Energy Efficiency Policy Updates

Alabama

Public Service Commissioners: Commission chair Twinkle Cavanaugh’s four-year term expires on November 8. Voters will decide between incumbent Cavanaugh (R) and challenger Laura Casey (D) in the general election on November 3.

Public Service Commission Proceedings: On September 4, the Alabama Supreme Court upheld a lower court’s decision that the hearing at the center of a lawsuit under the Open Meetings Act did not formally qualify as a meeting and therefore was not allowed to be recorded.

Bill Payment Assistance: Huntsville Utilities is supporting customers during the pandemic by forgiving late fees and launching a relief fund with the Tennessee Valley Authority.

Arkansas

Rate Cases

Entergy Arkansas: On July 1, the Arkansas Public Service Commission ordered Entergy to refund $15 million to customers. Entergy originally requested to impose a $135 million rate increase and is contesting the commission’s order. Docket Nos. 16-036-FR, 15-015-U

CenterPoint Energy Arkansas Gas: On September 28, the commission approved CenterPoint’s proposed rate plan to reduce residential customer rates by about 4%. The new plan takes effect the first billing cycle of October 2020. Docket Nos. 17-010-FR, 15-098-U

Florida

Public Service Commission: On August 21, Governor Ron DeSantis (R) named central Florida state legislator Michael La Rosa (R) to a four-year term on the Florida Public Service Commission (FPSC). La Rosa will leave his post at the legislature to replace commissioner Donald Polmann (R) on January 1, 2021. Voters will decide in November between Barbara Cady (D) and Fred Hawkins (R) to replace La Rosa as congressional representative for District 42.

Energy Efficiency Rules: On July 7, the FPSC directed commission staff to initiate a rule-making process to update the rules established by Florida Energy Efficiency and Conservation Act. Docket No. 20200181

Demand-Side Management (DSM) Plans: At the July 7 meeting, the FPSC approved all DSM plans submitted by each of the state’s investor-owned utilities in February. Docket Nos. 202000053-EG (TECO), 2020054-EG (Duke), 20200055-EG (Gulf), 20200056-EG (FPL), 2020060-EG (FPUC)

Georgia

Public Service Commission: On November 3, Georgia residents will elect commissioners to the Georgia Public Service Commission (GPSC) for seats serving Districts 1 and 4. Robert Bryant (D) and Daniel Blackman (D) are challenging incumbents Jason Shaw (R) and Bubba McDonald (R) for Districts 1 and 4, respectively. The four-year term begins on January 1, 2021.

GPSC Elections: In the 141-year history of the GPSC, only one Black person has ever served on the commission. A lawsuit filed this summer challenges the commission election process under the Voting Rights Act. The goal of the lawsuit is to achieve fair representation of Georgia residents on the commission.

Plant Vogtle: In July, Georgia Power forecasted rising costs and timeline challenges due to pandemic impacts. On August 18, the GPSC approved recovery of project costs incurred in 2019. Docket No. 29849

Louisiana

Clean Energy Commitment: In an executive order on August 19, Governor John Bel Edwards (D) established a task force charged with getting the state to net-zero carbon emissions by 2050.

Mississippi

Public Utilities Staff: On July 15, Governor Tate Reeves (R) appointed state senator Sally Doty (R) as the director of the Mississippi Public Utilities Staff, which represents consumer interests to the state’s public service commissioners. In a September special election to fill District 39’s newly vacated seat, nonpartisan candidates Jason Barrett and Bill Sones received the most votes. A runoff election between Barrett and Sones is scheduled for October 13.

North Carolina

Integrated Resource Planning and REPS Compliance: On September 1, DEC and DEP filed their integrated resource plans (IRPs) and renewable energy and energy efficiency resource standards (REPS) compliance plans. The companies held a stakeholder meeting to consider the proposed IRP and REPS plan on September 18. Both companies plan to attain the savings goals using the maximum allowable amount of energy efficiency, which is up to 25% of total savings in 2020 and up to 40% in 2021 and 2022. Docket No. E-100 Sub 165

Duke Energy Rate Cases: In September 2019, Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP) filed applications for a general rate case. Proceedings originally scheduled for March 2020 were postponed and finally held remotely in August. On July 23, Duke entered into a settlement agreement with advocates and parties to the proceeding. As a result of the settlement, Duke will create low- to moderate-income energy efficiency programs, contribute $6 million to offer weatherization assistance to low-income households, and develop a Pay As You Save® pilot program, among other provisions. Docket No. E-7 Sub 1214

Gubernatorial Election: Governor Roy Cooper (D) is seeking a second term in the November 3 general elections. Cooper’s highest-polling opponent is Dan Forest (R).

