1. (a) An electric distribution company shall not own or operate generation assets, except as provided in this section and sections 16-43d, 16-243m, 16-243u, 16a-3b and 16a-3c, provided nothing in this section or in section 16-244w shall be interpreted to prohibit or limit the ability of an electric distribution company from building, owning or operating an energy storage system.
2. (b) Each electric distribution company shall provide all customers with a bill that separates the electric generation services component of those charges.

3. (c)

   1. (1) The Public Utilities Regulatory Authority shall authorize an electric distribution company to recover its prudently incurred costs and investments, which shall be determined by the authority in a contested case, for any energy storage system such electric distribution company builds, owns or operates to enhance distribution reliability or resiliency at the time of the electric distribution company's next rate case, at which time such costs and investments shall be recoverable through base distribution rates consistent with the principles set forth in sections 16-19 and 16-19e.
   2. (2) For any completed energy storage system, the company shall maximize the value from the system's participation in wholesale electricity, capacity or other markets, as applicable, while maintaining distribution system reliability. Any net revenues from such participation shall be credited to ratepayers to offset the cost of the completed system in rates.

(P.A. 98-28, S. 5, 117; P.A. 03-135, S. 18; June Sp. Sess. P.A. 05-1, S. 4; P.A. 06-196, S. 234; P.A. 07-242, S. 63; P.A. 11-80, S. 1; P.A. 13-5, S. 37; P.A. 14-134, S. 81; P.A. 19-35, S. 13; P.A. 22-55, S. 1.)

History: P.A. 98-28 effective July 1, 1998; P.A. 03-135 amended Subsec. (a)(6) to designate existing provisions as Subpara. (A) and to add Subpara. (B) re ownership or operation of generation assets by an electric distribution company, effective July 1, 2003; June Sp. Sess. P.A. 05-1 amended Subsec. (a)(6) to add an exception re generation of electricity by an electric distribution company, effective July 21, 2005; P.A. 06-196 made a technical change in Subsec. (a)(6), effective June 7, 2006; P.A. 07-242 amended Subsec. (a)(6) to add exceptions re generation of electricity by electric distribution company, effective July 1, 2007; pursuant to P.A. 11-80, “Department of Public Utility Control” and “department” were changed editorially by the Revisors to “Public Utilities Regulatory Authority” and “authority”, respectively, effective July 1, 2011; P.A. 13-5 amended Subsec. (b) to delete provision re calculation of base rates, effective May 8, 2013; P.A. 14-134 amended Subsec. (a) by deleting former Subdivs. (1) to (6)(A) re unbundling and separation, and amended Subsec. (b) by deleting provisions re hearing and final order, deleting reference to electric company and making technical changes, effective June 6, 2014; P.A. 19-35 amended Subsec. (a) by adding provision re electric distribution company building, owning or operating energy storage system and added Subsec. (c) re recovery of costs and investments, effective June 28, 2019; P.A. 22-55 amended Subsec. (c) by designating existing provisions re energy storage systems that an electric distribution company builds, owns or operates as Subdiv. (1) and therein replacing “may” with “shall”, adding reference to determining costs in a contested case, deleting reference to a fully reconciling component of electric rates, adding “to enhance distribution reliability or resiliency at the time of” before reference to the company's next rate case and adding Subdiv. (2) re maximizing the value from participation in wholesale electricity, capacity or other markets.