STATEMENT TO

 

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 463

 

with Senate Floor Amendments

(Proposed by Senator SMITH)

 

ADOPTED: JUNE 10, 2010


 

      These amendments permit CREG systems to serve one or more LRECs, limit coverage under the bill of CREG systems and LRECs to those established after the effective date of the bill, and require such CREG systems and LRECs to be licensed by, rather than simply registered with, the Board of Public Utilities (the “board”).  The amendments also (1) revise the definition of LREC to limit LREC members to residential customers only, (2) reset the level of electric public utility payments to most LRECs to the prevailing BGS rate instead of 110% of the BGS rate, (3) require LRECs that receive payments of 120% of the BGS rate to consist of members in homes older than 10 years with heating systems predominantly served by electric energy, and (4) eliminate a requirement to have differences in payments to CREG operators flow through a reconciliation clause of the utility’s tariff.  Finally, the amendments require the board to adopt and implement a CREG and LREC licensing system within 90 days after the effective date of the bill and to approve or disapprove a licensing application within 30 days of the date of receipt, and revise the effective date to make the bill effective immediately.