Eversource Granted High Profit Margins, Automatic Annual Rate Increases, and Detrimental Charges for New Solar Customers
57 Consumer, Clean Energy, and Community Organizations Call on State Leaders to Address Counterproductive Decisions
BOSTON — Today, Acadia Center, Health Care Without Harm, MASSPIRG, Vote Solar, and 53 other organizations released a joint statement pointing to serious concerns over decisions by the Massachusetts Department of Public Utilities (DPU) in Eversource’s recent electricity rate case. These decisions are inconsistent with the consumer-friendly clean energy future that Massachusetts is striving for. The 57 organizations bringing forward these concerns come from many different perspectives, including low-income and ratepayer advocates, environmental, health and clean energy public interest organizations, solar advocates, and clean energy businesses.
“Massachusetts is embracing many innovations on clean energy, including energy efficiency and offshore wind, that will boost the Commonwealth’s economy, benefit consumers, improve public health and reduce greenhouse gas emissions,” noted Daniel Sosland, President of Acadia Center. “Unfortunately, in four important ways, the DPU’s decisions in Eversource’s rate case represent a significant step away from embracing a clean energy future. Instead, these DPU decisions provide incentives for the company to invest in outdated and expensive energy infrastructure, reduce customer control, and impose significant unnecessary costs on consumers.”
Two of these decisions, unnecessarily high profit margins (known as the return on equity) and automatic annual revenue increases going forward, could collectively cost ratepayers an extra $460 million over five years. The other two decisions, unprecedented new demand charges on new residential solar customers and the elimination of optional residential on-peak/off-peak rates, would move away from electricity rates that are efficient and consumer-friendly.
“Hospitals typically have very small margins, so every unnecessary penny per kWh for Eversource means a lot less money for healing patients,” said Paul Lipke, Senior Advisor for Energy and Buildings at Health Care Without Harm. “Unless addressed, Eversource’s rate changes also increase pollution and shift costs from energy to health care. This conflicts directly with efforts to constrain the Commonwealth’s health costs, and at a time when households already spend six times on health care what they spend on energy. We can and must do better.”
“The Commission has decided to effectively raise costs, remove value and reduce customers’ understanding of and control over bills by approving Eversource’s new solar demand charge,” said Nathan Phelps, Regulatory Director for Vote Solar. “This decision is out of step with Massachusetts laws to encourage the state’s transition to a clean and reliable electricity system, and out of step with the DPU’s own prior leadership ensuring that solar customers are treated fairly for the local power they generate. We urge the Legislature and the Governor to reject this decision and reinstate Eversource customers’ right to lower their own utility bills with rooftop solar, protect the thousands of solar jobs serving our state, and deliver on the Commonwealth’s commitment to building a clean energy economy.”
“For many of us, our electricity bills are a significant monthly expense, and we rely on regulators to make sure utility companies like Eversource don’t overcharge ratepayers or adopt pricing practices that are deceptive or unfair,” said Deirdre Cummings, MASSPIRG’s Consumer Program Director. “In this case, the DPU has approved Eversource’s new pricing schemes that will result in hundreds of millions in excessive charges; while at the same time, Eversource has made it harder for consumers to monitor their electricity use and reduce their bills.”
“Residential on-peak/off-peak rates should be used as a key tool to manage peak demand. Historically, these have been underutilized because the utilities do not publicize them and make them difficult to sign up for,” said Mark LeBel, Staff Attorney for Acadia Center. “Instead of optimizing these rates and making them easier to access, the DPU let Eversource eliminate them.”
The decision on the return on equity is currently being appealed to the Massachusetts Supreme Judicial Court by Attorney General Maura Healey, and the decision on demand charges for new residential solar customers is being appealed by Vote Solar and other parties. The decision on demand charges is the subject of a bill recommended favorably by the Joint Committee on Telecommunications, Utilities, and Energy at the Massachusetts legislature, and a requirement for optional on-peak/off-peak rates is included in several different bills. The DPU recently denied the Attorney General’s motion for reconsideration on the automatic annual revenue increases.
Media Contacts:
Mark LeBel, Staff Attorney
mlebel@acadiacenter.org, 617-742-0054 x104
Janice Gan, Public Engagement and Communications Associate
jgan@acadiacenter.org, 617-742-0054 x106
Offshore Wind Could Be A Boon To New London’s Port
Emily Lewis with the environmental advocacy group Acadia Center, said it’s good the state is trying to get power from offshore wind. But she and Bates both said Connecticut needs to act fast. That’s because Massachusetts, New York, and New Jersey all have more aggressive offshore wind goals.
