Energy Efficiency Policy Highlights

State & Local Updates

ALABAMA

Smart Grids

Alabama Power is preparing for the Atlantic hurricane season through smart grid technology and customer education. Alabama’s new smart grid technology reduced outages and outage times during tornadoes in March, and they have also improved outage communications in preparation for hurricane season.

ARKANSAS

COVID-19 Utility Disconnection Moratorium

On May 3, Arkansas ended a pandemic-related disconnection moratorium for regulated utility services. Customers with overdue balances will receive disconnection notices from their utility companies and a 35-day grace period before shutoff notices are sent.

UA Energy-Saving Upgrades

The University of Arkansas in Fayetteville is beginning a sequence of energy-saving facility upgrades to their campus. They have consulted with Little Rock-based Entegrity, an energy service, solar development, and sustainability company, to facilitate this project. UA estimates that the upgrades will reduce the university’s expenses by $1.3 million annually.

FLORIDA

New Commissioner Appointment

On May 10, Governor Ron DeSantis selected Gabriella Passidomo to the Florida Public Service Commission (PSC) to fill the seat of former Commissioner Julie Brown, who vacated the seat following her appointment by Governor DeSantis to lead the Department of Business and Professional Regulation. Passidomo requires confirmation by the Florida Senate, which adjourned its 2020 session without taking up her nomination. The five-member commission will be facing decisions on several utilities’ rate cases this summer and may consider energy efficiency rule revisions being developed by staff.

Duke Energy Rate Case

On May 4, the Florida PSC approved Duke Energy Florida’s rate plan, which includes base-rate increases of $67.25 million in 2022, $48.93 million in 2023, and $79.2 million in 2024. In 2022 customers will expect to see a bill increase of 3-4%. The settlement includes energy efficiency offerings for those that may be at risk of having their electricity disconnected.

Energy Equity Study

On June 22, Commissioner Nikki Fried announced that the Florida Department of Agriculture and Consumer Services Office of Energy will conduct a statewide study on energy equity in Florida. The study will examine energy burden and the disparities among different households.

Local Energy Bans Preemption Bill

Florida lawmakers passed HB 919 to prohibit local governments from restricting what types of energy utilities can supply to customers. The bill was signed by Governor Ron DeSantis on June 21.

Regulatory Asset Proceeding

On August 11, 2020, the Joint Utilities initiated a proceeding to request approval for the establishment of a regulatory asset to record and preserve their COVID-19 related costs and expected losses, including bad debt expense and uncollected late fee revenues. On June 23, 2021, the commission issued an order scheduling a public hearing for July 8, 2021.

GEORGIA

Energy Efficiency as a Resource

In accordance with the conditions of its stipulation agreement in the 2019 IRP, Georgia Power completed the analysis of modeling energy efficiency as a supply-side resource and published its findings in a white paper. The paper compares the results of Georgia Power’s current demand-side approach to determining energy efficiency potential among various customer classes with a supply-side modeling approach and concludes there are no significant differences.

Energy Burden Report

Greenlink Analytics released a paper on energy burden and its policy implications in three U.S. cities, including Atlanta. The research examines the causes of energy burden in these cities and considers how energy efficiency can be used to address the issue.

Georgia Power Leadership

On June 1, Chris Womack became the new chairman and CEO of Georgia Power, officially replacing Paul Bowers. He has served as the company’s president since November 2020. Georgia Power was founded in 1902, and Womack is the first Black CEO.

Nuclear Testing

In April, Georgia Power began the final phase of testing for the first new nuclear reactor at Plant Vogtle, Unit 3. They are working to meet a November deadline but have faced unexpected costs and delays for years. To avoid further pushbacks and expenses, they must have their Unit 3 ready for commercial service by this November.

Nuclear Plant Inspection

In June, the U.S. Nuclear Regulatory Commission (NRC) announced their inspection of the Georgia Power’s Plant Vogtle, Unit 3 nuclear reactor. The purpose of the inspection is to review the improper installation of large quantities of electrical power cabling and other violations of electrical codes. The April testimony given by Georgia Power will review if the large amount of installation work fulfilled in a brief time caused some supervisors to accept work that was inadequately completed.

LOUISIANA

Louisiana Joins Climate Alliance

Following an executive order last year to make Louisiana carbon neutral by 2050, Governor John Bel Edwards committed to join the U.S. Climate Alliance. The state has assembled a Climate Initiatives Task Force to consider the changes Louisiana can make to achieve this goal. Louisiana is the most carbon-intensive state in the Southeast, given its historic support of the oil and gas industry.

New Orleans Adopts Renewable Portfolio Standard

In May, New Orleans City Council adopted rules that require Entergy New Orleans, the utility that serves the city, to achieve net-zero emissions by 2050. The council, which regulates Entergy, also requires that 90% of the city’s energy come from renewable resources by 2040. New Orleans is the only city that regulates an investor-owned utility and the first city in the Southeast to adopt these types of energy requirements.

