Energy Efficiency Policy Highlights

Energy Efficiency Policy State and Local Updates

ALABAMA

Renewable Energy Generation: On July 16, Alabama Power Company filed a request to modify its certificate of convenience and necessity to pursue up to 500 MW of renewable energy and environmentally specialized generating resources through 2027, an additional six years. Alabama Public Service Commission approved the request on August 11. Docket No. 32382

ARKANSAS

SWEPCO Rate Case: The Southwestern Electric Power Company (SWEPCO) is seeking a rate increase. The typical residential customer will see an increase of $11 a month. The proposed revenue will be invested in more clean energy projects and grid reliability.

Rural Clean Energy: United States Department of Agriculture will grant $40,000 to Arkansasbased companies as part of the Rural Energy for America Program (REAP) and its Electrical Loan Program. Singleton Farms Partnership, Arsoft LLC, and Jessland Plantation will all receive funding for clean power investments.

Energy Efficiency Savings Update: Citing effects of the COVID-19 pandemic, Parties Working Collaboratively (PWC), a stakeholder group that addresses the state’s regulated utilities energy efficiency programs, requested a “bridge year” to establish new savings targets for the next program cycle. The Arkansas Public Commission granted the request in October 2021. Under its energy efficiency resource standard rules, Arkansas electric and gas utilities must achieve savings targets set every three years. In addition to granting the “bridge year” the commission order allowed for program budget flexibility and authorized the PWC to develop a Request for Proposals for a second energy efficiency potential study.

FLORIDA

Low-Income Program: Duke Energy Florida filed a proposal with the Florida Public Service Commission to assist low-income customers and those impacted by COVID-19 through expanded program reach, customer incentives, and energy efficiency savings kits.

Clean Energy Financing: Former St. Lucie County Commissioner and current executive director of the Solar and Energy Loan Fund (SELF), Doug Coward spoke to The Sun Sentinel about financing solar installations and improving energy efficiency among Florida’s low- and moderateincome home and building owners.

RATE CASES:

Florida Power and Light (FPL) - Beginning June 21, the Florida Public Service Commission held public hearings on a rate increase for FPL customers. The utility is asking for a $2 billion increase to support clean energy infrastructure and grid resiliency and would increase rates 18.2% by 2025. Some advocates support the rate increase while others reached a settlement on August 10 that would “strengthen protections for customer disconnections and increase utility investment in community resilience.” Docket No. 20210015

Duke Energy Florida - On July 1, Duke Energy Florida filed changes to its Demand-Side Management Program Plan which proposes measures to decrease the impact of new 2022 rates by one third. Docket No. 20210121

Tampa Electric Company - On August 6, Tampa Electric Company filed a motion to approve its petition for a rate increase. The settlement will reduce its return on equity by 9.95% and there are other accounting changes that should significantly lower the bill impact in the near term. Docket No. 20210034-EI

Storm Recovery Costs: A new law approved by the Florida Public Service Commission establishes a separate cost recovery mechanism for utility storm protection activities. Storm hardening costs were originally financed through base rates.

Renewable Energy Pledge: Tampa Bay’s city council voted in August to transition the city to 100% clean, renewable energy by 2035. The mayor’s office released Resilient Tampa, a clean energy roadmap in May. Tampa joins 11 other cities in Florida in commiting to clean energy.

Public Service Commission: On September 8, Governor Ron DeSantis reappointed two Florida Public Service Commissioners. Arthur Graham was previously appointed to the commission by several governors. Andrew Fay has served as a commissioner since 2018 and previously served as a deputy to former Attorney General Pam Bondi.

Sustainable Financing Framework: In November, Duke Energy launched the Sustainable Financing Framework. The new framework seeks to attract investments in eligible green and social projects that support the utility’s clean energy transition.

Appointments: Governor Ron DeSantis appointed Dr. Wesley Brooks to serve as Florida’s Chief Resiliency Officer. The position was first created in 2019 and has recently been filled by the Secretary of the Department of Environmental Protection. Brooks will serve as a liaison between the state and local levels to champion initiatives that increase Florida’s resilience to climate change and extreme weather.

