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Connecticut's two investor-owned utilities -- Connecticut Light and Power Company (CL&P) and United Illuminating Company (UI) -- are required to provide net metering to customers that generate electricity using "Class I" renewable-energy resources, which include solar, wind, landfill gas, fuel cells, sustainable biomass, ocean-thermal power, wave or tidal power, low-emission advanced renewable-energy conversion technologies, and hydropower facilities up to two megawatts (MW) in capacity.

There is no stated limit on the aggregate capacity of net-metered systems in a utility's service territory. Any net excess generation (NEG) during a monthly billing period is carried over to the following month as a kilowatt-hour (kWh) credit for one year. At the end of the year (March 31), the utility pays the customer for any remaining NEG at the "avoided cost of wholesale power." (See specific utility rate tariffs for details).

In July 2011, Connecticut established virtual net metering for municipal customers only. A virtual net metering facility, like all net metering facilities, must generate electricity using Class I renewable energy and may serve the electricity needs of the municipal host customer and additional "beneficial accounts" as long as the beneficial accounts and host account are within the same electric distribution company's service territory. Up to five beneficial accounts may be assigned. If a municipal host customer produces more electricity that it consumes, the excess electricity will be credited to the beneficial accounts for the next billing period at the retail rate (note: only the generation portion of the bill is netted). Excess credits rollover monthly for one year. The electric distribution company is to compensate the municipal host customer for excess virtual net metering credits remaining at the end of the calendar, if any, at the retail generation rate. The Department of Energy and Environmental Protection established [http://www.dpuc.state.ct.us/dockhist.nsf/%28Web+Main+View/All+Dockets%29... docket 11-07-05] and subsequently approved the utilities' virtual net metering tariffs during spring 2012.