-243m © On or before February 1, 2006, the department shall conduct a proceeding to develop and issue a request for proposals to solicit the development of long- term projects designed to reduce federally mandated congestion charges for the period commencing on May 1, 2006, and ending on December 31, 2010, or such later date specified by the department. For purposes of this section, projects shall include: (1) customer-side distributed resources, (2) grid-side distributed resources, (3) new generation facilities, including expanded or recovered generation, and (4) contracts for a term of no more than fifteen years between a person and an electric distribution company for the purchase of electric capacity rights. Such request for proposals shall encourage responses from a variety of resource types and encourage diversity in the fuel mix used in generation. An electric distribution company may submit proposals on the same basis as other respondents to the solicitation. A proposal submitted by an electric distribution company shall include its full projected costs etc.
(m) An electric distribution company may not submit a proposal under this section on or after February 1, 2011.
(o) The aggregate electric generating capacity for all approved proposals by electric distribution companies pursuant to subsections (g) and (k) of this section may not exceed two hundred fifty megawatts of generating capacity state-wide.
: For a grid-side distributed resource or new generation facility that is operational (1) on or before January 1, 2010, twenty-five dollars per kilowatt, (2) on or before January 1, 2011, fifteen dollars per kilowatt, and (3) on or before January 1, 2012, five dollars per kilowatt.
Sec. 16-243p. Recovery of costs and investments by an electric distribution company. (a) An electric distribution company may recover its costs and investments that have been prudently incurred under the provisions of these sections
Definitions
(6) "Small renewable power project" means any private power production facility which has a capacity of five megawatts or less and is fueled by a renewable resource, as defined in section 16a-2, other than wood.
AN ACT TO ESTABLISH ENERGY IMPROVEMENT DISTRICTS I’d like your opinion on this new energy act:
Is this act going to facilitate or simply act as another layer of bureaucracy?
From what I can see this allows the Energy Improvement District (EID) the ability to sell bonds and then act as a lending agency to somebody else like CL&P or A Municipal utility. There is nothing in the Energy Improvement District statute that is not already authorized by statute. It appears to be just another administrative layer since once it acquires all these facilities it can’t sell the electricity. I really fail to see what this Energy Improvement District board is supposed to do that a municipal electric utility cannot under existing statutes do better. Except they can borrow money now, whereas a municipal utility must wait for an election to be approved
It looks at first like a statute to prevent the formation of a municipal utility thus leaving us at the mercy of the energy gaugers when the “clean 20% energy” rush hits us in 2010 and the price of electricity skyrockets The only advantage of the EID is it allows the bonding for capital improvements with only the B.O.S. approval and does not need approval by the voters at a regular election. In essence we could raise the money before the next regular election and be ready to go if the voters approve. If the voters do not approve the EID could fund an energy cooperative or a regular power provider or...?
From 2008 Supplement.
Sec. 32-80a. Energy improvement districts. Definitions. Board. (a) As used in this section and sections 32-80b and 32-80c:
(1) "Energy improvement district distributed resources" means one or more of the following owned, leased, or financed by an Energy Improvement District Board: (A) Customer-side distributed resources, as defined in section 16-1; (B) grid-side distributed resources, as defined in said section 16-1; (C) combined heat and power systems, as defined in said section 16-1; and (D) Class III sources, as defined in said section 16-1; (i.e. telephone and telegraph lines and as I read this we can borrow monies to acquire a lot of facilities but according to paragraph (d) we are enjoined from selling the product therefrom
(2) "Project" means the acquisition, purchase, construction, reconstruction, improvement or extension of one or more energy improvement district distributed resources.
(b) (1) Any municipality may, by vote of its legislative body, establish an energy improvement district within such municipality. A. The affairs of any such district shall be administered by an energy improvement district board. B. The chief elected official of the municipality shall appoint the members of any such board, who shall serve for such term as the legislative body may prescribe and until their successors are appointed and have qualified. C. The chief elected official shall fill any vacancy for the unexpired portion of the term. D. The members of each such board shall serve without compensation, except for necessary expenses.