Duke Expands Energy Efficiency Programs: As a result of a July 2021 settlement, the Florida Public Service Commission approved an expansion of Duke Energy Florida’s energy efficiency programs. The utility will distribute 20,000 energy assistance kits as well as increase customer outreach for a low-income whole-home energy efficiency program. The utility has also pledged to help lower-income customers avoid disconnection.

GEORGIA

Microgrid Installation: In partnership with Georgia Power, Georgia Tech opened a 1.4 megawatt microgrid. The Microgrid in Tech Square, which opened on June 16 includes fuel cells, battery storage, diesel generators, a natural gas generator, and “is adaptive to new and additional distributed energy resources.” It will serve as a living laboratory to observe how microgrids integrate into and operate as a part of a larger electrical grid.

Plant Vogtle: In July, Georgia Power announced additional delays of three and four months for Plant Vogtle’s two new units. Unit 3 will start service in the second quarter of 2022, and Unit 4 is expected to become operational in the first quarter of 2023. Nuclear power generation could help Southern Company transition away from fossil fuels.

Public Service Commission: Governor Brian Kemp appointed the Chair of the Public Service Commission, Chuck Eaton to a judgeship, leaving a vacancy on the five-member body. Governor Kemp filled the vacancy with businessperson Fitz Johnson. Commissioner Tricia Pridemore was elected as Chair of the Public Service Commission.

Voting Rights Lawsuit: Five Black voters in Fulton County filed a lawsuit claiming that the Georgia Public Service Commission at-large districts “dilute(s) the voting strength of the state’s Black residents.” Current voting laws allow any Georgia resident, not just the region they represent, to vote for any commissioner. The U.S. Department of Justice intervened on behalf of the plaintiffs after Georgia Attorney General Chris Carr filed a motion to rule in favor of the secretary of state.

KENTUCKY

Kentucky Utilities Co Rate Case: On June 30 the Kentucky Public Service Commission approved rate increases for Kentucky Utilities Co. (KU) of 6.58 percent or $7.92 per month for a typical residential customer. The approved rates are lower than KU requested and lower than a previous settlement agreement KU and sister company Louisville Gas & Electric Co. reached with intervenors. The commission approved the deployment of advanced metering infrastructure and delay a portion of the rate increase by one year for KU customers. Docket No. 2020-00349

LOUISIANA

Climate Initiatives Task Force: On July 29, the Louisiana Climate Initiatives Task Force adopted seven strategies aimed at achieving the state’s 2050 net-zero carbon emissions goal. The top carbon emitter in Louisiana is industry and will be one of the seven targeted initiatives in the plan to be developed. A drafted plan will be presented for public comment in February 2022.

Quick Start Program Update: In December, the Louisiana Public Service Commission approved a Quick Start Phase II for Louisiana utilities. Quick Start Phase I began in 2013 and has been renewed on an annual basis. Quick Start programs are designed to help utilities achieve short term energy savings and improve energy efficiency over time. Phase I ends December 31, 2022, and the commission will transition to Phase II beginning January 1, 2023. Docket No. R-31106

MISSISSIPPI

RATE CASES:

CenterPoint Energy: On October 14, the Mississippi Public Service Commission approved CenterPoint Energy Resources Corporation’s 2021 Energy Efficiency Cost Rate. The rate adjustment will result in a reduction of $0.05 for the average residential customer. Docket No. 2014-UA-007

Entergy Mississippi: On November 5, Entergy Mississippi, LLC filed to recover costs associated with demand side management, including energy efficiency. After receiving approval from the commission, a typical residential customer using 1,000 kWh per month will see a bill increase of $7.65. The rate change takes effect in February 2022. Docket No. 2009-UN-64

ENERGY DELIVERY PLANS:

Entergy Mississippi: On November 1, Entergy Mississippi filed its 2021 Energy Delivery Plan with the Mississippi Public Service Commission. Docket No. 2019-UA-232

Mississippi Power: On November 15, Mississippi Power filed its 2021 Energy Delivery Plan with the Mississippi Public Service Commission. Docket No. 2019-UA-231

INTEGRATED RESOURCE PLANS (IRPs):

