Conn. Gen. Stat. § 16-244m: Procurement Plan re standard service.

(a)(1) On or before January 1, 2012, and annually thereafter, the procurement manager of the Public Utilities Regulatory Authority, in consultation with each electric distribution company, the Consumer Counsel, the Commissioner of Energy and Environmental Protection, and others at the procurement manager's discretion, including, but not limited to, a municipal energy cooperative established pursuant to chapter 101a, other than entities, individuals and companies or their affiliates potentially involved in bidding on standard service, shall develop a plan for the procurement of electric generation services and related wholesale electricity market products with the goal of reducing the average cost of standard service for standard service customers while minimizing the cost volatility in the procurement of such services or products. The procurement plan (A) shall provide for the option of competitive solicitation for load-following electric service, (B) shall include a provision requiring each electric distribution company, individually or jointly, to develop and maintain the ability to engage in dynamic market purchases for not less than twenty-five per cent of the standard service load in a flexible manner designed to allow such company to purchase energy products during periods of lower energy cost, subject to a risk mitigation provision pursuant to subdivision (1) of subsection (b) of this section, based on the active monitoring of day-ahead and real-time energy markets, (C) may include any other contracts, including, but not limited to, contracts for generation or other electricity market products and financial contracts, (D) may provide for the use of varying lengths of contracts, and (E) may include the use of energy, capacity or other electric products approved in section 16a-3m. If such plan includes the purchase of full requirements contracts, it shall include an explanation of why such purchases are in the best interests of standard service customers. For the purposes of this section, “dynamic market purchases” means the purchase of energy, capacity or other market products necessary to serve standard service electric load using market purchases in the regional independent system operator markets, financial contracts or other variable procurement techniques.

(2) On or before February 15, 2026, in consultation with the electric distribution companies, the Consumer Counsel and the Commissioner of Energy and Environmental Protection, the procurement manager shall submit to the authority a proposed amendment of such procurement plan for approval or modification. Such proposed amendment shall (A) include, but not be limited to, modifications regarding the potential use of (i) multiple competitive solicitations each year for the procurement of energy at intervals identified in the procurement plan, or as determined from time to time by the procurement manager to serve the best interests of the ratepayers, provided such determination is in accordance with the applicable provisions of the procurement plan, (ii) contracts with durations not exceeding three years for the procurement of energy, and (iii) fixed-price energy supply contracts in addition to full requirements contracts, (B) establish guidelines for each electric distribution company concerning the implementation of the procurement plan, including (i) the requirement that each such company develop and maintain the capacity to engage in dynamic market purchases, and (ii) direction to each electric distribution company regarding the circumstances under which dynamic market purchases could be exercised, including a requirement that the ability to pursue the procurement methodologies as described in subdivision (1) of this subsection incrementally increase or decrease over time based on any demonstrated benefit to ratepayers, and (C) include a risk mitigation provision pursuant to subdivision (1) of subsection (b) of this section. The authority shall initiate an uncontested proceeding to review and modify or approve the amendment to the procurement plan submitted pursuant to this subdivision.

(3) If the procurement manager determines that an interim amendment to, or a temporary nonconformity with, the procurement plan may substantially further the goal of effectively procuring standard service while minimizing standard service cost volatility in relation to a specific procurement, the procurement manager shall adopt a waiver from the procurement plan applicable exclusively to such procurement. Upon the adoption of such waiver, the procurement manager shall immediately file notice of such interim amendment or nonconformity and the adoption of such waiver with the authority. Upon receipt of such notice from the procurement manager, the authority shall provide notice of the proposed waiver to the Office of Consumer Counsel, the Commissioner of Energy and Environmental Protection and the electric distribution companies. Upon receipt of such notice from the authority, the counsel, commissioner or any such company may submit comments concerning such waiver to the authority not later than two business days after the receipt of such notice. Such waiver shall be deemed adopted by the authority if the authority takes no action on such waiver not later than three business days after the comment period concerning such waiver for the counsel, commissioner and companies has expired.

(b) (1) In addition to the requirements of subsection (a) of this section, the procurement plan shall include a risk mitigation provision that defines the acceptable parameters for such dynamic market purchases, including guidelines for the use of financial contracts. Each electric distribution company shall comply with the provisions of the procurement plan, including any amendments to such plan or waivers of provisions of such plan adopted by the authority. Any review concerning the prudence of an electric distribution company's dynamic market purchases shall be conducted by the authority in a contested proceeding and shall be limited to an evaluation of such company's adherence to the dynamic market purchase requirements of the procurement plan.

(2) Costs incurred under this section shall be recovered as follows:

(A) All reasonable costs associated with the development and implementation of the procurement plan by the authority shall be recoverable through the assessment imposed pursuant to section 16-49.

(B) All reasonable and prudent operating costs incurred by an electric distribution company in the development and implementation of the procurement plan shall be recoverable on a timely basis through a reconciling bypassable component of the electric rates as determined by the authority, including incremental staffing and financial systems providing the functional capacity and expertise to support dynamic market purchases.

(C) All costs associated with the purchase of the actual net costs of procuring and providing standard service pursuant to this section shall be recovered in electric rates on a timely basis in accordance with section 16-244c.

(c) The procurement plan shall identify the method that shall be used by an electric distribution company to develop the proxy price for that portion of standard service procured through dynamic market purchases. Each electric distribution company shall pay for the costs of such dynamic market purchases in accordance with the terms of the applicable contracts. The actual costs of dynamic market purchases shall be reconciled to the proxy price for such costs, and the actual net cost of such dynamic market purchases shall be recovered in electric rates on a timely basis in accordance with section 16-244c.

(d) The procurement manager shall, not less than annually, prepare a written report on the implementation of the procurement plan. If the procurement manager finds that an amendment to the plan may substantially further the goals to effectively procure standard service, generally, while minimizing the cost volatility in such procurement, the procurement manager may petition the Public Utilities Regulatory Authority for such an amendment. The authority shall provide notice of the proposed amendment to the Office of Consumer Counsel, the Commissioner of Energy and Environmental Protection and the electric distribution companies. The Office of Consumer Counsel, the Commissioner of Energy and Environmental Protection and the electric distribution companies shall have fourteen business days from the date of such notice to request an uncontested proceeding and a technical meeting of the authority regarding the proposed amendment, and the authority shall hold such proceeding and meeting, if requested. After such proceeding and meeting, if requested, the authority may approve, modify or deny the proposed amendment. The authority's ruling on the proposed amendment shall occur not later than ninety days after the technical meeting, if such meeting is requested, or not later than one hundred twenty days after the expiration of the time for requesting a technical meeting if no technical meeting is requested. The authority may maintain the confidentiality of the technical meeting to the full extent allowed by law.

(e) The costs of procurement for standard service shall be borne solely by the standard service customers.

(f) (1) The Public Utilities Regulatory Authority may initiate an uncontested proceeding to amend the procurement plan from time to time.

(2) Not later than April 1, 2026, and annually thereafter, the Public Utilities Regulatory Authority shall submit a report, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance of matters relating to energy regarding the procurement plan and its implementation. Any such report may be submitted in conjunction with the report of the authority required pursuant to section 16-245x.