(a) On and after July 1, 2011, if the Public Utilities Regulatory Authority does not receive and approve proposals sufficient to reach the goal set by the Integrated Resources Plan, the authority may order an electric distribution company to submit for the authority’s review in a contested case proceeding, in accordance with chapter 54, a proposal to build and operate an electric generation facility in the state. An electric distribution company shall be eligible to recover its prudently incurred costs consistent with the principles set forth in § 16-19e for any generation project approved pursuant to this section.

(b) On or before January 1, 2008, the authority shall initiate a contested case proceeding to determine the costs and benefits of the state serving as the builder of last resort for the shortfall of megawatts from said request for proposal process.