1. The LREC/ZREC PROGRAM and RFP Results
Developing Small Behind-The-Meter Renewable Generation in Connecticut
Christie Bradway, Manager, Renewable Power Contracts,
October 26, 2012
2012 CL&P and Yankee Gas Large Customer Meetings

2. What are LRECs and ZRECs?
LRECs: Low Emission Renewable Energy Credits (RECs)
Fuel Cells; Solar; Small Hydro; Wind
No larger than 2,000 kW
Must have low emissions
ZRECs: Zero Emission Renewable Energy Credits
Solar, Small Hydro, Wind
No larger than 1,000 kW
Requires contracts with small <100 kW; medium – 100 – 250 kW; large – 250 – 1,000 kW
Must have zero emissions
LRECs/ZRECs can be used to meet CT Class I RPS requirements

3. Connecticut Public Act 11-80 & the LREC/ZREC Program
Requires CL&P and UI to purchase Renewable Energy Credits (“RECs”) under 15-year contracts
Projects must meet eligibility criteria:
Connecticut Projects located behind the customer meter in our service territory
Interconnected to the EDCs distribution system
Must be in service on, or after, July 1, 2011
Can not have received CCEF or CEFIA grants or rebates

4. Budget Based Program
The Program is based on committing an annual budget and not procuring an amount of capacity (MW)
LRECs ZRECs (Large, Medium and small)
$4M/Yr for 15 Yr contracts = $60M $8M/Yr for 15 Yr contracts =
$120M
5 Procurement Yrs = $60M x 5 = $300M 6 Procurement Yrs =
$120M x 6 = $720M
Combined Total Program Budget for LRECs and ZRECs = $1.02 B
80/20% budget split between CL&P & UI
CL&P ~80% = $816M
UI ~20% = $204M

5. CL&P Received Approval on our Solicitation Plan in April 2012
Timeline and Methodology of Solicitation
Annual RFP and Tariff
Method of Evaluation
Ranked by lowest price per REC to commit an annual budget and meets eligibility criteria
Bid evaluation discount of 10% for Connecticut manufactured, researched or developed technologies
Form of Standard Contract
No negotiation of terms and strict termination provisions
Additional Standardized Documents
RFP; Small ZREC Tariff; Meter Specifications
Group
Size
Solicitation Method
LREC
0 – 2,000 kW
RFP
Large ZREC
250 – 1,000 kW
Medium ZREC
100 – 250 kW
Small ZREC
0 – 100 kW
Tariff

6. Successful LREC/ZREC Procurement Plan Filed with PURA on Oct. 10, 2012
Resulted in 76 contracts and $90M in contract commitments
Next competitive solicitation expected in April 2012.
Exercised contract protections and controls
Strict termination provisions if contracts were not executed or performance assurance was not paid
Use of a Stand-by queue allowed us to select “next project in the queue” until bid expiration

7. CL&P’s RFP Budget LRECs = $3.2M/year annual budget
ZRECs = $4.26M/year annual budget
Large (250 kW & up) = ~$2.13M/year
Medium (over 100 kW; <250 kW) = ~$2.13M/year
* Reminder – Small ZRECs were not part of RFP

8. Results of 1st RFP
Category
Size
# Bids Received #
Bids Selected
(Round 1 + 2)
Average Weighted Price/REC
Committed Budget ($M)
Uncommitted Budget ($M)
15 Year Contract Commitment Value ($M)
LRECs
Up to 2 MW 43 8
$59.91
$1.9
$1.3M
$29
Medium ZRECs
100 – 250 kW
113 47
$149.29
$2.1
$78K
$30.8
Large ZRECs
250 – 1,000 kW
140 21
$101.36
$2.0
$145K
$29.8
Total
296 76
$91.01
$6.0
$1.5M
$90
Prices significantly lower than cap by about 1/3 of cap
Contracts have resulted in the commitment of most of the available budget, with the exception of LRECs where 39.5% ($1.3M) of funding was not committed due to Bidders not providing Performance Assurance and termination of contracts.
PURA allows for uncommitted dollars to be rolled into a future Solicitation (April 2013)
RFP contracts will result in approximately 25MW of installed renewable capacity in CT
LRECs = 4 MW – fuel cells
ZRECs = 21 MW - solar

9. Small ZREC Program At this time, no date set for opening of program
PURA Decision requires CL&P to open within 30 days of “PURA approval of Medium & Large ZREC contracts”
PURA is still reviewing Procurement Plan
Small ZREC Price = $164.22/REC (proposed)
The companies are jointly completing key Small ZREC documents
Application rules
Small ZREC Q&A
Small ZREC Tariff Informational Session – November 5, 2012
9 am – 3 pm at Northeast Utilities Selden Street, Berlin, CT

10. Questions? Website: www.cl-p.com
Click on “Renewable Energy Credits” under “Going Green”
Contact CL&P: