The MEEA Policy Insider summarizes the latest state policy activity and provides new resources to aid members in their outreach, education and advocacy initiatives.
In this issue:
- COVID-19 Update
- State Updates: IL / IN / IA / KS / MI / MN / MO / OH / WI
- Federal Update
- New Resources & Blog Posts
COVID-19
States are resuming activity with various degrees of social distancing while focusing efforts to address the economic impact of the pandemic. Legislative sessions are either adjourned or convening on a limited basis. The growing number of households struggling to pay energy bills is a major concern. Efficiency workforce and programs have been greatly impacted and utilities and agencies are determining how to resume their energy efficiency programs and in what capacity.
MEEA is tracking impacts, program adaptation and recovery from COVID-19 and sharing resources as the situation evolves. For consolidated information, see MEEA’s COVID-19 resources page. Members who are able to share information about utility program and energy service impacts or have any resource needs, please contact Policy Director Nick Dreher.
Executive
On June 19, Governor Pritzker’s office announced energy working groups will begin reconvening in late June and continue through the summer. The four working groups focus on power sector, transportation, equity and commercial/industrial/buildings-related energy efficiency issues. MEEA sits on the commercial/industrial/buildings EE working group. On July 21, the Governor’s office contacted the working group members to announce an indefinite suspension of the working group process.
Legislative
Illinois’ legislative session adjourned on May 31. The legislature may reconvene for fall veto session, from November 17-19 and December 1-3, where clean energy legislation may be considered.
Regulatory
On June 18, the Illinois Commerce Commission approved a stipulated agreement with large utilities that extends the moratorium on disconnections and late payment fees until August 1 (or until Illinois enters Phase 4 of the Governor’s Restore Illinois plan). The agreement outlines the process utilities must follow to provide customers with assistance on their bill prior to disconnection notices, increases access for bill assistance programs for those that express financial hardship and requires extensive data reporting by utilities that the Commission will use to assess COVID-19 impacts on communities.
The Illinois Energy Efficiency Stakeholder Advisory Group (SAG) will spend most of 2020 facilitating an EE portfolio planning process between utilities and stakeholders. The objective is for consensus to be reached prior to utilities filing plans for approval with the Illinois Commerce Commission on March 1, 2021. Interested parties are encouraged to participate.
Due to COVID-19, large group and working group meetings will be held via teleconference until further notice. Meeting information, COVID-19 updates and documents can be found on the SAG website.
How to Get Involved
For more information about Illinois or to get more involved, contact Nick Dreher.
Regulatory
The Indiana Utility Regulatory Commission (IURC) has consolidated several utility and consumer advocate cases into Cause 45380 to address relief regarding the impact on utility operations from the COVID-19 emergency.
The commission issued a Phase I Order in the above cause on June 29 that allowed regulatory accounting treatment for impacts from disconnections, reconnections and bill payment arrangements, but disallowed it for some other expenses like O&M and pension expenses. The commission strongly denied the utilities’ request to collect lost revenues due to decreased sales from the COVID quarantine.
Integrated resource planning is ongoing for Indiana utilities. The utility filing deadlines for the next IRPs are:
- NIPSCO: Nov 1, 2021
Utility stakeholder meetings will continue during the planning period. Updates from the commission on IRPs in Indiana will be posted to the IURC’s IRP page.
How to Get Involved
IRP meetings are all open to the public. Anyone interested is encouraged to attend. If you have any questions about Indiana or want to get more involved, contact Greg Ehrendreich.
Regulatory
Iowa Utilities Board Commissioner Nick Wagner will leave his post for a regulatory affairs position with Black Hills Energy.
According to the May 1 deadline, Alliant, MidAmerican, Black Hills Energy and Liberty Utilities filed their annual reports for energy efficiency programs in 2019.
How to Get Involved
For more information about Iowa or to get more involved, contact Samarth Medakkar.
Regulatory
On July 2, AECOM filed the second part of a Kansas electricity rate study directed by the Kansas Legislature via SSB 69 in Docket No. 20-GIME-068-GIE. The study covers 13 topics including cost recovery for infrastructure, electric vehicles, advanced energy solutions, energy markets, impact of rates on economic development and resource planning. Findings showed that high electricity rates have likely contributed to slower economic development relative to peer states. The report recommends that the state determine the desired outcomes of an IRP process to inform the KCC’s level of prescription in the process, scope and enforcement. It also identifies elements of an IRP that would yield a positive ROI for the planning process, including demand-side resources in screening. The Commission issued an order for new public version of the study with justifications for redacted language, expected within 30 days of July 28.