(2) After a vote by a municipality to establish an energy improvement district, the chief elected official of the municipality shall notify by mail each property owner of record within said district of said action. A. An owner may record on the land records in the municipality its decision to participate in the energy improvement district pursuant to this section and sections 32-80b and 32-80c. B. Any owner of record, including any new owner of record, may rescind said decision at any time. Perhaps this might empower us to lend money to businesses or homeowners to install solar power?
C. An energy improvement district board shall fund energy improvement district distributed resources in its district consistent with a comprehensive plan prepared for the district by said board for the development and financing of such resources, except on state or federally owned properties, with a view to increasing efficiency and reliability and the furtherance of commerce and industry in the energy improvement district, provided such district's plan shall be consistent with the state-wide procurement and deployment plan prepared and approved pursuant to section 16a-7c and the siting determinations of the Connecticut Siting Council. This should take several years if past experience with the state is any criterion The board may lease or acquire office space and equip the same with suitable furniture and supplies for the performance of work of the board and may employ such personnel as may be necessary for such performance. The board also shall have power to:
(1) Sue and be sued;
(2) Have a seal and alter the same; goody!!!
(3) Confer with any body or official having to do with electric power distribution facilities within and without the district and hold public hearings as to such facilities;
(4) Confer with electric distribution companies with reference to the development of electric distribution facilities in such district and the coordination of the same;
(5) Determine the location, type, size and construction of energy improvement district distributed resources, subject to the approval of any department, commission or official of the United States, the state or the municipality where federal, state or municipal statute or regulation requires it;
(6) Make surveys, maps and plans for, and estimates of the cost of, the development and operation of requisite energy improvement district distributed resources and for the coordination of such facilities with existing agencies, both public and private, with the view of increasing the efficiency of the electric distribution system in the district and in the furtherance of commerce and industry in the district;
(7) Enter into contracts and leases, make loans and execute all instruments necessary to carry out their duties pursuant to this subsection and subsection (d) of this section, including the lending of proceeds of bonds to owners, lessees or occupants of facilities in the energy improvement district;
(8) Fix fees, rates, rentals or other charges for the purpose of all energy improvement district distributed resources owned by the energy improvement district board and collect such fees, rates, rentals and other charges for such facilities owned by the board, which fees, rates, rentals or other charges shall be sufficient to comply with all covenants and agreements with the holders of any bonds issued pursuant to subsection (b) of this section;
(9) Operate and maintain all energy improvement district distributed resources owned or leased by the board and use the revenues from such resources for the corporate purposes of the board in accordance with any covenants or agreements contained in the proceedings authorizing the issuance of bonds pursuant to subsection (b) of this section;
(10) Accept gifts, grants, loans or contributions from the United States, the state or any agency or instrumentality of either, or a person or corporation, by conveyance, bequest or otherwise, and expend the proceeds for any purpose of the board and, as necessary, contract with the United States, the state or any agency or instrumentality of either to accept gifts, grants, loans or contributions on such terms and conditions as may be provided by the law authorizing the same;
(11) Maintain staff to promote and develop the movement of commerce through the energy improvement district; and
(12) Use the officers, employees, facilities and equipment of the municipality, with the consent of the municipality, and pay a proper portion of the compensation or cost.
(d) Nothing in this section or sections 32-80b and 32-80c shall be construed to authorize an energy improvement district to: Here’s the hitch!
(1) Be an electric distribution company, as defined in section 16-1, or provide electric distribution or electric transmission services, as defined in said section 16-1, or own or operate assets to provide such services; We can’t sell over or provide wires to move other folks’ electricity?
(2) Be a municipal electric utility, as defined in section 7-233, or provide the services of a municipal electric utility; We can’t sell electricity to the public?
(3) Sell electricity to persons or entities in its municipality outside of the energy improvement district; We cant sell energy credits ?
