State gov’ts energy-reduction efforts need more money
The Acadia Center, an environmental nonprofit with an office in Hartford, recently released a report criticizing Lead by Example’s lack of progress.
“It doesn’t appear that the program is on track,” said William Dornbos, senior attorney and director of Acadia’s Connecticut office. “It’s hard to see, based on this information, how the program is going to get there.”
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Acadia’s report also criticized DEEP for not releasing mandated annual reports on the program’s progress, which it said makes it difficult for the public to track results. DEEP published annual reports online earlier this month covering 2014 and 2015, following the publication of Acadia’s report.
Read the full article from the Hartford Business Journal here.
Environmental, consumer groups call on Connecticut regulators to cut UI rate
The groups making the request include such environmental groups as the Acadia Center and the Sierra Club, as well as consumer groups including AARP Connecticut and the U.S. Public Interest Research Group.
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Bill Dornbos, Connecticut director and senior attorney at Acadia Center, said reducing UI’s current fixed charge for residential customers “would not only give immediate relief to Connecticut homeowners who are struggling with high energy costs, but it would also better align our electricity pricing with our energy efficiency and clean energy policies and help grow clean energy industries that can boost Connecticut’s economy.”
Fixed-rate charges became a hot topic among Connecticut lawmakers in 2014 when Connecticut Light & Power, now known as Eversource Energy, sought to raise its monthly rate. PURA ultimately allowed an increase in the fixed charge for Eversource’s residential customers to $19.25 per month, currently the highest residential fixed charge for any investor-owned electric utility in New England.
State lawmakers responded by passing a new consumer protection law, enacted in 2015, that requires PURA to apply a new standard to fixed charges. Dornbos said passage of the law “made it clear that they (lawmakers) wanted to see fixed charges capped and reduced.”
“They clearly did not want the status quo to continue,” he said.
Connecticut’s Office of Consumer Counsel has offered expert testimony concluding that UI’s residential fixed charge should be reduced to between $6 and $8 per month to comply with the new law’s requirements, Dornbos said,
“I think the public is going to be very disappointed if that is not the outcome,” he said.
Read the full article from the New Haven Register here.
Mass. Regulators Reject DER Surcharge in Rate Case
Several intervenors contended that the proposal ran contrary to Massachusetts’ efforts to have its rate design more accurately reflect market conditions.
“Reforms to electricity rate design must strike a careful balance between economic efficiency, equity for all customers, protection of low-income ratepayers and access to community distributed generation,” Mark LeBel, staff attorney at Acadia Center, said in a statement.
Read the full article from RTO Insider here.
Video: Energy policy a top issue in campaign
“Obviously, we still have a ways to go,” said Jordan Stutt, policy analyst for the Acadia Center. “We’re still pretty dependent on some fossil fuels, but as we continue to invest in new energy technologies — as those costs come down, as we build out the infrastructure for distributed energy generation — I think we will be able to achieve that goal.”
Watch the news report and read the full article from WMUR here.
In a rapidly changing world, what do we mean by RGGI leadership?
Never before has the urgency of climate action been so apparent, demonstrated by record high temperatures and unprecedented drought. Yet, as the impacts of climate change become more painfully obvious, jurisdictions from small towns to the world’s largest countries are working towards solutions. Since the Regional Greenhouse Gas Initiative (RGGI) began in the Northeast, the Governors of the participating states have led by embracing, implementing, and improving a first-in-the-nation carbon reduction program. It is now up to a new group of Governors to determine whether RGGI remains a model for ambitious action on climate.
What does RGGI leadership mean?
Looking out for our climate, our health, our economy
Thanks to RGGI’s track record, the participating states can lead on climate without setting back their economies. As detailed in our recent report, since RGGI began CO2 emissions have fallen sharply (faster than the rest of the country), electricity prices have decreased (while the rest of the country has seen an increase), and the economy has grown (outpacing the rest of the country).