On June 12, Governor Kelly appointed Andrew French to the KCC. French assumes former commissioner Shari Albrecht’s seat. Before his appointment, French practiced law with Smithyman & Zakoura, representing industrial energy customers, local school districts and a natural gas utility company. French also previously held a staff position at the KCC.
How to Get Involved
For more information about Kansas or to get more involved, contact Samarth Medakkar.
Legislative
Michigan’s legislature continues to meet, with session dates scheduled in July and August. Both the Senate Energy and Technology Committee and the House Energy Committee have continued meeting. Much of the focus for the remainder of the legislative session is on balancing the state’s budget.
Regulatory
Governor Whitmer has appointed Commissioner Dan Scripps as the chair of the MPSC. The chair was previously held by Commissioner Sally Talberg, who is being considered for a seat on the ERCOT board of directors in Texas.
The MPSC continues to work on Case No. U-20757 which seeks to understand COVID-19’s impact on utilities, energy efficiency programs and utility customers. MPSC staff is tasked with writing a report that will combine utility survey responses and stakeholder input in the Energy Waste Reduction Collaborative and Low-Income EWR Work Group meetings. The report, which can be found here, was released on June 15. It provides an update on energy efficiency program continuity and outlines potential next steps for the MPSC, utilities and work groups to take to remain responsive to the challenges of COVID-19. On July 23, 2020, the Commission issued an order describing utility information, impact analysis and recommendations.
The Commission also asked for comments on implementation of shared savings and incentive mechanisms. Comments were due on June 16 and can be found here.
How to Get Involved
For more information about Michigan or to get more involved, contact Nick Dreher.
Legislative
The Minnesota legislature convened for a second special session on July 13, following the first special session that convened on June 12. The Energy Conservation and Optimization Act (ECO) was not heard in the first special session, as much of the legislature’s attention was on police reform and public safety. As of July, it remains to be seen if ECO will be voted on in this special session.
The Minnesota legislature closed its 2020 regularly scheduled session on May 17. Much attention this session was on the Clean Energy First Act (HF1405; SF1456) but the bill was laid on the table without a vote in either the House or the Senate.
ECO (HF4502; SF4409) passed the House on May 11, but was not voted on by the Senate prior to session adjournment. ECO would expand the Conservation Improvement Program to allow for beneficial electrification. The bill would also eliminate utility minimum spend requirements for energy conservation, double the electric IOUs’ minimum spend requirements for low-income customers and increase the energy savings goal for electric IOUs from 1.5% to 1.75% of annual retail sales.
Regulatory
The state’s investor-owned utilities submitted their Conservation Improvement Program triennial plans on July 1. These plans outline the utilities’ proposed energy efficiency portfolio for 2021-2023. The CIP plans provide program-level detail, outlining each energy efficiency program’s proposed budget, targeted customer class and estimated energy savings. Initial comments on these CIP plans are due August 12. The Public Utilities Commission is expected to rule on the plans in November.
The PUC has opened dockets (20-425, 20-427) at the request of the state’s investor-owned utilities to study potential avenues for cost-recovery of costs and debts incurred through COVID-19. The PUC also opened a docket (20-492) to ask utilities how they and their future infrastructure investments can contribute to the state’s economic recovery.
How to Get Involved
For more information about Minnesota or to get more involved, contact Maddie Wazowicz.
Regulatory
On July 23, the PSC set a procedural schedule for Spire Gas’ Accounting Authority Order (AAO) case, a request to track and defer financial impacts due to COVID-19 as a regulatory asset. Direct testimony is due August 5.
On July 10, parties in Ameren MO’s MEEIA Cycle 3 extension case filed a Unanimous Stipulation and Agreement. The agreement did not face any objections and was thus approved. Parties provided a joint response to the Commission’s questions pertaining to the agreement.
On July 1, The PSC set a procedural schedule for Evergy’s request for an AAO to account and receive recovery for costs related to COVID-19. Direct testimony was due July 8 while rebuttal testimony will be due by August 17.