MISSISSIPPI

Regional Transmission Organization

On April 6, the Mississippi Public Service Commission opened a docket to evaluate Entergy Mississippi’s membership in Midcontinent Independent System Operator (MISO). The commission will investigate “the long-term benefits and costs and commitments of EML’s membership in MISO.” The investigation will include a comparison of potentially joining the Southeast Energy Exchange Market (SEEM).

Rate Cases:

Mississippi Power Company (MPCO)

On May 28, MPCO requested a stipulation on its rate schedule. It was approved by the commission on June 8 and will result in an increase of $2.80 per month for a residential customer using 1000 kWh. Projected expenditures for MPCO’s 2021 Environmental Compliance Overview (ECO) Plan would result in a decrease of $0.95 per 1000 kWh. Combined with the rate schedule increase, the net increase for a residential customer is projected to be $1.85 per month using 1000 kWh.

Entergy Mississippi LLC (EML)

On June 8, the commission approved EML’s Notice of Intent to Implement Revisions to its 2021 Formula Rate Plan. This will result in an increase of $6.50, which includes not just the Formula Rate Plan but also a collective impact on seven rider schedules.

EML Net Metering

On April 30, the commission approved EML’s net metering schedule due annually on May 1. The additional charge for low-income eligible will be 7.7 cents per kWh and for non-low income-eligible 5.7 cents per kWh.

Integrated Resource Plans (IRP):

MPCO

Mississippi Power Company filed its first IRP with the Mississippi Public Service Commission on May 15, with comments received by June 15.

EML

Entergy Mississippi, LLC filed their first IRP on June 15 and comments must be submitted by July 15.

NORTH CAROLINA

Rate Cases:

Duke Energy Carolinas (DEC)

On April 16, the North Carolina Utilities Commission approved DEC rate increase. The partial fuel rider rate increase took effect June 1 and increased residential customer bills $6.30 for a typical use of 1,000 kWh.

Duke Energy Progress

On May 13 NCUC approved Duke Energy Progress calculations of a previously approved partial rate increase on March 31.

Investor Proposes Splitting Duke

In May, Duke Energy received a proposal from a large investor to consider breaking the company into three regionally-focused companies. The investor indicates that doing so would increase the market value of the companies benefiting shareholders. Currently, Duke operates in North Carolina, South Carolina, and Florida, with additional operations in the Midwest.

Senate Rejects Cabinet Nominee

The North Carolina Senate voted to remove Governor Roy Cooper’s nominee for Secretary of the Department of Environmental Quality. Dionne Delli-Gatti was nominated to replace Michael Regan, who was appointed Administrator of the U.S. Environmental Protection Agency by President Biden. Following the rejection, Governor Cooper appointed Delli-Gatti as state clean energy director.

Clean Energy Organizations Merger

In June, the North Carolina Sustainable Energy Association announced it was merging with the North Carolina Building Performance Association. The move adds 150 building performance professionals to NCSEA’s membership roster and unifies previously separate organizations that worked in parallel to advance clean energy in the state. The combined organization will continue its work across clean energy issues in the state.

Governor Joins Clean Energy Podcast

NCSEA hosted Governor Cooper on the 50th episode of their podcast, “Squeaky Clean.” The Governor discussed several of his executive orders that address energy efficiency, carbon emissions, electric vehicles, and offshore wind.

Legislature Debates Utility Changes

Negotiations continue in North Carolina after an energy bill negotiated between Duke and Republican leadership faced opposition from other stakeholders. The originally proposed bill addressed the role of the North Carolina Utilities Commission, which regulates Duke and other utility companies in the state, as well as the way Duke would manage and retire its coal plants.

Regional Greenhouse Gas Initiative

In June, a subcommittee of the North Carolina Environmental Management Committee (EMC) recommended that the entire body vote on whether the state should join the Regional Greenhouse Gas Initiative (RGGI). The proposed July vote by the EMC would initiate a lengthy rulemaking and legislative process to enable the state to participate in RGGI, which operates primarily in the Northeast. If successful, North Carolina would join Virginia as the second Southeastern state in RGGI.

Local Governments Engage at Commission

The Southeast Sustainability Directors Network (SSDN) provided support to local governments to participate in Duke Energy’s North Carolina Integrated Resource Plan. SSDN partnered with a variety of local and national partners to help local governments review and determine priorities for engagement. Many local governments in North Carolina have made climate and energy commitments that are affected by the decisions made by the utility and the commission.

Duke Energy Renewable Energy Production

In April, Duke Energy announced its intent to triple renewable energy production across its grid by 2030. Based in Charlotte, North Carolina, Duke’s long-term energy goals continue to be influenced by the utility regulators of the state. Duke Energy also faces industry pressure to close its remaining coal plants by 2030 and decarbonize the energy sector.

