Energy Efficiency Policy Highlights

State & Local Updates

ALABAMA

Alabama Power Rate Case

On December 8, 2020, the Alabama Public Service Commission approved a rate increase that took effect on January 1, 2021. The average residential customer will see a $4 bill increase. Alabama asked for the rate request in order to recover increased expenditures and decreased revenue due to the COVID-19 pandemic.

Arkansas Entergy Arkansas

Due to cold winter weather, Entergy Arkansas asked customers to reduce their electricity use in the evening to avoid a mandatory outage.

Winter Storm Task Force

In response to the February winter storm that severely affected Texas, Arkansas governor, Asa Hutchinson, created an Energy Resources Planning Task Force to assess the state’s ability to withstand future events.

FLORIDA

PACE Accessibility

State Sen. Ana Maria Rodriguez filed a bill in February 2021 proposing reforms to a state financing program to help homeowners pay for energy efficiency and storm hardening upgrades.

FEECA Rules

On March 31, Twenty seven local elected officials, representing constituencies from across Florida, filed a letter calling on the Florida Public Service Commission to modernize its practices for setting energy efficiency goals.

Resilient Florida Grants Program

Florida plans to leverage federal COVID-19 relief funds to double the size of a new state climate resilience initiative, the Resilient Florida grants program.

Public Service Commission

On February 18, Gov. Ron DeSantis named Julie Brown to be the next Secretary of the Department of Business and Professional Regulation, creating a vacancy on the Florida Public Service Commission.

Utility Disconnections

In December 2020, six utilities including, Duke, Florida Power & Light, Florida City Gas, Gulf Power, TECO, and People’s Gas filed required customer impact data with the Public Service Commission (PSC). Collectively, the six utility companies disconnected more than 330,000 residential customers between August and December 2020.

Consumer Advocate Appointed

In February, the Joint Legislative Committee on Public Oversight unanimously named Richard Gentry, a veteran lobbyist, to be the chief lawyer representing consumers in utility rate cases before state regulators. Gentry replaces J.R. Kelly, a lawyer who previously held the position for 14 years.

Rate Cases

Florida Power & Light (FPL)

In mid-March FPL requested a four-year rate proposal to increase investment in resiliency and sustainability in response to climate change and more intense storms. FPL customers could see a phased in base rate hike starting in 2022.

Duke Energy Florida

After months of negotiation, Duke Energy Florida and community groups have reached an agreement that sets the utility’s base rates through 2024. Duke Energy Florida previously had a base rate freeze in place through December 31, 2021. On December 31, 2020, the utility filed for rate increases that would start on March 31, 2021.

GEORGIA

Public Service Commission

Incumbent Lauren “Bubba” MacDonald was reelected to the Georgia Public Service Commission in a January 5 runoff with Daniel Blackmon.

Preemptive Building Code Legislation

In March, Georgia lawmakers passed HB 150, which prohibits local governments from adopting building codes based solely on the energy source, such as natural gas.

Sustainability Bond

Georgia Power announced its first sustainability bond, and the first sustainability bond for a domestic utility in the U.S. on February 2, 2021. The bond’s proceeds will be spent on engaging diverse and small business suppliers and investments in renewable energy projects.

Plant Vogtle

Southern Company has identified a likely one-month delay on one nuclear unit at Plant Vogtle.

Georgia Power Smart Usage Plan

Customers with new homes built after January 1 will be automatically placed on the utility’s Smart Usage rate plan. The Smart Usage plan has always been a rate choice along with the standard rate plan. The plan charges customers higher rates during peak hours to encourage a shift in energy use and also includes an additional demand charge for the highest kilowatt usage in any 60-minute period during the billing month.

KENTUCKY

Kentucky Power Rate Case

In July 2020, Kentucky Power’s request for a rate increase was suspended for five months. On January 13, 2021, the Kentucky Public Service Commission issued a final order approving a base revenue increase of $52.4 million which includes an increase in monthly customer charges from $14 to $17.50. The utility was awarded a 9.3% return on equity, instead of the requested 10%. The commission also denied the Grid Modernization Rider intended to recover expenses associated with AMI deployment. The order disallows Kentucky Power from charging customers late payment charges. The commission delayed a final decision on the utility’s proposed changes to the net metering tariff.