On May 11, the PSC opened a working case (a non-contested case) to consider best practices for recovery of past-due customer payments after the COVID-19 pandemic emergency. The Commission ordered Staff to collaboratively produce a report by August 3 on best practices for addressing late payments and arrearages for vulnerable customers.
How to Get Involved
For more information about Missouri or to get more involved, contact Samarth Medakkar.
Legislative
On July 28, 2020, Ohio Democrats introduced House Bill 738, a bill that would repeal HB 6 (the 2019 law that established a bail out for coal and nuclear plants and repealed the energy efficiency and renewable energy resource standards).
Regulatory
On April 9, AEP Ohio filed a motion to set a test period and date for an application to increase its electric distribution rates. On July 23, the Ohio Consumers Counsel recommended denying AEP’s request for an administrative fee on any non-mandated energy efficiency programs, which the company expressed interest in implementing in testimony. OCC clarified that their position on the administration fee is in line with PUCO’s decision to strike the shared savings mechanism proposed by Duke (details below), because both are profit for the company for non-mandated programs.
AEP Ohio filed an application to amend their time-of-use rate option for default service customers to generate greater bill savings through energy savings during peak usage. The deadline for reply comments was July 24.
On June 8, Duke Energy filed a voluntary proposal for a new energy efficiency and demand-side management program portfolio to be offered in year 2021. On June 17, the Commission struck the shared savings provision in the proposal, citing the intent of HB 6 to terminate mandated energy savings programs in favor of market-based approaches, and that the purpose of shared savings is instead to incentivize overachieving energy savings (which are no longer mandated). On June 26, Duke withdrew this application for efficiency programs in 2021.
How to Get Involved
For more information about Ohio or to get more involved, contact Nick Dreher.
Executive
On May 21, Governor Evers’ Task Force on Climate Change met virtually for their third meeting. The Task Force, chaired by Lieutenant Governor Mandela Barnes, discussed a wide range of issues and will continue to meet over the summer. The Task Force is now charged with issuing recommendations by October 31, 2020, following an extension approved by Governor Evers.
The Energy, Housing, and Infrastructure Subcommittee most recently met on July 16. The subcommittee began to discuss the group’s recommendations that they will pass on to the full task force. Comments on the proposed recommendations are due July 31 and can be submitted here.
Legislative
The Wisconsin legislature has adjourned for the year. Committees will continue to meet in the coming months. Governor Evers may call a special session to respond to COVID-19 and to make adjustments to the state’s budget, but no additional session dates are scheduled at this time.
How to Get Involved
For more information about Wisconsin or to get more involved, contact Nick Dreher.
Legislative
The House Select Committee on the Climate Crisis issued their policy recommendations for a climate change plan. The report states efficiency is central to the recommendations for its benefits in flattening energy use and demand while cost-effectively reducing pollution and creating jobs.
On June 18, the House introduced a $1.5 trillion infrastructure plan, called the Moving Forward Act. Among other items, it includes $70 billion for clean energy projects, including significant investments for energy efficiency projects across multiple sectors. The bill also requires states to account for climate change before undertaking projects and requires states to comply with specific GHG emission goals to receive funding.
On May 15, the House passed the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES) Act. Among other provisions, the bill would increase low-income home energy assistance program (LIHEAP) funding to $1.5 billion through 2021, expand the Payment Protection Program and supply another $1,200 direct payment to eligible individuals. The bill has not received a vote in the Senate.
Regulatory
On June 18, the National Association of Regulatory Utility Commissioners (NARUC) announced their Task Force on Emergency Preparedness, Recovery and Resiliency, in addition to a subcommittee to review state and national response to COVID-19. The Task Force is a response to recent extreme weather events and the pandemic. Primary goals of the Task Force, in effect for two years, are outlined in the press release linked above. The Task Force held its first meeting during the NARUC Summer Policy Summit (July 19-22).
How to Get Involved
For more information about how this federal activity will impact the region or to get more involved, contact Nick Dreher.
Recent Blogs
- Assessing COVID-19's Impact: How Will the EE Workforce Bounce Back?
- Federal Relief for Small Businesses
- How to Pursue Industrial Efficiency in a Changing Policy Environment
Recent Fact Sheets