Energy Efficiency Fund (Connecticut)

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Last modified on February 12, 2015.

Rules Regulations Policies Program

Place Connecticut

Name Energy Efficiency Fund
Incentive Type Public Benefits Fund
Applicable Sector Commercial, Industrial, Institutional, Residential
Eligible Technologies Ceiling Fan, Central Air conditioners, Chillers, Comprehensive Measures/Whole Building, Dehumidifiers, Dishwasher, Heat pumps, Lighting, Lighting Controls/Sensors, Refrigerators, Water Heaters, Tankless Water Heaters, Other technologies (not specified)
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Energy Efficiency Incentive Programs

Charge 0.003 per kilowatt-hour for Connecticut Light and Power (CLandP) and United Illuminating (UI) customers; varies for customers of municipal utilities.

Total Fund 2011: $154 M ($130.3 M electric and gas rate payer collections; $3.6 M ARRA/Oil; $17.9 M Forward Capacity Market; $5.6 M Class III Renewables; $5.8 M RGGI)
Types Energy efficiency, energy projects for low-income residents

Date added to DSIRE 2006-09-27
Last DSIRE Review 2013-07-19

References DSIRE[1]


Connecticut's original electric-industry restructuring legislation (Public Act 98-28), enacted in April 1998, created separate funds to support energy efficiency and renewable energy.* The efficiency fund is known as the Energy Efficiency Fund, and the renewables fund is known as the Connecticut Clean Energy Fund (CCEF). The mission of the Energy Efficiency Fund is to advance the efficient use of energy, to reduce air pollution and negative environmental impacts, and to promote economic development and energy security.

The Energy Efficiency Fund is funded by a surcharge of $0.003 per kilowatt-hour (3 mills per kWh) on Connecticut Light and Power (CL&P) and United Illuminating (UI) customers' electric bills. Each of the two utilities administers and implements efficiency programs following the comprehensive plan approved by the Connecticut Public Utilities Regulatory Authority (PURA). The utilities develop their plans with advice and assistance from the state's Energy Conservation Management Board (ECMB). Additional sources of funding for the Energy Efficiency Fund include the Regional Greenhouse Gas Initiative (RGGI), the Forward Capacity Market (FCM), Class III Renewable Credits,** and the American Recovery and Reinvestment Act (ARRA).

The utilities are authorized to implement the following types of programs: (1) Conservation and load-management programs, including programs that benefit low-income individuals; (2) research, development and commercialization of products or processes which are more energy-efficient than those generally available; (3) development of markets for such products and processes; (4) support for energy-use assessment, real-time monitoring systems, engineering studies and services related to new construction or major building renovation; (5) the design, manufacture, commercialization and purchase of energy-efficient appliances and heating, air conditioning and lighting devices; (6) program planning and evaluation; (7) indoor air-quality programs relating to energy conservation; (8) joint fuel-conservation initiatives programs targeted at reducing consumption of more than one fuel resource; and (9) public education. A limited percentage of the fund may be used for non-electric projects, such as furnaces and boilers for low-income residents. Preference is given to projects that maximize the reduction of federally mandated congestion charges. For details on Energy Efficiency Fund programs, savings and expenditures, see the fund's most recent annual report.

Connecticut's municipal electric utilities are not covered by the Energy Efficiency Fund, but they are required to establish a fund to provide renewable energy, energy efficiency, conservation and load-management programs (Conn. Gen. Stat. § 7-233y). A surcharge is imposed on the customers of electric municipal utilities according to the following schedule: 1.0 mill on and after January 1, 2006; 1.3 mills on and after January 1, 2007; 1.6 mills on and after January 1, 2008; 1.9 mills on and after January 1, 2009; 2.2 mills on and after January 1, 2010; and 2.5 mills on and after January 1, 2011. Municipal electric utilities must adopt a comprehensive plan for the expenditure of the monies collected, and the plans must be consistent with the comprehensive plan of the ECMB.

Furthermore, companies that distribute natural gas must develop a gas-conservation plan, with assistance from the ECMB, and programs to implement the plan. These plans are financed by a flat amount negotiated with and ordered by the PURA.

* Connecticut's restructuring legislation also created a systems benefits charge to fund public education, weatherization and conservation measures for low-income residents, storage and disposal costs for spent nuclear fuel, and post-retirement costs for decommissioned nuclear reactors.

** Class III renewables include electricity savings from conservation and load management programs that started on or after January 1, 2006. See Connecticut's Renewables Portfolio Standard entry in DSIRE for more information.

Incentive Contact

Contact Name Arthur Marcelynas
Department Connecticut Department of Public Utility Control

Address 10 Franklin Square

Place New Britain, Connecticut
Zip/Postal Code 06051
Phone (860) 827-2887


Authorities (Please contact the if there are any file problems.)

Authority 1: Conn. Gen. Stat. § 16-245m
Date Effective 2000-01-01
Date Enacted 04/1998, subsequently amended

Authority 2: S.B. 494
Date Effective 2010-07-01
Date Enacted 2010-05-07

Authority 3: S.B.1243 (Public Act 11-80)
Date Effective 2011-07-01
Date Enacted 2011-07-01

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"