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MICROGRIDS: INSOURCING MORE RELIABLE ENERGY RESOURCES TO CONNECTICUT TOWNS AND CITIES FIRST DRAFT FOR DISCUSSION PURPOSES ONLY THE LEGAL ISSUES What legal personality should a microgrid take? Energy Improvement District? Municipal Power Entity? Electrical Cooperative? How do these solutions compare with calls for a State Power Authority? Officials of the Stamford and Bridgeport EID’s will attend the Summit and provide information about their efforts to legally enable peer-to-peer microgrids. It will be important to explore the reasons why the utility companies did not take advantage of state laws that allowed them to own a large amount of distributed generation. The electrical cooperative law seems to have been largely ignored by microgrid proponents so it will be interesting to explore ways that it might be amended, especially in ways that develop win- win-win deals for cooperative members, non-member energy users and utility shareholders. With respect to a role for the State, the Delaware, Vermont and District of Columbia sustainable utility models will be considered. Can a microgrid legally distribute energy within a utility company franchise area, especially where wires cross public rights of way? The Summit will explore several of the arrangements in other states that have met with utility company approval. As distributed energy results in a more decentralized power network and a change in the traditional utility business model, what lessons from the governance of decentralized telecommunications networks and the internet can be useful for the governance of microgrids? When decentralized telecommunications and computing networks gained market penetration, the leading developers tended to find new and mutually beneficial working relationships with the incumbent telephone and mainframe companies. These examples will be explored at the Summit to see what lessons they can impart for the relationship between microgrid users, EIDs and the utility companies. What types of pilot projects are legally optimal? The extent to which microgrids can be developed on academic and commercial campus facilities should be addressed because these systems tend to avoid the issue of wires across public roadways within a utility franchise area. On the other hand, a legally sound approach for connecting energy users across roadways in a dispersed town center so they can better operate during power outages should be discussed given the State government’s aspirations for this type of microgrid. Page 27PDF Image | MICROGRIDS
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