South Carolina

Public Service Commission: On September 23, after postponing the election since June due to the pandemic, the South Carolina legislature elected four new commissioners for four-year terms on the seven-member Public Service Commission. Carolee Williams, Mike Caston, Headen Thomas, and Delton Powers will assume their roles in the next few weeks.

Clean Energy Week: For the third straight year, Governor Henry McMaster (R) recognized September 21-25 as Clean Energy Week.

Santee Cooper: On July 20, the S.C. Supreme Court approved a $520 million settlement in a class-action lawsuit against Santee Cooper over increased rates related to the abandoned VC Summer nuclear project. The utility will also freeze its rates for four years as a part of the agreement.

Integrated Resource Planning: DEC and DEP filed their IRPs with the commission on September 1. On September 28, the chief hearing officer filed a proposed procedural schedule, in which the commission would hold a hearing in April and make a final decision in June of 2021. Docket Nos. 2019-224-E, 2019-225-E, 2019-226-E

Rate Cases

Duke Energy: On August 14, DEC and DEP jointly filed a petition for general rate case. The filing includes reports on the financial impacts of COVID-19 to the companies and requests the granting of a deferred accounting order to recover costs incurred due to COVID-19 at a later date, as its impacts on customers are ongoing. The companies note that each of their authorized returns on equity (ROE) are 9.5%; but, absent approval of their request, the ROEs are expected to be 7.52% and 4.35% for DEC and DEP, respectively. The commission will address the matter in a meeting on October 21. Docket No. 2020-195-E

Dominion Energy: On August 14, Dominion filed a request to increase rates. The proposed new rate would result in increased revenues of 7.75%, corresponding to less than a 1% per year increase in rate for the typical customer since rates were last adjusted. On August 24, the commission scheduled hearings to begin January 1, 2021. A final order from the commission is expected by February 15, 2021 and the new rates would take effect in March. Docket No. 2020-125-E

Tennessee

TVA and MLGW: Memphis Light, Gas, and Water (MLGW) is exploring the possibility of leaving TVA’s territory and generating its own power; the municipal utility conducted an integrated resource plan and plans to consider alternate power suppliers. TVA filed its comments on the utility’s proposal on July 7 and offered $500 million in incentives to Memphis if it stays with TVA.

Customer Support: In June, TVA launched virtual home energy evaluations to support the identification and installation of energy savings measures during the pandemic. On August 27, TVA announced a $200 million COVID-19 relief package for local power providers (LPPs) that includes a 2.5% discount on its base electric rates. The Knoxville Utility Board (KUB) and community partners reported in late August on funds made available to help customers to maintain power during the pandemic. KUB will resume customer disconnections due to non-payment on October 19.

Clean Energy Commitment: In July, TVA released its first corporate sustainability reports, which states that the utility is on pace to reduce its greenhouse gas emissions by 70% below 2005 levels by 2030.

TVA Leadership: In August, President Trump removed two members of the TVA board of directors, including its chair. Following Trump’s criticism of the organization’s leadership and its CEO’s salary, TVA hired an independent consultant to review its executive compensation.

Virginia

Clean Economy Act: In September, the State Corporation Commission (SCC) issued a proposed rule for Dominion Energy and Appalachian Power to attain certain levels of energy storage capacity by 2035. Storage targets were set in the Virginia Clean Economy Act, passed during the 2020 General Assembly session. The act requires regulators to issue final regulations by January 1, 2021. Docket No. PUR- 2020-00120

Regional Greenhouse Gas Initiative: On July 8, Governor Ralph Northam (D) committed the state to the Regional Greenhouse Gas Initiative (RGGI), a regional carbon cap-and-trade market program. Legislation passed during the 2020 General Assembly session authorizes the state to use funds generated from RGGI towards energy efficiency programs, coastal resilience, and community flood preparedness.

Integrated Resource Planning: Dominion submitted its IRP to the SCC on May 1. The SCC scheduled a public hearing on the matter for October 27; public comments are due on October 20. The hearing examiner filed a report on September 16 granting some, but not the entirety of, SCC Staff’s motion to compel Dominion representatives to provide additional information. Docket No. PUR-2020-00035

Appalachian Power Rate Case: Appalachian Power Co. (APCo) filed its request for triennial rate review on March 31, proposing recovery of $23.6 million through rates from 2021-2023. The SCC hosted remote public hearings on APCo’s rate request on September 14-15. Docket No. PUR-2020-00015

Dominion Earnings: In August, the SCC found that Dominion earned $503 million above its authorized levels from 2017-2019. In early September, Governor Northam proposed budget language that would require the utility to return the excess earnings to customers.