Online Affordability Resources

The Kentucky Energy and Environment Cabinet’s Office of Energy Policy has expanded its online resources through a new energy affordability webpage. The site provides a comprehensive network of resources to help families locate affordable housing, and get utility bill assistance. It also provides educational resources and helpful tips to reduce energy costs in the home.

LOUISIANA

Public Service Commission

On January 12, 2021 the Louisiana Public Service Commission (LPSC) accepted a joint request from June 18, 2020 from LPSC Staff and Atmos Energy for an increase in base revenues to account for adjustment of revenue. Base revenues will increase $14,780,953 and customers will see an increase on bills in July.

CenterPoint Energy Return on Equity Request

On January 12, 2021 LPSC approved CenterPoint Energy’s request for Return on Equity filed in November 2020. A decrease of approximately $936,242 is expected due to 2020 over earnings.

Southwestern Electric Power Company (SWEPCO)

On March 25, SWEPCO requested approval of an Energy Efficiency Cost Rider (EECR) and an Energy Efficiency Cost Rider for Public Entities (EECR PE) to support energy efficiency program fees. Residential customers will see bill increases starting in May. The riders are required by the Louisiana Public Service Commission will increase rates by $0.000436 and $0.000590 (EECR PE and EECR respectively)

MISSISSIPPI

Mississippi Power Company Integrated Resource Plan (IRP)

On February 25, Mississippi Power Company held its first Technical Conference as required by Rule 29. Docket No. 2019-UA-231

Mississippi Power Company Rate Case

On March 15, Mississippi Power Company filed for a temporary rate increase for the April billing cycle in its 2021 performance evaluation plan. Previously, on March 2, the Mississippi Public Service Commission approved Mississippi Power Company’s Ad Valorem Tax Adjustment Rider (ATA-2). The ATA-2 rider will increase an average residential customer’s bill by approximately $3.88 per month.

Preemptive Utility Connection Legislation

On March 17, Governor Tate Reeves approved HB 632, the “All Fuels Act of 2021,” which prohibits the connection or reconnection of any utility service based upon the type or source of energy or fuel passed both the Mississippi House of Representatives and Mississippi State Senate.

Midcontinent Independent System Operator (MISO)

The Mississippi Public Service Commission is examining the benefits, costs, and commitments of Entergy Mississippi becoming a participating member of MISO.

NORTH CAROLINA

Integrated Resource Plans (IRPs)

Duke Energy

Duke Energy Carolinas and Duke Energy Progress jointly filed their IRPs with the North Carolina Utilities Commission (NCUC) on September 1, 2020.

Dominion Energy

Dominion Energy NC filed its IRP on May 1, 2020. On March 12, 2021 NCUC rescheduled the March public hearing which is still yet to be determined.

Dominion Energy Rate Increases

NCUC approved three rate increases for Dominion Energy North Carolina on January 29.

Leadership

Governor Roy Cooper named Dionne Delli-Gatti Secretary of the Department of Environment Quality, which houses the state energy office, among other responsibilities. DelliGatti replaces Michael Regan, who was confirmed as the first Black male administrator of the U.S. Environmental Protection Agency.

Clean Energy Merger

In March, the N.C. Clean Energy Business Alliance and S.C. Solar Business Association announced they were merging to increase collaboration and advocacy efforts between the two states.

Coal Plant Closure

In February, Duke Energy announced it would close its 270 MW Allen Unit 3 coal plant by March 31. The Allen plant is scheduled to be fully retired by 2024.

SOUTH CAROLINA

LED Street Lights

In March, North Augusta City Council approved a municipal lighting agreement with Dominion Energy South Carolina to convert its streetlights to LED fixtures to save money.

