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Yahoo
15-04-2025
- Business
- Yahoo
La. Public Service Commission might scrap new energy efficiency program
From left, Louisiana Public Service Commissioners Mike Francis, Jean-Paul Coussan and Eric Skrmetta during a Feb. 19, 2025, PSC meeting. (Photo credit: Wes Muller/Louisiana Illuminator) In a surprise agenda change for Wednesday's meeting, the Louisiana Public Service Commission will consider terminating a statewide energy efficiency program it just recently hired a contractor to run after spending 14 years to create it. Commissioner Mike Francis, R-Crowley, added the agenda item Monday, two days before the LPSC meets at the Cypress Bend Resort in Many. Most of the commission's monthly meetings are held at its headquarters in Baton Rouge, but members periodically schedule hearings in different parts of the state. 'Commissioner Francis' decision to bring this vote with virtually no notice leaves little time for public input on an issue that directly impacts household budgets and statewide energy policy,' the Alliance for Affordable Energy said in a statement issued Tuesday. The proposal would end all energy efficiency programs in the state, except for municipal-owned utilities that don't fall under the LPSC's jurisdiction. The Alliance noted that residential electricity rates in Louisiana have increased roughly 45% since 2018, stressing the need for a greater emphasis on efficiency programs. 'This is the only program the commission has to help residents manage rising bills,' the group's news release said. In January 2024, the LPSC voted 3-2 on energy efficiency resources standards (EERC) that a consultant had worked on for over a decade at a cost of more than a half-million dollars. The policy requires utilities under the commission's jurisdiction — such as Entergy, Cleco and Swepco — to meet certain energy savings targets each year. For example, they can meet the standards through customer-focused upgrades such as adding new insulation to buildings or replacing inefficient heating and cooling systems. The utilities pay for it with little-noticed energy efficiency fees they've charged customers for years. Entergy Louisiana customers can find those fees on their monthly statements billed as 'Rider EECR-QS' and 'Rider EECR-PE.' Louisiana ushers in new energy efficiency policy with an uproar The energy efficiency program used in Louisiana for the past decade was voluntary, and utility companies managed them with their own staff. Energy efficiency presents a dilemma for utilities because they lead to customers using less of their product, an inherent conflict of interest for companies that profit from the sale of electricity or natural gas. The program adopted in 2024 is mandatory and uses a third-party administrator to manage and hold the utilities to the energy savings targets. The LPSC recently hired two companies, Aptim and TetraTech, to provide those services. Francis is proposing to terminate those contracts and establish a different energy efficiency policy. In a phone interview Tuesday, he said the current policy framework is too complex and believes it will cost too much money. 'You need a lawyer and a CPA to work through all of this,' Francis said. 'It's pretty complicated.' Francis initially opposed adopting the program in 2024 alongside Commissioner Eric Skrmetta, R-Metairie. Former Commissioner Craig Greene, R-Baton Rouge, provided the swing vote that passed the measure, which had support from the LPSC's two Democrats, Foster Campbell of Bossier City and Davanté Lewis of Baton Rouge. Debate on the matter at that time attracted ratepayers who filled the meeting room and chanted, demanding commissioners vote on the new program after hours of discussion. That memory wasn't lost on Francis, who admitted his latest proposal might not be popular with some members of the public. 'I'm probably making some enemies doing this,' he said. Commissioner Jean-Paul Coussan, R-Lafayette, who now sits on the commission in place of Greene, will likely be the deciding vote Wednesday. 'Sounds like there are several ideas being bandied about regarding the program,' Coussan said, offering few clues about how he intends to vote. 'I'm anxious to hear more about the proposals.' The program is the first of its kind in the Southeast run by a third-party administrator. It 'is especially important when it comes to both environmental protection and electricity system affordability,' said Joshua A. Basseches, an assistant professor of environmental studies and public policy at Tulane University. 'Scrapping it now would not only be bad public policy, but would also set a bad precedent in terms of process.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
09-04-2025
- Business
- Yahoo
Governor would appoint two members to expanded La. Public Service Commission under proposal