“If Connecticut comes in strong with a big commitment to offshore wind, they’re more likely to get those economic development benefits,” Lewis said. “Whereas, if they don’t, the other states will get it and then Connecticut will just be using those ports for their own construction.”
Read or listen to the full report from WSHU here.
Driving in Wrong Direction? Reaction to Rollback of Clean-Car Standards
The standards, finalized in January 2017, require new cars to average 50 miles per gallon by 2025. Bowing to pressure from manufacturers, the Trump administration now says it will start a new rule-making process to set “more appropriate” standards. But according to Mark LeBel, a staff attorney at the Acadia Center, rolling the standards back is far from a “done deal.”
“This is just the first step in a longer process,” he said, “and the Trump EPA is going to be resisted by some very good lawyers from the states and other organizations, every step along the way.”
Read the full article from Public News Service here.
EPA Relaxes Tough Fuel-Economy Standards for Cars, Light Trucks
“Clean car standards protect all Americans from unnecessarily high fuel costs and from pollution that is dangerous to public health,’’ said Daniel Sosland, president of the Acadia Center, an advocacy group for a clean-energy future. “Rolling back these standards will damage the country’s economy and its competitive position, contrary to erroneous assertions by EPA.’’
Read the full article from NJ Spotlight here.
Eversource Energy proposing wind farm off Connecticut coast
Company officials say the other benefits of the project include reducing winter power costs by $80 million annually and generating $16.1 million in state, local and federal taxes.
Emily Lewis, a policy analyst with the Acadia Center, said wind power needs to be an important part of Connecticut’s energy future. The Acadia Center is a regional environmental group with offices in Hartford.
“We’re expecting there will be other offshore wind bids being made, including one from Deepwater Wind,” Lewis said, referring to the company that launched the nation’s first commercial offshore wind farm off Block Island at the start of 2017. “Massachusetts and New York already have mandates for wind power (as part of their overall energy mix) and if Connecticut doesn’t get involved, all of the other wind power capacity being developed will go to other states.”
Read the full article from the New Haven Register here.
Reversal of Federal Clean Car Standards Will Harm Consumers and Climate
BOSTON — Today, U.S. Environmental Protection Agency (EPA) Administrator Scott Pruitt announced that the agency will attempt to roll back federal clean car standards, reversing a decision in January 2017 that reinforced those standards. The clean car standards require automakers to limit the amount of pollution emitted by the vehicles they produce. In response, Acadia Center has released the following statement:
“Clean car standards protect all Americans from unnecessarily high fuel costs and from pollution that is dangerous to their health. Rolling back these standards will damage the country’s economy and its competitive position, contrary to erroneous assertions by EPA. EPA’s decision will cost consumers a net savings of about $1,600 over the lifetime of a car, increase pollution that causes and exacerbates asthma, and unnecessarily pour more emissions that cause climate change back into the atmosphere,” said Daniel Sosland, Acadia Center’s president.
“In undermining fuel efficiency standards, EPA leadership has defied its own experts, who have evaluated them extensively and confirmed their effectiveness. Once again, EPA rejects sound science and frustrates the growth of technology improvements for vehicles, which are already available and which consumers deserve.”
The Obama Administration approved the latest clean car standards in 2012, with the support of automakers. In January 2017, the EPA concluded that these standards are working, achievable, and should not be rolled back.
“In the absence of federal leadership, it’s essential that the nation’s coalition of clean car states exercise their right to safeguard the health of their residents and the planet,” said Emily Lewis, policy analyst and coordinator of Acadia Center’s Electrification of Transportation and Heating Initiative.
The clean car states include nearly all states in New England as well as New York, and together they represent 113 million Americans and more than one-third of the auto market.
“The clean car states will not be immediately affected by EPA’s decision, but millions of Americans in neighboring states will pay more at the pump while suffering the consequences of increased pollution — pollution which cannot be limited by state lines and affects us all,” said Lewis.
“The Northeast can redouble its commitment to reducing pollution from the transportation sector by embracing a new cap-and-invest program,” said Jordan Stutt, policy analyst. “Seven Northeast states and Washington, D.C., are now holding listening sessions to explore opportunities for regional collaboration to modernize and decarbonize the transportation sector. A multi-state cap-and-invest program can reduce transportation pollution and raise money to support cleaner and more modern ways of moving people and goods, including through low- and zero-emissions vehicles. The necessity and urgency of this step is further emphasized by the EPA’s abandonment of national policies to support a low-emissions system.”
