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New Haven Biz-July-August 2019

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n e w h a v e n b i z . c o m | J u l y / A u g u s t 2 0 1 9 | n e w h a v e n B I Z 35 ENERGY A ccording to the U.S. Energy Information Administration, Connecticut consum- ers — both commercial and private — are highly conscious of their energy-use profile and actively seek to minimize unnecessary energy use. Connecticut uses less energy per dollar of gross domestic product (GDP) generated than all other states except New York and Massachusetts. In terms of total energy use, the Nutmeg State ranks 47 in the nation (50 states plus the District of Columbia), consuming just over 200 million BTUs of energy annually (by contrast the U.S. leader, Louisi- ana, uses nearly 900 BTUs a year). at energy parsimony pays environmental dividends, of course. Connecticut consistently ranks among the bottom ten states in per-capita energy-re- lated carbon dioxide emissions. (e states that rank highest in "carbon intensity" are mainly states such as West Virginia and Wyoming, which are heavily dependent on coal generation of electricity — a non-factor in Connecticut.) e state's primary source of electricity generation is nuclear, with nearly half (48 percent) of Connecti- cut's net electricity generation originating at a single source — the 2,088-megawatt Millstone nuclear station in Waterford. In terms of residential energy consumption, more than one-third (35 percent) of Connecticut house- holds use natural gas for home heating, while almost half (45 percent) use fuel oil or other petroleum products (2016 figures). e state's political leadership seeks to dramatical- ly ramp up renewable-energy resources in the years to come. But there are many miles to go before we sleep: In 2017, less than five percent (4.7 percent) of Connecticut's net electricity generation came from renewables. at figure includes 1.2 percent from small-scale, customer-sited solar photovoltaic (PV) facilities. at's barely a dent. But change is in the wind — literally. During the most recent legislative session state lawmakers in both houses approved legislation that requires 2,000 megawatts of offshore wind generation by the year 2030. at's about the same amount of power generated by Millstone today — and mandated to come online about the same time that the nuclear power plant's recently approved contract runs out. Although that 2,000-megawatt level is a maxi- mum, not a minimum, it would bring Connecticut more closely in line with states such as New York (a 9,000-megawatt offshore wind commitment) and Massachusetts (3,200 megawatts), which have been national leaders in renewable-energy initiatives. While regulators at the state level set aggressive carbon-reduction targets, the energy priorities of businesses and consumers never really change — they want abundant energy at the lowest possible costs. ose objectives are not compatible. For now, the regulators are winning — evidenced by the fact that Connecticut has among the highest electricity rates in the country. At an average of 22.51 cents per kilowatt hour (March 2019), the Constitution State is outpaced only by Rhode Island, Alaska and Hawaii. e long-term "energy fitness" profile of Connecti- cut will be determined by the state's ability to adapt to government mandates for aggressive carbon-re- duction while at the same time meeting the needs of the commercial sector for adequate energy at competitive costs. n Power in transition

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