energy efficiency

Kari Binley and Cole Seward, 16, work with other volunteers to install radiant barrier and insulation in the Lucas family's attic as a part of the Environmental Protection Agency Energy Star program on Saturday, Oct. 5, 2013 in Algiers. The Lucas family received an energy-efficiency home makeover through the program. (Photo by Eliza Morse, NOLA.com | The Times-Picayune)

A statewide energy efficiency program scheduled to take effect Wednesday (Oct. 1) will be delayed another month as state utility regulators continue to draft its rules. The delay is the latest hurdle for the program, which was killed in February 2013 only to be resurrected by regulators two months later.

During its October meeting in New Orleans, the state Public Service Commission approved the budget for a third-party consultant hired to help review the energy efficiency program. Four of the five board members voted in approval. Commissioner Clyde Holloway, R-Forest Hill, was the only no vote.

The commission and its staff also said they would hold off on opening the first phase of the program, known as Quick Start, to participants for at least 30 days while they hash out final details.

Though the program has already been approved, the conversation quickly shifted to a debate over its merits.

Consumer advocates, energy efficiency companies and other supporters expressed frustration with repeated delays. They pressed the commission to move quickly to implement the program, which they say will yield savings for all customers.

Commissioner Lambert Boissiere III, D - New Orleans, echoed those comments, noting 46 other states and the city of New Orleans have already set up similar programs.

Studies show energy efficiency benefits all customers, he said.

"I'm as disappointed as anyone that we are not starting yet," Boissiere said. "There's no way we should be here."

Holloway, who represents central and southwest Louisiana, said he would remain opposed to any energy efficiency effort that spreads out charges to all customers, even those who don't want to make upgrades.

"I'm not opposed to energy efficiency," Holloway said. "I'm opposed to me paying for your energy efficiency."

The energy efficiency program was approved in December 2012, but the commission reversed course in February 2013 following a shift in leadership on the board.

The commission voted in August 2013 to restore the plan, though it was changed to a voluntary program. Entergy Louisiana, Entergy Gulf States, Cleco and SWEPCO have since agreed to participate.

The program does not include customers in New Orleans, where Entergy New Orleans is regulated by the New Orleans City Council.

The utilities have spent the past year working with commission staff to design the program, which will offer residential and business customers incentives to make improvements that lower their energy use.

According to figures provided during Wednesday's meeting, the utilities expect the following costs and savings resulting from the proposed three-year energy efficiency program:

  • Cleco expects to spend $10.7 million with $11.2 million in savings to customers, or about $1.04 in savings for every dollar spent.

Commissioners Holloway and Eric Skrmetta have opposed the energy efficiency program on the grounds that it is too costly.

Speaking at Wednesday's meeting, Casey DeMoss, CEO of the Alliance for Affordable Energy in New Orleans, said the benefits of energy efficiency are clear. It's time to stop reviewing the program and move forward, she said

"This is a tried and true method of controlling rates for the ratepayer...You defer having to build another power plant and that is less expensive for everyone," DeMoss said.

Jacquelyn Dadakis, a manager with Green Coast Enterprises, a New Orleans firm that offers energy efficiency services, said the uncertainty of the statewide program is hurting her business and those like hers.

Green Coast and others have invested time and money in preparing for the Oct. 1 launch of the program, Dadakis said. Now it's not clear when it will start, she said.

"I have to question how long small business owners are going to continue to try to do this in our state when the regulation is unpredictable and inconsistent," Dadakis said.

Boissiere said he would press to ensure the program delay lasted no longer than 30 days.

Commissioner Scott Angelle, R - Breaux Bridge, who voted in favor of the program, asked the commission staff to provide a report on why the delay was necessary and how future delays can be avoided.