Hartford Business Journal

8 Hartford Business Journal • January 22, 2018 • www.HartfordBusiness.com Reporter's Notebook Matt Pilon | mpilon@HartfordBusiness.com Health Care/Bioscience, Startups & Entrepreneurs, Government/Law and Energy ENERGY AND UTILITIES $1B commercial renewables program nears expiration A state program that provides financial incentives to commer- cial and industrial solar, fuel cell and other types of clean energy projects is approaching its ex- piration date, and it's uncertain exactly what will come next. Low-Emission Renewable Energy Credit (LREC) and Zero- Emission Renewable Energy Credit (ZREC) incentives, which will total just over $1 billion, have helped the state meet its growing renewable energy goals since launching in 2012. The incentives go to solar, fuel cell and other projects — more than 2,100 to date — with generating capacity as large as 2 megawatts, accord- ing to data from the Public Utilities Regulatory Authority. Combined, ZREC and LREC- backed projects have more than 330 megawatts of generat- ing capacity, producing more than 685,000 megawatt hours per year — enough to power more than 81,000 average households. For comparison, Connecticut's nuclear plant, Millstone Power Station — the biggest power generator in the state — produces about 16 mil- lion megawatt hours per year. The incentives work like this: Solar and other projects produce a renewable energy credit for every megawatt-hour of energy they generate. Utilities are required to buy a certain number of those credits each year. They aren't actually buying the energy, which is used on-site, but rather the value of the clean power. The costs to the utilities are built into the rates Connecti- cut residents and businesses pay on their monthly bills. The legislature in 2016 and 2017 added an additional year to the ZREC and LREC programs, but it's not yet known if they will be extended again. Modifi- cations could be in the cards. The Department of Energy and Environmental Protection is expected to address the topic in its latest Comprehensive Energy Plan, a final version of which is expected to be out by next month. A draft version of the plan noted that the value of ZREC and LREC credits have declined, mak- ing them less valuable to develop- ers (but less costly to ratepayers). DEEP has recommended placing a greater focus on massive grid- scale renewable projects, which have seen steeper price declines. Asked about the future of ZREC and LREC last week, DEEP spokesman Chris Collibee said the agency expects the programs to be a key part of the final Comprehensive Energy Plan when it's released. Combined, ZREC and LREC- backed projects have more than 330 megawatts of generating capacity, producing more than 685,000 megawatt hours per year GOVERNMENT Accountability board weighs first municipal contract T he state's newly created Municipal Account- ability Review Board, which provides finan- cial guidance and assistance to distressed cities and towns, has reviewed its first city- union contract, with more expected to come soon. The review board met Jan. 11 and held a two-hour discussion with North Haven officials about their finances. North Haven and Hartford, whose Mayor Luke Bronin lobbied for the creation of the review board, are the first two municipalities that have been approved for oversight. The board has approximately $55 million in municipal aid under its purview over the next two years. The discussion this month included a detailed review of a newly signed contract between North Haven and a bargaining unit of 24 water pollution plant employees. Review board members, including State Treasurer Denise Nappier and Office of Policy and Management Secretary Benjamin Barnes, said they wanted to be careful in reviewing their first contract to not send any messages about contract terms they favor or dislike. Barnes said a municipality's ability to afford a new contract should be the top concern. "We owe it to ourselves to be thoughtful about how we handle the first one of these out of the gate," he said. North Haven's contract includes no wage increases in the first year, a switch to a higher-deductible health plan, elimination of sick days in overtime pay calcula- tions and other short- and long-term savings measures. Detailed discussion of the contract came after Nappier said she was worried about taking a per- functory vote without additional context. "It's not so much this agreement, because I don't really see anything wrong with it," she said. "It's the basis for the action we take and how it could affect other collective-bargaining agreements that could come before this body." In the end, review board members decided to take no formal action on the contract, which under a new state law creating the board, effectively approves it. Review board members said they intend to create a uniform format for reviewing city and town union contracts. ZREC incentives funded this solar array atop St. Francis Hospital. CT's VC activity ticks up in 2017 Connecticut venture capital activity picked up in 2017, with overall investment in Nutmeg State companies increasing 21 percent. But investment was still down well below levels set in 2015 and 2014. 2013 2014 2015 2016 2017 Total CT VC investments $254,260,000 $690,930,000 $344,560,000 $195,190,000 $236,830,000 Source: PwC/CB Insights MoneyTree™ Report State Treasurer Denise Nappier, who is a member of the newly created Municipal Accountability Review Board, talks at a recent board meeting in Hartford. HBJ PHOTO | MATT PILON PHOTO | CONTRIBUTED

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