Change in Economic Growth, Emissions and Electricity Prices, 2008 to 2015
By setting ambitious cap levels for the future, the RGGI states can continue to achieve the best outcomes for our climate, our health, and our economy. Specifically, the RGGI states should establish post-2020 cap levels designed to meet existing climate targets, which cluster around 40% reductions by 2030. Analysis from Synapse Energy Economics has shown that implementing a RGGI cap with a 5% annual decline from 2020 through 2030 would be the lowest-cost pathway to achieving climate requirements. According to that study, such a cap would also yield over $25 billion in total savings for the region while creating 58,000 new jobs each year in the participating states.
A forward-going 5% annual reduction would be more gradual than what the RGGI states have achieved to date, but it would still put us on a path to achieving our science-based goals. And as we cope with the fact that global CO2 concentrations have now eclipsed 400 parts per million, it’s become more important than ever that our leaders address scientific imperatives on climate change with comparably ambitious policy.
The forefront of climate policy
When a bi-partisan group of Governors of the RGGI states first came together to place a limit on CO2 emissions, they staked their claim as national leaders on climate. In the absence of federal climate policy, they were the first states to act on reducing CO2 emissions from the power sector. When they decided to auction allowances rather than give them away for free—as was common practice under previous emissions trading programs—they directed billions of dollars to consumers instead of polluters. This decision is largely responsible for RGGI’s success as a program that reduces harmful emissions and serves as an engine of local and regional economic growth.
While the leadership role of the RGGI states to-date is indisputable, the bar for climate leadership has been raised. Since the RGGI program began, the region, the country, and the world have taken great strides to address carbon emissions. In recent months the U.S. and China, the planet’s largest emitters of CO2, have ratified the Paris Climate Agreement. In the last week, India and the European Union have followed suit, bringing the tally of signatories beyond the threshold of 55 countries and 55% of global GHG emissions necessary to make the agreement binding. Also this week, Canada—America’s largest trading partner—announced nationwide carbon pricing. Provinces can implement their own cap-and-trade programs (as Quebec, Ontario, and Manitoba have done), their own carbon tax (like British Columbia), or they can accept the federal carbon tax, beginning at $10/ton in 2018 and rising to $50/ton by 2022.
The RGGI states are no longer going it alone on climate, but they can still be leaders. Committing to a strong future for the program will provide a valuable guidepost as the rest of the country prepares to comply with the Clean Power Plan, and as the rest of the world considers how to reduce emissions without sacrificing growth. Momentum is building, support is growing, and the market is transforming – will the RGGI states continue to lead the way?
Massachusetts’ New Rate Case Ruling Is Good News for Distributed Energy
But pro-solar groups including the Acadia Center, Vote Solar and the Energy Freedom Coalition of America (EFCA) protested that National Grid had failed to provide data or evidence to back up this assertion. DPU’s ruling sided with these protests, finding that National Grid “has not quantified the amount of costs attributable specifically to DG customers and has not quantified the distribution system benefits associated with DG customers in its service territory.”
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But opponents like the nonprofit Acadia Center said that singling out those types of projects would “arbitrarily discourage key types of distributed generation, including community shared solar and projects that benefit affordable housing projects and low-income ratepayers.” In other words, it would hinder customers who can’t put solar on their own rooftops.
Beyond that, the fees are “not based on an analysis of the costs and benefits of distributed generation to the electric system or even based on estimated costs to the distribution system,” the group wrote. Distributed energy backers have noted that these projects can actually help reduce system costs, by providing more energy closer to the point of consumption and reducing load on the grid.
Read the full article from Greentech Media here.
On Energy Efficiency Day, Acadia Center Celebrates New England’s Success
BOSTON – On this day, the first nationwide Energy Efficiency Day, Acadia Center commends New England its recent recognition for a long history of accomplishments in energy efficiency. New England states are among the most highly ranked in the American Council for an Energy-Efficient Economy’s (ACEEE) 2016 State Energy Efficiency Scorecard released last week, and recent action at the policy level promises to increase the region’s contribution to national energy efficiency savings.
