DEEP to suspend submetering discussions for legislature

Photo | Steve Laschever Bruce Becker, pictured here 777 Main St. in Hartford, will have to wait at least until the summer to resolve the submetering funding issues at his skyscrapers in Hartford and New Haven.

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The Connecticut Department of Energy & Environmental Protection has asked its utility regulators to suspend the investigation into submetering policies so the state legislature can address the issues, delaying the ability of high rises in Hartford and New Haven from receiving any energy efficiency money.

"It is just a clarity kind of thing," said Jessie Stratton, DEEP director of policy. "It is just that it is not as neat and tied up as we would like it to be, so we asked the legislature to weigh in."

The Public Utilities Regulatory Authority was conducting a generic investigation into submetering, a program approved by the legislature in June that allows property owners of multi-unit buildings to charge the individual tenants for their own energy use. The measure was part of Gov. Dannel P. Malloy’s comprehensive energy policy, hoping submetering would increase energy efficiency in multi-use buildings and provide landlords with a financing tool to install renewable energy installations like fuel cells and solar panels.

A major issue PURA was investigating is whether submetered buildings are eligible to receive energy efficiency incentives. Bruce Becker, the developer of the 360 State St. high-rise in New Haven, has been fighting with electric utility United Illuminating for almost five years to receive a payout of $3.1 million in energy efficiency incentives for his LEED Platinum building, which is submetered to pay for its fuel cell.

DEEP’s request to shut down the PURA proceedings until after the Connecticut General Assembly weighs in on the issue means Becker will have to wait until at least the end of the legislation session in June to receive that $3.1 million for 360 State. It also means his desire to submeter the 777 Main St. high rise in Hartford will be put on hold until summer.

PURA is under no obligation to heed DEEP’s request, but since PURA is an agency inside DEEP, the cease and desist is likely to go through.

DEEP made the request after State Rep. Jonathan Steinberg (D-Westport), vice-chair of the legislature’s Energy & Technology Committee, wrote a letter to PURA saying submetered buildings should be eligible for energy efficiency fund and should be allowed to charge their residents for the electricity use at the same rate as the local utility. Steinberg said the rates are an important factor in the financing of projects like 777 Main St., which seeks to convert 300,000 sq. ft. of vacant office space into 285 residential apartments.

DEEP is supportive of submetered buildings getting energy efficiency but feels the other issues like rates and consumer protections require legislative review, Stratton said.

"This is something we want to do because it goes with the mission of our comprehensive energy strategy," Stratton said. "It would make sense for the legislature to look at it."