(4) Undertake any authority or jurisdiction granted by the general statutes to the Connecticut Siting Council, the Department of Public Utility Control, or any other state agency, or to undertake any actions under the jurisdiction of any federal agency; Does this not remove from us the power in 7-243 to develop a Municipal Utility and generate and sell power and clean energy credits?
(5) Acquire property by eminent domain.
______From 2008 Supplement.
Sec. 32-80b. Energy improvement districts funding and revenue. (a) An energy improvement district board may, from time to time, issue bonds subject to the approval of the legislative body in the municipality for the purpose of paying all or any part of the cost of acquiring, purchasing, constructing, reconstructing, improving or extending any energy improvement district distributed resources project and acquiring necessary land and equipment The board may issue and type of bonds including, bonds payable as to principal and interest: (1) From its revenues generally; (2) exclusively from the income and revenues of a particular project; or (3) exclusively from the income and revenues of certain designated projects, whether or not they are financed in whole or in part from the proceeds of such bonds. Any such bonds may be additionally secured by a pledge of any grant or contribution from a participating municipality, the state or any political subdivision, agency or instrumentality thereof, any federal agency or any private corporation, copartnership, association or individual, or a pledge of any income or revenues of the board, or a mortgage on any project or other property of the board, provided such pledge shall not create any liability on the entity making such grant or contribution beyond the amount of such grant or contribution. Whenever and for so long as any board has issued and has outstanding bonds, the board shall fix, charge and collect rates, rents, fees and other charges in accordance with subsections (j) and (k) of this section. Neither the members of the board nor any person executing the bonds shall be liable personally on the bonds by reason of the issuance thereof. The bonds and other obligations shall so state on their face that they shall not be a debt of the state or any political subdivision thereof, except when the board or a participating municipality, in accordance with subsection (f) of section 32-80c, has guaranteed payment of principal and of interest on the same, and no person other than the board or such a public body shall be liable thereon, nor shall such bonds or obligations be payable out of any funds or properties other than those of the board or such a participating municipality. Such bonds shall not constitute an indebtedness within the meaning of any statutory limitation on the indebtedness of any participating municipality. Bonds of the board are declared to be issued for an essential public and governmental purpose. In anticipation of the sale of such revenue bonds, the board may issue negotiable bond anticipation notes and may renew the same from time to time. The maximum maturity of any such note, including renewals thereof, shall not exceed five years from the date of original issue. Such notes shall be paid from any revenues of the board available therefor and not otherwise pledged or from the proceeds of sale of the revenue bonds of the energy improvement district board in anticipation of which they were issued. The board shall issue the notes in the same manner as the revenue bonds. Such notes and the resolution or resolutions authorizing the same may contain any provisions, conditions or limitations that a bond resolution of the board may contain.
(b) An energy improvement district board may issue bonds as serial bonds, as term bonds or as both. Bonds shall be authorized by resolution of the members of the authority and shall bear such date or dates, mature at such time or times, not exceeding twenty years from their respective dates, bear interest at such rate or rates, or have provisions for the manner of determining such rate or rates, payable at such time or times, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America at such place or places, and be subject to such terms of redemption, as such resolution or resolutions may provide. The revenue bonds or notes may be sold at public or private sale for such price or prices as the energy improvement district board shall determine. Pending preparation of the definitive bonds, the energy improvement district board may issue interim receipts or certificates that shall be exchanged for such definitive bonds.
