360 State’s Green Power To Be Unleashed

Thanks to a freshly signed law, 360 State may finally crank its world-class fuel cell up to its fullest green-energy potential — as soon as state regulators write some new regulations.

When 360 State opened in the summer of 2010, the mixed-use tower at the corner of State and Chapel streets contained the world’s largest clean energy generator in an apartment building. In the three years since then, the fuel cell has operated at only a fraction of its full power.

The 400-kilowatt fuel cell was intended to power the building’s 500 apartments, but has been powering only the building’s hallways and common areas. That’s because the state has forbidden 360 State from ​“submetering,” charging tenants individually for the electricity they use from the building’s fuel cell.

For three years, 360 State has fought to gain permission to submeter. Last month, Gov. Dannel Malloy signed a bill that legalizes the practice in buildings that generate their own electricity — buildings like 360 State.

360 State can’t start submetering, however, until the state Public Utilities Regulatory Authority (PURA) creates an application and approval process, as the law directs it to do.

“That’s what we’re hoping will go very quickly,” said Paul McCary, attorney for 360 State. ​“They’re starting that process now.”

Dennis Schain, spokesman for the Department of Energy and Environmental Protection (DEEP), said it’s unknown when PURA will create the new regulations. ​“It’s hard to put a definite date on it,” he said. ​“They recognize it’s an issue of great concern and will move it forward as soon as possible.”

“It will be a big improvement,” McCary said. ​“It will enable the building to use the fuel cell to the meet the needs of the tenants as well as the common load.”

Beyond just 360 State, McCary said, the bill is ​“frankly good news for a lot of other buildings in Connecticut that are master metered” — that is, buildings that have only one electric meter for many apartments.

That was the case in another building in town that McCary represents: 900 Chapel St. He said the owners of that building have been in a years-long legal battle over submetering with the state.

When the building was converted from commercial to residential use, putting in utility meters for each apartment would have been too expensive, he said. The building owners put in submeters instead, seven years ago. The owners have been ​“in litigation with PURA for four or five of those years,” McCary said.

Submetering encourages tenants to conserve electricity, McCary said. In master-metered apartment buildings, tenants pay electricity bills as a flat-fee part of their rent, which encourages waste. When tenants aren’t accountable for the electricity they use, they use 20 percent more on average, McCary said.

It can become ​“a fairness issue,” McCary said. ​“If you’re never home and only use one light bulb and I’m always home and use four computers and three TVs” you’ll end up paying for my electricity.

Jessie Stratton, DEEP’s directory of policy, said the submetering bill is intended to tackle this unfairness and to encourage people to use less electricity.

The ​“concern” that comes with submetering, she said, is that buildings that submeter ​“are not considered electric companies,” they’re ​“not required to do everything electric companies are required to do.” The state has a duty to see that tenants using electricity through a submeter are shielded by the same consumer protections that cover power company customers, she said. Meters need to be checked regularly to ensure accuracy, for instance, Stratton said.

That’s why PURA needs to develop regulations, Stratton said.

Schain said PURA has ​“opened a docket” on submetering is in forming a working group to come up with regulations that will be presented to the PURA board of commissioners.

Bruce Becker, who designed and built 360 State, declined to comment for this story. Click here to read testimony he gave on the submetering bill in March.

$3 Million

The new law may have another effect on 360 State, to the tune of $3 million. That’s how much Multi-Employer Property Trust (MEPT)— the union pension fund-backed outfit that owns the building — expected to receive in state incentives for building an energy-efficient tower, according to McCary.

United Illuminating (UI) has refused to release the money until the submetering issue is worked out, McCary said. He said he filed a request Thursday to have the funds released, now that submetering has been legalized by the legislature.

“The funds have been effectively embargoed even though the building followed all the rules,” McCary said.

UI couldn’t be reached for comment.

“It looks like 360 State would be able to apply for that funding once regulations are in place and they’re able to move forward with submetering,” Schain said.

With the new submetering law, the end may be in sight for years of litigation for two downtown New Haven buildings, McCary said. ​“We think we’ll finally get across the goal line.”