Utilities seek short delay in filing energy-efficiency programs

The staff of the Arkansas Public Service Commission has signed off on a request by several utility companies to extend a deadline requiring reports about their respective plans for comprehensive energy efficiency programs.

In 2007, the PSC issued an order to all utilities based or operating in Arkansas to implement two categories of energy efficiency programs. The “quick start” programs have been developed and implemented by the utilities. Those programs include educating utility customers through “bill stuffers” and other communication outreach efforts, and helping low- to moderate-income homeowners weatherize their homes.

The second phase of the PSC order involves “much more comprehensive type of programs that would hit every customer of class of every utility,” said Mike Callan, president of Fort Smith-based Arkansas Oklahoma Gas Corp.

Initially, utilities were to report their comprehensive program plans by April 1. But AOG, Arkansas Western Gas Co., CenterPoint Energy Resources Corp., Empire District Electric Co., and Oklahoma Gas & Electric filed to extend the deadline to July 1.

Although the PSC staff has approved the extension in a Wednesday (Mar. 11) filing, the three Public Service Commissioners have not ruled.

The joint motion by the utilities noted that “significant events have transpired” since the PSC order was made. Those events are changes to PSC rules, pending legislation in Arkansas’ 87th General Assembly that could alter the state’s approach to energy efficiency and, most importantly according to Callan, the federal stimulus bill.

“It’s the position of AOG that we would rather take advantage of any money coming to the state from the stimulus package first, before I put any more on AOG’s Arkansas ratepayers,” Callan said.

AOG provides natural gas to about 62,000 in western Arkansas and eastern Oklahoma.

Also, the different messages about energy efficiency sent from state and federal officials make it difficult for the utilities to craft a plan.

“Frankly, we’re all wondering and asking ourselves, ‘What do we need to do so we don’t waste money on this?’” Callan explained.

With respect to efforts under the “quick start” programs, Callan said the Crawford-Sebastian Community Action Agency is using funds generated from portions of customer bills to weatherize “qualifying structures.” He said the agency is one of the best in the state, but is finding it difficult to find enough qualified contractors to weatherize homes.

Programs that might fall under the comprehensive plan include rebates for customers who buy energy-efficient appliances or gas furnaces, or enticements to builders to construct more energy-efficient homes, Callan explained.

Callan said July 1 should be enough time to know what will come out of the Arkansas Legislature, and is confident the PSC will be “flexible to adjust” if it is learned after July 1 that federal stimulus money provides new options for energy-efficiency programs.