Mississippi Power: On September 9, the Mississippi Public Service Commission (PSC) approved Mississippi Power’s IRP. The plan includes the retirement of five generating units, including Plant Daniel (set to be decommissioned in 2027), Energy Efficiency/Demand-Side Management (EE/ DSM) programs that have expanded from Energy Efficiency Quick Start programs, and a projection of very little load growth over the next 10 years. EE/DSM program filings can be found in Mississippi Power’s annual Energy Delivery Plan. This is the first IRP filing in Mississippi and since it is in its infancy, the PSC felt additional requirements are needed for future filings. Docket No. 2019-UA-231

Entergy Mississippi: On November 2, the PSC approved Entergy Mississippi’s IRP. The result of its modeling of long-term resource needs and forecasts predicts very little load growth over the next 10 years. Entergy proposed the addition of two new demandside management programs and continuing to grow its energy efficiency portfolio of which filings can be found in Entergy Mississippi’s annual Energy Delivery Plan. This is the first IRP filing in Mississippi and since it is in its infancy, the PSC felt additional requirements are needed for future filings. Docket No. 2019-UA-232

NORTH CAROLINA

IRP Filing: On June 29, the North Carolina Utilities Commission paused the 2021 Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP) IRP filing to focus on the 2020 IRP filing. A technical conference was held September 30-October 1 and addressed three topics: methodology for evaluating economic retirement of coal-fired generating units, potential use of “allsource” procurement processes, and grid impact on different resource portfolios. Docket E-100 Sub 165

Flat-rate Pricing: Duke Energy has partnered with Uplight to launch a pilot program for a product called Plus which offers customers a flat rate for electricity combined with energy efficiency programs, advanced technology, efficiency upgrades, and other features. The product is designed to enable utilities to manage customers’ energy use, which can reduce the need for relying on expensive peak power and help the grid to accommodate a growing percentage of renewable energy.

Clean Energy Legislation: On October 13, Governor Roy Cooper signed House Bill 951 (HB951) into law. The bill mandates the retirement of most coal-fired plants by 2030. The North Carolina Utilities Commission (NCUC), Duke Energy Carolinas (DEC), and Duke Energy Progress (DEP) are tasked with cutting carbon emissions through coal retirements, performance-based regulation and establishment of a carbon plan. On October 14, NCUC requested comments on the proposed Performance-Based Regulation (PBR). The newly passed HB951 requires NCUC to adopt rules on the implementation of PBR no later than February 10, 2022. DEC, DEP, and Dominion Energy North Carolina (Dominion) also received approval to file comments. On November 19, NCUC ordered the filing of a carbon plan that also must establish procedural deadlines. NCUC approved delay of DEC’s and DEP’s IRPs to September 2023 and the carbon plan will be used for the 2022 IRP proceedings. The plan is mandated to be developed by December 31, 2022. Docket No. E-100, Sub 178, Docket No. E-100, Sub 179

Weatherization Appropriations: Hundreds of millions of dollars promised by North Carolina politicians to help low-income customers failed to materialize in the state budget. Both chambers and Governor Cooper included additional funding for low-income weatherization. However, the final budget, Senate Bill 105, passed on November 18 did not include any weatherization appropriations. It did include traditional low-income energy assistance grants to help pay energy bills for citizens over 60 and people living with a disability.

Preemption Bill Vetoed: On December 9, Governor Cooper vetoed House Bill 220 to prohibit local governments from barring energy service based on its fuel type. Introduced earlier this year in March, the bill was written to restrict cities and counties from prohibiting the connection of an energy service based on energy source.

SOUTH CAROLINA

Dominion Energy Rate Case: On July 2, Dominion Energy South Carolina reached a settlement for a rate increase. The settlement includes $15 million in funds allotted to “energy efficiency upgrades and critical health and safety repairs to customer homes.” Docket No. 2020-125-E

Duke IRP: On June 17, the PSC rejected IRPs from Duke Energy Progress (DEP) and Duke Energy Carolinas (DEC). At the business meeting, commissioners leveraged the Energy Freedom Act to ask Duke to revise the plan. At the business meeting commissioners leveraged the Energy Freedom Act to ask Duke to revise the plan. On August 27 DEP Docket No. 2019-225-E and DEC Docket No. 2019-224-E resubmitted a revised plan and the period to submit comments closed at the end of September.

Santee Cooper Leadership: Santee Cooper has selected a new Chief Executive Officer. Following the failed effort to complete the VC Summer nuclear plant, the state-owned utility has been under temporary leadership while the search for a permanent executive was conducted. Jimmy Staton, who will start on March 1, is stepping down from the top role at Southern Star, a natural gas utility based in Kentucky and operating in several states in the Midwest.