“New England has become a leader in energy efficiency by implementing strong policies that work for consumers and strengthen the economy while helping to meet climate goals,” said Jamie Howland, Director of the Energy Efficiency and Demand Side Initiative at Acadia Center. “Through energy efficiency, we can lower utility bills, improve public health, reduce pollution, and create jobs; Acadia Center is excited to see the states recognizing and embracing these opportunities.”
In the ACEEE rankings, Massachusetts took first place for the sixth year in a row, tying this year with California. Massachusetts has proven its continued commitment to energy efficiency under its Green Communities Act of 2008 by saving a large and growing percentage of energy every year through efficiency measures, and delivering over $14.8 billion in economic benefits and energy savings for ratepayers over the last six years.
Rhode Island took first place in the scorecard’s utility policy and programs category, ranking fourth overall. The state’s Least Cost Procurement law is primarily responsible for its continued leadership on energy efficiency. First implemented 9 years ago and extended for another 5 years last summer, the policy states that distribution companies cannot acquire new electric or natural gas supply until “all-cost effective” energy efficiency measures have been exhausted. As a result, since 2008, Rhode Island has invested over $558 million in energy efficiency and consumers have realized $2 billion in economic benefits.
Vermont also ranked highly on the scorecard at third, and Connecticut and New York tied for fifth. Maine tied for 11th, gaining further distinction as the “most improved” state.
Though New Hampshire ranked 21st on the ACEEE scorecard, the state has made a significant commitment to increase energy efficiency through recent policy action. In August, the state instituted its first energy efficiency targets, approving a settlement between the Public Utilities Commission and other stakeholders to create the Energy Efficiency Resource Standard (EERS). Until now, New Hampshire has been the only state in the region without statewide targets. With the EERS, it takes a historic step towards reducing energy costs for its citizens.
Acadia Center pioneered the energy efficiency stakeholder council model to assist with the development, implementation, and review of energy efficiency programs at the state level. Staff members currently hold appointed seats on energy efficiency advisory councils in Massachusetts, Connecticut, and Rhode Island. Acadia Center looks forward to continued work with businesses, utilities, regulators and others to make sure that programs meet their goals and reach all customers.
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Acadia Center is a non-profit, research and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon and consumer-friendly economies. Acadia Center provides accurate and reliable information, and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
My Turn: Concord needs to show a little Yankee ingenuity
The magazine goes on to state that by 2040 renewable energies will produce almost half of all electricity worldwide. Further, as pointed out by the Acadia Center, $400 million was saved through the cancellation of proposed transmission line work as a result of sustained investment in energy efficiency in Massachusetts and Connecticut.
Read the full article from the Concord Monitor here.
Report Finds DEEP’s “Lead by Example” Energy Efficiency Program for State Buildings Not on Track to Meet Mandatory Energy Savings Target
Hartford, CT — Today Acadia Center released a report showing that Connecticut’s “Lead by Example” (LBE) energy efficiency program does not appear to be on track to reach its mandatory goal of a 20% reduction in energy use in state buildings by 2018. The General Assembly established the LBE program in 2011 to reduce costly energy waste in state buildings, lower the state’s significant operating expense for energy use, and make the state a model for energy efficiency and sustainability. The report finds that mandatory annual reporting for the LBE plan originally filed in 2012 has not been submitted by the Department of Energy and Environmental Protection (DEEP), as required by law. This apparent failure to report severely hampers any attempt to review and evaluate the effectiveness of the LBE program’s performance.
“As we approach the release of the state’s next Comprehensive Energy Strategy, we thought it would be important to review the state’s progress in key clean energy areas and see if our findings could help inform and improve the next strategy document,” said Bill Dornbos, Connecticut Director and Senior Attorney for Acadia Center. “Not only did we find that DEEP’s “Lead by Example” program for energy efficiency in state buildings has not progressed as intended, but we also discovered that there has been no public reporting about this crucial program for the last four years, even though Connecticut law requires it. After searching the records maintained by the General Assembly and the State Library, we turned up no reporting on the LBE program beyond the initial plan filed in mid-2012.”
