QUARTER 3 HIGHLIGHTS: JULY – SEPTEMBER 2020 We use color-coded tags on individual highlights to help you find the news important to you. The tags include:
Energy Efficiency and COVID-19 SEEA is monitoring the regional response to COVID-19 as it develops and is maintaining a resource page with key policy information and links to resources from relevant organizations. You can view upcoming and previous COVID-19related webinars on our website. Additional News and Resources July 1 – How utilities can support diverse business entities impacted by the COVID-19 crisis, Utility Dive July 7 – Regulators reject utility moves to recover revenue lost to COVID-19 as analysts, advocates see trend continuing, Utility Dive July 10 – Clean energy unemployment claims in COVID-19 aftermath, E2 July 10 – Duke, AEP, FirstEnergy tell FERC future COVID-19 uncertainty presents significant risk, Utility Dive July 21 – COVID-19 puts spotlight on equity considerations in utility clean energy, efficiency, and relief efforts, Utility Dive
July 28 – Tidal wave of power shut-offs looms as nation grapples with heat, NPR July 31 – Southerners who can’t afford bills could have power disconnected in the heat of summer, Southerly Magazine August 13 – NRECA supports bill to keep families connected to broadband amid pandemic, National Rural Electric Cooperative Association August 25 – Utility shut-offs, summer heat, and COVID-19: A Dangerous trifecta in the Southeast, Southern Alliance for Clean Energy September 1 – Out of time: Regulators must prevent utility shutoffs, National Resource Defense Council September 14 – Pandemic, unpaid bills test utilities’ social justice vows, E&E News September 24 – Households of color more likely to have utilities disconnected, not likely to receive stimulus checks, Indiana University at Bloomington
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Energy Efficiency Policy State and Local Updates
replace La Rosa as congressional representative for District 42.
Alabama
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
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
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.
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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).
Regional Transmission Organization: See Regional Highlights, page 6 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
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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 Regional Transmission Organization: See Regional Highlights, page 6 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. PUR2020-00120 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
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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.
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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.
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.
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. Car Emissions Rules: See Federal Energy Efficient Transportation Updates on page 9 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
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Built Environment State, Local, and Utility Policy Updates
buyers to select more efficient homes with low energy costs.
Florida Storm Plans: On August 10, the Florida Public Service Commission approved storm protection plans, including settlement agreements, for Florida Power & Light, Gulf Power, and Duke Energy Florida; the commission also approved Tampa Electric Company’s revised tariff. Legislation passed in 2019 mandated the creation of the storm plans, which allow utilities to recover costs of grid hardening and resilience measures such as undergrounded powerlines. Docket No. 20200092-EI
Energy Burden Research: A September report from ACEEE finds that low-income communities of color are facing significant energy burdens as the country enters an economic recession. Birmingham, Alabama tops the list of energyburdened cities.
Louisiana Energy Infrastructure: Following Hurricane Laura, U.S. Department of Energy Secretary, Dan Brouillette announced his support for federal disaster relief funds to be designated to improving the resilience of energy infrastructure in the state. North Carolina Green Standards: On September 15, Buncombe County’s Board of Commissioners voted unanimously to require that all new county buildings over 10,000 square feet meet LEED Gold Standards. Tennessee School Efficiency: In August, the Hawkins County Board of Education voted to approve a plan to implement almost $14 million of energy efficiency measures to reduce the system’s costs by about 20%. Tennessee Disaster Recovery: In early September, the Federal Emergency Management Agency (FEMA) approved a grant of nearly $1.2 million for the state to assist the city of Mount Juliet with costs related to damage and debris from March tornadoes. Built Environment Regional, National, and Federal Policy Updates
Resilience Funding: On August 4, FEMA announced notices of $660 million in funding towards the Building Resilient Infrastructure and Communities grant program and the Flood Mitigation Assistance grant program. The funds are intended to support states, localities, tribes, and territories; applications will be collected from September 30, 2020 to January 29, 2021. National Energy Codes Conference: The Department of Energy is hosting the annual National Energy Codes Conference, originally scheduled for May, as a seminar series that began October first and will run through December. Model Building Code: The 2021 International Energy Conservation Code is pending a final round of updates. Low-Income Community Environments: A recent report commissioned by the Center for American Progress found that minority and low-income communities are more likely to be located in nature-deprived areas, which can affect individuals’ physical and emotional health. Building Codes to Support EVs: In July, the Southwest Energy Efficiency Project (SWEEP) released an upgraded toolkit on adopting building codes to support electric vehicle (EV) infrastructure.
