Hartford Business Journal

www.HartfordBusiness.com June 27, 2016 • Hartford Business Journal 21 some of the highest energy prices in the country and the electricity prices business- es and residents pay are closely linked to the price of natural gas, which is used to gener- ate roughly half of Connecticut's electricity. Regional grid administrator ISO-New England has also said that increased gas capacity would bolster grid reliability. DEEP is not bound to select any propos- als unless they meet its evaluation criteria, which are centered on perceived benefits to ratepayers. Two key criteria include cost sav- ings and reliability of the region's energy grid. Gas, clean-energy RFPs related DEEP's natural gas RFP is the third and final procurement under a 2015 state law, which also instructs the agency to procure a large amount of clean-energy generation — up to 10 percent of the state's electric load. Earlier this year, Connecticut con- ducted one of two clean-energy RFPs, meant for projects larger than 20 mega- watts, with two other New England states. An RFP for smaller clean proj- ects came soon after. In total, the two RFPs received 131 responses. Those proposals will be competing against the natural gas proposals, which is unprecedented in Connecticut. Major solar, wind, fuel cell and other clean-energy projects could help slow emissions growth in the coming years. "The solution, we have always said, is not necessarily just building out more gas resources," DEEP Deputy Commissioner Katie Scharf-Dykes, said in an interview. "We are working to marry our policy com- mitment to reliable and affordable power with our policy commitment to achieve the benefits of a cleaner electric system." Lee Hoffman, an energy attorney at Pull- man & Comley, said the complexity inher- ent in DEEP's plan to compare competing clean-energy projects with natural gas projects makes it likely that lawsuits will emerge once winners are selected, which could lead to delays in project construc- tion. In 2013, for example, a losing bidder of another DEEP procurement, Allco Finance, unsuccessfully challenged the results. "Connecticut has a history of disgruntled bidders bringing lawsuits," Hoffman said. Emissions concerns Connecticut has made several emis- sions-reductions pledges since 2008, and environmentalists worry that increasing the supply of natural gas will make it less likely the state can meet the goals. Connecticut's emissions hit a low point in 2012, dipping beneath a carbon emissions pledge made in 2008, but it rose above that line in the three years that followed, accord- ing to a recent data analysis by the Acadia Center, which cited a number of causes that the state has little control over, including low gasoline prices and economic recovery. "While it is too soon to predict with cer- tainty whether Connecticut will meet its mandatory 2020 GHG emissions cap, imple- menting additional short-term mitigation measures will increase the likeli- hood of doing so," Acadia said in its report this month. The nonprofit has urged state officials to rely on energy effi- ciency, solar energy and elec- tric vehicles to lower demand for electricity and fossil fuels. "We take a long view of electric emis- sions and believe that any short- term reductions in pollution on cold winter days that might be provided by additional pipeline capacity will be far out - weighed by the additional emissions that will result from locking us into additional fossil fuels for 20 or 30 years," said Jamie Howland, who directs Acadia's Climate and Energy Analysis Center. Some have also fretted that a ratepayer- funded expansion of natural gas-fired elec- tricity generation could hobble the com- petitiveness of Connecticut's sole nuclear power plant, Millstone, which provides a major portion of the state's electricity. Nuclear plants have far lower emissions than fossil-fuel plants, so if Millstone owner Dominion decided to shutter it, emissions in the region would rise. Challenged by persistently low natural gas prices, Dominion attempted to secure state incentives late in the recent legislative session, but was unsuccessful. n Show your finances who's boss Simsbury Bank Cash Management Solutions To learn more, visit SimsburyBank.com/CashManagement Simsbury Bank's Cash Management Suite gives you the flexibility to simplify and manage the flow of money through your organization. Whether you need to view and conduct business online or are looking for automated financial services, we can offer a comprehensive package tailored to your unique business needs. An Eversource crew works on natural gas lines in Meriden. P H O T O | C O N T R I B U T E D ▶ ▶ ' If either Connecticut or Massachusetts decides not to move forward with contracts [for Access Northeast], it would be very challenging to justify constructing the pipeline.' Travis Miller, analyst, Morningstar

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