“We are releasing our report today because we want this LBE program to be a success,” Dornbos continued. “We need the multi-million-dollar cost savings for our budget-constrained state agencies and the taxpayers that ultimately pay for them, we need the major reductions in energy use to help with the state’s challenge of bringing down greenhouse gas emissions as quickly as possible, and we need the state to show that it can deliver on an important energy program when it matters. We urge the General Assembly to revisit the “Lead by Example” program and conduct a thorough, independent review to determine how it can be put back on track.”
State buildings present an enormous opportunity to reduce wasteful energy use, lower energy costs for state agencies, and help trim the state’s budget deficits. One estimate for total annual energy consumption in state buildings placed it at 4.1 trillion BTUs — roughly the total annual energy use of residential housing in Hartford and Waterbury combined. The total energy cost is also significant, estimated to be as high as $200 million annually, making it one of the state’s largest operating expenses.
The magnitude of the efficiency opportunity in Connecticut’s state buildings is unclear — an assessment of the potential for energy savings in state buildings has not been performed — but it would likely be cost-effective to reduce energy use in this sector by at least 20 to 30% overall. Energy savings of that size could result in approximately $40 to 60 million in annual savings on energy costs for state agencies. Current LBE program performance does not appear to be reaching these levels.
Acadia Center’s report on the status of LBE implementation in state buildings in Connecticut is available here.
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Acadia Center is a non-profit, research, and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon, and consumer-friendly economies. Acadia Center provides accurate and reliable information and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.
Massachusetts DPU Protects Clean Energy and Consumer Control in Electricity Rate Case Ruling
BOSTON — Friday afternoon, the Massachusetts Department of Public Utilities (DPU) issued a decision in the National Grid electricity rate case, D.P.U. 15-155. In the decision, the DPU denied a number of utility proposals that would have reduced customer control of energy bills, discouraged investment in energy efficiency, arbitrarily penalized clean local energy production, and restricted access to community distributed generation. Further information on these proposals may be found here.
Peter Shattuck, Acadia Center’s Massachusetts Director, said, “We are encouraged that the DPU rejected National Grid’s rate design proposals that would have unfairly impacted residential ratepayers and set back our clean energy future. The DPU agreed with Acadia Center’s case that tiered customer charges would not be efficient or understandable and that the proposed access fees were not based on sound analysis. This decision also granted a significant overall revenue increase to National Grid, which emphasizes that we should be finding new ways to lower costs and avoid expensive new infrastructure investments.”
Acadia Center intervened in this proceeding, participated in discovery, filed expert testimony, and submitted briefs on a number of key electricity rate design issues.
Dr. Abigail Anthony, Acadia Center’s Director of Grid Modernization and Utility Reform and expert witness in this proceeding, said, “As a party in this docket, Acadia Center consistently advanced a long-term vision for regulatory reforms that promotes clean energy while addressing legitimate consumer concerns.”
A number of other states in the region, including Connecticut, Rhode Island, New Hampshire, and New York, are engaging in efforts to proactively identify the new regulatory processes and analyses needed to support a consumer-friendly, clean energy future. Acadia Center urges the Massachusetts DPU to take further steps to do the same.
Mark LeBel, Staff Attorney at Acadia Center, said, “Reforms to electricity rate design must strike a careful balance between economic efficiency, equity for all customers, protection of low-income ratepayers, and access to community distributed generation. Acadia Center is actively working on all of these issues and looks forward to working with other stakeholders to bring together broadly acceptable solutions.”
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Acadia Center is a non-profit, research, and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon, and consumer-friendly economies. Acadia Center provides accurate and reliable information and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.