Media Contacts:
Emily Lewis, Policy Analyst & Coordinator, Electrification of Transportation and Heating Initiative
elewis@acadiacenter.org, 860-2467121 x207
Krysia Wazny, Communications Director
kwazny@acadiacenter.org, 617-742-0054 x107
Rhode Island Listening Sessions for Clean Transportation Are “Positive Step” in Commitment to Regional Policy
Acadia Center, Ceres, NRDC, Sierra Club, and Union of Concerned Scientists See Leadership Opportunity at First Listening Session after Bonn Pledge to Develop Clean Transportation
PROVIDENCE, RI (Media Advisory) — Leading environmental, scientific and business organizations working to advance modern, clean and low-carbon transportation are hopeful that upcoming listening sessions will lead to the development of much-needed transportation policy. Rhode Island and other states across the region (Connecticut, Delaware, Maryland, Massachusetts, New York, Vermont and the District of Columbia) are initiating a series of public listening sessions on transportation and climate issues, seeking public input on the solutions that can implemented to improve and modernize the transportation system. Two listening sessions in Rhode Island will kick things off on April 3rd and 4th, 2018, in Newport and Providence, respectively. For details, go to: http://climatechange.ri.gov/state-actions/listening-sessions.php.
In November, the seven states and Washington, D.C., pledged to explore regional policies to reduce carbon pollution from the transportation sector. The Rhode Island listening sessions for clean transportation will provide a launching pad for discussion of current challenges as well as an opportunity to propose policies that will reduce air pollution generated by cars and trucks while building an equitable transportation network that better serves all of Rhode Island’s residents.
At the listening sessions, policymakers, business leaders and others will discuss solutions to the challenges that lay ahead, including: new infrastructure for electric vehicles; better public transportation, including zero-emission bus service; and programs to ensure low-income and underserved communities have access to transportation options that are affordable, convenient, and non-polluting.
Similar listening sessions were held in Massachusetts last fall, and additional state and regional sessions will follow.
ABOUT THE GROUPS
Leading environmental, scientific and business organizations, including Acadia Center, Ceres, Natural Resources Defense Council, Sierra Club and Union of Concerned Scientists are working together to advance modern, efficient, and clean low-carbon transportation solutions in the Northeast and Mid-Atlantic. The groups are focused on improving our transportation system — the ways we move people and goods in the region — to spur economic growth, make us healthier and safer, clean up the environment, and improve our quality of life. An improved transportation system means more clean cars and trucks, more reliable mass transit, more walkable and bikeable communities, and investments that connect everyone, including those in underserved and rural areas.
MEDIA CONTACT:
Pat Mitchell, (703) 276-3266 or pmitchell@hastingsgroup.com
Carbon Tax Bill Moves Slowly Despite Need for Urgency
The renewable-energy advocacy group Acadia Center noted that the fee on power-plant emissions under the RGGI program has been the single-biggest tool for reducing Rhode Island’s carbon emissions. RGGI states also have had stronger economic growth than non-RGGI states.
The bill is supported by the Audubon Society of Rhode Island, Citizens Climate Lobby, Sierra Club Rhode Island Chapter, Environment Council of Rhode Island, People’s Power & Light and Save The Bay. Washington, D.C., conservative think tank R Street Institute supports a carbon tax but wants all of the tax revenue returned to the public and not used for renewable-energy projects.
Read the full article from ecoRI here.
Virginia Forges Ahead on Climate, Clean Energy
The states participating in RGGI have all seen incredible public health and economic gains since the program took effect. A recent report from Abt Associates concluded the reductions in air pollution achieved under RGGI have generated an estimated $5.7 billion in public health benefits.
At the same time, Acadia Center estimates electricity prices in RGGI states fell by 6.4 percent while prices rose by a similar margin elsewhere. Overall, energy efficiency programs supported by revenue raised under RGGI in just its first six years were estimated to yield $1.56 billion in energy bill savings.
On top of this, the RGGI states’ economies outpaced the rest of the nation. By 2016, emissions had dropped by 33 percent, while the RGGI states’ economy grew by 29.7 percent.
Read the full article from Alt Daily here.