By Chet Warner, Stamford (CT) Intern
June 18, 2007

The Connecticut state legislators June 2 passed House bill 7432, “An Act Concerning Electricity and Energy Efficiency.” This bill and its amendments could drastically change the way energy is produced within Connecticut. Incorporated in this omnibus bill is a series of amendments regarding the implementation and maintenance of Energy Improvement Districts (EIDs). EIDs enable businesses to jointly plan and finance technologies known as “distributed energy.” These include locally available renewable energy resources and on'site generators that use combined heat and power, and optimize energy use in a local microgrid.

The bill is specific in its regulations, in that any municipality may create and run EIDs with the founding of an EID board. In addition, each property owner must be informed of the creation of the EID and given the opportunity to participate or not participate. Also, it enables businesses in EIDs to use tax-free bonds to finance local distributed energy and microgrids.

The goal of the EID, as stated in the bill, is to provide cheaper and more reliable energy solutions for the municipality it serves. However, the bill is also very specific in its assurance that the EID will not and cannot legally replace the services of the standard utility company. Section 23 states, “Nothing in sections 16-21 shall authorize the EID to (1) be an electric distribution company, (2) be a municipal electric utility or provide such services, (3) sell electricity outside the EID.” With these assurances guaranteed, distribution companies, such as Connecticut Light & Power, can begin to work together with the EIDs to provide cleaner and more reliable energy alternatives to the citizens of Connecticut.

Stamford (CT) Mayor Dannel Malloy, whose city was severely affected by blackouts last summer, and who was a major backer of the EID legislation, says, “With regards to energy, the problems manifest themselves in high prices, strained capacity, poor reliability and, at times, there are concerns about quality. Increasingly, large scale financial institutions can afford the cost of the power but not the strained capacity nor its unreliability, and we have had to come up with strategies that allow for a private sector answer.” Malloy also went on to say that the city of Stamford plans “to implement demonstration projects at its Government Center and its wastewater facility to show the new technology and operating systems that can be deployed within an EID.”

Guy Warner, CEO of Pareto Energy Ltd, a Platinum Member of the Conference of Mayors, whose company presented the idea of EIDs to Stamford and the Connecticut General Assembly, says, “The implementation of EIDs in Connecticut was a long process. It took nearly two years to prove to everybody – the businesses, the cities, the utilities, and the legislators – that EIDs are the most efficient and reliable sources of power available. Without the cooperation of each entity, this process could not have happened.”

The passage of this bill is sure to start talk of action in other cities similarly affected by power irregularity. These cities need only look to the diligent and dedicated work of Malloy, the understanding of Connecticut Light & Power, and the well spent efforts of the legislators of Connecticut as proof that this type of action can take place anywhere as long as everyone is aware of an energy problem and the exciting new technologies available to solve it.

For more information on Pareto Energy and EID’s, contact Kathryn Kretschmer-Weyland at 301-460-5251 or send e-mail to kweyland@usmayors.org.