From left, Louisiana Public Service Commissioners Mike Francis, Jean-Paul Coussan and Eric Skrmetta during a Feb. 19, 2025, PSC meeting. (Photo credit: Wes Muller/Louisiana Illuminator) State lawmakers will consider a proposal this spring to let the governor add two at-large members to the Louisiana Public Service Commission, meaning voters would no longer elect all members of one of the state's most powerful political institutions. House Bill 364, sponsored by Rep. Daryl Deshotel, R-Marksville, is a proposed constitutional amendment to allow the governor to hand select two additional members to the commission that regulates utilities in Louisiana. LPSC currently has five members, each elected from their respective multi-parish districts. The two gubernatorial appointees would be able to serve two consecutive four-year terms. The five elected commissioners are currently limited to three consecutive six-year terms. The five LPSC districts are larger and more populous than Louisiana's six congressional districts, giving the commissioners significant influence on matters of everyday concern to residents, though an at-large commissioner would have far greater influence than the current five. The commission determines how much utilities can charge their customers for their services that include electricity, water, gas, cable television, phone and internet service. A utility provider needs LPSC approval before raising rates or adding any kinds of fees to customers' bills. The most important election in Louisiana that many don't even know about The commission oversees major investor-owned utilities such as Cleco and Entergy Louisiana, as well as smaller, member-owned power cooperatives such as DEMCO. Its regulatory umbrella covers the entire state, save for a handful of city-owned utilities and private service providers in New Orleans and other cities, which fall under the jurisdiction of local governments. LPSC members also have oversight of intrastate oil pipelines, tow truck services and moving companies. Each commissioner is also supposed to represent constituents in their districts in any disputes they have with utility companies. 'It only takes three members to control rates over the entire state,' Deshotel said, referring to the three-vote majority needed for a measure to pass on the five-member panel. 'I just think we need more representation.' Some are skeptical of the proposal. Commissioner Jean-Paul Coussan, a Republican and former state senator from Lafayette, said he has great respect for the legislative process and his former colleague but doesn't think the addition of two appointed members would accomplish Deshotel's stated intention of increasing representation. 'They wouldn't be answerable to a constituency, so it kinda defeats the purpose of his goal,' Coussan said. 'I don't see how two appointees who only answer to the governor would accomplish that.' Coussan said Deshotel's proposal would drastically overhaul an institution that works with companies and residents through regulatory processes that have been relatively consistent over the years. Such changes would send a discouraging message to the major stakeholders investing in Louisiana who are familiar with and rely on the LPSC's stable regulatory environment, he added. Commissioner Davante Lewis, D-Baton Rouge, questioned Dehotel's motives, saying the governor is the only person who would gain representation and power under the proposal. 'It truly dilutes the people's will by reducing their vote,' Lewis said. 'If it was truly about representation, wouldn't he just make the districts smaller by adding [elected] members?' Louisiana's largest industries tired of waiting for renewable energy During the most recent round of redistricting in 2022, the legislature chose to keep the number of LPSC members at five. There were no proposals to add elected members to the commission, but there were some that sought to redraw the map to include a second majority-Black district. Lawmakers ultimately rejected those measures. Deshotel said adding appointed rather than elected members would keep out the vast amounts of campaign cash that special interests have used to influence LPSC elections, though he hedged his statement by saying he doesn't think that it has affected any of the current commissioners. 'These are extremely expensive elections, and most of the donations come from the same people that they're regulating,' Deshotel said. He added that he plans to file a campaign finance reform bill targeting LSPC elections in the future if his constitutional amendment stalls at the Capitol this year. Constitutional amendments require two-thirds support from each chamber of the legislature and final approval from Louisiana voters during a statewide election. The 2025 legislative session starts Monday. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
