NEW ORLEANS – On May 19, the Louisiana Public Service Commission (LPSC), the regulatory body overseeing utilities, voted 4-1 to abandon plans for a new, comprehensive statewide energy efficiency program and instead revert to older, limited programs known as QuickStart and public entity efficiency programs. These programs are narrower in scope, operated by the utilities themselves, and have faced criticism for being outdated and insufficient for addressing Louisiana’s rising energy costs.
In 2024, the LPSC approved a new third-party administered statewide energy efficiency program intended to modernize Louisiana’s approach. The program aimed to reduce energy consumption through building upgrades, appliance replacements, and weatherization efforts, especially for low-income households and small businesses.
The independent firm APTIM was selected to design and implement the plan, marking a shift from utility-run programs to a more impartial administration intended to reduce conflict of interest and increase public trust.
But in April 2025, the LPSC unexpectedly terminated APTIM’s contract before its implementation report was reviewed. According to The Alliance for Affordable Energy (AAE), this action sparked a backlash from consumer advocates and customers. With the May 19 vote, the LPSC has effectively “reset the process, pushing any future energy efficiency improvements into 2026 or beyond,” according to AAE.
“The Commission’s decision to scrap the program approved in 2024 and restart the rulemaking process is a clear message to Louisianans that they don’t understand the urgency of rising bills and the daily choices people are being forced to make between electricity, food, and medication,” said Logan Burke, AAE’s Executive Director.
The QuickStart program is a limited utility-run initiative launched in 2014 as a temporary stopgap measure. It offers rebates or incentives for energy efficiency (like LED lighting or smart thermostats) but lacks the depth and reach of a fully developed statewide program. According to the AAE, because QuickStart is run by the utilities themselves, companies that make more money when more energy is used, there’s a built-in disincentive to push real conservation.
“Louisiana is once again back at square one — without a long-term plan to help residents and businesses reduce energy costs through efficiency,” the AAE said in a statement.
Lost Contribution to Fixed Costs
One of the central points of contention is the Lost Contribution to Fixed Costs (LCFC) policy. Under this mechanism, utilities are allowed to recover “lost revenue” when customers use less electricity due to energy efficiency improvements. For example, if better insulation reduces a home’s power usage, the utility may claim reimbursement for the energy it didn’t sell.
“This practice of double-dipping needs to stop,” said Alaina DiLaura, AAE’s LPSC Policy Coordinator. “If Commissioners really want to save people money, eliminating these ghost charges is a clear and easy way to do that.”
The now-canceled APTIM-administered program would have ended this practice, potentially saving ratepayers an estimated $6 million per year, according to the AAE.
Transparency and New QuickStart Rules
The LPSC’s new path forward includes developing a revised set of rules for the QuickStart and public entity programs in the coming months, but there’s currently no long-term strategy in place. Advocates are pushing for the APTIM report to be made public, so taxpayers can “at least see the findings they funded.”
“Every month without a robust energy efficiency program is money lost,” said DiLaura. “Louisianans deserve better. And they deserve it now.” The Alliance has indicated that it will continue to fight for an outcome that delivers real savings to every Louisiana household and business. “We hope that the new process can come to a resolution in August so that a new program can get underway in 2026,” said DiLaura.
Robust Energy Efficiency Programs in Other States
The decision reflects a broader national struggle over how much authority utilities should have in managing energy efficiency programs, and whether state regulators are doing enough to shield consumers from rising costs and poor transparency. Louisiana, which ranks near the bottom nationally for energy efficiency, remains without a forward-thinking statewide strategy to help its residents and businesses save energy and money according to the AAE.
Several states offer comprehensive energy efficiency programs that go beyond Louisiana’s QuickStart model. These advanced programs include whole-home retrofits, low-income assistance, small business upgrades, on-bill financing, and customized energy planning all administered by independent third parties rather than utilities.
- Massachusetts – In Massachusetts, the Mass Save program provides free energy audits, insulation and HVAC upgrades, and zero-interest financing for residential, commercial, and industrial customers.
- Vermont – Vermont’s Efficiency Vermont targets low-income households with weatherization, appliance replacement, and even health-related improvements.
- Illinois – Illinois’ ComEd program serves small businesses with lighting upgrades, refrigeration improvements, and manufacturing process incentives.
- California – California’s GoGreen Financing allows customers to repay efficiency upgrades on their utility bills, reducing upfront costs.
- New York – New York’s NYSERDA combines personalized energy data tools with efficiency incentives tied to state climate goals.
About The Alliance for Affordable Energy
Since 1985, The Alliance for Affordable Energy has been working to ensure affordable, equitable,
and environmentally responsible energy policy for ALL Louisiana energy consumers. As Louisiana’s
only dedicated Watchdog we monitor, educate, and participate in state and city utility regulation to
ensure the public’s best interests.
