(The Center Square) — Louisiana is on the verge of becoming one of a select few states with a statewide program that will regulate and facilitate energy efficiency for its citizens.
The Louisiana Public Service Commission met on Wednesday to select a company that will act as the exclusive facilitator of energy efficiency for many of Louisiana’s utility companies.
The commission saw presentations from APTIM, TRC and Frontier, who submitted bids to serve as Louisiana’s regulatory authority for energy efficiency. The chosen firm, which will be hired by utility companies, will set policies for how utility companies work to conserve energy and potentially lower utility rates.
APTIM secured the commission’s vote, for a budget of $25 million.
Some worry that the program may come at a high cost to taxpayers. The budgets proposed by the three companies exceed tens of millions of dollars. While energy conservation may reduce utility rates, critics suggest that there may be the opposite effect, increasing rates these savings could be offset by higher taxes and may.
Utility companies with their own efficiency programs may opt-out of the statewide program, facilitating the financial burden of funding the initiatives to smaller companies and individual ratepayers.
Commissioner Eric Skrmetta called the bids excessive.
“Even the lowest bid is overwhelming,” Skrmetta said, motioning to have the three companies rebid. Commissioner Campbell objected, and presentations were heard.
The appeal of the statewide program is the potential to address Louisiana’s energy burden. The plan aims to reduce energy consumption by 0.4% in the first year, followed by 0.5% each year for the next four years.
“Within the transition plan we have an outreach and engagement portion and we have existing relationships with the Alliance for Affordable Energy, trade ally contractors across the state, other Louisiana housing corporations that already provide support, making sure we can complement the program to work together to layer the funding,” Michelle Krueger, the director of the Entergy New Orleans Energy Smart Program, said.
Skrmetta told The Center Square that the state already has an energy efficiency program, which allows utility companies independence in ensuring energy efficiency. Skrmetta says that the statewide program will add a layer of government oversight which is unnecessary and will increase rates for Louisiana citizens.
Although the proposed outlay has been accepted, it is possible that some commissioners voted in favor merely for procedural reasons, intending to vote for its reversal in January. Under LPSC rules, a commissioner cannot vote to reverse a proposal unless they initially voted to approve it.
As Louisiana prepares to move forward with this potentially precedent-setting energy efficiency program, the debate over its costs and long-term sustainability is not over.
