(a) The Commissioner of Energy and Environmental Protection, in consultation with the procurement manager identified in subsection (l) of § 16-2 and the Office of Consumer Counsel, may issue requests for proposals for energy storage projects connected at the transmission or distribution level, including stand-alone energy storage projects and energy storage projects paired with Class I renewable energy sources or hydropower facilities that have a nameplate capacity rating of not more than one hundred megawatts, that would achieve the goals in § 16-243cc in combination with programs established by the Public Utilities Regulatory Authority. If the Commissioner of Energy and Environmental Protection determines that procuring energy storage is cost effective, the commissioner shall proceed with the selection of proposals. In making this determination, the commissioner shall publish and make available for public comment a cost-effectiveness test that considers each applicable benefit provided by energy storage.

(b) In making any selection of such proposals, the commissioner shall consider factors, including, but not limited to, (1) whether the proposal is in the best interest of ratepayers, including, but not limited to, the delivered price of such sources, (2) whether the proposal promotes electric distribution system reliability, including during winter peak demand, (3) any positive impacts on the state’s economic development, (4) whether the proposal is consistent with the requirements to reduce greenhouse gas emissions in accordance with § 22a-200a, and (5) whether the proposal is consistent with the policy goals outlined in the Comprehensive Energy Strategy adopted pursuant to § 16a-3d and the Integrated Resources Plan adopted pursuant to § 16a-3a. In considering whether a proposal has any positive impacts on the state’s economic development, the Commissioner of Energy and Environmental Protection shall consult with the Commissioner of Economic and Community Development.

(c) Any agreement entered into pursuant to this section shall be subject to review and approval by the Public Utilities Regulatory Authority, which review shall be completed not later than one hundred twenty days after the date on which such agreement is filed with the authority. The authority shall approve any such agreement if it is cost effective and in the best interest of electric ratepayers. The net costs of any such agreement, including costs incurred by the electric distribution companies under the agreement and reasonable costs incurred by the electric distribution companies in connection with the agreement, shall be recovered through a fully reconciling component of electric rates for all customers of electric distribution companies. Any net revenues from the sale of products purchased in accordance with long-term contracts entered into pursuant to this section shall be credited to customers through the same fully reconciling rate component for all customers of the contracting electric distribution company.