SOUTH CAROLINA

Net Metering

On May 19, the Public Service Commission (PSC) approved Duke Energy and Dominion South Carolina Establishment of Solar Choice Net Metering Tariff. It is a time-variable net metering tariff, so customer rates will vary according to the time of day.

Integrated Resource Plans (IRP):

Duke Energy

On June 17, the PSC rejected Duke Energy Progress (DEP) and Duke Energy Carolinas (DEC) IRPs. At the business meeting, commissioners leveraged the Energy Freedom Act to ask Duke to revise the plan. They asked the utility to remodel future gas price forecasts and take account of solar contract prices.

Dominion Energy

On June 18, the PSC approved Dominion Energy South Carolina’s modified IRP. Dominion revised its December filing with PSC requests to comply with the Energy Freedom Act.

TENNESSEE

Memphis Light, Gas, and Water and TVA:

In early April, Memphis Light, Gas, and Water (MLGW) hired a Georgia-based consultant to continue to explore the possibility of leaving the Tennessee Valley Authority (TVA). GDS Associates will compile options for the municipal utility which currently depends on the federally operated TVA for its wholesale power. MLGW is TVA’s largest customer and renewed its exploration of options following the winter storm that impacted Texas and other parts of the South.

Weatherization Investment

In May, MLGW received funding from TVA and the Tennessee Department of Environmental Conservation to provide low-income homeowners with weatherization services. Delivered through Energy Smart Memphis, the improvements will be complemented by energy conservation training for over 3,000 customers.

School Uplift Program

In May, TVA announced a $7.3 million investment in its new School Uplift program, modeled after their Home Uplift program for residential customers. Building on the state’s Energy Efficiency School Initiative, TVA’s program has completed a pilot with eleven schools that are expected to save an average of 20% through behavior changes. TVA is actively recruiting schools to participate in the program for the 2022-23 program year.

TVA Reports on Sustainability

On May 6, TVA released its FY 2020 Sustainability Report, which makes organization-wide commitments in 19 specific areas of focus. The report emphasizes past and planned decarbonization efforts as the utility shifts away from carbon-emitting fuels for its power supply. Diversity and community energy management programs are also described throughout the report.

VIRGINIA

Dominion Leadership

On April 1, Dominion Energy executive chairman Tom Farrell announced his retirement after 14 years leading the utility. Farrell will be succeeded by Robert Blue and remain as an advisor through June 2021.

Property Assessed Clean Energy (PACE) Hearing

In June, the Louisa County Board of Supervisors hosted a public hearing on whether the county should permit commercial Property Assessed Clean Energy (PACE) financing. PACE financing works by enabling building owners to install clean and efficient technologies on their property with no out-of-pocket cost. The investment is recouped annually on the property tax bill.

Grid Modernization Proposal

In June, Dominion Energy Virginia submitted Phase II of its Grid Transformation Plan to the State Corporation Commission. This phase calls for a $669 million investment in optimizing the integration of distributed energy resources into the utility’s grid. If approved, the plan would be implemented in 2022-2023.

Establishing Green Banks

In June, the Virginia Department of Energy (formerly the Virginia Department of Mines, Minerals and Energy) hired an energy efficiency and financing programs manager to help local communities establish green banks. Green banks, which attract and lend capital for clean energy and other purposes, are attracting interest as state and local governments plan to increase clean energy commitments and investment. The Biden administration has called out green banks as key to the federal government’s climate strategy.

Gubernatorial Election

On May 10, Virginia Republicans nominated Glenn Youngkin, former private equity executive, to be their nominee for November’s gubernatorial election. Youngkin has endorsed repealing or amending the Virginia Clean Economy Act to make Virginia’s electric grid run on 100% clean energy by 2050.

Disconnection Moratorium Continued

In May, Dominion Energy announced that it will continue a pause on disconnection for nonpayment of bills and offer credits to ratepayers who may qualify for back-payment forgiveness in Virginia. They reported that many customers are still facing hardship due to COVID-19 and hope that this will ease financial burdens.

Regional, National, & Federal Updates

Peer City Climate Action Evaluation

Reporters compared two peer cities’ climate and energy activities, Jacksonville, FL and Nashville, TN, and illuminated similarities and opportunities to learn from one another.

Southeast Energy Exchange Market (SEEM)

Duke Energy, Southern Company, the Tennessee Valley Authority, and other Southeastern utilities are endeavoring to create SEEM, extending the current bilateral market and creating a 15-minute energy exchange to use current transmission more efficiently. In May, the Federal Energy Regulatory Commission (FERC) asked the utilities to provide more details on the proposal, and the utilities responded, saying they would provide weekly confidential data, public market auditor reports, responses to regulatory inquiries, and more to increase transparency.