© Any resolution or resolutions authorizing any revenue bonds or any issue of revenue bonds may contain provisions, which shall be part of the contract with the holders of the revenue bonds to be authorized, as to: (1) Pledging all or any part of the revenues of a project or any revenue- producing contract or contracts made by the energy improvement district board with any individual entity public or private, to secure the payment of the revenue bonds subject to such agreements with bondholders as may then exist; (2) the rentals, fees and other charges to be charged, the amounts to be raised in each year thereby and the use and disposition of the revenues; (3) the setting aside of reserves or sinking funds or other funds or accounts as the board may establish and the regulation and disposition thereof, including requirements that any such funds and accounts be held separate from other funds of the board; (4) limitations on the right of the board or its agent to restrict and regulate the use of the project; (5) limitations on the purpose to which the proceeds of sale of revenue bonds may be applied and pledging the proceeds to secure the payment of the revenue bonds; (6) limitations on the issuance of additional bonds, and the refunding of outstanding bonds; (7) the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given; (8) limitations on the amount of moneys expended for operating, administrative or other expenses of the board; (9) defining the acts or omissions to act that shall constitute a default in the duties of the board to holders of its obligations and providing the rights and remedies of such holders in the event of a default; (10) the mortgaging of a project and the site thereof for the purpose of securing the bondholder; and (11) provisions for the execution of reimbursement agreements or similar agreements in connection with credit facilities, including, but not limited to, letters of credit or policies of bond insurance, remarketing agreements and agreements for the purpose of moderating interest rate fluctuations.
(d) If any member whose signature or a facsimile of whose signature appears on any bonds or coupons ceases to be such member before delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes as if he had remained in office until such delivery. Notwithstanding the provisions of sections 32-80a to 32-80c, inclusive, or any recitals in any bonds issued pursuant to subsections (a) to (h), inclusive, of this section, all such bonds shall be deemed to be negotiable instruments under the provisions of the general statutes.
(e) Unless otherwise provided by the ordinance creating the energy improvement district board, the board may issue bonds pursuant to subsections (a) to (h), inclusive, of this section, without obtaining the consent of the state or of any political subdivision thereof and without any other proceedings or conditions specifically required by sections 32-80a to 32-80c, inclusive.
(f) An energy improvement district board may, within available funds, purchase its bonds or notes. The energy improvement district board may hold, pledge, cancel or resell such bonds, subject to and in accordance with agreements with bondholders. (g) An energy improvement district board shall cause a copy of any bond resolutions adopted by it to be filed for public inspection in its office and in the office of the clerk of each participating municipality and may thereupon cause to be published at least once, in a newspaper published or circulating in each participating municipality, a notice stating the fact and date of such adoption and the places where such bond resolution has been so filed for public inspection and the date of the first publication of such notice and also stating that any action or proceeding of any kind or nature in any court questioning the validity or proper authorization of bonds provided for by the bond resolution, or the validity of any covenants, agreements or contracts provided for by the bond resolution, shall be commenced not later than twenty days after the first publication of such notice. If any such notice is published and if no action or proceeding questions the validity or proper authorization of bonds provided for by the bond resolution referred to in such notice or the validity of any covenants, agreements or contracts provided for by the bond resolution is commenced or instituted not later than twenty days after the first publication of said notice, then all residents and taxpayers and owners of property in each participating municipality and all other persons shall be forever barred and foreclosed from instituting or commencing any action or proceeding in any court or from pleading any defense to any action or proceeding questioning the validity or proper authorization of such bonds or the validity of such covenants, agreements or contracts, and said bonds, covenants, agreements and contracts shall be conclusively deemed to be valid and binding obligations in accordance with their terms and tenor.
(h) Notwithstanding any provision of the general statutes, (1) the state shall not have any liability or responsibility with regard to any obligation issued by the board, and (2) no political subdivision of the state shall have any liability or responsibility with regard to any obligation issued by the board except as expressly provided by sections 32-80a to 32-80c, inclusive.
(I) An energy improvement district board may secure any bonds issued pursuant to subsection (b) of section 32-80a by a trust indenture by way of conveyance, deed of trust or mortgage of any project or any other property of the board, whether or not financed in whole or in part from the proceeds of such bonds, or by a trust agreement by and between the board and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state or by both such conveyance, deed of trust or mortgage and indenture or trust agreement. Such trust indenture or agreement may pledge or assign any or all fees, rents and other charges to be received or proceeds of any contract or contracts pledged, and may convey or mortgage any property of the board. Such trust indenture or agreement may contain such provisions for protecting and enforcing the right and remedies of the bondholders as may be reasonable and proper and not in violation of law, including provisions that have been specifically authorized to be included in any resolution or resolutions of the board authorizing the issue of bonds. Any bank or trust company incorporated under the laws of the state may act as depository of the proceeds of such bonds or of revenues or other moneys and may furnish such indemnifying bonds or pledge such securities as may be required by the board. Such trust indenture may set forth rights and remedies of the bondholders and of the trustee and may restrict the individual right of action by bondholders. In addition, such trust indenture or agreement may contain such other provisions as the board may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust indenture or agreement may be treated as part of the cost of a project.
