For the third consecutive year, The Brattle Group has assisted Connecticut Light & Power Company and The United Illuminating Company in developing an integrated resource plan (IRP), as required by Connecticut state legislation passed in 2007.
The results will be presented today during a public hearing before the Connecticut Energy Advisory Board by representatives from the utilities and economists from Brattle. The 2010 IRP analyzes how Connecticut customers’ needs for capacity and energy, as well as State Renewable Portfolio Standard (RPS) requirements, can be met. This involved assessing market fundamentals and identifying potential resource strategies that state policy-makers might pursue to influence costs to Connecticut customers and emissions. Alternatives included expanded energy efficiency programs and several alternative ways of meeting RPS requirements. Each strategy’s performance was evaluated by simulating the energy, capacity, and renewable energy certificate (REC) markets over the next decade. These simulations were performed under various scenarios addressing natural gas price, climate legislation, and load growth. In collaboration with the Connecticut Department of Environmental Protection, detailed consideration was given to future environmental requirements and their effect on generation retirements. The report identified seven primary findings that will heavily impact resource procurement strategies over the next decade. One is that RPS and climate legislation, among other factors, are likely to cause customers’ power supply-related costs to increase by more than 20%. The comprehensive analysis undertaken to develop the 2010 IRP led to two primary resource procurement recommendations:
- A targeted DSM expansion strategy should be funded, given that it would reduce customer costs and emissions while even reducing rates for non-participants.
- Connecticut policy-makers need to engage with other New England states to develop a comprehensive regional renewable energy policy that will define the best and most cost-effective means to expand renewable energy development in New England and the surrounding regions while meeting environmental goals.
Brattle principals Samuel Newell, Dean Murphy, Marc Chupka, and Judy Chang, and associate Mariko Geronimo, contributed to the plan, which is available for download following the link below.