Government > Mayor's Office > Fuel Cell Situation

Ansonia Fuel Cell Project

This page provides a detailed overview of the City of Ansonia's fuel cell situation, including the project history, regulatory conflict, financial impact, and the legislative action taken in 2026 to create a path toward resolution.

📄 Fuel Cell Presentation to the Board of Aldermen 6-9-26 Project Timeline Financial Impact Source Documents

Summary: What Happened?

The City became involved in competing fuel cell proposals for the same parcel at 35 North Main Street. The first project, proposed by HyAxiom, received approval from the Connecticut Siting Council in February 2024. After that approval, the City moved forward with a separate project involving Johnson Controls / JCI on the same site. The result was a regulatory conflict: two proposed projects, two developers, and one parcel.

The City later faced substantial payment obligations under the JCI lease-purchase structure even though no fuel cell facility was operating and no project revenue was being generated. In 2026, Mayor Frank Tyszka's administration, Special Counsel Gary Hale, Hamilton Consulting, Senator Jorge Cabrera, Representative Kara Rochelle, and Governor Lamont's office pursued a legislative solution to break the deadlock and create a path toward a workable project.

$37M Lease-purchase principal obligation approved for the JCI fuel cell project.

$63.6M Estimated total principal and interest payments through 2045.

$1.26M Fuel cell revenue budgeted for FY2025-26 that did not materialize.

Project Timeline

2022–Early 2024: HyAxiom Project and Siting Council Approval

March 2022: Mayor Cassetti writes a letter of support to DEEP. The Board of Aldermen authorizes a HyAxiom lease, but the lease is never signed.

February 2023: The City and HyAxiom execute a one-year option to lease 35 North Main Street.

October 2023: HyAxiom files Connecticut Siting Council Petition No. 1595 for a 4.14 MW fuel cell project. The City is formally notified.

February 15–16, 2024: The Connecticut Siting Council approves HyAxiom's project. The declaratory ruling remains valid until February 16, 2027.

February 20, 2024: Five days after the Siting Council approval, the prior administration issues a new RFP for the same parcel.

March 12, 2024: The Board of Aldermen votes to reject HyAxiom's lease agreement.

2024–2025: JCI Project and Regulatory Conflict

April 2024: JCI presents a lease-purchase structure, including projected federal tax credit benefits and annual revenue estimates.

June 4, 2024: The City and JCI execute an Agreement Between Owner and Design-Builder.

October 5, 2024: The Board of Aldermen approves the $37 million lease-purchase structure.

May 13, 2025: JCI files Connecticut Siting Council Petition No. 1668 for the same 35 North Main Street site.

June–July 2025: HyAxiom is granted intervenor status and files a motion to dismiss.

August 21, 2025: The Siting Council partially grants HyAxiom's motion, finding the JCI petition premature because HyAxiom's prior approval remained valid.

October 30, 2025: The Siting Council denies the City's motion to reopen Petition No. 1595 and rejects Petition No. 1668.

2025–2026: New Administration and Legislative Solution

December 1, 2025: Mayor Frank Tyszka takes office and inherits the fuel cell debt obligation, rejected Siting Council petition, and unresolved regulatory dispute.

March 26, 2026: Mayor Tyszka, Senator Cabrera, Representative Rochelle, Special Counsel Gary Hale, and Hamilton Consulting meet with Governor Lamont and senior staff.

May 6, 2026: A legislative amendment to Senate Bill 477 is adopted, creating a path to consolidate the competing project tracks and resolve the regulatory deadlock.

The Regulatory Problem

HyAxiom: Petition No. 1595

Filed in October 2023.
Approved by the Connecticut Siting Council in February 2024.
Covered a 4.14 MW fuel cell facility at 35 North Main Street.
Declaratory ruling remains valid until February 16, 2027.
The City did not file comments, objections, or request party status during the proceeding.

JCI / City: Petition No. 1668

Filed in May 2025 for the same site.
HyAxiom intervened because it already held approval for the parcel.
The Siting Council found the JCI petition premature.
The City's effort to reopen the HyAxiom approval was denied.
The petition was rejected on October 30, 2025.

Core issue: The Siting Council had already approved HyAxiom's project for the site. The City then advanced a different fuel cell proposal for the same parcel, creating a conflict the Siting Council declined to resolve as a private dispute between the City, HyAxiom, and the competing project structure.

Financial Impact

The presentation identifies the JCI lease-purchase obligation as a major source of financial pressure on the City. Payments were required even though the fuel cell project was not operational and no project revenue was being generated.

Item	Amount / Impact
Lease-purchase principal obligation	$37 million
Total principal and interest through 2045	$63.6 million
Fuel cell revenue budgeted in FY2025-26	$1.26 million
Payment due December 1, 2025	$695,551
Payment due June 1, 2026	$859,906
Payment due December 1, 2026	$2,179,906
Estimated current-year budget shortfall	$2 million+

Why the Financing Structure Raised Concerns

The City committed to the full lease-purchase obligation before the project was operational.
Payments were not tied to construction milestones, completion stages, or actual revenue generation.
Fuel cell equipment reportedly remained in storage while the City continued facing scheduled payments.
By December 1, 2027, the City is projected to have paid nearly $5 million without a functioning fuel cell facility generating revenue.
The fuel cell obligation was cited as a factor in S&P Global Ratings revising Ansonia's outlook from stable to negative.
The estimated financial burden is described in the presentation as approximately $660 per Ansonia household.

