Murtha Means More

September 14, 2012 - Microgrids at Hospitals

DEEP to Provide $15 million for Select Municipalities to Supply Critical Emergency Power

As required by Section 7 of Public Act 12-148, An Act Enhancing Emergency Preparedness and Response (the "Act"), the Connecticut Department of Energy and Environmental Protection ("DEEP") is establishing a Microgrid Grant and Loan Pilot Program ("Microgrid Pilot Program"). DEEP will award $15 million in grants and loans to 8 - 15 Connecticut towns and cities, and other entities such as hospitals to provide critical electrical services in storms or other emergencies. The first RFP is due mid-November.

The purpose of the Microgrid Pilot Program is to support local distributed energy generation for "critical facilities" in the state so that they can continue to operate in the event that the electric distribution grid goes down. Under the Act, critical facilities include hospitals.

The total amount of grants and loans to be awarded under the Microgrid Pilot Program will be $15 million, and grants and loans awarded to selected projects will be used to pay the cost and design of the microgrid, engineering services in connection with the microgrid, and interconnection infrastructure for the microgrid. DEEP anticipates that these grants will be allocated among 8 - 15 towns and cities, and other entities. DEEP is working closely with utilities to assist municipalities in these efforts.

On October 15, 2012, DEEP will issue the Phase 1 Request for Proposals ("RFP"), which will be used to determine the feasible projects. Phase 1 RFP submittals will be due by November 12, 2012. On January 2, 2013, DEEP will issue the Phase 2 RFP, which will be used to further evaluate the feasible projects selected under the Phase 1 RFP. Phase 2 RFP submittals will be due sometime in February, 2013 (date TBD). DEEP will award the grants and loans to the selected microgrid projects sometime in February, 2013 (date TBD).

DEEP will be holding a Microgrid Pilot Program – Stakeholder Meeting on September 18, 2012 in the Phoenix Auditorium at 79 Elm Street in Hartford, CT. The Stakeholder Meeting will provide an overview of the Microgrid Pilot Program and there will be a question and answer session. In addition, potential microgrid developers will have the opportunity to make presentations.

Attorneys from Murtha Cullina LLP have been working with representatives from DEEP very closely on this potential opportunity for hospitals and are keenly aware of the intricacies of the Microgrid Pilot Program. Any hospitals interested in exploring a microgrid opportunity are encouraged to work with a municipality and urged to attend DEEP’s Stakeholder Meeting on September 18, 2012. For any hospitals that cannot attend the Stakeholder Meeting, Murtha Cullina LLP would be glad to review the results of the meeting and the Microgrid Pilot Program with you at your convenience.

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