(j) An energy improvement district board may fix, revise, charge and collect rates, rents, fees and charges for the use of and for the services furnished or to be furnished by each project)( This appears to be in conflict with the inhibitions in paragraph (d) above.) and to contract with any person, partnership, association or corporation, or other body, public or private, in respect thereof. Such rates, rents, fees and charges shall be fixed and adjusted in respect of the aggregate of rates, rents, fees and charges from such project so as to provide funds sufficient with other revenues, if any, to (1) pay the cost of maintaining, repairing and operating the project and each and every portion thereof, to the extent that the payment of such cost has not otherwise been adequately provided for, (2) pay the principal and interest of outstanding revenue bonds of the board issued in respect of such project as the same shall become due and payable, and (3) create and maintain reserves required or provided for in any resolution authorizing, or trust agreement securing, such revenue bonds of the board. Such rates, rents, fees and charges shall not be subject to supervision or regulation by any department, commission, board, body, bureau or agency of this state other than the board. A sufficient amount of the revenues derived in respect of a project, except such part of such revenues as may be necessary to pay the cost of maintenance, repair and operation and to provide reserves and for renewals, replacements, extensions, enlargements and improvements as may be provided for in the resolution authorizing the issuance of any revenue bonds of the board or in the trust agreement securing the same, shall be set aside at such regular intervals as may be provided in such resolution or trust agreement in a sinking or other similar fund which is hereby pledged to, and charged with, the payment of the principal of and the interest on such revenue bonds as the same shall become due, and the redemption price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made; the rates, rents, fees and charges and other revenues or other moneys so pledged and thereafter received by the board shall immediately be subject to the lien of any such pledge, without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the board, irrespective of whether such parties have notice thereof. Neither the resolution nor any trust indenture or agreement by which a pledge is created need be filed or recorded except in the records of the board. The use and disposition of moneys to the credit of such sinking or other similar fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement. Except as may otherwise be provided in such resolution or such trust indenture or agreement, such sinking or other similar fund shall be a fund for all revenue bonds issued to finance a project of such board without distinction or priority of one over another.
(k) All moneys received by the board pursuant to sections 32-80a to 32-80c, inclusive, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided pursuant to this subsection and subsection (j) of this section.
(l) Any holder of bonds, notes, certificates or other evidences of borrowing issued pursuant to subsection (b) of section 32-80a or of any of the coupons appertaining thereto and the trustee under any trust indenture or agreement, except to the extent the right may be restricted by such trust indenture or agreement, may, either at law or in equity, by suit, action, injunction, mandamus or other proceedings, protect and enforce any and all rights under the provisions of the general statutes or granted by sections 32-80a to 32-80c, inclusive, or under such trust indenture or agreement or the resolution authorizing the issuance of such bonds, notes or certificates, and may enforce and compel the performance of all duties required by said sections or by such trust indenture or agreement or solution to be performed by the energy improvement district board or by any officer or agent thereof, including the fixing, charging and collection of fees, rents and other charges. ______From 2008 Supplement.
Sec. 32-80c. Energy improvement district boards. (a) An energy improvement district board, in the exercise of its powers granted pursuant to sections 32-80a to 32-80c, inclusive, shall be for the benefit of the inhabitants of the state, for the increase of their commerce and for the promotion of their safety, health, welfare, convenience and prosperity, and as the operation and maintenance of any project which the board is authorized to undertake constitute the performance of an essential governmental function, no board shall be required to pay any taxes or assessments upon any project acquired and constructed by it under the provisions of said sections. The bonds, notes, certificates or other evidences of debt issued pursuant to subsections (a) to (h), inclusive, of section 32- 80b, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free and exempt from taxation, except for estate or succession taxes, by the state and by any political subdivision thereof, but the interest on such bonds, notes, certificates or other evidences of debt shall be included in the computation of any excise or franchise tax.
