LPSC Proposal to Gut the Energy Efficiency Rule

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The battle with the Louisiana Public Service Commission over the proposed statewide energy efficiency rule continues with two Democrats staunchly for it, two Republicans dead set against it and newly elected Republican commissioner Scott Angelle playing a pivotal role in its outcome. The Commission back in December of 2012 adopted the statewide rule modeled after the Arkansas EE program, when former Commissioner Jimmy Fields was still on the Commission. In February new Commission chair Erik Skrmetta and Commissioner Clyde Holloway attempted to vacate the rule without hearing public comment. Sierra Club and our allies filed a lawsuit and the Commission decided to hear public comment on the rule in June. Three commissioners, including Scott Angelle voted in favor of the energy efficiency rule at the meeting on June 26 but decided to suspend implementation for a month. Now Commissioner Angelle, who was not involved in four years of work on the rules, is proposing changes that effectively neutralize the effectiveness of the rule

You can view the Energy Efficiency Rule as adopted by LPSC on Dec 12, 2012 at: Energy Efficiency Rule You can view the recently proposed modifications to the EE rule at: Proposed Modifications And you can view our Sierra Club comments at: Sierra Club comments You can see some of the great EE programs for home owners and businesses on the Arkansas site at: Arkansas Programs Our task now is to convince the Commissioners to implement the Louisiana Energy Efficiency Rule as it was adopted on Dec 12, 2012 without modifications. That rule was developed over four years by Alliance for Affordable Energy and Sierra Club working with with the Commission and was modeled after the successful Arkansas energy efficiency program.

  • If you have not called them already about the Energy Efficiency rule then please call Commissioners before the July 31 meeting and tell them you are opposed to the currently proposed modifications of the Louisiana Energy Efficiency Rule.

Phone numbers for Commissioners are: Cmr. Skrmetta (District 1): 504-846-6930 Cmr. Angelle (District 2): 225-342-6900 Cmr. Boissiere (District 3): 504-680-9529 Cmr. Holloway (District 4): 318-748-4715 Cmr.Campbell (District 5): 318-676-7464 Thank you for your help, Haywood (Woody) Martin, Chair Sierra Club Delta Chapter

Background Information Program Applicability and Costs: The Energy Efficiency rule would apply to utilities under LPSC jurisdiction, including Entergy, Swepco and Cleco. The rule would implement a Phase 1 Quick Start process to encourage utility companies and their customers to make efficient use of energy and thereby realize bill savings by introducing an initial set of energy efficiency programs that can be designed and implemented quickly and economically. Utilities are allowed to pass through the cost of EE programs to their customers. The programs are paid for by assessment of less than one half of one percent (0.005 x mo bill) for each customer. The benefit could be 30% or more savings on a customer's utility bill for many years after making energy efficiency improvements. The benefits extend to all ratepayers by lowering costs over time for utility purchase of new generation capacity.

Comprehensive analysis of Louisiana’s potential for Energy Efficiency is contained in the following report: Louisiana’s 2030 Energy Efficiency Roadmap: Saving Energy, Lowering Bills, and Creating Jobs A report from the American Council for an Energy Efficient Economy (ACEEE) http://aceee.org/research-report/e13b Many of the following listed bullet points come from this report. Feel free to use these points when writing a letter or calling public service commissioners to voice your support for the Energy Efficiency Rule.

Energy efficiency (EE) is the energy we do not need to use as a result of improved technologies and practices. The ACEEE study finds that energy efficiency potential is largely untapped in Louisiana A comprehensive portfolio of energy efficiency policies such as building energy codes and utility customer efficiency programs have the potential to cost effectively meet 5% cumulative of statewide electricity needs by 2020, increasing to 16% by 2030 The set of recommended efficiency policies and programs in this report can reduce Louisiana’s energy costs by a net $4.2 billion over the life of the energy-saving measures. The macroeconomic assessment finds that in 2030, greater energy efficiency will result annually in about $3 billion in net economic output, including $1 billion in wages, $663 million in business income to small business owners, 27,100 person-years of employment, and increased state and local tax revenue by $114 million.

Energy efficiency can play an important role toward meeting growing demand for energy as the least-cost component of a diversified energy resource portfolio. As the least cost resource, efficiency investments have the universal effect of lowering energy costs for all customers. Investments in efficiency foster economic development in the state and create local jobs for home and small business energy auditors and installers of improvements. Lower energy bills free up money that customers can use to invest in the local economy and help businesses to remain competitive. Energy efficiency is the the cheapest, cleanest and lowest risk solution to meet rising energy demand in Louisiana. The objectives of the rules as adopted in December 2012 are to: Provide energy savings Provide permanent peak demand reductions Be cost effective Reduce emissions including CO2 Lead to increased system energy security by reducing load Be implemented efficiently Contribute to a reduction in the need for capacity resource additions Increase utility energy efficiency capabilities and infrastructure

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