Louisiana Energy Efficiency Program scrapped after lengthy Public Service Commission meeting
The vote effectively ends all state-mandated energy efficiency programs, reverting energy efficiency to a voluntary program that consumers must seek out through their power providers.
Northwest Louisiana's Public Service Commissioner, Foster Campbell, voted against eliminating the program approved in late April 2024, largely because he felt the commission did not fully understand what it was voting for.
'It's four o'clock in the afternoon and everybody is arguing about this that and the other and I don't want to vote for something that I don't fully understand,' said Campbell. 'So I can't vote for this at this particular time.'
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The Public Service Commission meeting held at Cypress Bend Resort in Many, Louisiana, lasted more than five hours. Nearly an hour was spent on discussions and testimony from the agenda item sponsored by Commissioner Mike Francis, who added the item to the agenda on Monday.
In the end, the state's energy efficiency program was canceled by a 3 to 2 vote.
The program focused not on energy costs, but rather on making homes and businesses more energy efficient. The program required the Public Service Commission to hold energy companies accountable with specific energy savings goals. Home and business energy efficiency improvements, including appliance upgrades, new air conditioning units, and insulation, were considered key to achieving savings goals, particularly in low-income neighborhoods.
Opponents say the contracts for the program were far too expensive, and the previously used 'Quick Start' Energy Program, overseen by utility companies Cleco and SWEPCO, was a better answer.
'When we have looked at the third party administrator across the country we have found that the cost per kilowatt hour savings on those third party administrators are significantly higher than the programs that are currently in place under the utility led programs in Louisiana,' said Mark Kleehammer, General Counsel & Chief Regulatory Officer for Cleco. 'I would ask that you consider maintaining the utility-led programs. We have been doing energy efficiency for 10 years. We commented on this before that the biggest misnomer about the utility-led 'Quick Start' program is that it's a quick start. We are in year 10 of these programs, and since we've started, for CLECO power only, our budget has increased by 119%, our KW (kilowatt) savings have increased by 296%.'
Those advocating for the Energy Efficiency Program to stay say it addressed the true causes of power waste.
'We are decades behind on addressing energy waste. It doesn't matter how low the rate is if we are just throwing our money out the crack around our doors and windows. The auditor also pointed out that this commission is taking steps to address high energy bills through this efficiency program,' said Logan Burke, Executive Director, Alliance for Affordable Energy. 'The rational thing to do is to address the waste. The right thing to do is to ensure that people have the tools they need. So why would we stop this effort in it's tracks?'
Now that the program is canceled, the commission voted to have the state revert back to the old 'Quick Start' Energy Program until the end of 2025. A commission vote at later time will determine if the 'Quick Start' program continues beyond the end of the year.
'Quick Start' allows customers to receive cost offsets and rebates for items that improve a home's energy efficiency.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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