MICROGRIDS

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MICROGRIDS ( microgrids )

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MICROGRIDS: INSOURCING MORE RELIABLE ENERGY RESOURCES TO CONNECTICUT TOWNS AND CITIES FIRST DRAFT FOR DISCUSSION PURPOSES ONLY A SUMMARY OF THE DEMAND AND VISION FOR MICROGRIDS BY CONNECTICUT TOWNS AND CITIES Connecticut towns and cities are among the most motivated and proactive communities in the country for insourcing energy with microgrids. While Connecticut communities pay among the highest rates for power in the continental United States, many of them also suffer from periodic, acute power outages and continuous, chronic power quality problems. On-going power outages due to Hurricane Irene and an early-season snow storm in 2011 have demonstrated a variable performance in terms of restoring power. Most parts of Connecticut's highly-centralized utility grid did not recover in a timely way. However, the recovery performance of other parts of the grid was exemplary. Facing the prediction by a State panel of experts that a Category 3 hurricane could result in month-long outages, many municipal leaders in Connecticut are now motivated to take a direct role in solving reliability problems. They are looking first to those few areas of the Grid that tend to perform well during outages. Whatever the level of reliability, the typical Connecticut town or city imports most of its energy supply from interstate electric grids and natural gas pipelines. A large amount of cash flow leaves the communities to pay for energy and very few in-city residents are employed to provide it. Meanwhile, electric service imported by Connecticut’s towns and cities is among the most expensive in the country. Therefore, Connecticut’s municipal leaders also want to take a more direct role in lowering energy costs than they have in the past. Finally, many of Connecticut’s municipal leaders have observed that a commitment to lower environmental footprints for the community’s energy use is coincident with better health and economic well-being. Therefore, thee also want to take a more direct role in finding greener technologies for their community’s energy use. Many state and municipal leaders have been convinced that the few Connecticut distribution systems that are publically owned generate power at much lower rates while also having a dramatically better performance record in restoring power during outages. They increasingly consider, therefore, that more of Connecticut’s electric power grid should be collectively- owned and governed by its users in distributed energy microgrids. From a legislative point of view, these municipal motivations spawned the Energy Improvement District law in 2007 and even a vote by the State Assembly to form a state power authority. Page 4

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