A contentious statewide energy efficiency program will be discussed for the umpteenth time at Wednesday's state utilities meeting in Baton Rouge, where commissioners are scheduled to vote on a compromise proposal. However, panel Chairman Eric Skrmetta said he will oppose this latest plan, which would aim to make the program voluntary for Louisiana's energy companies. The energy-efficiency initiative was...
A contentious statewide energy efficiency program will be discussed for the umpteenth time at Wednesday's state utilities meeting in Baton Rouge, where commissioners are scheduled to vote on a compromise proposal. However, panel Chairman Eric Skrmetta said he will oppose this latest plan, which would aim to make the program voluntary for Louisiana's energy companies.
The energy-efficiency initiative was given final approval back in December by the five members of the state Public Service Commission. But the program was later halted when the panel composition changed, adding newly minted commissioner Scott Angelle and losing moderate Republican Jimmy Field.
Angelle first joined with Skrmetta and fellow Republican commissioner Clyde Holloway to block the program. But, now, the former interim lieutenant governor and natural resources secretary has put forth the latest proposal to revive the energy-efficiency initiative -- this time as a voluntary, and not mandatory, program.
Angelle's proposal made its way onto the panel's website on Monday and will be formally discussed and voted on Wednesday. Even though it represents a compromise between the Republican and Democratic members of the panel, the proposal is sure to encounter fierce opposition from the panel's highest-ranking member.
"I have no problems with energy efficiency," Skrmetta told NOLA.com | The Times-Picayune on Tuesday. "But where do we draw the line on socialized policies?"
The Metairie Republican said he is in favor of making the program voluntary, but said Angelle's proposal is not "truly permissive" and does not address his root concern with the original proposal.
December's initiative, proposed by then-Commissioner Foster Campbell, would have given electric utilities and natural gas providers one year to develop energy-efficiency programs. These programs would offer rebates to residential, commercial and industrial customers who participate to lower their energy usage.
In turn, companies could recoup the costs of the program, including these rebates, by assessing a blanket fee on all utility customers.
The year-one planning period for the program was dubbed Quick Start. Utilities were encouraged to partner with third-party administrators and contractors to draw up plans and perform "evaluation, measurement and verification" studies to look at actual savings.
This partnership provision is what has drawn Skrmetta's ire. He said it does not allow for adequate oversight of the third-party contractors by his commission and puts money and projects in the hands of organizations that could misuse those funds.
"This makes the motion, to me, unacceptable," Skrmetta said, adding that it calls to mind recent issues state Treasurer John Kennedy has cited with NGOs that are out of compliance with state financial reporting laws.
Angelle could not be reached for comment Tuesday. His motion notes that the fees passed on to customers would be capped (around $0.50 for the typical residential consumer and $5.41 for non-residential) and adds that each ratepayer would see their energy costs drop after implementing the energy-efficiency program.
After the one-year Quick Start period, programs would begin to be implemented under Phase II. In the long term, companies would be encouraged to "strike the appropriate balance between maximizing net benefits to customers and developing the energy efficiency infrastructure in Louisiana," according to Angelle's motion.
It is unclear how the three other commissioners will vote on Wednesday. Campbell has previously expressed his opposition to making the plan voluntary, saying "'may' means "it may not happen." Lambert Boissiere III, who represents the New Orleans area, said Tuesday he needs to study the proposal before deciding.
If the motion does pass, companies will be able to opt into the program immediately with Quick Start provisions kicking in Oct. 1.
Stay with NOLA.com | The Times-Picayune for more on this ongoing story.