Incentives for Business Energy Efficiency Upgrades

Dominion Energy South Carolina’s EnergyWise for Your Business Program is offering up to $100,000 in incentives for lighting and efficiency upgrades for eligible businesses.

Dominion Energy South Carolina Integrated Resource Plan (IRP)

Dominion Energy South Carolina has refiled its IRP, which includes updated plans to retired all coal-fired power plants in the state by 2030 and meet the energy efficiency requirements of the Energy Freedom Act. Last year, the utility’s IRP was rejected by the South Carolina Public Service Commission because it did not include renewables and energy storage before 2026 or close coal-fired power plants before 2028.

Dominion Energy Rate Case

In January, Dominion Energy agreed to drop its request for a 7.7% rate increase and to not request another rate increase for six months after receiving a letter from the South Carolina Office of Regulatory Staff (ORS) and hearing testimony from Walmart, AARP, and environmental advocates opposing the rate hike.

South Carolina Energy Efficiency Roadmap

The Nicholas Institute for Environmental Policy Solutions at Duke University released their South Carolina Energy Efficiency Roadmap, which explores opportunities to increase the deployment of energy efficiency in South Carolina.

Grid Resilience

On February 19, Governor Henry McMaster asked ORS to conduct a review the state’s public and private power grid to evaluate resiliency following the impacts of the February 13-17 winter storm in Texas.

Santee Cooper Sale

On January 26, the South Carolina House voted again to explore selling the public power and water utility, Santee Cooper.

TENNESSEE

Memphis, Light, Gas, and Water (MLGW)

MLGW is still unclear on plans to leave the Tennessee Valley Authority (TVA) and explore new power suppliers. In October 2020, the Memphis City Council voted against a contract with GDS Associates to bid out Memphis’ power supply and the cost of potential transmission lines.

TVA Performance Study

A new study released in February praised the performance of the TVA. The study was commissioned by the TVA board in November 2020 after the past two U.S. presidents proposed selling some or all of the government-owned utility.

Integrated Community Sustainability Plan Support

Nine of the 15 mayoral candidates in Chattanooga endorsed the Integrated Community Sustainability Plan developed over the past two years by nearly 175 environmental, community, and business leaders that includes sweeping energy goals including carbon neutral by 2050, affordable and easy transit, and equity measures.

Low-Income Energy Efficiency Funding Matrix

The Department of Environmental Conservation updated its Low-Income Energy Efficiency Funding Matrix, providing Tennesseans with energy efficiency-related programs and resources targeted to low-income residents in the state.

VIRGINIA

First Carbon Allowance Auction

On March 5, Virginia conducted its first auction of carbon allowances since joining the Regional Greenhouse Gas Initiative and generated more than $43 million, half of which will be devoted to low-income energy efficiency programs administered by the Department of Housing and Community Development.

Rate Cases

Appalachian Power

In March, Appalachian Power filed its periodic rate adjustment clause (RAC) to account for transmission infrastructure. The change will increase the monthly bill for a residential customer using 1,000 kilowatt-hours by $11.52, or roughly 11 percent, effective in July 2021. The State Corporation Commission (SCC) approved Appalachian Power’s fuel recovery rider. Appalachian Power is waiting on a response to its request an increase in revenue.

Dominion Energy

Dominion Energy filed for a new rate rider to recover costs for coal ash remediation and received approval for a rate rider to support the mostly coal-powered Virginia City Hybrid Energy Center. Dominion Energy also filed its triennial review for 2017-2020 earnings.

Old Dominion Power

Kentucky Utilities Companies filed for an increase to its fuel recovery rider on February 16. Kentucky Utilities Company, doing business as Old Dominion Power, customers could see a total bill increase of $1.63 per month for a residential customer using 1,000 kilowatt-hours.

Regional Greenhouse Gas Initiative

In response to Virginia becoming a full member of the Regional Greenhouse Gas Initiative (RGGI), Dominion Energy filed a petition to establish a new rate adjustment clause to recover participation costs.