(b) Bonds issued by an energy improvement district board pursuant to subsection (b) of section 32-80a shall be securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies and executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such bonds shall be securities that may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations is now or may hereafter be authorized by law. c. A municipality may, by ordinance, and any other governmental unit may, without any referendum or public or competitive bidding, and any person may sell, lease, lend, grant or convey to an energy improvement district board or permit a board to use, maintain or operate as part of any distributed resource facility any real or personal property that may be necessary or useful and convenient for the purposes of the board and accepted by the board. Any such sale, lease, loan, grant, conveyance or permit may be made or given with or without consideration and for a specified or an unlimited period and under any agreement and on any terms and conditions that may be approved by such municipality, governmental unit or person and that may be agreed to by the board in conformity with its contract with the holders of any bonds. Subject to any such contracts with the holders of bonds, the board may enter into and perform any and all agreements with respect to property so purchased, leased, borrowed, received or accepted by it, including agreements for the assumption of principal or interest or both of indebtedness of such municipality, governmental unit or person or of any mortgage or lien existing with respect to such property or for the operation and maintenance of such property as part of any energy improvement district distributed resources facility.
(d) A municipality, governmental unit or person may enter into and perform any lease or other agreement with any energy improvement district board for the lease or other agreement with any municipality, governmental unit or person of all or any part of any energy improvement district distributed resource facility or facilities. Any such lease or other agreement may provide for the payment to the board by such municipality, governmental unit or person, annually or otherwise, of such sum or sums of money, computed at fixed amount or by any formula or in any other manner, as may be so fixed or computed. Any such lease or other agreement may be made and entered into for a term beginning currently or at some future or contingent date and with or without consideration and for a specified or unlimited time and on any terms and conditions which may be approved by such municipality, governmental unit or person and which may be agreed to by the board in conformity with its contract with the holders of any bonds, and shall be valid and binding on such municipality, governmental unit or person whether or not an appropriation is made thereby prior to authorization or execution of such lease or other agreement. Such municipality, governmental unit or person shall do all acts and things necessary, convenient or desirable to carry out and perform any such lease or other agreement entered into by it and to provide for the payment or discharge of any obligation thereunder in the same manner as other obligations of such municipality, governmental unit or person.
(e) For the purpose of aiding an energy improvement district board, a municipality, by ordinance or by resolution of its legislative body, shall have power from time to time and for such period and upon such terms, with or without consideration, as may be provided by such resolution or ordinance and accepted by the board, (1) to appropriate moneys for the purposes of the board, and to loan or donate such money to the board in such installments and upon such terms as may be agreed upon with the board, (2) to covenant and agree with the board to pay to or on the order of the board annually or at shorter intervals as a subsidy for the promotion of its purposes not more than such sums of money as may be stated in such resolution or ordinance or computed in accordance therewith, (3) upon authorization by it in accordance with law of the performance of any act or thing which it is empowered by law to authorize and perform and after appropriation of the moneys, if any, necessary for such performance, to covenant and agree with the board to do and perform such act or thing and as to the time, manner and other details of its doing and performance, and (4) to appropriate money for all or any part of the cost of acquisition or construction of such facility, and, in accordance with the limitations and any exceptions thereto and in accordance with procedure prescribed by law, to incur indebtedness, borrow money and issue its negotiable bonds for the purpose of financing such distributed resource facility and appropriation, and to pay the proceeds of such bonds to the board.