Infrastructure Report Cards

The White House released infrastructure report cards for every state which include a breakdown on the condition of roads and bridges, public transportation, drinking water, affordable housing, broadband, manufacturing and more.

TVA Leadership

On April 20, President Biden nominated four new candidates to join the board of the Tennessee Valley Authority: Beth Geer, Robert Klein, Kimberly Lewis, and Michelle More. The candidates all have backgrounds in environmental justice, community-based clean energy, and labor. President Biden wants to make the TVA a model for how public power can lead an equitable and clean energy transition.

Appliance Standards

In April, the Department of Energy announced a proposed rule that would undo the Trump administration’s “Process Rule” that set major roadblocks for updating energy-saving standards for appliances and equipment. According to a report released by the American Council for an Energy-Efficient Economy (ACEEE) and the Appliance Standards Awareness Project (ASAP), updating appliance standards can cut carbon emissions by 1.5 billion metric tons by 2050 and save the average American $230 annually by 2035 on utility bills.

State of the Electric Utility Series

On April 1, Utility Dive released its State of the Electric Utility in a four-part series. This report provides survey results on industry trends from about 500 utility professionals as well as insight from a diverse group of industry professionals.

Department of Energy Appointees

On May 12, the Biden administration announced new Department of Energy appointees, including Matt Dannenberg as Deputy Chief of Staff at the Office of Energy Efficiency and Renewable Energy and Tony Reames as Senior Advisor at the Office of Economic Impact and Diversity. Tony Reames has a background in energy justice, while Matt Dannenberg has a background in civic engagement and advocacy to impact climate change.

Innovation and Economic Competition Package

On June 9, the U.S. Senate approved a bipartisan innovation and economic competition package that would provide $100 billion for research and development activities over five years at the National Science Foundation and the Department of Energy. The bill, S. 1260, heads to the House of Representatives for approval.

Justice40 Initiative

On June 8, The Department of Energy nominee to lead the Office of Economic Impact and Diversity, Shalanda Baher, said that traditional fossil fuel communities would be among those that will qualify for investment under an executive order meant to bolster disadvantaged communities. The Justice40 Initiative, signed by President Biden in January, directs that 40% of investments made by the federal government that plan to tackle the climate crisis will go to disadvantaged communities. This order will include funding for transitioning energy communities.

Rural Energy Pilot Program

The USDA accepted comments on how a $10 million Rural Energy Pilot Program might be used, with an emphasis on soliciting feedback on how technologies could impact or be deployed to address and propel work on racial equity, environmental justice, and economic opportunity.

EPA Leadership

President Biden has appointed Carlton Waterhouse, an environmental law and justice expert, as assistant administrator for EPA’s Office of Land and Emergency Management. This office oversees recycling and waste issues, as well as the superfund program, which focuses on the country’s most contaminated sites.

Energy-Efficient Lightbulbs

On May 20, Department of Energy (DOE) moved to reverse the Trump administration’s decision to block the phaseout of incandescent lightbulbs. Trump previously claimed that energy-efficient lightbulbs would cost more, despite conflicting information on the DOE website. According to Noah Horowitz, director of the Center for Energy Efficiency Standards at the Natural Resources Defense Council, customers could save $2.5 billion annually with more efficient bulbs, and 50 million tons of carbon pollution could be prevented by 2030, as LED (Light Emitting Diode) lights use one-sixth the energy of incandescent bulbs to deliver the same amount of energy and last more than 10 times longer.

Expanding Power Markets

In June, nine bipartisan former federal commissioners and chairs called for the Federal Energy Regulatory Commission (FERC) to expand organized power markets across the U.S. They cited considerable customer benefits and greater levels of renewable energy as reasons for restructured competitive markets to expand nationwide.

Electric Grid Security

In June, Tom Fanning, Southern Company CEO and co-chair of Electricity Subsector Coordinating Council, said that utilities must work with each other and the federal government to discourage cyber-attacks on the electric grid following the May shutdown of Colonial Pipeline due to hackers.

New Energy Efficiency Metric

In May, California’s Public Utilities Commission passed new rules to look at energy efficiency benefits beyond economic savings, adopting a “total system benefit” (TSB) metric to promote energy conservation at high-value locations and times. According to the proposal, TSB will optimize and combine energy and peak demand savings goals and will encourage longer-duration energy-saving and high-value load reduction.

Bipartisan Infrastructure Deal

On June 24, President Biden announced his support for a bipartisan infrastructure framework that will spend $73 billion in power infrastructure. Of that investment, $579 billion will also be spent on a variety of infrastructure priorities, including new transmission lines to accommodate renewable energy and a new Grid Authority to oversee power infrastructure upgrades.