Gov. Dannel Malloy on Tuesday finalized plans for a $7 billion expansion of natural gas for home heat, broadening the definition of renewable power, and bringing more energy-efficiency financing to businesses.
The plans included in the state’s first comprehensive energy strategy largely were unchanged from the draft version Malloy released in October before a lengthy public comment period.
The highlight of the 197-page document remains the plan to add 300,000 business and residential customers to natural gas home heating service, which will cost $6.7 billion to add the necessary equipment for customers and expand the pipeline distribution system.
The strategy calls for no state tax dollars to be used in the natural gas expansion. The utility costs will be covered by existing and future ratepayers while customers can pay for their equipment upgrades through on-bill financing.
Much of the strategy — including the natural gas expansion — does not need legislative approval to move forward. Among the legislative items, Malloy is asking the General Assembly to broaden the definition of renewable power, particularly to include large-scale hydro, a process that already has begun in the legislature’s Energy & Technology Committee.
The major changes in the final document from October’s draft version are increasing the cyber security of the state’ energy systems and calling for virtual net metering, allowing several customers to draw power from a renewable energy installation.
The comprehensive energy strategy includes methods for business customers to drastically increase the energy efficiency of their operations. While current options include upgrades such as lighting and weather-stripping, the strategy allows for upgrades with bigger impacts such as replacing heating systems and replacing manufacturing equipment.
These more costly measures will be financed largely through the state’s Commercial Property Assessed Clean Energy, or C-PACE, program that allows for low-interest loans assessed on municipal property bills.