TENNESSEE

Green Financing: In September, the Tennessee Valley Authority issued $500 million in green bonds to support its environmental social and governance (ESG) priorities. The revenue generated by the sale will be used to support capital investments in renewable energy and storage, among other investments designed to help it achieve its net-zero carbon goals.

Local Leadership: Nashville Mayor John Cooper named new chief sustainability and resource officer, Kendra Abkowitz. Her sustainability resume includes experience at Vanderbilt University’s Sustainability and Environmental Management Office and the Tennessee Department of Environmental Conservation. Among a variety of responsibilities, she will help the city achieve its goal of sourcing 35% of its energy from renewables by 2025.

VIRGINIA

RGGI Supports Energy Efficiency Programs: Virginia’s participation in the Regional Greenhouse Gas Initiative (RGGI) enabled the commonwealth to generate $100 million in revenue. Approximately half of those proceeds are being directed to energy efficiency programs for low-income households like the redevelopment of a public housing complex in Charlottesville. The Virginia Department of Housing and Community Development will continue to oversee a program that disburses the funds annually.

Dominion Clean Energy Filing: In August, Dominion filed its “largest clean energy submission to date” with regulators. Totaling $26 billion over five years, the utility proposes spending much of the investment on zero-carbon generation and storage. The utility attributes its decision to its need to comply with the terms of the Virginia Clean Economy Act which was passed by the General Assembly in 2020.

Dominion Rate Case: On October 25, State Corporation Commission (SCC) held a hearing to review Dominion’s triennial rate case. SCC reviews Dominion’s reported earnings against its rate of return on common equity. Docket No. PUR-2021- 00058

RGGI Revenue: Virginia, the only Southeast state to participate in RGGI, received $228 million for energy efficiency and resilience programs in its first year participating in the program. Utilities in the state emitting more than allowed amounts of carbon must purchase allowances to offset their emissions. The proceeds of these transactions are allocated towards investments in low-income energy efficiency and flood preparedness. Governor Glenn Youngkin proposed withdrawing from RGGI, something he would not be able to achieve with executive action alone, according to an opinion by the Attorney General.

Energy Efficiency Policy: Regional, National, and Federal Updates

Regional Energy Market: The Southeast Energy Exchange Market (SEEM) proposed by a coalition of Southeast utilities, is moving forward after the Federal Energy Regulatory Commission (FERC) was unable to resolve differences of opinion about its legality. With only four sitting commissioners, the commission remains in a 2-2 split over the proposed market, which according to FERC rules, enables the proposal to proceed. Santee Cooper, the South Carolina state-owned utility became the latest utility to join the market which is intended to achieve cost savings by enabling utilities to more efficient trade energy had they were previously able to do.

Clean Energy Jobs: The U.S Department of Energy (DOE) released its annual U.S. Energy and Employment Jobs Report in July. While previously fast-growing, the industry ended 2020 having lost 10%, or 840,000 jobs due to the COVID-19 pandemic. Among the major sector analyzed by the report, energy efficiency was the hardest hit losing more than 11% of previously held jobs, while the electric vehicle sector added 8% more jobs throughout last year. Prior to the pandemic, jobs in the energy sector were growing twice as fast as jobs in the overall economy.

Industrial Efficiency: In August, DOE announced $60 million in awards in awards to 32 universities in 28 states, creating the largest ever cohort of Industrial Assessment Centers. The centers provide no- and low-cost energy assessments to small and medium industrial facilities while training students in energy efficient practices and technologies. Ten of these centers are placed at schools in the Southeast.

American Jobs Plan Impact: A report by the Center for Energy and Sustainable Development at West Virginia University estimates that President Biden’s American Jobs Plan could help the state add over 3,500 jobs by 2040 and achieve 79% emission-free by 2030. The report projects that solar, wind and storage would dramatically grow as sources of carbon-free electricity and that coal communities would receive investment to retrain for clean energy jobs.

Tesla Files to Sell Electricity: In August, Tesla Energy Ventures, a subsidiary of the electric vehicle manufacturer, filed to become a retail electricity provider in Texas, seeking the ability to sell electricity directly to customers. The company is building a 100 MW battery storage facility that it hopes to connect to the Texas electricity grid, which is largely isolated from the rest of the country.