Clean Economy Act

In May 2020, Dominion Energy filed its 2020 IRP, its first to comply with Virginia’s Clean Economy Act. The plan was approved by SCC on February 1 and will go into effect on July 1.

Regional, National, & Federal Updates

Clean Energy Jobs

Nationally, nearly 17,000 jobs in the clean energy and energy efficiency sectors were added in December. However, 70% of the clean energy jobs lost in the pandemic have not yet recovered and would take two and a half years to return to pre-pandemic levels.

Safe During COVID

A new study from Duke University’s Nicholas Institute for Environmental Policy Solutions found that prohibiting utility shutoffs and evictions helped slow the spread of COVID-19.

Southern Energy Exchange Market

Duke Energy Progress filed a proposal with the Federal Energy Regulatory Commission (FERC) to form the Southeast Energy Exchange Market to facilitate trading among several major utilities in the region. FERC is currently considering public and stakeholder comments on the proposal.

Net Zero Business Alliance

Southern Company is among several companies launching the Net Zero Business Alliance. The coalition will work with federal government and U.S. businesses to reach net-zero green net-zero greenhouse gas emissions by 2050.

Fuels Transition Research

Southern Company is working with the Gas Technology Institute (GTI) and the Department of Energy to explore blending hydrogen in natural gas using existing gas infrastructure.

New Integrated Resource Plans (IRPs)

State commissions in Virginia, South Carolina, and Mississippi are asking utilities to resubmit their IRPs to include more carbon-free sources, close coal-powered power plants, add battery storage, and add renewables to their systems.

U.S. Secretary of Energy

On February 25, the U.S. Senate confirmed former Michigan Governor Jennifer Granholm as energy secretary.

EPA Administrator

On March 10, former Secretary of the North Carolina Department of Environmental Quality Michael Regan was confirmed as the first Black, male administrator of the U.S. Environmental Protection Agency.

Energy Justice

In January, Shalanda Baker, a professor of law, public policy and urban affairs at Northeastern University, began a new role as the Secretarial Advisor on Equity and as Deputy Director for Energy Justice in the Office of Economic Impact and Diversity at the U.S. Department of Energy. She is the current nominee of President Joe Biden to serve as Director of the Office of Economic Impact and Diversity at the U.S. Department of Energy (DOE). Her role is the first at DOE to focus exclusively on energy justice.

USDA Equity Advisor

In March, Agriculture Secretary Tom Vilsack announced he would hire Dewayne Goldman as senior advisor for racial equity and launch a commission to ensure equity across all Department of Agriculture programs.

Utility and Environmental Justice Relief

The American Rescue Plan, signed into law by President Biden on March 11, included $4.5 billion for the Low-Income Heating Energy Assistance Program (LIHEAP), $500 million of assistance with water bills, and $100 million for environmental justice grants.

Low-Income Home Water Assistance Program

The U.S. Department of Health and Human Services is taking action to develop the Low- Income Home Water Assistance Program (LIHWAP), a counterpart to its energy focused program (LIHEAP).

Appliance Energy Efficiency Standards

In February, the U.S. Department of Energy is reviewing changes made by the Trump administration to appliance energy efficiency standards.

LNG Export Licenses

On December 31, 2020, the U.S. Department of Energy extended five long-term liquefied natural gas (LNG) export licenses through 2050. The authorizations extend export terms for stations in Florida, Georgia, Louisiana, and Texas.

2030 Climate Challenge Finalists

Clean Energy Works, Liberty Homes, and EETility were selected as finalists for the 2030 Climate Challenge to reduce greenhouse gas emissions in the U.S. by expanding the use of tariffed on-bill programs for clean energy.

Environmental Protection Agency (EPA) Environmental Justice and Systemic Racism Speaker Series

In March, the EPA launched a speaker series that explores how understanding and addressing systemic racism and the roots of disproportionate environmental and public health impacts is key to integrating environmental justice in the policies and programs of EPA and other environmental agencies to achieve environmental protection for all people.