(f) For the purpose of aiding an energy improvement district board in the planning, undertaking, acquisition, construction or operation of any distributed resource facility, a participating municipality may, pursuant to resolution adopted by its legislative body in the manner provided for adoption of a resolution authorizing bonds of such municipality and with or without consideration and upon such terms and conditions as may be agreed to by and between the municipality and the board, unconditionally guarantee the punctual payment of the principal of and interest on any bonds of the board and pledge the full faith and credit of the municipality to the payment thereof. Any guarantee of bonds of the board made pursuant to this subsection shall be evidenced by endorsement thereof on such bonds, executed in the name of the municipality and on its behalf by such officer thereof as may be designated in the resolution authorizing such guaranty, and such municipality shall thereupon and thereafter be obligated to pay the principal of and interest on said bonds in the same manner and to the same extent as in the case of bonds issued by it. As part of the guarantee of the municipality for payment of principal and interest on the bonds, the municipality may pledge to and agree with the owners of bonds issued under this chapter and with those persons who may enter into contracts with the municipality or the board or any successor agency pursuant to the provisions of this chapter that it will not limit or alter the rights thereby vested in the bond owners, the board or any contracting party until such bonds, together with the interest thereon, are fully met and discharged and such contracts are fully performed on the part of the municipality or the board, provided nothing in this subsection shall preclude such limitation or alteration if and when adequate provisions shall be made by law for the protection of the owners of such bonds of the municipality or the board or those entering into such contracts with the municipality or the board. The board is authorized to include this pledge and undertaking for the municipality in such bonds or contracts. To the extent provided in such agreement or agreements, the obligations of the municipality thereunder shall be obligatory upon the municipality and the inhabitants and property thereof, and thereafter the municipality shall appropriate in each year during the term of such agreement, and there shall be available on or before the date when the same are payable, an amount of money that, together with other revenue available for such purpose, shall be sufficient to pay such principal and interest guaranteed by it and payable thereunder in that year, and there shall be included in the tax levy for each such year in an amount that, together with other revenues available for such purpose, shall be sufficient to meet such appropriation. Any such agreement shall be valid, binding and enforceable against the municipality if approved by action of the legislative body of such municipality. Any such guaranty of bonds of the board may be made, and any resolution authorizing such guaranty may be adopted, notwithstanding any statutory debt or other limitations, but the principal amount of bonds so guaranteed shall, after their issuance, be included in the gross debt of such municipality for the purpose of determining the indebtedness of such municipality under subsection (b) of section 7-374. The principal amount of bonds so guaranteed and included in gross debt shall be deducted and is declared to be and to constitute a deduction from such gross debt under and for all the purposes of subsection (b) of said section 7-374, (1) from and after the time of issuance of said bonds until the end of the fiscal year beginning next after the completion of acquisition and construction of the distributed resource facility to be financed from the proceeds of such bonds, and (2) during any subsequent fiscal year if the revenues of the board in the preceding fiscal year are sufficient to pay its expenses of operation and maintenance in such year and all amounts payable in such year on account of the principal and interest on all such guaranteed bonds, all bonds of the municipality issued as provided in this subsection and all bonds of the energy improvement district board issued under subsection (b) of section 32-80a.
(g) Any energy improvement district board may pledge or assign any lease or other agreement, and any instruments making or evidencing the same to secure its bonds and thereafter may not modify such leases, agreements or instruments except as provided by the terms of such lease, agreement or instrument.
(h) All property of an energy improvement district board shall be exempt from levy and sale by virtue of an execution and no execution or other judicial process shall issue against the same nor shall any judgment against the board be a charge or lien upon its property, provided nothing in this subsection shall apply to or limit the rights of the holder of any bonds to pursue any remedy for the enforcement of any pledge or lien given by the board on its facility revenues or other moneys.
(I) An energy improvement district board and the municipality in which any property of the board is located may enter into agreements with respect to the payment by the board to such municipality of annual sums of money in lieu of taxes on such property in such amount as may be agreed upon between the board and the municipality. The board may make, and the municipality may accept, such payments and apply them in the manner in which taxes may be applied in such municipality, provided no such annual payment with respect to any parcel of such property shall exceed the amount of taxes paid thereon for the taxable year immediately prior to the time of its acquisition by the board.