BATON ROUGE – On Jan. 24, the Louisiana Public Service Commission voted to establish an independent, statewide energy efficiency program with commission oversight. Opposed by utilities, the decision was championed by consumer advocates who say it solves a conflict of interest that has been hampering the LPSC’s energy efficiency efforts for the last decade.
“Finally, our state’s residents can look forward to energy savings and lower bills as a result of the Public Service Commission’s historic vote today,” said Jodie Manale of Together Louisiana in a press release. “For too long the program meant to save energy has been administered by the companies that sell energy – the fox has been guarding the henhouse. Now that conflict of interest has been eliminated.”
Together Louisiana is a grassroots organization that lobbies for utility reform, workforce development, tax fairness and other causes. It had a large presence at Wednesday’s LPSC meeting.
The commission launched an energy efficiency program in 2014, but utility companies successfully lobbied to make it an optional program that they administered. Notably, the program included a provision that compensated utilities for unsold electricity.
Together Louisiana said these “ghost recovery” charges cost ratepayers $37 million.
“Energy efficiency is affecting a lot of people in our community, including my 70-year-old mother,” said Dani Moses, a resident of LaPlace and leader with Together Louisiana. “It is hard to watch her struggle to pay her utility bill month after month, and ghost recovery charges make the problem even worse.”
The Jan. 24 LPSC vote shifted control of energy efficiency programs to an independent, third-party administrator selected by and accountable to the LPSC. Fans of the program say it will lead to more investments more quickly, and it removes the provision for ghost recovery charges.
“Today’s vote means more good paying jobs, safer weatherized homes and lower bills,” said Danny Walker, political and legislative director with the South Central Pipe Trades and a member of Together Louisiana. “The expansion of the program will allow us to train more people in high-wage careers and put them to work.”
Together Louisiana is a statewide network of more than 250 religious congregations and civic organizations.
Brandon Scardigli, communications manager at Entergy Louisiana, said that the utility fully supports energy efficiency programs for its customers — and has been implementing a program that it believes is cost-effective and successful.
“Entergy Louisiana’s Quick Start program has provided demonstrable, measurable benefits for more than nine years,” he said. “In addition to these direct benefits, the program has contributed to the growth of a network of 109 Trade Allies, contractor businesses and supply houses, who support the implementation of the program.
“The Commission has voted to end the Quick Start, utility-led energy efficiency programs and pivot to a program that will require a statewide Third Party Administrator. Entergy Louisiana’s EE programs currently operate at a lower cost for each kWh saved than the majority of other statewide TPA programs, indicating that our customers could potentially pay more under the Commission’s new statewide model.”