Energy Choice: On July 9, the SCC rejected Walmart’s request to leave Dominion Energy’s territory because its proposal did not meet the minimum threshold of five aggregated megawatts needed to warrant retail choice under the state’s policies.

Energy Efficiency Policy: Regional, National, and Federal Updates

Energy Efficiency Day: We celebrated the annual Energy Efficiency (EE) Day on October 7. The following Southeast cities, states, and counties formally recognized EE Day 2020:

Fayetteville, Arkansas

St. Petersburg, Florida

State of Mississippi

Apex, North Carolina

Fairfax County, Virginia

Falls Church Virginia

State of Virginia

Regional Transmission Organization: On August 25, Energy Innovation released a report finding that a regional transmission organization (RTO) enabling electric choice would create $384 billion in savings by 2040. The analysis forecasts the impacts of a wholesale electricity market spanning Alabama, Florida, Georgia, Mississippi, the Carolinas, and Tennessee by 2025. On September 29, South Carolina Governor McMaster signed legislation to create the Electricity Market Reform Measures Study Committee to explore the feasibility of the state establishing or joining a RTO. The committee will be comprised of utility representatives, customers, and industry and advocacy groups and will also study the feasibility of enable retail electric choice and achieving emissions-free electricity generation.

Clean Energy Commitments

A September report by Deloitte found that investor-owned utilities committed to achieving carbon emissions reduction goals are not on track with proclaimed timelines, but explains how current conditions could help utilities meet goals on time.

On June 30, the U.S. House released a plan for the country to reach net zero carbon emissions by 2050, with a focus on the electric and transportation sectors.

In September, Southern Company published more details on its plan to reach its carbon neutral goals.

On September 24, Entergy announced its plan to achieve net-zero carbon emissions by 2050.

On September 14, Google released its plan to reach 100% renewable power supply over the next decade.

Regional Elections: SEEA is watching state, local, and federal elections that may impact energy efficiency in the Southeast. SEEA will report elections results to members in November. Look for the elections tag to find examples of races on our radar.

Advocacy Leadership: On July 27, the Natural Resources Defense Council appointed Troy Riddle to the new position of chief diversity, equity, and inclusion officer. On August 12, the Electric Power Research Institute announced that its current president, Arshad Mansoor, will assume the permanent role of CEO in January. Mansoor will be the organization’s first CEO of color.

Dominion Energy Leadership: On July 31, fifteen-year Dominion CEO Tom Farrell announced his transition to the role of executive chairman on the board of directors. On October 1, executive vice president and co-chief operating officer Robert Blue assumed the role of president and CEO.

Foundation Leadership: In September, David Stocks became executive director of the Educational Foundation of America.

Appliance Standards: On August 10, over a dozen states, along with a coalition of environmental and consumer advocacy groups, filed a notice of intent to sue the U.S. Department of Energy (DOE) for the failure to update the energy efficiency standards of twenty-five appliances.

Puerto Rico: On September 18, three years after the devastating Hurricane Maria, the Trump administration authorized $9.6 billion in funds from the Federal Emergency Management Agency (FEMA) to rebuild Puerto Rico’s power grid.

Energy Efficiency and Health: In June and July, the American Council for an Energy-Efficient Economy (ACEEE) published blog posts on the mutual benefits and opportunities of the intersection of the energy efficiency and healthcare industries.

National Association of Regulatory Utility Commissioners (NARUC): On July 28, NARUC accepted the nomination of Virginia State Corporation Commissioner Mark Christie.

Federal Energy Regulatory Commission (FERC) Appointments: Commissioner Bernard McNamee (R) stepped down from his position on September 4, leaving the commission with three members. In July, President Trump nominated Allison Clements (D) and Mark Christie (R) to fill vacancies on the commission. The U.S. Senate held hearings to consider the nominations in September. Southern Company Earnings: On July 30, Southern Company released its second quarter earnings.

Federal Legislation

HR 7446 and S. 4147 would create a new program office within DOE to help low- and medium-sized manufacturing companies adopt more efficient technologies.

HR 7516, the Clean Energy Innovation and Deployment Act, would establish a federal clean energy standard to reach net-zero emissions from the power sector by 2050.

The Climate Equity Act would establish a new Office of Climate and Environmental Justice Accountability at the White House and would require congressional bills to receive an equity score.

S. 3569, the Keeping Critical Connections Act, would reimburse small business broadband providers to assist students with internet connection for distance learning and to refrain from disconnecting low-income households struggling to pay their bills.

See full details and read more in the Quarter 3 Highlights: July - September 2020