Energy Use Trends: According to analysis conducted by the U.S. Energy Information Administration, per capita residential energy use grew little in 2020 on average, despite people spending more time at home due to the COVID-19 pandemic. Warmer weather, particular in the winter, appeared to offset increased consumption from spending more time at home. The analysis also found that most of the states with the highest per capita electricity use were located in the South.

Infrastructure Investment and Jobs Act: In late summer/early fall Congress passed the Infrastructure Investment and Jobs Act (IIJA). The Alliance to Save Energy detailed relevant and significant energy efficiency provisions ranging from increased funding for the Weatherization Assistance Program to workforce development to industrial energy efficiency. On November 15, President Biden signed the IIJA into law.

Appliance Standards: In August, DOE proposed to undo a rule issued by the Trump administration that would have limited the department’s ability to set efficiency standards for natural gaspowered furnaces and boilers. The department will finalize this decision and then determine whether efficiency standards for these products should be updated. Standards for furnaces have not been updated since 1987 and gas hot water heaters since 2010, making them some of the more significant greenhouse gas reduction strategies DOE can employ via its standard setting authority. Earlier in the year, DOE indicated it was revisiting other changes to the standards setting process made by the previous administration, including showerheads, dishwashers, and lightbulbs.

Call for a National Clean Energy Standard: In September, mayors from 24 Southeast cities called on Congress to adopt national clean energy standards. The Southern Alliance for Clean Energy coordinated the letter, which include signatories from North Carolina, South Carolina, Tennessee, Georgia, and Florida.

Equitable Clean Energy Future: In October, Edison Electric Institute’s magazine, Electric Perspectives, published Diversity, Equity, & Inclusion: Key to Our Clean Energy Future, outlining the importance of and pathways towards a more equitable clean energy future.

Rural Energy Transition: A coalition comprised of the Rural Power Coalition, electric co-op members, climate justice organizers, and Shareable are asking Congress to support rural energy transition by authorizing $100 billion in appropriations for federally insured Hardship Loans from the Rural Utilities Service. This could help with retirement of all coal plants and all outstanding electric co-op debt. Additionally, this authorization could lead to new investments into clean energy, distributed energy resources, energy efficiency, high-speed broadband, storage, and electric transportation.

Gas Appliance Ratings: ENERGY STAR’s “Most Efficient” Rating will no longer include gaspowered appliances, such as water heaters and clothes dryers. In 2011, the U.S. Environmental Protection Agency added a “Most Efficient” category to the now 30-year-old program to enable consumers to identify the highest performing models in a variety of product categories. For some product categories, gas appliances rarely qualified for the “Most Efficient” moniker, in others it did prompt removal of gaspowered products.

Regional Leadership: U.S. EPA Administrator Michael Regan named Georgia resident Daniel Blackman to serve as EPA Region 4 Administrator. Prior to being named to the position Blackman ran for the Georgia Public Service Commission twice, the second time losing in a run-off to long-time commissioner Lauren “Bubba” MacDonald. EPA Region 4 includes Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee and six Tribes.

Federal Rules on Cost Recovery: In December, FERC started an inquiry into rule changes that would prohibit utilities from charging ratepayers for politically related activities, such as lobbying. The proposed changes would further clarify whether spending on association dues includes funds that are used for lobbying or other activities that utilities are prevented from recovering from ratepayers. The agency issued a Notice of Inquiry and has invited comments with a first deadline in February 2022.

Coal-Powered Plant Retirement: Southern Company announced plans to retire more than 20,000 MW of coal-fired capacity by 2028 across its operating companies in Georgia and Alabama. The retirements were prompted by a change in EPA wastewater guidelines, and the utility expect that some of the units will be repowered with natural gas. The closures reduce the utility’s coalfired capacity by 80% from a 2007 baseline as it strives towards a net-zero carbon future by 2050.

Reducing Carbon Pollution: A study from North Carolina State University finds that utility pledges to reduce greenhouse gas emissions could reduce overall carbon pollution by one-third from the power sector when compared with 2018 levels. The study reviewed 36 utilities operating in 43 states. Notably Duke Energy and Southern Company accounted for about 30% of the pledged emissions reductions.