Budget Impact

The fuel cell situation affected the City's budget in two ways: expected revenue did not materialize, and debt obligations existed without an operating project to offset the cost.

Budget Issue	Explanation
Unrealized revenue	The FY2025-26 budget included fuel cell revenue that did not materialize because the project was not operating.
Debt service pressure	The City faced scheduled JCI-related payments without corresponding project revenue.
WPCA proceeds	Hamilton Consulting reported that nearly all of the $41 million in WPCA proceeds had been spent, with approximately $465,000 remaining.
Tax impact	The presentation identifies the fuel cell hole as one factor contributing to the proposed mill-rate increase.

Outside Counsel and Strategic Options

Robinson+Cole was engaged in September 2025, after HyAxiom had already prevailed on its motion before the Siting Council. According to the presentation, outside counsel explored several options, including substituting the City as petitioner in Petition No. 1668, seeking to reopen Petition No. 1595, contacting HyAxiom's counsel, and identifying a possible path to re-engage HyAxiom under its existing approval.

The presentation states that after the October 30, 2025 Siting Council decision, outside counsel sent several follow-up communications to City officials regarding remaining strategic options, but no substantive strategic plan was left for the incoming administration.

The Tyszka Administration's Response

Upon taking office on December 1, 2025, Mayor Frank Tyszka directed Special Counsel Gary Hale to review the legal, regulatory, and financial landscape and identify a path to avoid a long-term financial loss for taxpayers.

Special Counsel reviewed the competing project approvals and the Siting Council record.
Hamilton Consulting provided financial analysis of the City's fiscal position.
The City pursued state-level engagement because the regulatory conflict could not be fully resolved through the Siting Council process alone.
The City team met with Governor Lamont and senior staff on March 26, 2026.
Senator Jorge Cabrera and Representative Kara Rochelle supported a legislative amendment to create a path forward.

The Legislative Solution

On May 6, 2026, an amendment to Senate Bill 477 was adopted to address the Ansonia fuel cell situation. The presentation describes this amendment as the mechanism that broke the regulatory deadlock and created a pathway to consolidate the competing project tracks into a single workable solution.

What the Amendment Is Intended to Accomplish

Replace the conflict between the HyAxiom and JCI project tracks with a single statutory framework.
Make the State of Connecticut the energy customer for the project, strengthening the financial foundation.
Create a pathway around the Siting Council's inability to resolve the underlying private dispute.
Allow 35 North Main Street to move forward as a viable energy development site.
Support future clean light industrial and energy development in the surrounding area.
Provide leverage for the City to renegotiate or restructure the JCI obligation.

Key Takeaways

The original failure to participate in the HyAxiom Siting Council proceeding created a major legal and regulatory disadvantage for the City.
The later JCI project proceeded despite HyAxiom's valid approval for the same site.
The City became obligated under a costly lease-purchase structure before the project was operating.
The Siting Council rejected the competing project path and declined to referee the underlying dispute.
The incoming administration pursued a legislative solution rather than allowing the financial obligation to remain stranded.
The SB 477 amendment creates a path to move from regulatory gridlock toward a single viable project.

Source Documents and Further Reading

The City intends to provide residents with source materials so the public can review the underlying records for themselves. The following documents are especially useful for understanding the situation:

Document	Why It Matters
Fuel Cell Presentation to the Board of Aldermen 6-9-26	Primary City presentation summarizing the timeline, financial impact, regulatory conflict, and legislative solution.
Connecticut Siting Council Petition No. 1595 docket	Contains HyAxiom's original filing, notices, procedural correspondence, and approval record.
Connecticut Siting Council Petition No. 1668 docket	Contains the JCI / City petition, HyAxiom intervention, motion practice, and Siting Council rejection.
HyAxiom declaratory ruling, February 2024	Shows the approval that remained valid through February 16, 2027.
Siting Council decision, August 21, 2025	Explains why the JCI petition was treated as premature due to HyAxiom's valid approval.
Siting Council decision, October 30, 2025	Documents the denial of the City's reopening effort and rejection of Petition No. 1668.
JCI lease-purchase agreement and payment schedule	Shows the City's contractual payment obligations and long-term financial exposure.
October 5, 2024 Board of Aldermen meeting record	Documents the approval of the $37 million lease-purchase structure.
March 12, 2024 Board of Aldermen meeting record	Documents the vote rejecting HyAxiom's lease agreement after HyAxiom had obtained Siting Council approval.
S&P Global Ratings outlook revision, December 2024	Provides independent credit-rating context regarding the City's financial outlook and fuel cell obligation.
Hamilton Consulting financial presentation, February 2026	Provides fiscal analysis of the City's inherited financial position and remaining WPCA proceeds.
Senate Bill 477 and adopted amendment	Shows the legislative mechanism used to address the regulatory deadlock and create a path forward.

This page is intended as a public summary. Where possible, residents should consult the original Siting Council filings, City meeting records, financial documents, and legislative materials for the full record.