Energy Efficiency and Home Buying: On August 6, a study released by the American Council for an Energy-Efficient Economy (ACEEE) demonstrating how home energy efficiency scores would lead
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Energy Efficient Transportation State, Local, and Utility Policy Updates Charging Corridors: In the third quarter, numerous charging stations were planned and constructed across the Southeast. Some highlights include plans to install electric vehicle (EV) charging stations at locations in Dothan, Alabama by the Alabama Municipal Electric Authority. Additionally, two chargers were installed in Milledgeville, Georgia to help connect the middle of the state. Halifax EMC in North Carolina also made plans to install a fast charging station off Interstate 95. These stations fill a critical gap in Southeast charging infrastructure and builds regional interconnectivity. Florida Power & Light (FPL) Pilots: On June 19, FPL proposed pilot programs for EV tariffs. A decision on the programs is expected this November; the public comment period closed on October 6. Docket No. 20200170 Tampa Electric Co. (TECO) Pilot: On September 25, TECO filed a four-year pilot proposal with Florida commissioners to install two hundred EV charging stations at a variety of locations. Docket No. 20200220 VMT Funds Charging Infrastructure: In July, Florida Governor Ron DeSantis (R) announced plans to improve the state’s EV charging capabilities; Florida may spend up to $25 million of the Volkswagen Mitigation Trust (VMT) funds on charging stations. In August, North Carolina allocated $700,000 from the state’s VMT funds towards the installation of EV charging stations in the territories of multiple electric cooperatives across the state. Duke Energy Pilots: Duke Energy Carolinas and Duke Energy Progress reached an agreement with the South Carolina Public Service Commission and parties to the proceeding to advance the EV pilot programs. In September, the companies filed stipulations with ChargePoint and the Office of Regulatory Staff, agreeing that the programs
should be approved as amended in April. The agreements also stipulate that the company will conduct an ongoing stakeholder process and will file a final report within 180 days of the end of the pilot. The parties found that a hearing is not necessary to resolve the proceeding given the high level of stakeholder engagement throughout the course of the proceedings. Docket Nos. 2018321-E and 2018-322-E Plug In South Carolina: On September 21, the South Carolina Energy Office launched the Plug In SC Incentive Program to support the adoption of standardized EV charging station signage. Electric Buses: Virginia celebrated the launch of its first electric buses in September. Charging Stations: This summer, Giant Food grocery chain began installing EV charging stations offering free charging to customers at several stores in some states, including Virginia. Dominion Energy Virginia: Dominion announced new charging rebates on September 29. Rebates for charging stations at multifamily communities, workplaces, and bus depots are now available. Residential EV charging rebates will become available in 2021.
Energy Efficiency Transportation Regional and National Updates Car Emissions Rules: In April, the U.S. Department of Transportation (DOT) and the Environmental Protection Agency (EPA) finalized the Safer Affordable Fuel Efficient (SAFE) Vehicles Rule for Model Year 2021-2026 and the One National Program on Federal Preemption of State Fuel Economy Standards, originally proposed by in 2018. The rules require a 1.5% annual increase in the fuel economy of passenger vehicles and light trucks, a reduction from the 5% increase mandated by the Obama administration. They also revoke California’s authority to set its own emissions standards. Members of the House
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Appropriations Committee asked the Trump administration in July to reassess the analysis underpinning the standards rollback. On August 17, the California Air Resources Board finalized deals with Ford, Honda, Volkswagen, BMW of North America, and Volvo to improve the fuel efficiency of their cars and light-duty trucks by 3.7% annually. The administration again defended its authority to preempt state standards in September. On September 23, California Governor Gavin Newsom (D) signed an executive order banning the sales of new gas-fueled cars in the state after 2035, a move that could impact the car market nationwide. Legislation S. 2193, the Charging Helps Agencies Realize General Efficiencies (CHARGE) Act, would clarify federal agency guidance on owning and parking EVs. EV Batteries: SEEA released a report that explains the fundamentals of EV batteries and presents trends and opportunities. EV Markets: On September 21, Cox Automotive Mobility Group published a whitepaper on the roadblocks to and opportunities for advancing the national EV market. EVs and Health: A new report from the American Lung Association finds that a nationwide transition to EVs could help avoid more than $72 billion in public health costs due to reductions in emissions and air pollution. Emissions Targets: A study published by engineers at the University of Toronto on September 28 concludes that 90% of light-duty cars in the U.S. would need to be electric by 2050 in order to keep the transportation sector in line with mitigation targets set by the Paris Climate Accord. ChargePoint Funding: In its latest round of fundraising, ChargePoint raised $127 million to expand its network to 2.5 million charging spots worldwide by 2025. To date, the company has
raised $667 million and manages over 115,000 charging spots around the world. EVgo Charging Stations: On July 31, General Motors and EVgo announced a joint effort to install 2,700 public fast charging stations in forty metropolitan areas across the country over the next five years. The earliest operational stations will be available to customers in 2021. Duke Fleet: On September 8, Duke Energy pledged to electrify 100% of its light-duty fleet by 2030; it also aims to upgrade 50% of its combined fleet of medium- and heavy-duty and off-road vehicles to EVs, plug-in hybrids, or other carbonneutral alternatives. Southern Company Fleet: On September 28, Southern Company announced plans to electrify 50% of its fleet across car, SUV, van, forklift, ATV, and other miscellaneous segments by 2030. Uber Fleet: Uber announced its goal to reach net-zero emissions by 2040 on September 8. The effort commits $800 million to helping drivers transition to EVs by 2025. This announcement follows Lyft’s all-electric pledge in June. Electric Delivery Vehicles: On September 17, Amazon.com announced it will purchase 100,000 electric delivery vans from Rivian. Electric Truck Collaborative: In July, governors from fifteen states, including North Carolina and Virginia, committed to reaching 100% of medium- and heavy-duty vehicles sold in their jurisdictions will be zero-emission vehicles by 2050. EV Infrastructure Toolkit: In July, the Southwest Energy Efficiency Project (SWEEP) released an upgraded toolkit on adopting building codes to support EV infrastructure. Emissions Settlement: On September 14, the U.S. Department of Justice and EPA announced a settlement with Mercedes-Benz over its failure
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to meet air quality emissions standards. Daimler AG will pay $875 million, the second largest civil penalty under the Clean Air Act, to resolve the litigation, which is part of a larger $1.5 billion settlement.
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